Example of Business PAN Number
A PAN follows a standard alphanumeric format such as ABCFU1234D. The first three letters (e.g. ABC) form an alphabetic series ranging from AAA to ZZZ.
The fourth character denotes the PAN holder’s category, for instance, ‘P’ stands for Individual, ‘C’ for Company, ‘H’ for HUF, ‘F’ for Firm, and ‘T’ for Trust.
The fifth character represents the first letter of the PAN holder’s surname or business name. The next four digits are sequential numbers between 0001 and 9999. The tenth and final character is an alphabetic check digit ranging from A to Z, used for verification purposes.
Who should apply for a Business PAN Card?
Every corporate organisation conducting business in India, whether domestic or foreign, must possess a PAN card. It is mandatory for all individuals or entities engaging in business with Indian companies or earning income from India, irrespective of whether they have a registered office, permanent establishment, or local presence.
Entities that require a PAN card in India include:
- 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 Business PAN Card?
A company can apply for a PAN card through either the online or offline mode. Below is the detailed process for both methods.
Online Mode
Step 1: Visit the official NSDL website.
Step 2: Select ‘Application Type’ as New PAN – Indian Citizen (Form 49A) or New PAN – Foreign Citizen (Form 49AA), and choose ‘Category’ as Company.
Step 3: Fill in the application form with details such as the company’s name, email ID, phone number, date of incorporation, and captcha code, then click Submit.
Step 4: Choose Submit digitally through e-KYC and e-Sign and indicate whether you want a physical PAN card.
Step 5: Enter company details, contact information, AO code, and upload the required documents.
Step 6: Make the payment through your preferred mode. Once payment is successful, download and print the acknowledgement slip. The acknowledgement number can be used to track the application status.
After verification, the PAN card will be sent to the company’s registered office or the e-PAN will be emailed within 15-20 days.
Offline Mode
Step 1: Visit the nearest PAN Centre and collect Form 49A. The form can also be downloaded from the Protean PAN website.
Step 2: Fill out the form neatly using a black ball-point pen. The company director must sign the form.
Step 3: Submit the completed form along with supporting documents and the applicable fee at the PAN Centre.
Step 4: You will receive an acknowledgement slip as proof of submission.
After the verification process, the PAN card will be dispatched to the company’s registered address, or the e-PAN will be sent to the company’s registered email within 15-20 days.
Documents needed to get a Business PAN Card
The following documents must be submitted or uploaded along with the PAN card application, depending on whether the company is registered in India or abroad.
For Indian Companies
- Copy of the Certificate of Registration issued by the Registrar of Companies.
- Declaration or Affidavit signed by the authorised signatory stating the reason for not obtaining or applying for a PAN earlier (applicable to domestic companies established before 1 February 2017).
- No Objection Certificate (NOC) from the Ministry of Corporate Affairs for companies incorporated after 1 February 2017.
For Foreign Companies
Any one of the following documents must be submitted as proof of identity and address:
- Copy of the Certificate of Registration issued in the country where the company is located, duly attested by an Apostille (for Hague Convention countries), or by the Indian Embassy, High Commission, Consulate, or authorised officials of overseas branches of Indian Scheduled Banks.
- Copy of the Registration Certificate issued in India or approval from Indian authorities to establish an office in India.
- Bank draft or foreign currency draft made payable to PAN, Protean eGov Technologies Limited, Mumbai to cover the PAN application fee payable to the Income Tax Department.
Fee structure of Business PAN Card
The fee for obtaining a company PAN card varies depending on the mode of application and the method of PAN card dispatch. The table below summarises the applicable charges.
Mode of Application Submission
|
Mode of Dispatch of PAN Card
|
Fees (Including GST)
|
PAN application submitted offline or online using physical mode
|
Dispatch of physical PAN card in India
|
Rs. 107
|
PAN application submitted offline or online using physical mode
|
Dispatch of physical PAN card outside India
|
Rs. 1,017
|
PAN application submitted online through paperless mode
|
Dispatch of physical PAN card in India
|
Rs. 101
|
PAN application submitted online through paperless mode
|
Dispatch of physical PAN card outside India
|
Rs. 1,011
|
PAN application submitted offline or online using physical mode
|
Dispatch of e-PAN card to the email ID
|
Rs. 72
|
PAN application submitted through paperless mode
|
Dispatch of e-PAN card to the email ID
|
Rs. 66
|
Guidelines for a Business PAN Card
Here are some basic guidelines you must follow:
- Carefully read all instructions on the application form and ensure that the required supporting documents are attached before submission.
- For offline applications, fill out the form in block letters using a black ballpoint pen.
- The form must be signed only by the company’s authorised signatory or CEO.
- The PAN department offers a customer service helpline for assistance and clarification related to the application process.
- The mode of payment will differ based on whether the company is Indian or foreign.
Importance of having a Business Pan Card
A PAN card is a key requirement for any company operating in India, ensuring tax compliance, smooth transactions, and proper identification before tax authorities.
- A PAN card serves as a unique identification number used by the Income Tax Department to track all financial transactions of a company. It must be quoted on tax filings and official documents.
- Even if a company is not currently liable to pay taxes, it still requires a PAN if it earns income or conducts business within India.
- Both Indian and foreign companies are required to pay taxes on transactions carried out in India. Without a PAN, the government deducts tax at the highest applicable rate.
- A PAN simplifies financial processes such as bill payments, remittances, and filing of income tax returns.
- Companies must provide their Tax Registration Number (TRN) to clients or vendors, which can only be issued once the company possesses a valid PAN.
- As per Section 206AA of the Finance Act, 2009, foreign companies and entities dealing with Indian businesses must disclose their PAN when making or receiving payments in India.
- In the absence of a PAN, the government may impose a withholding tax exceeding 30% of the total payment, resulting in substantial financial loss.
Conclusion
A company’s PAN card is more than just a legal requirement. It is a crucial tool for financial transparency, tax compliance, and smooth business operations. Whether it’s for filing taxes, receiving payments, or conducting transactions with partners in India or abroad, a PAN ensures credibility and compliance.
For businesses aiming to expand or manage working capital efficiently, a business loan can provide the financial support needed to achieve growth while staying compliant with regulatory standards.
Helpful resources and tips for business loan borrowers
