PAN Card for Company

Introduction

A Permanent Account Number (PAN) card is essential for all tax-paying entities, including individuals, partnerships, and corporations. It serves as a crucial identification document for various financial transactions. If you are planning to start a business in India or if your company generates income outside the country, applying for a Company PAN Card is mandatory. This guide will walk you through the process of obtaining a PAN card for company, the required documents, and why it is important.

What is a Business PAN Card?

A Business PAN Card, also known as a Company PAN Card, serves as the tax identity for your business. The Income Tax Department issues a 10-digit alphanumeric number, which is used to track all financial transactions of the company. It functions similarly to an individual PAN card but is specific to corporate entities.

Who Can Apply for a Business PAN Card?

Any corporate entity conducting business in India, whether registered domestically or overseas, must have Company PAN Card. This includes any company of Indian origin generating income outside India. The following entities are required to obtain a PAN card in India:

• Companies
• Partnership firms
• Associations of Persons (AOP)
• Limited Liability Partnerships (LLP)
• Bodies of Individuals (BOI)
• Trusts
• Incorporations
• Limited companies
• Private firms
• Foreign institutional investors
• Hedge funds

You may also want to know PAN Card Eligibility

How to Apply for a Company PAN Card?

A Company PAN Card (Permanent Account Number) is essential for any business entity in India, including companies, partnerships, trusts, and others. Having a PAN card is mandatory for conducting financial transactions, filing tax returns, and complying with tax regulations. Below is a step-by-step guide on how to apply for a Business PAN Card both online and offline.

The online process for applying for a company PAN card is straightforward and can be completed via the NSDL or UTIITSL portals.

1. Online via NSDL Portal

1.1 Visit the NSDL Website:

Go to NSDL PAN Application Portal.

1.2 Select Application Type:

Choose the option for New PAN for Firm/Company under Form 49A.

1.3 Fill in Company Details:

Fill the form with the company’s name, date of incorporation, registration number, business type, and the director’s details.

1.4 Provide Communication Details:

Enter the registered office address of the company along with contact details.

1.5 Upload Required Documents:

Upload the scanned copies of the necessary documents (discussed below) such as the company’s Certificate of Incorporation, Address Proof, and Identity Proof.

1.6 Pay Application Fee:

Pay the fee online (₹107 if the address is in India, ₹1,117 for addresses outside India) via credit/debit card, net banking, or demand draft.

1.7 Submit and Receive Acknowledgment:

After submitting the form, an acknowledgment number is generated. This number can be used to track the status of the application.

1.8 Send Physical Documents:

You must send the signed acknowledgment form along with the supporting documents (original or certified copies) to the NSDL office. Mark the envelope with “APPLICATION FOR PAN – Acknowledgment Number.

1.9 PAN Card Delivery:

Once processed, the PAN card will be dispatched to the company’s registered office address.

You may also want to know PAN Form 49A

2. Online via UTIITSL Portal:

2.1 Visit UTIITSL Website:

Go to UTIITSL PAN Application Portal.

2.2 Select Application Type:

Choose the option for New PAN – Form 49A for companies.

2.3 Fill in the Company’s Details:

Provide the necessary company information, including company’s name, date of incorporation, and type of business.

2.4 Upload Supporting Documents:

Upload the required documents such as the Certificate of Incorporation, Identity Proof, and Address Proof.

2.5 Fee Payment:

Pay the application fees using credit/debit card, net banking, or demand draft.

2.6 Submit and Track:

After submitting the application, a tracking number will be provided to monitor the status of the application.

2.7 Send Documents to UTIITSL:

Send the acknowledgment receipt along with the required documents to the UTIITSL office for processing.

3. Apply for Business PAN Card Application Offline

If you prefer to apply offline, you can visit any PAN facilitation center or download Form 49A from the official NSDL or UTIITSL websites. Here’s how to apply offline:

3.1 Obtain Form 49A:

Download Form 49A from the NSDL or UTIITSL website, or collect it from the nearest PAN facilitation center.

3.2 Fill in the Form:

Provide details such as the company’s name, date of incorporation, registration number, business type, and the director’s or responsible person’s details.

3.3 Attach Required Documents:

Attach copies of the Certificate of Incorporation, Address Proof, and Identity Proof of the company. Ensure all documents are attested.

3.4 Submit the Application:

Submit the completed form along with the required documents at the nearest NSDL or UTIITSL PAN center.

3.5 Pay Fees:

Pay the application fee in cash or via demand draft at the center.

3.6 Receive Acknowledgment:

You will receive an acknowledgment receipt with a tracking number to check the status of your PAN card application.

3.7 Dispatch of PAN Card:

Once the application is processed, the PAN card will be dispatched to the company’s registered office.

Documents Required for Company PAN Card Application

For both online and offline applications, you need to submit the following documents:

1. Certificate of Incorporation issued by the Registrar of Companies (ROC).

2. Proof of Address (any one of the following):

• Electricity bill
• Telephone bill
• Bank statement with the company’s registered address
• Property tax assessment order

3. Identity Proof (in the name of the company):

• Any Government-issued document like company registration certificate.

4. Authorized Signatory Proof:

• Identity and address proof of the person signing the PAN card application (e.g., Director’s Aadhaar Card, Passport, or Voter ID).

Guidelines for Applying for a Company PAN Card

• Complete Documentation: Ensure all supporting documents are included before applying.
• Accurate Information: Double-check that all details in the form are correct to avoid any delays.
• Authorized Signatory: The form should only be signed by the CEO or an authorized signatory of the company.
• Payment Mode: The mode of payment will vary depending on whether the company is Indian or overseas.
• Customer Support: The PAN Department provides a customer service line for inquiries and assistance.

Why is it Important to Issue a PAN Card for a Company?

1. Filing Income Tax Returns: A company must file income tax returns annually, and having a PAN card is mandatory for this purpose.

2. Opening a Business Bank Account: A PAN card is required to open a business bank account, enabling the company to handle transactions legally.

3. Tax Deductions at Source (TDS): PAN enables companies to deduct tax at source when making payments that fall under TDS requirements.

4. Conducting High-Value Transactions: PAN is required for transactions above ₹50,000, such as purchase of assets, large financial transfers, and foreign remittances.

5. Issuing Invoices: To issue GST invoices, the company must have a PAN card, ensuring that the business complies with GST regulations.

6. Loan Applications: A PAN card is necessary when applying for business loans or credit facilities from banks and financial institutions.

7. Compliance with Legal and Regulatory Requirements: The PAN card helps ensure that the company adheres to the taxation system and is in good standing with tax authorities, avoiding legal complications or penalties.

Conclusion

A PAN Card is a vital document for any company operating in India or conducting business with Indian entities. It ensures tax compliance, facilitates smooth financial transactions, and serves as a legal requirement for various business activities. Whether you are a domestic firm or an international entity, obtaining a Business PAN Card is an essential step in your company’s financial and legal operations.

In summary, applying for a company PAN card is crucial for conducting business operations, complying with tax regulations, and ensuring smooth financial transactions both within India and internationally.