PAN Card for Company
A Permanent Account Number, or PAN Card, is necessary for all tax-paying individuals, partnerships, corporations, etc. It also functions as an identification for a variety of applications. Individuals or organisations planning to start a business in India must apply for a business pan card. Also, any company of Indian origin generating income outside the country must also have a Pan Card for business.
Here, we will understand the process of getting a pan card for company and the list of documents required for the application.
What is a Business Pan Card?
A PAN Card for business or a Company Pan card is basically your company's tax identity. The Income Tax Department will use your company pan card to track all the financial transactions. It is similar to the normal pan card and consists of a 10-digit alphanumeric number.
Who can Apply for a Business PAN Card?
Any corporate organization conducting business in India, whether registered in India or overseas, needs a PAN card. A PAN card is required for every individual or entity doing business with an Indian company. It is also necessary for everyone involved in earning money outside of India, regardless of whether the firm is incorporated, has a permanent establishment, or an office in India.
A list of bodies that require PAN Cards in India
- Company
- Partnership firm
- Association of persons
- Limited Liability Partnership (LLP)
- Body of Individuals
- Trust
- Incorporations
- Limited companies
- Private firms
- Associations
- Foreign institutional investors
- Hedge funds
How to Apply for a Company PAN Card?
The online and offline application for business pan card has been mentioned in the table below:
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Apply for Business PAN Card Online |
Apply for Business PAN Card Offline |
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Step 1: Go to the NSDL website and fill out the application form. From the drop-down option, choose Form 49A. |
Step 1: Form 49A must be downloaded and printed from the NSDL or UTIITSL websites. |
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Step 2: Select ‘Firm’ from the ‘Application Type’ drop-down menu and enter information such as the firm name, date of establishment, etc. |
Step 2: The form must be completed, and any supporting papers must be attached. |
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Step 3: Enter the company registration number, income information, and communication address. |
Step 3: The form and its annexures must be sent to the nearest NSDL processing location. The addresses of all processing locations may be found on the government’s TIN website. |
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Step 4: Enter the Assessing Officer (AO) Code (found on the NSDL website’s ‘AO Code Search for PAN’ page). |
Step 4: An acknowledgement letter for all the submitted documents will be provided. |
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Step 5: Upload copies of the necessary papers and pay the cost. |
Step 5: The PAN card will be sent to the company’s registered office after reviewing the documents. You will have to pay an application fee of Rs. 110. |
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Step 6: You will be given an acknowledgement number that will allow you to follow the status of your PAN application. |
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Step 7: Send the signed acknowledgement form to the NSDL office listed below within 15 days of completing the online application: Income Tax PAN Services Unit, NSDL e-Governance Infrastructure Limited, 5th Floor, Mantri Sterling, Plot No.341, Survey No.997,8, Model Colony, Near Deep Bungalow Chowk. Pune- 411016 |
Documents Needed to Get a PAN Card for a Company
To apply for a PAN card in India, organizations must provide the following papers together with the application form:
- Identity/address verification:
- Copy of Certificate of the Incorporation
- Copy of No Objection Certificate issued by the Ministry of Corporate Affairs.
Guidelines for a Company PAN Card
- Read the instructions on the form and make sure all supporting papers are included before applying.
- In the case of offline forms, the form should be filled out in block letters using a black pen.
- The form should only be signed by the CEO of the firm’s authorized signatory.
- The PAN Department provides a customer service line where you may get information and ask questions.
- The mode of payment will change depending on whether the firm is Indian or overseas.
Why is it Important to Issue Pan Card for Company?
- It is a reference number that the Income Tax Department uses to trace your financial activities. You must include your PAN on all transactions and tax documents.
- Even if you are not required to pay taxes, you must have one if you earn money.
- Companies, whether registered abroad or in India, must pay tax on transactions conducted in the nation. Without the PAN, the government will deduct the maximum amount of tax.
- Your PAN will assist you in getting bills paid, remittances, and completing income tax forms.
- Companies, like people, must furnish their Tax Registration Number (TRN) to whoever is paying them. A TRN can only be obtained if the firm possesses a PAN.
- In the case of foreign corporations, it was made necessary by Section 206AA of the Finance Act of 2009, revised in 2009. All international parties who offer or produce a payment to a counterpart in India must disclose their PAN under this modification. This covers not just persons but also corporations, partnerships, limited liability companies, and any other type of entity.
- In the absence of a PAN, the government will levy a withholding tax, which might amount to more than 30% of the entire invoiced payment.
