Company incorporated in India and doing business here will have to get a PAN card mandatorily. Any form of business generating income in India will also be required to get a PAN. The Permanent Account Number (PAN) is to be quoted during all the company’s financial transactions, as well as in invoices and other registrations.
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
PAN Card for Company Name
All companies must apply for the PAN card of a company. The Company PAN card is a separate PAN card from the company members. Since a company is an artificial judicial person and can enter into financial transactions under its name, a PAN card is mandatory for companies.
The PAN card for a company contains the 10-digit unique Permanent Account Number issued by the Income Tax Department. The company must quote the PAN number when filing its income tax returns.
Since the PAN card is mandatorily required by a company as soon as it is registered, the Ministry of Corporate Affairs (MCA) has introduced a facility for applying a PAN card along with the company registration form. From 1 February 2017, the MCA launched the SPICe+ Form, a common application form where a corporate applicant can apply for company registration, PAN, and TAN.
Thus, all domestic companies should apply for allotment of PAN cards along with the registration form on the MCA portal only, except for the following:
- Domestic companies registered before 1 February 2017, but PAN has not been applied
- Domestic companies registered after 1 February and where PAN has not been applied through the common application form (SPICe+) of MCA
Domestic companies established before 1 February 2017 and not having a PAN card or companies established after 1 February 2017 but have not applied for a PAN card through the SPICe+ Form can apply for a PAN card on the NSDL website.
However, such companies can only apply for a PAN card by selecting the ‘Submit digitally through e-KYC & e-Sign (Paperless)’ option for submission of documents. They must submit the application online using the Digital Signature Certificate (DSC) as PAN applications through any other option by these companies will not be accepted (i.e., TIN-FCs/ PAN Centers and offline mode).
Foreign companies can submit their PAN applications through NSDL website by selecting any of the available options for the submission of documents.
How to Apply for Company PAN Card?
Online Mode
Step 1: Visit the NSDL website.
Step 2: Select the ‘Application Type’ option as ‘New PAN – Indian Citizen (Form 49A)’ or ‘New PAN – Foreign Citizen (Form 49AA) from the drop-down box and the ‘Category’ option as ‘Company’.
Step 3: Fill in the PAN card application form with the required details, such as the company’s name, email ID, phone number, date of incorporation, and captcha code and click the ‘Submit’ button.
Step 4: Select either the ‘Submit digitally through e-KYC and e-Sign’ option and select if you want a physical PAN card.
Step 5: Fill in the other required details in the application, such as company details, contact details, AO code and upload the required documents.
Step 6: Choose the mode of payment and make the payment. An acknowledgement will be generated; take the print-out of the acknowledgement slip. You can track the application status from the acknowledgement number.
After the acknowledgement is generated, the PAN card will be sent to the company’s registered office, or the e-PAN card will be sent to the company email within 15-20 days.
Offline Mode
Step 1: Visit the nearest PAN Centre and get the PAN application form (Form 49A). You can also download the PAN application form .
Step 2: Fill the application form using a black ball-point pen. The director of the company should sign the form.
Step 3: Submit the application to the PAN Centre along with the required documents and pay the application fees.
Step 4: They will issue an acknowledgement as proof of the documents submitted.
After verifying the documents, the PAN card will be dispatched to the company’s registered office, or the e-PAN card will be sent to the company email within 15-20 days.
FAQs
What documents are required to apply for a PAN Card for a partnership firm?
Any individual applying for a PAN Card for a partnership firm must provide the Certificate of Registration issued by the Registrar of LLPs (Limited Liability Partnerships). Along with it, one must also submit identity proof and address proof of both partners.
Why Does a Company Need a PAN Card?
- A PAN card ensures that the company transactions are accountable and legitimate, preventing tax evasion and legal complications.
- The PAN card serves as valid proof of the identity of the company during business-related verifications, ensuring authenticity and credibility.
- Obtaining a company PAN card is a legal requirement and mandatory under the Income Tax Act to carry out financial transactions and register for GST.
- A PAN card is mandatory for a company to file income tax returns, pay taxes, and comply with tax regulations. It is also required to pay invoices and receive remittances.
- Companies should provide their Tax Registration Number (TRN) to whoever is paying them. A TRN can be obtained only when the company has a PAN card.
- All international entities who give or generate payments to a counterpart in India must provide their PAN.
- Companies engaged in import and export businesses require a PAN for foreign exchange transactions.
- Companies require a PAN card to open a business account in a bank.
- A PAN card is required to invest in the company’s name, such as mutual funds, stocks and other financial instruments.
- A PAN card is needed for high-value business transactions, including selling or purchasing assets, vehicles or property.
- A company PAN card is a prerequisite for participating in government contracts and tenders and enables the business to engage in government projects.
