The Ultimate Guide on How to Open a Business Bank Account in Pakistan

Table of contents
Essential Information Before Opening a Business Bank Account in Pakistan
Is it Easy to Open a Business Bank Account in Pakistan as a Non-Resident?
How to Open an Online Business Bank Account as a Non-Resident in Pakistan
Opening a Business Bank Account in Person as a Non-Resident
Advantages and Disadvantages of Opening a Business Bank Account Online in Pakistan
The Safest Way to Receive Payment Online on Your Business Account in Pakistan
Finding the Best Bank to Open a Business Account in Pakistan
The Documents Needed to Open a Business Bank Account in Pakistan
Your Tax and Reporting Obligations When Holding an Online Business Account in Pakistan
Business Bank Account Requirements in Pakistan
Can You Open a US Business Bank Account for Non-Residents in Pakistan?
How Payoneer Makes Business Banking in Pakistan Easy for International Clients
Frequently Asked Questions (FAQs)

Opening a business bank account in Pakistan, especially as a non-resident, may seem daunting. But if you follow solid guidance and study the essential information you need to keep in mind, you’ll be able to navigate the process with confidence.

The aim of this guide is to provide you with essential information when it comes to opening a business bank account in Pakistan. We will detail the things you need to keep in mind and hand out a few tips along the way so you can manage everything efficiently. Finally, we’ll explain where Payoneer fits in. 

Whether you’re a resident entrepreneur or a non-resident freelancer looking to expand your business, this guide is your ultimate companion for business bank account requirements in Pakistan.

Essential Information Before Opening a Business Bank Account in Pakistan

Before opening a business bank account in Pakistan, it’s essential to familiarize yourself with the requirements. Pakistani banks typically require a set of identification documents, such as a valid passport, a tax registration certificate, a  proof of address, and official documents that verify your business’s legitimacy, including business registration and incorporation documents. Depending on the circumstance, non-residents may also need to provide extra verification. This could be in the form of a local representative or providing evidence of a local office address in Pakistan.

The choice of bank also matters. Some banks offer accounts tailored for international clients or Non-Resident Pakistanis (NRPs), which may include currency exchange options, international transfer facilities, and online banking. Pakistan’s anti-money laundering (AML) regulations also require background checks, especially for foreign entities. These checks may involve compliance assessments to ensure the source of funds is legitimate. 

It’s also important to be aware of banks that only operate with Islamic business bank accounts – that is to say, accounts that comply with sharia law. This would, for example, immediately eliminate any businesses dealing with gambling, alcohol, arms, pornography or tobacco as these industries are prohibited under sharia. 

Is it Easy to Open a Business Bank Account in Pakistan as a Non-Resident?

Depending on the type of business you are running, opening a business bank account online in Pakistan requires understanding, patience and time. As expected, it is more straightforward for residents. And while Pakistan’s banking sector has improved in terms of accommodating international clients, including with its online business bank account services, non-residents or foreign business owners will likely find the process complex due to additional regulatory requirements.

For non-residents, choosing a bank with a dedicated international banking service can simplify the process. Meezan Bank, for example, offers international business banking but all of them are Sharia-compliant. HBL, on the other hand, also especially caters to non-residents and is known for its modern, digital approach to banking. 

Banks like these often have teams familiar with foreign client needs and provide specialized services such as multi-currency accounts, international wire transfers, and dedicated relationship managers. That said, international clients may still need to jump through the hurdle of completing additional documentation and complying with extra regulatory requirements. 

These steps might seem cumbersome, but they are designed to protect you, your online business account and the bank itself.

How to Open an Online Business Bank Account as a Non-Resident in Pakistan

Opening an online business bank account in Pakistan is ideal for entrepreneurs looking to establish a business presence in the region while being in another country. Many popular Pakistani banks, such as UBL and Standard Chartered, offer online applications for non-residents. The process usually starts by choosing a bank that provides international banking services and completing an online application form. You will then need to upload a set of documents required to open business bank accounts, which typically include a passport, proof of business registration, and in some cases a local address verification. Make sure to read every requirement and fine print, as some banks also ask for tax identification numbers, especially if the business generates local revenue.

Once your documents are submitted, the bank may schedule a virtual meeting to verify your identity, which is part of the procedure known as “Know Your Customer” (KYC) and is mandatory. This usually involves a video call with a bank representative who will verify your identity and your documents and ask you some questions about your business intent. 

If everything goes well, you will gain access to various online business account features, such as managing international payments, handling multi-currency transactions, and transferring funds across borders. Choosing a bank with strong online support, a solid reputation for its digital features, and a responsive international banking team is essential if you will be planning on managing your account from abroad.

Opening a Business Bank Account in Person as a Non-Resident

To open a business bank account in Pakistan as a non-resident in the more traditional way, that is, by going in person, the first thing you’ll still need to do is choose a bank that has experience with international clients. Once you have chosen, contact them to confirm requirements and schedule an appointment. 

The quality of the face-to-face customer service you receive is imperative when you’re opening a business bank account in person. On your visit, be sure to bring key documents needed to open business bank accounts that we mentioned above. 

Some banks may also ask for a local representative and may conduct AML checks, but we suggest you ask about this over the phone before you come in for your appointment so that you are fully prepared. 

Advantages and Disadvantages of Opening a Business Bank Account Online in Pakistan

Opening an online business bank account in Pakistan offers a host of advantages, particularly for international business owners. The most obvious one is convenience; you can manage your account, transfer funds, and conduct transactions remotely without needing to physically go to the branch.

As mentioned above, many Pakistani banks now provide comprehensive online banking services, including multi-currency support, real-time tracking, safest ways to receive payments online and online invoicing. This can be especially valuable for entrepreneurs who are frequently on the move and interact with clients across borders, since it streamlines financial management. Off the back of this, the time you save when it comes to maintaining your business account online as opposed to transacting in person is another big advantage. 

However, you should also be aware of the potential disadvantages. Pakistan is still developing its online banking infrastructure, so some accounts may have limited access to in-person support. There are online banking platforms that may also lack advanced international transaction features, such as the ability to hold multiple currency balances. Internet speed, server maintenance, and getting quick resolutions to complex questions that require more than one team to be involved are all factors that need to be considered as well. 

Additionally, non-residents could especially face strict verification procedures, including more detailed compliance checks and possible delays in account activation. It’s crucial to evaluate these factors and determine if online banking aligns with your specific business needs. 

The Safest Way to Receive Payment Online on Your Business Account in Pakistan

Receiving payments securely is a number one priority for businesses. Pakistani banks have invested in secure online payment systems designed to protect businesses and their clients. These systems usually feature multi-layered authentication, encryption protocols, and fraud detection mechanisms to ensure transactions are secure and reliable. For international clients, banks in Pakistan provide options like SWIFT transfers, which are accepted around the world and offer enhanced cross-border payment security, but they do tend to take longer to process.

This is where payment platforms like Payoneer fill the gap. We offer one of the quickest and most cost-efficient avenues for secure and efficient online transactions. Payoneer’s secure platform enables business from all across the world, including Pakistan, to receive payments through various methods, including ACH transfers, credit card payments, and other digital payment solutions. 

Using Payoneer would reduce your reliance on traditional banking channels and would more often than not result in lower fees and faster processing times. It will also further enhance security and establish clear payment protocols.

Learn more about using Payoneer to receive payments from clients here. 

Finding the Best Bank to Open a Business Account in Pakistan

Choosing the right bank to open a business account in Pakistan depends on several factors, including your business’s size, scope, and transaction needs. Aforementioned banks like HBL, UBL, and Meezan Bank offer specialized accounts tailored for small businesses and international clients, often featuring tools for cross-border transactions, online account management, and multi-currency options. Each one caters to a certain niche of businesses, however, so research is important. 

When selecting a bank, consider factors such as currency exchange rates, transfer fees, online banking capabilities, and customer service. Some banks prioritize competitive rates for overseas transactions, which could benefit businesses with frequent overseas dealings. It’s also helpful to look for banks that offer 24/7 customer support or dedicated relationship managers for business clients, as these services can make a difference when managing a business account online. 

Conducting thorough research and possibly consulting other business owners can help you identify a bank that aligns with your financial goals. Here’s another tip: if you already know the payment platform you will be using to send and receive payments, like Payoneer for example, make sure the bank you want to open your business account in Pakistan works with that platform. 

The Documents Needed to Open a Business Bank Account in Pakistan

Opening a business bank account in Pakistan is no different than in any other country; it requires specific documentation to comply with regulatory standards and establish legitimacy. We already mentioned these above, but they bear repeating: the documents needed to open business bank account includes a valid passport and any other government-issued identification, which are crucial for identity verification. You’ll also need to present proof of business registration, such as a certificate of incorporation or registration document, depending on your business. This makes sure that the bank can verify the legitimacy of your business.

Additionally, a proof of address is required, which would usually include a utility bill or lease agreement. For non-residents, some banks may also ask for a local address verification or a representative’s contact information so it’s important to check this information before proceeding too deep in the process. 

Lastly, a tax identification number (TIN) – in Pakistan, the equivalent is the National Tax Number (NTN) – is required to meet tax compliance standards. Ensuring that all documents are up-to-date and in English is essential.

Your Tax and Reporting Obligations When Holding an Online Business Account in Pakistan

When holding an online business bank account in Pakistan, non-residents must comply with specific tax and reporting obligations under Pakistani law. All businesses, regardless of their residency, must report their income and file taxes with the Federal Board of Revenue (FBR). Non-resident business owners typically need to acquire an NTN to facilitate tax registration. Pakistan has a corporate tax rate that applies to income generated within the country, so if your business earns revenue inside Pakistan, you will need to declare this and pay the relevant taxes.

It’s wise to consult with a local tax advisor, especially if your business is engaged in complex transactions or generates income in multiple currencies. Tax professionals can assist with understanding Pakistan’s tax treaties, which might reduce double taxation for international business owners. Meeting tax obligations is essential for maintaining a good standing with the FBR and ensuring compliance with local regulations.

Business Bank Account Requirements in Pakistan

To open a business bank account in Pakistan, business owners — whether you are  residents or non-residents — must provide a list of documents. Required documents were discussed in the document section above. Keep in mind that non-residents may face additional verification steps, such as a compliance review or designating a local representative. 

Requirements can vary by bank, so in your research for the best bank, it’s best to confirm with them in advance. Ensuring all documents are current and translated –  though most banks in Pakistan handle everything in English when it comes to international business bank accounts, it’s best to confirm – the application process should be streamlined for a successful business bank account opening.

Can You Open a US Business Bank Account for Non-Residents in Pakistan?

Opening a US business bank account as a non-resident from Pakistan, meaning that your account would be denominated in US Dollars, is complex and involves additional considerations. For example, a business bank account in USD requires in-person verification to open an account, making it challenging to establish one purely online. However, there are some solutions available for non-residents in Pakistan looking to receive US dollars but not having US bank accounts. 

Financial platforms, like Payoneer, provide tools to manage international transactions, allowing businesses to hold and receive U.S. dollars without requiring a physical presence in the U.S.

Learn more about accepting international payments in global currencies here.

How Payoneer Makes Business Banking in Pakistan Easy for International Clients

Payoneer offers practical solutions for international clients needing business banking services in Pakistan. Known for simplifying cross-border payments, Payoneer enables businesses to open multi-currency accounts, allowing seamless management of finances across various regions, including Pakistan. Clients can receive payments in multiple currencies into these accounts as if they were local, which is ideal for international business transactions without the need for traditional banking services. Learn more.

Setting up a Payoneer account is straightforward, and it provides the necessary tools to streamline international transactions. The best place to start your journey with Payoneer is by visiting our main business page and navigating to where you need to be.

Frequently Asked Questions (FAQs)

What is the best business account type for international transactions in Pakistan?

Each bank has their own versions of business bank accounts. For example, there are accounts tailored for corporations and then there are accounts tailored for smaller business. For international transactions, the common denominator that the best international business account types in Pakistan have is that they can accept foreign currencies.

Many Pakistani banks offer specialized business accounts that support multiple currencies, allowing for smoother transactions with international clients and suppliers. Foreign currency accounts are equipped to handle USD, EUR, GBP, and other major currencies, providing flexible currency exchange options. These accounts often include online banking for easier overseas transfers, payment tracking, and invoicing tools. 

Just keep in mind that in terms of keeping cross-border transactions hassle-free and cost-efficient, Payoneer’s localized services are worth considering over traditional banks.

How to open a business account online in Pakistan?

To open a business account online in Pakistan, the first thing you need to do is research every bank that supports digital account opening for international clients. Many banks, like UBL and Standard Chartered, offer online applications for business accounts.

You’ll usually need to upload essential documents, such as your passport, proof of business registration, and contact information. Some banks may even require an in-person meeting or verification process, which could be scheduled remotely. Once your application is processed, you’ll have access to online tools that help you manage your business account in Pakistan, pay suppliers, and receive payments from clients worldwide.

Can I open a business bank account online from Europe?
Yes, it’s possible to open a business bank account in Pakistan from Europe, typically with banks that only offer online services for non-residents. Begin by choosing a Pakistani bank that supports international clients and review their online business bank account requirements. You’ll likely need to submit scanned copies of identification documents, proof of business ownership, and, in rare cases, appoint a local representative. 

Once approved, you’ll be able to access your account digitally, allowing you to handle your business finances from Europe without too much hassle. Especially if you use a platform like Payoneer for your payments.

What is the minimum amount required to open a business bank account in Pakistan?

The minimum deposit required to open a business bank account in Pakistan depends on the bank and business account type. For instance, Allied Bank‘s Allied Business Account requires a minimum monthly average balance of PKR 50,000, with certain free services available upon maintaining an average balance of PKR 25,000. Conversely, Mobilink Bank‘s Business Plus Account can be opened with an initial deposit as low as PKR 100. 

Be sure to consult with the specific bank to understand that they require and choose an account that aligns with your needs.

How do I open a business checking account online in Pakistan?

Opening a business checking account online in Pakistan is becoming increasingly easier as banks improve upon their digital services. Here’s a quick step-by-step guide:

1. Choose a Bank: Decide on a bank that offers online account opening for business checking accounts. Banks like Standard Chartered and Meezan Bank are two examples.
2. Prepare Documentation: Gather the right documents, including your ID, your business registration certificate, National Tax Number (NTN), identification documents of owners or directors, and proof of address.
3. Online Application: Visit the bank’s website and go to the business account section. Fill out the necessary form and upload the required documentation.
4. Verification: The bank will most likely conduct a verification process. This may involve an online meeting or, in some very rare cases, a request to visit your business premises.
5. Approval and Activation: Once you are verified, the bank will approve your application and provide you with the account details, enabling you to access all the online banking services you need.
   

For more guides and resources, be sure to check out Payoneer’s Resource.

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