Getting paid from Pakistan
Pakistani businesses cannot sign up for Stripe, PayPal or Shopify Payments. Freelancers usually depend on marketplace payouts, bank wires and services such as Payoneer, each with its own fees and limits.
A US LLC can apply for US Stripe, US PayPal Business and Shopify Payments with its EIN and a US business bank account. The providers check the business, the website and the owner's passport, and they decide. They may also look at where the owner lives, so be open about it.
At home
Sending money abroad: State Bank rules
Investment abroad by residents is governed by Chapter 20, paragraph 13 of the State Bank of Pakistan's Foreign Exchange Manual. The funds must be legitimate and tax-paid, and the investor must be on the active taxpayer list.
- Resident individuals: general permission covers shares of listed foreign companies (up to USD 25,000 a year, at most 1% of a company), employee share option plans, and sweat equity of up to 20% received for your services without paying money.
- Pakistani IT companies: general permission to set up or fund a subsidiary abroad, from their exporter's foreign currency account or within set limits, through a designated bank branch.
- Anything outside these categories, such as an individual sending money to capitalize a 100%-owned US LLC, goes through your bank to the State Bank for approval.
Investments made under these rules must be reported, and dividends or sale proceeds brought back through banking channels and converted to rupees. Talk to your bank and a chartered accountant before the first transfer.
Pakistani tax and disclosure
Pakistan taxes residents on worldwide income. Section 109A of the Income Tax Ordinance, 2001 has controlled foreign company rules: the income of a foreign company controlled by Pakistani residents can be taxed in Pakistan if it pays little foreign tax and fails an active business test. How a US LLC is treated under these rules is a question for a chartered accountant. The US and Pakistan have an income tax treaty.
Your wealth statement covers assets abroad. Under section 116A, a resident individual with foreign income of USD 10,000 or more, or foreign assets of USD 100,000 or more, also files a foreign income and assets statement. Not declaring an offshore asset can lead to prosecution under section 192B.
The US side is the same for everyone
Where you live does not change the US part. It is done online, without travelling, without a US address and without an SSN.
- Choose a state: Wyoming or New Mexico for low running costs, Delaware if you plan to raise money from investors.
- The formation document is filed with a registered agent in that state, within 48 hours.
- The EIN is requested from the IRS as soon as the state approves. No SSN or ITIN is needed.
- You get the operating agreement that banks and payment providers ask for.
- With those documents you apply for a US business bank account, for example at Mercury.
- Every year: the registered agent, the state's annual report where there is one, and Form 5472 for a single-member LLC owned by a foreign person.
Which state?
With no people or premises in the US you can choose any state. Most founders abroad choose on yearly cost and speed.
Sources checked on November 2, 2026
This page is general information, not legal or tax advice. Rules and fees change; check your own situation with a chartered accountant in Pakistan before you form the LLC.
