Companies incorporated in India, form 49 A is required to apply for a new PAN card. In this article, we will take a look at the importance of a PAN Card for Company and how to apply NSDL & UTIITSL
PAN Card for a Company
A PAN (Permanent Account Number) card is a unique identification number issued by the Income Tax Department of India to individuals, companies, and other entities. In the case of a company, a PAN card serves as a means of identification for tax purposes.
A company must apply for a PAN card within 30 days of its incorporation, as per the Income Tax Act of India. The application can be made online through the NSDL or UTIITSL websites, or offline by submitting Form 49A or Form 49AA, depending on whether the company is registered in India or outside India, respectively.
The PAN card for a company contains the following details:
- Name of the company
- Date of incorporation
- PAN number
- Registered office address
- Photograph of the authorised signatory
A company must quote its PAN number in all correspondence with the Income Tax Department, including filing of income tax returns, payment of taxes, and other tax-related matters. It is also mandatory to quote the PAN number when making certain high-value transactions, such as buying or selling property, opening a bank account, or investing in shares.
Failure to obtain a PAN card or to quote the PAN number in the required transactions can result in penalties and legal consequences. Therefore, it is important for companies to obtain a PAN card and comply with the requirements of the Income Tax Department.
Documents Required for PAN Card for Company
| S No | Business Type Document Required |
| 1 | Companies Certificate of Registration from the Registrar of Companies |
| 2 | Limited Liability Partnerships Certificate of Registration from the Registrar of Firms |
| 3 | Partnership Firms Certification of Registration from RoF or Partnership Deed |
| 4 | Trusts Certificate of Registration from Charity Commissioner or Trust Deed |
| 5 | Association of Person Certificate of Registration from Charity Commissioner |
| 6 | Body of Individuals or Local authority Certificate of Registration from Charity Commissioner, Co-operative Society or Competent Authority |
| 7 | Artificial Juridical Person Document from any Central/State Department proving a person’s identity and address |
Documents Required for PAN Card for Indian Company
To apply for a PAN card in India, companies must submit the following documents along with the application form:
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- Proof of identity/proof of address
- Copy of Certificate of Incorporation
- Copy of No Objection Certificate issued by the Ministry of Corporate Affairs.
Documents Required for PAN Card for Foreign Company
For foreign companies applying for a PAN card, the following supporting documents are required:
Submit one of the following as ID and address proof:
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- Copy of a Certificate of Registration issued in the applicant’s country and attested by the Indian Embassy, High Commission, or Consulate, or a representative of an overseas branch of a Scheduled Bank with Indian registration and Apostille
- Copy of registration certificate issued in India or approval to set up an office in India by Indian authorities
- To pay the Income Tax Department for the PAN card issuance fee, the applicant needs to provide a bank draft. The amount must be paid in INR and the draft should be made out to PAN or UTIITSL, Protean eGov Technologies Limited, with Mumbai as the destination.
How to Get the Documents Apostilled for a Foreign Company?
The process of document apostillation involves the notarisation of the document by a state authority in accordance with the apostille agreement. To obtain an apostille document, one can approach any public state notary who can initiate the process in accordance with the Apostille Convention. Once the notarisation is complete, the verified document is forwarded to the relevant state authority and then to the Ministry of External Affairs, which issues the necessary apostille sticker.
To begin the process, it is recommended to contact the authority responsible for issuing the certificate. The documents can then be sent to the appropriate offices, such as the Secretary of State Office in the USA, or The Legalisation Office, and the Foreign and Commonwealth office in the UK.
Why Does Your Company Need a PAN Card?
In India, the government has mandated the possession of a PAN by all entities, including individuals, businesses, companies, HUFs, partnership firms, and trusts, that are earning income within the country. Obtaining a PAN offers several advantages for companies, which include the following:
- PAN serves as the company’s unique tax identification number
- The Income Tax Department utilises PAN to monitor all financial transactions, irrespective of whether the company is subject to taxation or not
- Failure to possess PAN while generating income is viewed as withholding crucial information from the government
- PAN aids in the filing of Income Tax Returns and facilitates the receipt of various types of invoices and remittances.
Which Type of Business Needs a PAN Card?
For any corporate entity engaging in business activities in India, whether registered domestically or abroad, obtaining a PAN card is mandatory. Similarly, any individual or organisation involved in conducting business with an Indian firm must possess a PAN card. Additionally, those who earn money from India, regardless of whether their company is registered, has a permanent establishment, or operates an office in India, must also have a PAN card. Here is a sample list of entities in India that require PAN cards:
- Company
- Partnership firm
- Association of persons
- Limited Liability Partnership (LLP)
- Body of Individuals
- Trust
- Incorporations
- Limited companies
- Private firms
- Associations
- Foreign institutional investors
- Hedge funds
What Are the Benefits of a Business PAN Card?
Some of the important benefits of a Business PAN card include:
- The company PAN card helps track all financial transactions for tax purposes
- Without a PAN card, the company may have to pay taxes at the highest rate
- A TRN can only be obtained with a PAN card for the company
- The company cannot file income tax without a PAN card
- The PAN card is necessary for tax rebates for the business.
The address you need to send this envelope to is as follows;
How to Apply for a Business PAN Card?
The process of obtaining a company PAN card can be done through either online or offline methods, and each approach’s respective procedures will be elaborated on below.
Offline Application Method to Get PAN Card
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- Step 1: Download Form 49A from NSDL or UTIITSL website
- Step 2: Attach supporting documents (proof of address, Certificate of Registration)
- Step 3: Submit Form 49A and supporting documents to the nearest NSDL centre
- Step 4: Receive acknowledgment number from NSDL
- Step 5: Track PAN card status with acknowledgment number
- Step 6: NSDL will issue a PAN card for the company after document verification
- Step 7: PAN card will be delivered to the registered company address
Online method available for PAN Card application for Partnership firm
Online Application Method to Get PAN Card
Online PAN card applications for a company can be made via NSDL or UTIITSL.
Business PAN Card Apply on NSDL Website
Below are the steps to apply online through NSDL’s website:
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- Step 1: Visit the official portal and read the instructions before filling up the form
- Step 2: Choose the option for Form 49A
- Step 3: Select the type of business you run
- Step 4: Fill up the company name, date of incorporation, email ID, and contact number
- Step 5: Enter a captcha code, submit the form, and save the token generated
- Step 6: Provide personal details, contact information, and the AO code
- Step 7: Use the Registration Certificate issued by the Registrar of Companies for ID and address proof
- Step 8: Specify the applicant’s relationship with the company
- Step 9: Upload scanned copies of documents, review the form, and check for errors
- Step 10: Submit the form after proofing it and pay the fees for the PAN card
- Step 11: Note down the acknowledgment number mentioned on the receipt generated after paying the fees to track the PAN card status
- Step 12: Sign the acknowledgment and send it to the NSDL office with the registration certificate copy and demand draft (if paying by the same)
- Step 13: The steps for the business PAN card application are now complete.
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Business PAN Card Apply on UTIITSL Website
To get a PAN card for business from UTIITSL’s website, follow these steps:
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- Step 1: Visit the official portal
- Step 2: Click on the ‘PAN card Services’ button and navigate to the ‘PAN card as an Indian citizen/NRI’ option
- Step 3: Select the ‘PAN card as an Indian citizen/NRI’ option and choose either the offline or online application mode
- Step 4: Select the company type and note that physical submission is the only applicable mode for companies
- Step 5: Upload various documents such as company details, incorporation date, name, email ID, phone number, and address, among others
- Step 6: Pay the processing fee and get the acknowledgment number
- Step 7: Use the acknowledgment number to track the progress of the company PAN card
- Step 8: Finally, send the printed acknowledgment form to the UTIITSL office with copies of supporting documents.
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Apply for a Duplicate PAN Card for Company
To apply for a duplicate PAN card for a company, follow these steps:
- Step 1: Visit the official website of either NSDL or UTIITSL, which are the two authorised agencies for PAN card issuance
- Step 2: Download the application form for a duplicate PAN card or Form 49A
- Step 3: Fill out the form with accurate information. Provide the PAN number of the company that requires a duplicate PAN card
- Step 4: Attach a copy of the old PAN card or provide the PAN card number, if the old card is lost
- Step 5: Submit the form along with a fee payment. The fee for a duplicate PAN card for a company is higher than for an individual
- Step 6: After submitting the form and the fee payment, an acknowledgment receipt will be generated. Keep this receipt safe
- Step 7: The authorities will process the application, and upon verification of the details, a new PAN card will be issued to the company with the same PAN number as the old card
- Step 8: The new duplicate PAN card will be sent to the registered office address of the company through courier or post
- Step 9: The company can track the status of the application using the acknowledgment number mentioned on the receipt.
What to Keep In Mind While Sending the Acknowledgement Slip?
- Make sure the envelope is labelled in the following manner – APPLICATION FOR PAN – <<15-digit Acknowledgement Number>>
- The documents must reach the NSDL office at least 15 days after you have filed the online application.
- Moreover, if you have opted for the Demand Draft option, you must include the DD in the envelope. Such applications will be processed only after the realisation of the payment.
FAQs
How can a company benefit from having a PAN card?
Having a PAN card allows a company to engage in financial transactions, obtain loans, file taxes, and establish its credibility, aiding in legal and financial compliance and facilitating smoother business operations.
Is it mandatory for a company to obtain a PAN card?
Yes, it is mandatory for a company in India to obtain a PAN card. It's a fundamental requirement for various financial and tax-related transactions and compliances.
Can a company receive a physical PAN card, or is it only available in digital format?
A company can receive both a physical PAN card and an electronic PAN (e-PAN) card. The e-PAN card, in PDF format, is generally received faster and is widely accepted.
What is the specific format of a PAN card for a company, and how does it differ from an individual PAN card?
The PAN card for a company follows the format 'AAAAA#####A,' where 'A' represents alphabets and '#' represents numbers. In contrast, an individual PAN card follows a different format.
What is the PAN number for a company in India, and how is it structured?
The PAN number for a company in India is a unique alphanumeric code. The first four characters are letters, the next five are numbers, and the last character is a letter (e.g., AAABB1234C).
Why do companies typically request PAN card information from their clients or partners?
Companies request PAN card information from clients or partners for compliance, financial transactions, and tax purposes, ensuring transparency, legality, and adherence to regulatory guidelines.
Can a company have multiple PAN numbers, and under what circumstances might this be necessary?
Ideally, a company should have only one PAN number. Multiple PAN numbers may cause legal issues and confusion. However, under exceptional circumstances, separate PANs might be obtained for distinct business divisions or entities.
Is there a limit to how many PAN numbers a company can have?
There isn't a specific limit, but it's advisable for a company to maintain a single PAN number. Acquiring multiple PANs can lead to complications and legal implications.
Is it possible to register a company without first obtaining a PAN card?
No, it's not possible to register a company without obtaining a PAN card. It's a prerequisite for company registration in India and various financial activities.
