In this article we shall take a look at PAN cards for business entities and the procedure to obtain one

Introduction

PAN stands for Permanent Account Number. A PAN card is a card issued by the Income Tax authorities to individuals who are eligible to pay income tax. The card can be applied for irrespective of whether you are earning an income or not. But once you get a PAN card, you have to file a return every year mandatorily even if you are not liable to any income tax. But the question we are addressing in this article is with regards to PAN card for companies. If PAN is issued to individuals, how can it be applicable to a company? For the purposes of the law, a company is considered to be a legal but artificial person. So from the point of view of the income tax authorities, a company is also eligible to apply for a Business PAN card. So the next question is, is it mandatory? Let us find out.

Which Businesses Require a PAN Card?

• Companies
• Partnership firms
• Associations of persons
• Limited Liability Partnerships (LLPs)
• Bodies of Individuals
• Trusts
• Incorporations
• Limited companies
• Private firms
• Associations
• Foreign institutional investors
• Hedge funds

What Are the Benefits of a Business PAN Card?

A business PAN card offers several significant benefits, including:

1. Acting as a reference for tracking all financial transactions, utilized by the Income Tax Department.
2. Non-compliance with obtaining a PAN card can lead to the company being subjected to tax, including withholding tax, at the highest possible rate.
3. PAN is a prerequisite for obtaining a Tax Registration Number (TRN).

Some key advantages of a corporate PAN card include:

• The ability to file income tax returns, which is not possible without a PAN card.
• Tax rebates and exemptions on  various financial transactions.

Documents Required for Acquiring Company PAN Card 

For an Indian company

• Identity or address proof
• Certificate of Incorporation
• No Objection Certificate issued by the Ministry of Corporate Affairs (MCA)

For a foreign company

• Registration certificate issued by Indian authorities
• Certificate of registration from the applicant’s home country, duly attested
• Bank draft for the issuance fee, payable in INR

How to Get the Documents Apostilled for a Foreign Company?

Document apostillation, as per the apostille agreement, involves the notarization of documents by a state authority. But how can one go about getting documents apostilled, and where should this process be initiated?

The apostille process can be initiated by any public state notary who can authenticate the documents in accordance with the Apostille Convention. Once this verification is completed, it is forwarded to the respective state authority and subsequently to the Ministry of External Affairs, which issues the necessary apostille sticker.

To initiate this procedure, the first step is to approach the authority responsible for issuing this certificate. Documents for apostille can be submitted to the following offices:

USA: Secretary of State Office

UK: The Legalisation Office, The Foreign and Commonwealth Office

How to Apply for a PAN Card for your Business?

Online Method:

1. Visit the NSDL website and fill out Form 49A under the “Firm” category.
2. Provide company details, income information, and communication address.
3. Enter the Assessing Officer code (AO Code), which can be found on the NSDL website.
4. Upload required documents and pay the fees.
5. After completing the online application, you will receive an acknowledgment number to track your application’s progress.
6. Send a signed acknowledgment form to the NSDL head office within 15 days.

Offline Method:

1. Download Form 49A from the NSDL website and print it.
2. Fill out the form, attach necessary documents, and submit it to the nearest NSDL center.
3. The center will provide an acknowledgment letter.
4. Upon verification, you will receive your PAN card at the company’s registered address.

How To Do PAN Card Correction Online?

By now, you must have had an idea that a PAN is not just any ordinary string of digits and letters. It is the tax identity for any company or business that is generating income. Any incorrect information appearing in your PAN card may land you in problems. Therefore, if you have spotted any misinformation/error in your PAN card, you should make the necessary corrections immediately. 

You can make changes in your PAN card both online and offline, with a few simple steps. You can download the pan card correction form in PDF form here.

Here are the steps to follow if you want to make changes to your PAN card online-

1. Visit the NSDL portal by clicking the URL   
2. From the ‘Application Type’ drop-down menu, select ‘Change or Correction in Existing PAN data’. The following pan card correction form will appear on your screen.
3. Fill in your details in appropriate boxes. Write ‘M/S’ in ‘Title’ and your company name in the ‘Last Name ‘box. Mention your PAN correctly. After you fill in the details, enter the Captcha code, and click ‘Proceed’. An auto-generated token number will be sent to your email address. 
4. You will be redirected to a new page as shown below. Check ‘Submit scanned images through e-Sign’ on the top. Insert your PAN in the space provided.
5. Fill in all the mandatory fields with your details. Make sure to select the checkbox adjacent to the parameter you want to change. For example, if you want to change the spelling of your company name, insert the correct spelling, and select the checkbox on the left. The changes will be made only for the parameter(s) for which you select the checkbox. Click ‘next’ after checking all your details for accuracy. 
6. You will be directed to a page where you will need to upload valid documents related to the proof of your identity, residence, and age. You will also need to upload your photograph and signature in the format and size specified. After you submit the pan card correction form, the same will be available for your review. After checking for errors, click the ‘submit’ button. 
7. In this step, you need to pay the requisite fee. You can make the payment through debit/credit card, net banking, and demand draft. The demand draft should be in favor of NSDL-PAN, payable at Mumbai. 
8. On successful submission of payment, an acknowledgment receipt bearing a 15-digit acknowledgment number will be sent to your email id.  With this number, you can track your application status at the NSDL website. 
9. You need to send the following to the NSDL office-

• Acknowledgment receipt, signed by the authorized signatory( Director for a company/Karta for a HUF, Trustee for a trust/ Partner for an LLP or firm)
• Copy of company registration certificate
• Demand draft, if payment is made offline

The address of the NSDL office is–

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

Things To Keep In Mind

Please keep in mind the below-mentioned points – 

• Please take care to select the correct checkbox (against the field asked for correction) while submitting the pan card correction form.
• While sending the acknowledgment slip to NDSL office, you should superscribe the envelope with the words-  ‘APPLICATION FOR PAN CHANGE REQUEST’
• It should reach the NSDL office  inside 15 days from the online application date

FAQs:

Conclusion

We have now seen in detail how PAN is applicable to any entity engaged in any kind of commercial activity including companies. We have also seen the procedure to apply for a PAN and how any discrepancies can be corrected online. A PAN card is not just for the tax authorities. It is a document of credibility that you are on record with the government authorities and the authorities have performed all the necessary checks to validate your Indian residency. This is why people ask for PAN details even in the regular course of business. If you have any other queries or require any assistance with regards to legal and regulatory requirements, get in touch with us and we will ensure that you receive the best professional guidance for your requirements.

Read more:

• Business Pan Card Apply Online
• Difference Between Pan Card and Business Pan Card
• Company Pan Card Details