A Permanent Account Number or PAN, as it is commonly known, is not just for individuals but for companies as well. PAN is for all taxpayers living in the country, be it an individual, a partnership, or a company. Furthermore, it also acts as identity proof. 

For you to get the unique 10-character PAN, you need certain documents and identifications. In this article, we address a few things that you should know if you want to get a PAN for your company. 

Which businesses require a PAN card?

Any individual or corporate involved in business in India requires a PAN card. Be it an Indian company or a foreign company, you need to get registered and have a PAN card. 

Also, if your company is generating money from outside India but was registered in India or has a permanent establishment or even a simple office in India, you need a PAN card. 

If you come under any of the following entities, then you should be having a PAN card to deal in any kind of business. 

  • Company
  • Partnership firm
  • Association of persons
  • Limited Liability Partnership (LLP)
  • Body of Individuals
  • Trust
  • Incorporation
  • Limited company
  • Private firm
  • Association
  • Foreign institutional investor
  • Hedge fund

Why should your company have a PAN Card?

Your company’s PAN card is of huge significance as every transaction will go through this number. It also helps in identifying the tax flow of your company. Additionally, even if you are not eligible to pay tax under income tax benefits given to startups, you still need a PAN card if you are earning money. 

The following are the reasons why your company needs it:

  • For any tax-related transactions and documentation, you need to quote your PAN. By giving this number, the Income Tax Department can track your transactions. It is important that you have this so that no trouble comes your way
  • If you are a foreign company, you need to have a PAN to operate in India. Otherwise, the government can charge you the highest possible tax rates
  • The PAN helps you in the payment of your invoices without deduction, filing of tax returns, remittances, and much more
  • If you need a TRN (Tax Registration Number), a PAN is a must
  • According to the amendments made under Section 206AA in 2009, every foreign company must have its own PAN to continue with any business with a company in India or inside the country. All kinds of entities are included in this
  • The Indian government has the right to charge you 30% or more of your invoiced payments in case you do not have a PAN

How to apply for a PAN Card for your Business

You can apply for a PAN card through the online route through the NSDL website or do it via the offline method. 

The online method

  • You need to visit the NSDL website and fill the Form 49A from the drop-down menu
  • For the option of ˜Application Type’, fill the form listed under ˜Firm’. Fill in all the details like company name, date of application, and so on
  • Post this, you need to fill in the income details and company registration number. You also need to fill in the communication address
  • Fill in the Assessing Officer code (AO Code). If you do not know it, you can find it in the AO Code Search Panel on the NSDL website 
  • You need to upload copies of the required documents and pay the said fees. Certificate of Incorporation and Address proof are the two most important copies of information
  • Upon following all the steps, you will get an acknowledgment number through which you can track the details of progress regarding your PAN Card
  • You then need to send a signed acknowledgment form to the NSDL head office within 15 days

The offline method

  • You first need to download the Form 49A from the NSDL website and then print it
  • Fill the form as per the requirements and attach all the necessary documents
  • You need to submit the form and documents to the nearest NSDL centre. If you do not know a centre near you, you may find it on the website
  • The centre will issue a letter of acknowledgement as a proof to the fact that you have submitted your details and documents
  • Upon thorough verification of your details, you will receive the PAN card at the mentioned company address. The cost of this whole procedure costs you just 100/-

Documents required

For an Indian company

  • An identity or address proof
  • A copy of the Certificate of Incorporation
  • A copy of a No Objection Certificate issued by MCA (Ministry of Corporate Affairs)

For a foreign company

  • A copy of the registration certificate issued by Indian officials to setup an office in India
  • A copy of the certificate of registration from the applicant’s native country, duly attested by ‘Apostille’ or by the Indian Embassy or High Commission or even by authorised officials of overseas branches of scheduled banks registered in India

Furthermore, you need a bank draft that will be used to pay the issuance fee to the Tax Department to get a PAN card. Make sure that the payment is done in INR. You can also draw a foreign currency draft in favour of NSDL. 

If your ID proofs and company-related documents are all correct, the whole process does not even take a month. You can easily acquire the PAN card for your company and indulge in business in a smooth manner. 

Also read: How to Register a One Person Company in India

Frequently Asked Questions

What is the PAN Card fee?

For applicants residing in India, they need to pay a fee of INR 110, which is inclusive of processing fees of INR 93 + GST of 18%. For citizens outside the country, the Government charges a fee of INR 864 (exclusive of Goods and Services Tax).

How can I get a hard copy of my PAN card?

The physical copy of your PAN Card will be processed and dispatched to the communicated address upon successful registration. The e-PAN card in PDF format will be dispatched to the e-mail ID mentioned in the PAN application form.

How can I get PAN details?

You can get PAN card details through PAN number < You can get PAN details by name < You can get PAN details by date of birth < You can get PAN Card details by address

What is the business PAN format?

Each and every business in India need to have a business PAN Card. There are two ways to find the PAN of unlisted companies – either through the Income Tax India e-filing website or using the GSTIN (Goods and Service Tax registration number) of the company.

How can I get a PAN card in 2 days?

Visit the NSDL website and select the form < Select the type of form (with or without Digital Signature Certificate) and type of applicant from the drop-down menu and proceed to fill in the details < Submit the form < You will receive an acknowledgment in the form of your application number, which you can use to track the status of your application You will receive your PAN card through the registered e-mail ID once the details submitted have been verified and processed

How do you identify a PAN?

PAN is a ten-digit unique alphanumeric number issued by the Income Tax Department and is issued in the form of a laminated plastic card. The first three characters are always alphabets. The 4th character always represents your status, and the fifth character reveals the starting alphabet of your name. The next 4 are in a random numeric sequence, with the last character being an alphabetic check digit.

What is a full form of PAN?

PAN stands for Permanent Account Number.

Why is a PAN card required?

It is required for companies to operate in India < Any tax-related documentation is quoted along with your PAN < The PAN helps you in the payment of your invoices without deduction < The Indian government has the right to charge 30% or more of your invoiced payments in case you do not have a PAN

Is PAN for business mandatory for GST registration?

Yes, PAN Card along with Aadhar Card are important documents for GST Registration in India.

What are the documents required for a business PAN card?

An identity or address proof < A copy of the Certificate of Incorporation < A copy of a No Objection Certificate issued by MCA (Ministry of Corporate Affairs)

Author

Saurin heads Content at Razorpay. He's a fintech enthusiast who enjoys long walks in the Bangalore weather. He says he's a "cool dad" (those are his words, his son has refused to comment). He writes primarily on personal and business finance, and a little bit on marketing.

1 Comment

  1. Thanks for sharing your info. I really appreciate your efforts and I am waiting for your next write
    ups thank you once again.

Write A Comment