Get A Pan Card For Your Business: A Step-By-Step Guide

A Permanent Account Number (PAN) card is a crucial document for taxpayers in India. It is a 10-digit alphanumeric number that serves as a unique identifier for each cardholder. The PAN card is mandatory for companies incorporated in India or abroad that are conducting business in the country. This includes companies generating income outside India but registered in the country or with a permanent establishment or office in India. The PAN card is used for tax filing, opening bank accounts, legal compliance, and other financial activities. The application process for a PAN card can be completed online or offline, and the card typically takes around 15 days to be issued.

How to apply for a business PAN card online

Applying for a business PAN card is a straightforward process that can be completed online. Here is a detailed, step-by-step guide on how to apply for a business PAN card online:

Step 1: Visit the NSDL Website

Go to the official website of the National Securities Depository Limited (NSDL). You will find the necessary forms and guidelines in the PAN application section of the website. This website provides a user-friendly platform for individuals and businesses to initiate their PAN card application process remotely.

Step 2: Select the Application Type

On the NSDL website, you will find an option to select the suitable application type for your business. Choose the specific category that matches your business entity, such as Company, partnership firm, LLP, or any other relevant classification. It is important to select the correct application type to ensure compliance with legal requirements and accurate processing of your application.

Step 3: Provide Company Details

After choosing the application type, you will need to enter important information about your business, such as the legal name, registration number, and office address. Ensure that the details provided match the official records to avoid application rejection or delays. Double-check the information for accuracy before proceeding to the next step.

Step 4: Specify Income Source

In this step, you need to indicate the primary source of income for your business. Specify whether the income is generated from sales, services, investments, or other revenue streams. Providing comprehensive and accurate details about your business's income sources is essential for tax assessment and compliance.

Step 5: Provide Jurisdiction Details

Specify the jurisdiction under which your business falls for tax purposes, including the area code, assessing officer, and range code. Providing accurate jurisdiction information ensures that your application is routed to the correct tax office for proper tax assessment and compliance.

Step 6: Upload Company Documents

Upload essential company documents, such as the registration certificate, partnership deed (if applicable), and identity/address proofs of authorized signatories, partners, or directors. Ensure that the documents are clear, complete, and in the specified format. Uploading accurate and verified documents is crucial for validating your business's authenticity and expediting the verification process.

Step 7: Pay the Application Fee

After uploading the necessary documents, proceed to pay the PAN card application fee. The fee varies for different types of businesses. Use secure online payment methods such as credit/debit cards, net banking, or digital wallets. Confirm the transaction and ensure that the payment is made in the correct amount.

Step 8: Receive an Acknowledgment Number

Upon successful payment and submission of your application, you will receive an acknowledgment number. This unique identifier is crucial for tracking the status of your application. Keep this number safe, as it allows you to monitor the progress of your business PAN card request.

Step 9: Send the Required Documents

Print and sign the acknowledgment receipt generated after payment. Gather all the required documents, including the acknowledgment, and send them to the address specified by the authorities. Ensure that all documents are complete, accurate, and well-organized. Sending the necessary paperwork promptly is essential for the verification process and expedites the issuance of your business PAN card.

Obtaining a business PAN card is crucial for financial transparency and compliance with Indian tax regulations. The entire process typically takes around 15 days for the card to be issued. By following these steps, you can efficiently apply for a business PAN card online and ensure a smooth application process.

How to apply for a business PAN card offline

Applying for a business PAN card offline involves a few simple steps. Here is a step-by-step guide:

Step 1: Download Form 49A

Download Form 49A from the NSDL or UTIITSL website. Form 49A is the application form for a PAN card. You can also obtain this form from the nearest NSDL centre.

Step 2: Complete the Form

Fill in all the required details in the form meticulously. Ensure that the information provided is accurate, up to date, and legible.

Step 3: Attach Documents

Attach the necessary documents as specified in the form's instructions. These typically include proof of identity, address, and the company's incorporation certificate. For a foreign company, you will need a copy of the registration certificate issued by Indian officials to set up an office in India.

Step 4: Submit the Form

Submit the completed form along with the attached documents to the nearest NSDL processing centre. You can find the address for these centres on the government's TIN website.

Step 5: Acknowledgement Receipt

Upon submission, you will receive an acknowledgement receipt, which serves as proof of your application submission.

Step 6: Verification and Delivery

The authorities will verify the submitted documents. Once the details are verified, the PAN card will be dispatched to the company's registered office address.

The cost of the whole procedure is Rs. 100. The estimated processing time for a business PAN card issuance is around 15 days.

Documents required for a business PAN card

To apply for a PAN card for your business, you will need to submit several documents as proof of identity and address. The specific documents required will depend on the type of entity that you are registering. Here is a list of the documents that may be required:

Certificate of Registration

Issued by the Registrar of Companies, this document can serve as both identity and address proof for companies.

Certificate of Registration for Limited Liability Partnership Firms

Issued by the Registrar of LLPs, this document is required for Limited Liability Partnership Firms.

Partnership Deed or Certificate of Registration

These documents are required for Partnership Firms and are issued either by the applicant's bank or by the Registrar of Firms.

Trust Deed or Certificate of Registration

Trusts must provide a Trust Deed or a certificate of registration number issued by the Charity Commissioner.

Certificate of Registration Number

Associations of persons (other than trusts), bodies of individuals, local authorities, or artificial juridical persons must provide a certificate of registration number issued by the charity commissioner, registrar of the cooperative society, or any other competent or local authority.

Other Documents

Any other document originating from a central or state government department that establishes the identity and address of the applicant may be accepted.

Additional Documents for Indian Companies

An Indian company must also provide an identity or address proof, a copy of the certificate of incorporation, and a copy of a no-objection certificate (NOC) issued by the Ministry of Corporate Affairs (MCA).

Additional Documents for Foreign Companies

Foreign companies must provide a copy of the registration certificate issued by Indian officials to set up an office in India and a copy of the certificate of registration from the applicant's native country, duly attested by Apostille, the Indian Embassy, the High Commission, or authorised officials of overseas branches of scheduled banks registered in India. A bank draft to pay the issuance fee in Indian currency is also required.

Why a business PAN card is necessary

A business Permanent Account Number (PAN) card is a crucial document for companies operating in India. It is a 10-digit alphanumeric number that serves as a tax identity for businesses and is necessary for several financial activities. Here are several reasons why a business PAN card is essential:

Compliance with Legal Requirements:

The Indian government has mandated PAN for all entities generating income in the country, including companies doing business in India, regardless of their incorporation jurisdiction. This legal requirement ensures compliance with tax regulations and helps the government track financial transactions for tax purposes.

Tax-related Transactions and Documentation:

A business PAN is necessary for tax-related transactions and documentation. When conducting business activities, providing your PAN number ensures that the Income Tax Department can track your transactions, avoiding potential issues and enabling smooth tax-related processes.

Avoiding Higher Tax Rates:

For foreign companies operating in India, possessing a corporate PAN card is crucial to avoid the highest possible tax rates. Without a PAN, the Indian government has the right to charge 30% or more of your invoiced payments.

Financial Transactions and Compliance:

A business PAN card is essential for various financial transactions, including invoice payments, remittances, and tax returns. It serves as the basis for these transactions and helps maintain financial integrity and compliance with regulations.

Eligibility for Tax Benefits:

Obtaining a business PAN card makes your company eligible for tax breaks and incentives. It is necessary for filing income tax returns, opening bank accounts, and making investments.

Obtaining a Tax Registration Number (TRN):

A PAN is mandatory when applying for a Tax Registration Number (TRN). The TRN is essential for businesses to comply with tax laws and receive tax-related benefits.

In conclusion, a business PAN card is a vital document for companies operating in India, facilitating smooth financial transactions, tax compliance, and eligibility for various tax benefits. It is a necessary step to ensure the legal and financial integrity of your business.

How to fill out the PAN card application form

Step 1: Visit the NSDL or UTIITSL website

Go to the NSDL website and select the "Paperless PAN Application Section". Alternatively, you can access the application form through the UTIITSL website.

Step 2: Select the correct form and fill in the required details

Select Form 49A or 49AA from the 'Application Type' dropdown menu and choose 'Firm' or 'Company' from the 'Category' dropdown menu. Fill in the title, name of the company, date of incorporation, email ID, and contact number.

Step 3: Provide the source of income

Select 'Income from Business/Profession' and choose the type of business from the menu. If you have other sources of income, such as house property or capital gains, mention those as well.

Step 4: Fill in the office address

Provide the office address, which will also be your communication address in the PAN database. Other contact details will be pre-filled.

Step 5: Provide the Assessing Officer (AO) Code

You can find the AO Code by selecting the ''Indian Citizen' option and then choosing your 'State' and 'City'. Alternatively, you can search for the AO Code on the NSDL website.

Step 6: Upload the required documents

For companies, the Certificate of Registration issued by the Registrar of Companies can serve as both identity and address proof. You will also need to provide proof of identity and address. Depending on the type of entity, accepted documents include the Certificate of Registration, Partnership Deed, Trust Deed, and more.

Step 7: Sign the declaration

Indicate your relationship with the company, such as Director or Authorised Signatory, and sign the form.

Step 8: Upload scanned copies of the required documents

Review your completed form and submit it. You will then need to upload scanned copies of the required documents for verification.

Step 9: Pay the fee

The fee for the PAN card application varies depending on the communication address. For addresses within India, the fee is Rs 107, while for addresses outside India, the fee is Rs 1,017. Payment can be made through demand draft, credit/debit card, or net banking.

Step 10: Send the signed acknowledgment

Print and sign the acknowledgment form and send it to the NSDL office within 15 days, along with the required documents and demand draft, if applicable.

The entire process can be done online through the NSDL or UTIITSL website, or you can choose to submit the application form and documents physically to the nearest NSDL or UTIITSL centre.

Frequently asked questions