How to Get a PAN Card for your Business or Company?

March 31, 2023

8 min read

How To Get A Pan Card For Your Business Or Company?

A Permanent Account Number, or PAN as it is more generally called, is for both people and businesses. All taxpayers who reside in the nation, whether they are an individual, a partnership, or a business, must have a PAN. It also serves as identification verification. You need specific identifications and documents in order to obtain the 10-character PAN that is uniquely yours. We cover a few topics in this article that you should be aware of if you wish to apply for a PAN for your business. For businesses, filing income tax returns and taking advantage of refunds are the two main reasons PAN cards are required. A PAN card is also necessary to register bank accounts in a company’s name and keep track of all business transactions. Thus, a PAN card for a corporation is a crucial document that needs to be obtained as soon as possible. Learn how to apply for a PAN card for a business below.

Which businesses require a PAN card?

Organizations that require PAN cards –

Companies
HUF
Firm
Companies that Limited Liability Partnership
Firms in partnerships
A local government entity, a group of people, an organization of people, or an artificial juridical
Person
The Trusts

Why should your company have a PAN Card?

The PAN card for your business is crucial because it will be used for all transactions. It also aids in determining your company’s tax flow. You still need a PAN card if you are earning money even though you are not subject to the income tax benefits provided to startups.

To operate in India as a foreign firm, you must get a PAN. If not, the government may impose the maximum possible tax rates on you.
The PAN assists you in many ways, including remittances, tax return filing, and paying invoices without deduction.
A PAN is required if you need a TRN (Tax Registration Number)
If you don’t have a PAN, the Indian government can tax you 30% or more of your invoiced payments.
You must reference your PAN in all tax-related transactions and documentation. The Income Tax Department can monitor your transactions by providing this number. You need to have this so that you won’t run into any difficulties.
Every foreign corporation must have a PAN to conduct business with an Indian company or with other entities inside the country, following the 2009 revisions enacted under Section 206AA. This encompasses all kinds of entities.

How can you apply for your business’ PAN card?

You have the option of applying for a PAN card offline or online through the NSDL website.

Online method

Fill out the “Firm” form for the “Application Type” choice. Complete
all fields, including company name, application date, and so forth.
Following this, you must enter your income information and firm registration information. Also, you must enter your communication address.
Type the Assessing Officer code here (AO Code). If you don’t know it, you can look it up on the NSDL website’s AO Code Search Panel.
You must pay the aforementioned costs and upload copies of the necessary documentation.
The two most crucial copies of information are the certificate of incorporation and address verification.
You will receive an acknowledgment number after completing all the processes, which you may use to track the status of your PAN Card.
Next, within 15 days, you must mail a completed acknowledgment form to the NSDL headquarters.
To complete Form 49A, go to the NSDL website, and select it from the drop-down option.

Offline method

The Form 49A must first be downloaded from the NSDL website before being printed.
Complete the form as directed and include all required supporting documentation.
The paperwork and supporting documentation must be sent to the nearby NSDL center. If you do not already know one, you can look it up on the website.
As evidence that you have submitted your information and supporting papers, the center will provide you with a letter of acknowledgment.
At the above-mentioned corporate address, you will obtain the PAN card following full verification of your information. This entire process will only cost you $100.

Documents required

For an Indian company

Verification of identity or address
A duplicate of the incorporation certificate
A replica of an MCA No Objection Certificate (Ministry of Corporate Affairs)

For a foreign company

A copy of the registration certificate for opening an office in India, issued by Indian officials.
A copy of the applicant’s native country’s certificate of registration that has been properly authenticated by “Apostille,” the Indian Embassy or high commission, or even by authorized personnel of scheduled banks with foreign branches that are registered in India.

Advantages of a business PAN card

The following are some significant applications for a corporation PAN card:

Serves as a guide for the Income Tax Department to keep track of all financial activities.
A corporation is responsible for paying tax (including withholding tax) at the highest rate available without a PAN card.
Only a PAN card is required to obtain a TRN.

A firm PAN card has many advantages, including:

A PAN card is required to file income tax for a company.
Moreover, tax refunds require a company PAN card.

Conclusion

The article discusses obtaining a PAN, which is more or less comparable to obtaining a HUF PAN card or an individual’s PAN. The Certificate of Registration, which is issued by a state or federal agency, is the only thing that differs. A bank draught is additionally required to obtain a PAN card and pay the tax department for its issuing. Be careful you pay in Indian Rupees. Drawn in favor of NSDL may also be a foreign currency draught. If all of your identification credentials and business-related paperwork are in order, the entire process shouldn’t even take a month. Getting a PAN card for your business is simple, allowing you to conduct business without difficulty.

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How to Get a PAN Card for your Business or Company FAQs:

1. Can companies have a PAN card?

Applying for a company’s PAN card is an easy process that may be completed online. Businesses with Indian incorporation must complete Form 49A to request a new PAN.

2. What are the prices for a business PAN card?

The government charges a fee of Rs 1011.00 [ (Application fee + Dispatch Charges Rs. 857) + 18.00% Goods & Service Tax] for new PAN applications and Rs 1020.00 [ (Application fee Rs.

3. Can PAN cards be acquired for proprietorship?

The sole proprietorship firm does not receive a company PAN card since it does not have a separate legal existence from that of a corporation. A solitary proprietorship business is associated with the owner or proprietor. So, the owner/proprietor of the single proprietorship business may utilise his or her own PAN.