How to Open a PayPal Account from Bangladesh

Hello, Folks! Are you exploring the incredible benefits of using one of the best payment gateways, PayPal? Imagine making your business transactions smoother, faster, and more efficient—globally! But here’s the challenge: PayPal doesn’t support every country, and unfortunately, Bangladesh is on that unsupported list.

So, how do you bridge the gap? How can you open a fully functional PayPal account in Bangladesh and unlock endless possibilities for your online business?

This blog serves as your go-to resource for instructions on how to open a PayPal account from Bangladesh. We have all the tricks to make this process easy for you, so stay tuned.

Why PayPal Doesn’t Support Bangladesh?

PayPal doesn’t operate in Bangladesh, mostly because of problems with regulations and following the rules. Bangladesh Bank, the country’s official bank, has strict rules about foreign exchange that make it challenging for international payment systems like PayPal to work. These rules are meant to stop people from laundering money and keep the economy stable, but they make it very hard for foreign financial services to enter the market.

PayPal has also been reluctant to offer its services in Bangladesh because of concerns about potential fraud risks and the readiness of the local market. The market is less attractive for PayPal’s expansion since there is less urgent demand for their services due to the widespread use of local payment systems like bKash and Nagad.

However, there have been efforts to get PayPal to work in Bangladesh. PayPal and Sonali Bank worked together on developing the Xoom service in 2017, which lets people get money sent to them from other countries. But this service only lets you receive money. It does not offer all of PayPal’s benefits, like transferring money or buying things online.

Despite these hurdles, the increasing demand for PayPal among Bangladeshi businesses and freelancers might eventually encourage its entry. Until these barriers are addressed, PayPal remains unavailable directly in Bangladesh.

Eligibility to Open a PayPal Account in Bangladesh

First thing first! You might wonder what the solution is then. How can you use PayPal in Bangladesh when this famous payment gateway doesn’t officially support the mentioned country’s users?

The positive news is that you can still create a PayPal Business Account—this opens up numerous opportunities for accepting payments, handling international transactions, and growing your business globally.

But in order to do this, you must lawfully register your company in a country that accepts PayPal, such as an LLC in the US or a limited company in the UK, UAE, Singapore, Australia, etc. If you are at least 18 years old, you can then open a PayPal business account by providing the necessary documentation and complete business facts.

Why Do You Need a PayPal Business Account: Key Advantages

Before you get started, let’s explore the advantages of having a PayPal business account to help you determine if it’s the right choice for your needs.

Global Acceptance

With a PayPal business account, you can access a vast network of customers worldwide. Whether you’re selling products or services, PayPal allows you to easily receive payments in different currencies from customers around the globe.

Fast Payment Processing

PayPal eliminates the need to repeatedly share your bank details. All you need is your email address to make online payments faster and safer. This convenience is invaluable for frequent transactions with international clients or platforms.

Flexibility with Multiple Currencies

PayPal accepts a wide range of currencies, making international transactions simple and free of currency conversion fees. PayPal converts currencies automatically, saving you time and reducing the potential for errors.

Access to Advanced Business Tools

PayPal business accounts come equipped with tools to optimize online operations. From customizable invoice templates to payment buttons for websites and integrations with platforms like Shopify and WooCommerce, these features boost efficiency and customer experience.

Secure and Reliable Transactions

PayPal prioritizes security with advanced encryption and fraud prevention measures. For online businesses in Bangladesh, this ensures peace of mind when handling international payments.

Lower Transaction Fees for Businesses

PayPal business accounts often offer lower transaction fees than personal accounts, particularly for international payments. This cost-effectiveness helps you retain more of your earnings.

24/7 Customer Support

PayPal business account holders enjoy round-the-clock customer support. Whether it’s technical assistance or help resolving disputes, PayPal ensures your concerns are addressed promptly.

Mobile Accessibility

Manage your payments on the go with the PayPal app, ensuring you never miss an opportunity to handle transactions or monitor your account.

Access to PayPal Credit Options

PayPal Business accounts often come with access to credit services, helping you manage cash flow during business expansion or slow seasons.

Enhanced Professional Image

Using PayPal lends credibility to your business. Customers worldwide trust PayPal for its secure, reliable reputation, giving your business a professional edge.

Requirements to Open a PayPal Account from Bangladesh

So, after learning the advantages, you can easily decide whether you still need to set up a PayPal business account or not—it depends on your needs!

Once you decide to open a PayPal Business account from Bangladesh, you must prepare the following details:

1. A Registered Business

Ensure your business is registered in a PayPal-supported country, such as the UK. This is essential since PayPal does not operate directly in Bangladesh. To create a PayPal Business account, you must have a registered business name and provide accurate details. Make sure you possess the necessary documentation, including:

• Business license or registration certificate.
• Tax Identification Number (TIN).

2. An International Business Address

Since PayPal is not supported in Bangladesh, you must provide a valid address in the country where PayPal operates. This can be your address abroad or a registered address through international services.

3. International Bank Account

You need to have a bank account in a PayPal-supported country. A foreign bank account is essential for linking with PayPal. This account will facilitate fund withdrawals since local Bangladeshi banks are not directly supported.

4. Valid Email Address

A professional and working email address is critical for setting up, verifying, and managing your PayPal account. This email will be your primary communication tool for transactions and notifications.

5. Foreign Phone Number

A phone number from a PayPal-supported country is often required for account setup and verification. This may vary depending on which PayPal-supported country you want to open a PayPal account from.

For instance, if you want to open a PayPal business account in the UK, then you need to provide the UK phone number.

6. Official Business Website or Online Presence

A professional online presence, such as a website or verified business social media account, is helpful in showcasing your business legitimacy.

7. Credit or Debit Card

For purchases and verification, you must have a credit or debit card from a globally reputable company (such as Visa or Mastercard).

8. Taxpayer Information

PayPal may request tax-related information from the country where your business is registered. Ensure compliance with tax laws to avoid restrictions.

Suppose you register your PayPal business account with a business in the United States while operating from Bangladesh. During account setup, PayPal may request your Employer Identification Number (EIN) or social security number (SSN) as part of U.S. tax compliance.

And again, if you choose to operate a UK PayPal account, then a VAT number may be needed.

9. Secure IP Address

When setting up a PayPal account from Bangladesh online—to manage your account securely, access PayPal from an IP address associated with the registered country. Choose a reliable IP provider for safe access.

How to Open a PayPal Account From Bangladesh?

Without causing any more delay, let’s focus on our main purpose and lighten ourselves. Before proceeding, carefully choose your target country to ensure seamless account setup and accessibility.

Here, we’ll focus specifically on the process of opening a UK-based PayPal account. For those interested in opening a US-based PayPal account, we’ve provided a separate, detailed guide for that.

Key Steps to Open a PayPal Account in Bangladesh

1. Open a Business in a PayPal-Supported Country: UK

If you don’t already own a UK-based business, you’ll need to legally register one through Companies House, the UK’s official company registrar. This process can be handled smoothly with the help of professional service providers like Business Globalizer, ensuring all legal requirements are met efficiently.

2. Gather Necessary Information

When setting up your account, be ready to provide:

• Your UK business name and registration number.
• Your virtual UK business address and phone number.
• A valid email address and credit/debit card details.

3. Visit the PayPal UK Website

Next, go to the PayPal UK website, click on “Sign Up,” and select the Business Account option.

4. Provide Your Business Details

Enter your UK business name, company registration number, and business address. Use your UK phone number and email for communication and verification.

5. Link Your Bank Account

Connect your PayPal account to a UK bank account or a compatible service like Wise or Payoneer, which provides UK-based account details. PayPal will send small deposits to verify your bank account.

6. Complete Verification

Confirm your email address through the link sent by PayPal, and submit any additional documents, such as proof of identity and business registration.

Once all the steps are completed, your UK PayPal Business Account will be ready to use for global transactions, giving you access to secure and efficient payment solutions.

Potential Risks and Compliance Issues with Setting Up a PayPal Business Account in Bangladesh

While registering a business in a PayPal-supported country to access its services can be a practical solution, it comes with notable risks and compliance challenges. Here’s what you need to consider:

• Legal and Tax Obligations: Setting up a business abroad requires compliance with local laws, including licensing and operational rules. You may also need to file tax returns or pay corporate taxes in the registered country, even if operations are based in Bangladesh, which can result in tax liabilities without proper treaty utilization.
  
  
• Operational Challenges: Managing a foreign business involves time zone differences, language barriers, and logistical issues that may affect efficiency and customer support, impacting overall business operations.
  
  
• Banking Hurdles: Opening a foreign bank account may require proof of residency and extensive documentation. Moreover, transferring funds to a Bangladeshi bank account directly isn’t possible. Instead, you’ll need to rely on an international bank linked to your PayPal account and then transfer money through additional channels.
  
  This process often takes longer compared to regions with official PayPal support, leading to potential delays in accessing your funds.
  
  
• Risk of Account Suspension: PayPal may suspend accounts if they detect activities aimed at bypassing regional restrictions, such as inconsistent business practices, suspicious activity, or mismatched IP and geolocation data, leading to lost funds and operational disruptions.
  
  
• Geolocation Monitoring: PayPal’s advanced IP tracking flags accounts accessed from unsupported locations, such as Bangladesh, using VPNs or mismatched IP addresses, increasing the risk of account limitations or suspension.

How Business Globalizer Can Help

Opening a PayPal account from Bangladesh can be very challenging for beginners by following PayPal’s terms of service and accurate guidelines—that’s where Business Globalizer comes in.

Our end-to-end services ensure a seamless process, including:

• International Company Formation: Legally register your business in PayPal-supported countries like the US, UK, or UAE with ease.
  
  
• Bank Account Setup: Get assistance opening international bank accounts or using services like Wise or Payoneer.
  
  
• Virtual Essentials: Access a professional business address, phone number, secured IP, and support for compliance.
  
  
• PayPal Account Guidance: Expert advice to ensure smooth account creation, verification, and ongoing management.

With Business Globalizer, you can focus on growing your business while we handle the technicalities. Start your journey to global transactions today—hassle-free!

FAQs

Q1: Can I Use PayPal in Bangladesh Without Registering a Foreign Business?

Answer: PayPal does not offer services in Bangladesh, nor can you open an account without registering a business in another country to use from Bangladesh and reside there. That is in violation of PayPal’s Terms of Service.

Q2: What Should I Do If My Account Gets Restricted?

Answer: If your PayPal account becomes restricted, follow these steps:

• Review PayPal’s Communication: Check your email or PayPal account dashboard for specific reasons behind the restriction.
  
  
• Provide Requested Information: Submit any documents or information PayPal requests to verify your identity or business activities.
  
  
• Contact PayPal Support: If clarification is needed, reach out to PayPal’s customer support for assistance.
  

Timely and accurate responses can expedite the resolution process.

Q3: Are There Alternatives to PayPal for Bangladeshi Businesses?

Yes, several alternatives cater to Bangladeshi businesses:

• Payoneer: A global payment platform popular among freelancers and businesses for receiving international payments.
  
  
• Skrill: Offers international money transfer services and is widely used for online transactions.

These platforms provide viable alternatives for conducting international transactions from Bangladesh. You can effectively manage online payments and expand your business’s global reach.

Final Words

By following the outlined steps—forming or having a company in a PayPal-supported country, obtaining necessary tax IDs, and setting up a business bank account—you can unlock seamless global payment solutions for your business.

If you want to save time or avoid the hassle, you can rely on Business Globalizer! Whether you need to set up a company in a PayPal-supported country or simply just need to open a PayPal account from Bangladesh, we are here to help you.

Don’t let geographical boundaries limit your potential. Take the first step today and make global payments simpler, faster, and more accessible!