For every business, having a PAN card is essential since creating a business current account is necessary. Follow the detailed guidelines below to learn how to get a PAN card for your business.
Prioritizing the immediate acquisition of a PAN card is crucial. A private limited company must get a PAN after being registered with India’s Registrar of Companies (RoC). An alternate strategy to speed up the PAN application procedure is to submit an e-form NIC-29 with your company registration application simultaneously.
Which Business Requires a PAN Card?
Businesses in India, whether individual or corporate, often require a PAN card for various financial and taxation purposes. Here’s a list of entities that typically need a PAN card for their business operations:
- Company: Both private and public limited companies require a PAN card.
- Partnership Firm: Partnership firms, business entities formed by two or more individuals, also need a PAN card.
- Association of Persons (AOP): AOPs, groups of individuals or entities that come together for a specific purpose, require PAN cards.
- Limited Liability Partnership (LLP): LLPs, a hybrid form of partnership and a corporation, must have a PAN card.h
- Body of Individuals: This includes groups or associations where individuals come together for a collective purpose.
- Trust: Trusts established for charitable, religious, or other purposes need a PAN card.
- Incorporation: Any entity incorporated and registered as a legal business entity in India should have a PAN card.
- Limited Company: Both private and public limited companies fall under this category.
- Private Firm: Private firms, often smaller businesses, also require a PAN card.
- Association: Any organized association conducting business activities in India should have a PAN card.
- Foreign Institutional Investor (FII): Foreign entities investing in Indian financial markets as FIIs are required to obtain a PAN card.
- Hedge Fund: Hedge funds operating in India must also have a PAN card.
If your business entity falls into one of these categories and is involved in financial transactions or operations in India, having a PAN card is essential for compliance with tax regulations and financial reporting.
Documents Required for PAN Card For a Private Limited Company
To obtain a PAN card for a private limited company in India, you will need to provide the following documents:
For companies incorporated in India:
- A copy of the Certificate of Incorporation/registration issued by the Registrar of Companies (RoC).
- Address Proof for the registered office of the company.
- A Demand Draft for the required fee (if you pay offline).
These documents are essential for the PAN card application process and ensure your company is accurately registered for tax purposes.
For Companies Incorporated Abroad
For companies incorporated abroad, when applying for a PAN card for your Indian operations, you will need to provide one of the following sets of documents:
- Certificate of Registration from the Home Country
- A copy of the Certificate of Registration issued in the country of incorporation.
- This document should be attested by one of the following:
- Apostille
- Indian Embassy
- Indian Consulate
- Indian High Commission
- Authorized representatives of Scheduled Indian Bank branches in the incorporation countries.
OR
- Certificate of Registration in India with Indian Authorities’ Approval:
- A copy of the Certificate of Registration issued in India showing that your company has received approval from Indian authorities to establish an office or operations in India.
These documents are necessary to ensure your foreign-incorporated company complies with Indian regulations and taxation requirements when obtaining a PAN card.
If you’re applying for a PAN card and your business is located overseas, it’s crucial to legalise the documents by an apostille. The Hague Convention of 1961, which intends to do away with the necessity for further legalization of international public papers, states that documents authenticated with an apostille are globally recognized and accepted by countries that are signatories. India is a party to the agreement and a member of the convention. Once your documents have received an apostille and your native country has joined the convention, no further document permission is required.
How to Apply for a PAN Card?
To apply for a PAN card for a Private Limited Company, follow these step-by-step instructions:
STEP 1: Visit the paperless PAN application page on the NSDL website by clicking the URL: NSDL PAN Application Page
STEP 2: In the ‘Application Type’ drop-down menu, select ‘FORM 49A.’ From the ‘Category’ drop-down menu, select ‘Firm.’
STEP 3: Fill in your company details in the provided spaces. Enter ‘M/S’ in the ‘Title’ field and your company name in the ‘Last Name’ box. Complete the captcha code and click ‘Proceed.’
STEP 4: On the following page, specify your company’s income source. Select ‘Income from business/profession.’ If your company has income from other sources, check the appropriate buttons. Provide your office address, which will be the official PAN database communication address.
STEP 5: In this step, you must provide your Area Code, Assess Officer Type and Range Code, and Assessing Officer Number based on your address and corresponding Income Tax jurisdiction area. You can find these codes by visiting the NSDL website and clicking the ‘AO Code Search for PAN’ link.
STEP 6: This is the documentation stage of the PAN card application process. Here’s what you need to do:
Upload Required Documents: You should upload the necessary documents related to your company at this stage. These documents typically include the Certificate of Incorporation/Registration, proof of address for the registered office, and any other documents per the guidelines.
Declaration Section: In the declaration section, you need to specify your relationship with the company. Only the company director or an authorized signatory can apply for a PAN card on behalf of the company. Ensure that the details provided in this section are accurate.
Review and Submit: After completing the form and uploading the required documents, the completed application will be available for your review. Take the time to carefully check for any errors or omissions. Once you are satisfied that the information is accurate and complete, click the ‘Submit’ button to finalize your PAN card application for the Private Limited Company.
STEP 7: In this stage, you’ll need to make the required application fee payment. Payment options include using net banking, debit/credit cards, or a demand draft.
STEP 8: After making the payment, you’ll receive an acknowledgement receipt via email. This receipt will include a 15-digit acknowledgement number, which you can use to track your PAN application status on the NSDL website.
STEP 9: Now, you must send the signed acknowledgement receipt and hard copies of the documents you uploaded to the Income Tax PAN Services Unit at the NSDL office in Pune. If you paid offline using a demand draft, send it along with the documents. It’s important to ensure that the hard copies reach the NSDL office within 15 days from the date of application. The department will then review your application and accompanying documents. You can anticipate receiving your PAN card within 15 business days if everything is in order.
If you haven’t yet registered your company, you might consider Kanakkupillai’s Company Registration Package. This comprehensive service simplifies the registration process and takes care of tasks like obtaining a PAN and TAN and opening a current account for your company.
PAN Card Fee
The fees for PAN card applications differ for applicants residing in India and those living outside the country. Here’s a detailed explanation:
For Applicants Residing in India:
- Processing Fees: The processing fee for PAN card applications in India is INR 93.
- GST (Goods and Services Tax): The processing fee is subject to an 18% Goods and Services Tax (GST) as per the Indian tax regulations. This GST amount is added to the processing fee.
- Processing Fee: INR 93
- GST (18% of INR 93): INR 16.74
- Total Fee for Applicants in India: INR 93 (Processing Fee) + INR 16.74 (GST) = INR 109.74
For Citizens Outside India:
For citizens outside India, the fee for a PAN card application is INR 864. This fee doesn’t include the Goods and Services Tax (GST) because GST primarily applies to India. Therefore, foreign applicants pay a fixed fee of INR 864 for their PAN card application.
It’s important to note that these fees are subject to change, and applicants should verify the current fee structure on the official website of the Income Tax Department of India or the authorized agencies responsible for PAN card applications. Additionally, fees may vary based on the specific services requested or the type of PAN card being applied for.
Conclusion
Kanakkupillai offers comprehensive support for registering your Private Limited Company and obtaining a PAN card in India. Our services cover company registration, PAN application, document verification, assistance for foreign companies, fee management, timely follow-up, and ensuring strict compliance. This one-stop solution ensures your business aligns with tax and financial regulations efficiently.
