The permanent account number known as PAN is the crucial documents for any taxpayer. It is ten unique characters with letters and digits. Income tax act, 1961 covers the details of PAN card. Any company incorporated and doing business in India will have to obtain the PAN card compulsorily. Any of form of business that is making revenue will have to acquire a PAN card mandatorily. You have to enter your PAN number during all the company’s financial transactions as well as in the registration and invoices. And therefore, it comes under one of the mandatory documents required for a private limited company and other business structures.
The process to apply for the PAN card is straightforward, and you can initiate the process online as well. Companies incorporated in India will have to submit Form 49A to apply for the new PAN card. Foreign citizens can also apply for the PAN card through form 49AA.
The application process for company PAN card via offline mode
- Download the copy of form 49A and print it from the NSDL site or UTIITSL website.
- Fill in the form and attach the necessary documents.
- You will have to submit the form along with attachments to the nearest NSDL processing center. You can access the processing center’s address from the TIN website of the government.
- The concerned department would grant you an acknowledgement receipt as proof of submission.
- After the verification of documents, authorities will deliver the PAN card to your registered office of the company. The application fee will be Rs. 110.
Also Read: 10 Essential Legal Documents for Startups
The application process for company PAN card via online mode
You should visit the NSDL website. Choose form 49A or 49AA from the application type dropdown menu and choose a category from the next dropdown menu to begin the process for company PAN.
Fill in the title (M/s), company name (in the last name box), company incorporation date, contact number or email ID. Fill the captcha code and more ahead. A token number will be generated and sent to the email address mentioned by you.
in the case of company PAN application, e-sign and e-KYC facilities are not available, and the application documents can be only submitted physically. The name, email ID and contact number of the company will be prefilled. You will only have to fill in the registration number of your company. File and go next.
Here, you will have to mention the source of the company’s income. Choose income from business or profession, and from the given menu, choose the type of business. Also, if you are earning income from capital gains, house property or other sources, mention the same.
Once you finish all the above four steps, you will have to fill in the address that will be your communication address in the company PAN database. Contact details will be there.
You will have to give AO (assessing officer) code that is designed as per your area of jurisdiction. You can click on the Indian citizen option and opt for state and city. Also, you can go to the AO Code search for the PAN page on the official website.
In companies’ cases, one can use the registration certificate granted by the registrar of companies as both identity proof and address proof.
Sign the declaration. Now they will ask you about your relationship with the company. Either authorized signatory or the director and apply for business PAN . File the form. Now, you will have to upload scanned copies of the necessary documents. Successful submission is ready for review. If all the information given by you is correct, you should file the form.
You will have to make payment of fee of Rs. 110, if communication address is within India and Rs. 1020 if it is outside of India. You can make the payment via DD (Demand draft), debit or credit card or net banking. Only the director can make payment via debit or credit card or net banking payment in the company’s case.
You will receive the acknowledgement receipt after the successful payment of a fee. With the number given on your acknowledgement, you can check the PAN application status of the company. You will have to send a duly-signed acknowledgement to the NSDL office at the address given below with a copy of the registration certificate and demand draft (if any).
Income Tax PAN Services Unit,
NSDL e-Governance Infrastructure Limited,
Firth floor, Mantri Sterling, Plot No. 341,
Survey No. 997/8, Model Colony,
Near Deep Bungalow Chowk, Pune – 411016.
You should keep these things in mind:
- Envelop has to be super-scribed with ‘application for PAN with acknowledgement’.
- It must reach to NSDL office within a fortnight from the date of application.
- Application received with the DD has to be processed on receipt of proof and after payment.
What are the Required Documents to apply PAN for company?
- Copy of incorporation certificate of the company granted by the registrar of companies.
- Company’s address proof where its registered office is located.
- If the company does not have an office in India, a copy of the certificate of incorporation from the government, where there the registered office of the company is located that shall be apostille by a resident of the country, by the Indian embassy or high commission or consulate of the country where the registered office of the company is located. Also, you will have to submit the certificate allocated by Indian authorities to establish a business in India.
- You will have to submit the demand draft for payment of fees along with the application.
Why do companies require for a company PAN?
The government of India made the PAN card compulsory for all entities that are generating income in-country, whether it is a company, individual business, a HUF, partnership firm or trust. Having the PAN card is advantageous for the company in many ways.
- PAN is the tax identity of your company.
- Income tax department uses the PAN to track all the financial transactions. Even if you do not fall in the tax bracket, you will have to obtain PAN.
- Government considers it an act of concealing the information if companies do not have PAN and generate income.
- PAN will help a company to submit income tax returns and obtain various types of remittances and invoices.