There are a few obstacles to overcome when setting up a PayPal business account for Pakistani nationals, but it is possible legally. One strategy is to create a legal entity where Pakistanis can travel freely, such as an SDN BHD in Malaysia. Another strategy is to use a US LLC, which requires a friend or designated office manager to open a US bank account in order to enable a valid PayPal account linked to an ITIN/EIN.
In the event that a UK LTD Company or Estonian E-Residency is chosen, establishing a bank account may need physical presence, particularly in Estonia. In the case of the latter, a well-crafted business plan demonstrating connections to Estonia is necessary.
Basically, there are two main approaches: either you go to the selected nation in person to establish up an entity and bank account, or you use a reliable friend to serve as an office secretary and complete the process from a distance.
Establishing a legal entity and matching bank account guarantees the establishment of a PayPal account that is 100 percent legally owned. Most people are able to complete this process even when they present their Pakistani passport as identification. US LLC owners are advised to get an ITIN, which is the foreign alien equivalent of an SSN and is commonly accepted by PayPal, Amazon, and eBay.
In order to mitigate potential access problems from Pakistan, a more reliable and secure connection can be achieved by using a Virtual Private Server (VPS) as opposed to a standard VPN.