Important Things You Need For The KYC Procedure

Aug 16 2019 | PayPal editorial staff

A list of what you need to complete your KYC.
After signing up for a PayPal Business Account, you’ll need to complete 4 easy steps to activate your account before you can start getting paid. To start receiving local payments, you will need to go through the KYC Procedure that helps protect your business. Here’s a list of all the important personal and business information you’ll need to make the process faster.  

For Individual & Other Business Owners 

Email Address 
What is this? – A valid email address registered to your business that’ll serve as the primary email address for your PayPal account.

Individual PAN (Permanent Account Number) 
What is this?  Your PAN account number required for tax purposes. 

Proof of Bank Account 
What is this? – A copy of Cancelled Cheque or recent Bank statement containing your name and Bank Account number.

Proof of Residential Address
What is this?  A copy of any form of ID or utility bill containing your residential address issued by the Government. 

Additional For Sole Proprietors & Small Businesses

Proof of Business Entity  
What is this? – A copy of your Business Registration document or GST certificate. 

Proof of Business Address 
What is this? – A copy of any recent utility bill or GST certificate with your business address. 

Proof of Business PAN  
What is this? – A copy of your official business PAN.

Letter of Authorization (LOA) 
What is this? – A letter that contains your business’ official letterhead to authorize the PayPal Account Holder to manage all PayPal related activities. 

Once you have everything in hand, you’re ready to activate your account and start getting paid!


 
The contents of this site are provided for informational purposes only. You should always obtain independent, professional accounting, financial, and legal advice before making any business decision.

Frequently asked questions.

As part of the identity verification, business account holders in India would be required to submit a proof of their business entity.

Here are the type of business entity documentation that we accept:
  • TAN (Tax Account Number) card of business
  • Trade License
  • Shops & Establishment Registration Certificate
  • Sales & Income Tax Return
  • Registration Certification
  • Certificate of Importer-Exporter Code (IEC)
  • GST Registration Certificate
  • Certificate/registration document issued by Sales Tax/Service Tax/VAT Tax/Professional Tax authorities
  • Certificate of Incorporation
  • MOA (Memorandum of association)/ AOA (Articles of association)
  • Registered Partnership Deed

Note: If the proof of business entity you submit displays your business address, you do not need to submit additional proof of business address for identity verification.

How do I submit my proof of business entity?
You can take a photo of your physical document. To upload your document, please go to your Account Summary and click Notifications at the top right corner of the page, then follow the instructions on the screen.

To find the best way you can receive payments through PayPal, check out all the payment solutions we offer in India.

For your account security and compliance with India’s financial regulations, you’ll need to confirm your email address and your identity before you can receive PayPal payments and withdraw money from your PayPal account.  

Here are the actions you need to take: 

1. Confirm your email ID registered with PayPal

2. Complete the identity confirmation required for your business type

Find out the documents you should provide according to your business needs, and then click Complete your KYC to begin the identity confirmation. Our comprehensive step-by-step guides can guide you through this process.

  • To receive only international payments, you just need to:
    • Verify your PAN (Permanent Account Number)
    • Add your Indian bank account
    • Select a Purpose Code
  • To receive local and international payments, here are some of the documents you may need to provide:
After we’ve received the information and confirmed your identity, you’ll be able to receive PayPal payments and withdraw money to your bank account. You can also click Notifications (the bell icon) on your Summary page anytime to track your progress.
 
Follow this link if you have completed your KYC and you are looking for the next steps to receive Rupee payments on your website.
 
Note: What's a purpose code?
In accordance with Indian regulations, you’re required to add a reason for your payments (also known as a "purpose code"). This helps the regulators to understand the exact nature of your cross-border transactions. This purpose code must be in place before you can withdraw money from your PayPal account to your local Indian bank account. You only need to add the purpose code once, and it’ll be used as the default reason for all your payments.
To make a payment via PayPal.Me, please open the PayPal.Me link you’ve been sent or type it in your browser. Type the amount you’d like to send and choose how you’d like to pay. If you don’t have a PayPal account, we’ll help you create one. Signup is fast and free.

Can I cancel a payment?
You can only cancel payments which have the "Unclaimed" status. If the payment is completed, you won’t be able to cancel it yourself since your recipient has already received the funds. In this case, you should contact your recipient and ask for a refund.

Is my payment protected by PayPal?
If your transaction fulfils the eligiblity requirements for PayPal Buyer Protection, you’re covered for the full purchase price plus the original shipping charges.

Is there any fee for making a payment using PayPal.Me?
No. There's no fee for PayPal India customers to pay for purchases of goods and services. There'll be a fee for the merchant receiving your payment.
As part of the identity verification requirement in India, we’ll ask you to submit valid proofs of your address.

Proof of address
We accept a copy of:
  • Utility bills (phone and broadband services, gas, water, electricity, etc.) issued within 3 months
  • Bank account or post office savings bank account statements covering the last 6 calendar months
  • Valid passport
  • Valid driving license
  • Voter ID card
  • Aadhaar card
  • GST certificate of registration as valid proof address
  • Property or municipal tax receipt
  • Pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address
  • Documents issued by Government Departments of foreign jurisdictions and letter issued by Foreign Embassy or Mission in India
  • Letter of accommodation allotment from your employer issued by State or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies. Alternatively, you can provide the leave and license agreements with such employer allotting official accommodation to you.

Proof of business address
If your proof of business entity already displays your business address, you do not need to submit additional proof of business address.

If your business address isn’t visible on your business entity documentation, please submit a copy of:
  • Utility bills (phone and broadband services, gas, water, electricity, etc.) issued within 3 months
  • Bank statements covering the last 6 calendar months

What’s not an acceptable proof of address?
We do not accept:
  • Purchase receipts/invoices
  • Incomplete documents
  • Screenshots of your online banking or service pages

IMPORTANT NOTE:
  • The name and address on the documents must match those on your PayPal account.
  • The proof of address document must be dated within the last 3 months.
  • We cannot accept P.O. Box addresses as physical address verification.

How do I submit my proof of address?
You can take a photo of your physical document, or save a screenshot of your online bills/statements.

To upload your documents, please go to your Account Summary and click Notifications at the top right corner of the page, then follow the instructions on the screen.