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PAN Card for Company in India – Why Do Companies Need PAN Number?

procedure-for-applying-pan

PAN Card for Company in India – Why Do Companies / Business Need PAN Number?

Permanent Account Number (PAN) is one of the important documents for all individuals. Companies or businesses which are incorporated in India or abroad require PAN number to run the business in India. Companies or businesses which originated in India but trading the business outside the country also require PAN Number for various purposes regarding business, banking activities and so on.

Why Do Companies / Business Need PAN Number?

According to the rules of government of India, PAN number is mandatory for all companies that are generating income in our country, whether it is a company, an individual business, a partnership firm, a HUF or a trust. 

Following are some of the benefits for the company having PAN number:

  • Basically, PAN number is the company’s tax identity.
  • It can be used by the Income Tax Department to check and track all the financial transactions of the company.
  • If you possess a PAN number for your company, you do not fall in the tax bracket.
  • If companies generate income without possessing a PAN are considered as holding back information from the government.
  • PAN is used to file Income Tax Returns and to get different types of remissions and invoices.

 The formal procedure to apply for a PAN Card for your business or company in India is simple and can be done anywhere online. To apply for a fresh new PAN number, the companies which are incorporated in India have to fill Form 49A. Follow is the stepwise process involved to apply for a Company PAN Card

Step 1- Visit the official NSDL website: 

 https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html.   Select Form 49A or 49AA from the ‘Application Type’ tab dropdown menu and choose the  ‘category’ in which you want to apply for a PAN card, choose as ‘Company’ in the category dropdown menu.

Step 2- Enter the Title (M/s), Name of the Company, Date of Incorporation of the business, Contact Number and email ID and all the needed information as per the form. Enter the Captcha Code and click “proceed”. Within a few seconds, a token number will be generated and the same will be sent to the registered email address. Then continue the PAN Application.

Step 3- For Company PAN Application, the application and the needed documents can be only forwarded physically as e-KYC and e-sign facility is not available. The name of the company, contact number and email ID will be prefilled. Then enter your company’s Registration Number and submit, then proceed.

Step 4- In this step, the source of income of the company has to be mentioned. Choose ‘Income from Business / Profession’ and from the provided menu, choose the type of your  business. Additionally, if you have any other earnings or source of income such as rent from house property, capital gains or any other sources; you have to mention the same here.

Step 5- After completing the above mentioned step, Enter the complete address of your office which will be noted as your company’s communication address in the PAN database. Other information about your company’s contact details will be prefilled. Then go to the next step.

Step 6- Here in this step you have to provide the Assessing Officer (AO) Code which is assigned as per your company’s location area jurisdiction. Select the ‘Indian Citizen’ option and then choose the ‘State’ and ‘City’. 

Step 7- Now, upload the copies of the required documents and pay the needed fee which is Rs 110 for the company which is within India and Rs 1,020 for the company which is outside India. The payment of the fee can be made through demand draft, net banking or credit card/debit card. 

Step 8-  After completing the fee payment, you will receive an acknowledgment number. The number which is mentioned on the receipt can be used by the applicant to track the status of your PAN application.

Step 9-  Send the duly signed acknowledgement form to the NSDL office within 15 days of filling in the online application.

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The address of NSDL office:

Income Tax PAN Services Unit,

NSDL e-Governance Infrastructure Limited,

5th Floor, Mantri Sterling,

Plot No.341, Survey No.997,8,

Model Colony, Near Deep Bungalow Chowk.

Pune- 411016

Documents Required for PAN Card for Company in India

To apply for a PAN, the companies have to submit various documents such as proof of identity and address. The registration certificate of the company which is issued by the Registrar of Companies can be submitted as both identity proof and address proof for the companies. As per the type of entity, the required documents for PAN Card application can be accepted as proof of identity and address –

For Companies Registration Certificate granted by the Registrar of Companies
For Limited Liability Partnership Firms Registration Certificate granted by the Registrar of LLPs
For Partnership Firms Certificate of Registration or Partnership Deed issued by the Registrar of Firms
For Trusts Certificate of registration or Trust Deed

issued by Charity Commissioner

For Association of individuals (other than Trusts) or  Local authority or Body of Individuals or Artificial Juridical Person Certificate of registration or Agreement issued by the registrar of cooperative society or charity commissioner or any other competent authority; or

Any other certified document issued from any Central or State Government office

establishing identity and address of such person

How to get Apostilles for the documents for a Foreign Company?

While applying for a PAN card, a foreign company has to apostille all the needed documents. An apostille validates documents and is consented in any country which participated in the 1961 Hague Convention Abolishing the Requirement of Legalization for Foreign Public Documents.

For apostille, the needed documents of the company can be sent to the following offices:

Country Office
UK The Legalization Office

The Foreign and Commonwealth office

USA Secretary of State Office

And in the case of other countries, you need to contact your broker or agent for guidance to assist you in the apostille process for your company.

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