written by | May 11, 2022

How to Get a PAN Card for Your Business?

A Permanent Account Number, popularly known as a PAN card, is essential for an individual or a company to get established in the business field. PAN is not only for business persons but also important for companies too. PAN card is of utmost necessity for all taxpayers, which includes individuals, companies, partnerships etc.,  in India. In another way, a 10-character PAN card also acts as proof of one’s Identity. In India, a PAN card is a must for business deals.

Individuals of any age can have the PAN Card at any time! Always when it comes to the matter of PAN card application, all are confused with many questions. Some of the usual questions are: What is the age limit to get a pan? Who all needs to access it? What is the use of getting a PAN Card?

Did you know?

There is no specific age limit to apply for PAN cards for business, and any age group can apply for a PAN card irrespective of their age; that is, a minor or major citizen can apply and get a PAN card.

Also Read: How To Get A Business License In India?

Why Should Your Company Have a PAN Card?

PAN card is owned compulsorily by any individual or company functioning within India. Whether it be a company of Indian origin or Foreign origin, once you establish it, you have to register the company first. If a company is registered in India, whether permanently established or having a simple office, but generates money from abroad, it still needs a PAN card. For the following entities Pan Card is needed:

  • Foriegn Institutional Investor (FII)
  • Associations
  • Hedge Fund
  • Limited Companies
  • Private firms
  • Incorporations
  • Body of individuals
  • Trusts
  • Limited Liability Partnerships (LLP)
  • Association of persons
  • Partnership firms
  • Companies 

Now comes the next question: why is a PAN card so necessary?

Since all the transactions are carried out using the PAN card number, company PAN cards become important in nature. Pan card facilitates the smooth tax flow of the company. A PAN card becomes hugely crucial, even if someone is ineligible to pay tax under the concessional scheme of income tax benefits provided to startups. A company Pan card is necessary because:-

  • For Tax Registration Number (TRN), PAN is a must.
  • PAN card is essential for making payments barring deductions, filing tax returns, remittances etc.
  • The Indian Government can charge 30% or more of the invoiced payments if an individual or a company does not have a PAN.
  • By the Amendments of section 206AA, 2009, every foreign company is required to have its own PAN to go ahead with any business with a company within India. This includes all types of entities.
  • PAN should be quoted if one has any tax-related transactions and documentation.
  • By using this number, the income tax department can track the transactions.
  • Those who own a PAN never face any troubles regarding tax or transactions.

How to Apply for Business PAN Cards? 

A business pan card applies, or a company pan card can be through two choices of methods.

  • Online Method
  • Offline Method

Also Read: How to do GST Number Search by PAN?

Online Method

Business PAN card application online includes these steps:-,

  • Step 1 - Visit the NSDL website
  • Step 2 - Go to the drop-down menu and fill the form 49A
  • Step 3 -   Select the ‘firm’ form listed under the ‘application type’

  • Step 4 - Fill in details carefully, such as company name, date of application,  income details, company registration number, and communication address.

  • Step 5 -  Fill out the Assessing Officer Code(AO code), which could be easily found under the  AO code search panel on the NSDL website.

  • Step 6 - Upload the required document copies and pay the fee.  The two most important copies of information are the certificate of incorporation and Address proof.

  •  Step 7 -  An acknowledgement number is given to the applicant.
  •  Step 8 - The details of the progress of the PAN card application can be tracked using the acknowledgement number.
  • Step 9 -  A signed acknowledgement form has to be sent to the NSDL head office within 15 days. 

Offline Method

  • Step 1 -    Download and print Form 49A from the NSDL website.
  • Step 2 -     Fill out the form correctly as per the guidelines given and attach all the necessary documents.
  • Step 3 -  Submit the filled form and attached documents to the nearest NSDL centre.
  • Step 4 - An acknowledgement letter is issued  after form submission. 
  • Step 5 - PAN card is issued at the company address mentioned in the form. 

Documents Required to Get a PAN Card for Your Business?

An Indian company would require the following documents:

An ID proof or address proof

A copy of:-

 1) Certificate of Incorporation

 2) No objection certificate issued by the Ministry of Corporate Affairs (MCA).

Documents required for foreign companies:-

A copy of the registration certificate issued by the officers of India to set up an office in India and a copy of registration from the native country of the applicant.

Conclusion

The time for the whole process will depend on the clarity of information that the applicant provides. Less the number of complications in the attached documents and filled up information, less the time needed to get a PAN card for the company.

To pay the issuance fee to the Tax Department, a bank draft is needed. Always make payments in INR. One can draw a foreign currency draft in favour of NSDL.

PAN cards have many uses other than business purposes. Some of them are:

Buying jewellery, Opening a new account in a bank, Applying for a credit or debit card, buying a new motor vehicle etc. Hence, a PAN card forms an essential part of running a business as it provides the business owner varied facilities in appropriating opportunities and leeways in conducting business successfully and smoothly.

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FAQs

Q: What is the offline method of applying for a PAN card for business?

Ans:

The following procedure is required to be taken care of while applying for a PAN card for business in offline mode:

  • Step 1 -    Download and print Form 49A from the NSDL website.
  • Step 2 -     Fill out the form correctly as per the guidelines given and attach all the necessary documents.
  • Step 3 -  Submit the filled form and attached documents to the nearest NSDL centre.
  • Step 4 - An acknowledgement letter is issued after form submission. 
  • Step 5 - PAN card is issued at the company address mentioned in the form.

Q: What is the online method of applying for a PAN card for business?

Ans:

The following steps need to be taken care of while applying for a PAN card for business through the online mode:

  • Step 1 - Visit the NSDL website
  • Step 2 - Go to the drop-down menu and fill the form 49A
  • Step 3 -   Select the ‘firm’ form listed under the ‘application type’ 
  • Step 4 - Fill in details carefully, such as company name, date of application,  income details, company registration number, and communication address.
  • Step 5 -  Fill out the Assessing Officer Code(AO code), which could be easily found under the  AO code search panel on the NSDL website.
  • Step 6 - Upload the required document copies and pay the fee.  The two most important copies of information are the certificate of incorporation and Address proof.
  • Step 7 -  An acknowledgement number is given to the applicant.
  • Step 8 - The details of the progress of the PAN card application can be tracked using the acknowledgement number.
  • Step 9 -  A signed acknowledgement form has to be sent to the NSDL head office within 15 days. 

Q: What are the reasons for possessing a PAN card for business in India?

Ans:

  • For Tax Registration Number(TRN), PAN is a must.
  • PAN card is essential for making payments barring deductions, filing tax returns, remittances etc.
  • The Indian Government can charge 30% or more of the invoiced payments if an individual or a company does not have a PAN.
  • By the Amendments of section 206AA, 2009, every foreign company is required to have its own PAN to go ahead with any business with a company within India. This includes all types of entities.
  • PAN should be quoted if one has any tax-related transactions and documentation.
  • By using this number, the income tax department can track the transactions. Those who own a PAN never face any troubles regarding tax or transactions.

Q: For which entities are a PAN card needed?

Ans:

The following entities need a PAN card:

  1. Foriegn Institutional Investor (FII)
  2. Associations
  3. Hedge Fund
  4. Limited Companies
  5. Private firms
  6. Incorporations
  7. Body of individuals
  8. Trusts
  9. Limited Liability Partnerships (LLP)
  10. Association of persons
  11. Partnership firms
  12. Companies

Q: Is a PAN card for business required if the company is of Foreign origin?

Ans:

Whether it be a company of Indian origin or Foreign origin, once you establish it, you have to register the company first.

Q: What are the documents required for a PAN application?

Ans:

Documents required for making a pan card for business for foreign companies:-

A copy of the registration certificate issued by the officers of India to set up an office in India and a copy of registration from the native country of the applicant.

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