PayPal officially states that it requires that any new business give an EIN number and a business address. In our experience, PayPal is usually more demanding of Non-US and Non EU citizens. Paypal prefers companies to have a physical address (not a post office box), maintain a registered company in the US or EU, and also operate a business bank account in one of those jurisdictions.
PayPal is usually more willing to conduct business with registered companies that maintain business bank accounts. PayPal knows that government regulations force banks to follow security compliance and due diligence protocols that eliminate potential fraudsters from the pool of businesses that they evaluate. This screening process reduces the number of fraud cases that PayPal is forced to deal with.
