Any company registered in India and conducting business activities must obtain a PAN card. Regardless of the business structure, any entity generating income in India is legally required to have a Permanent Account Number (PAN). This unique identification number must be quoted for all financial transactions, invoices, and other business-related registrations.
Which Businesses Need a PAN Card in India?
Every corporate or artificial judicial entity operating in India must apply for a PAN card. Additionally, entities incorporated overseas but engaged in business activities within India must also obtain a PAN. The following business structures require a PAN card:
- Private and Public Limited Companies
- Limited Liability Partnerships (LLP)
- Partnership Firms
- Hindu Undivided Families (HUF)
- Associations of Persons (AOP)
- Bodies of Individuals (BOI)
- Trusts and Societies
- Foreign Institutional Investors (FIIs)
- Hedge Funds
- Private Firms
- Non-Resident Companies with Indian Operations
Company PAN Card: What You Need to Know
Every registered company must apply for its own PAN card, which is separate from that of its directors or shareholders. Since a company is considered a separate legal entity, it must have a PAN to conduct financial transactions independently. The PAN card contains a unique 10-digit alphanumeric code issued by the Income Tax Department and is mandatory for filing income tax returns.
To simplify the process, the Ministry of Corporate Affairs (MCA) introduced an integrated application system. Since February 1, 2017, companies can apply for a PAN and TAN while registering their business through the SPICe+ Form. However, companies registered before this date that have not yet applied for a PAN must do so separately via the NSDL website.
For companies incorporated before February 1, 2017, and those that missed applying for a PAN through the MCA’s common application form (SPICe+), the only way to obtain a PAN card is through digital submission using e-KYC and e-Sign with a Digital Signature Certificate (DSC). Foreign companies, on the other hand, can apply via the NSDL website using any available document submission option.
Why Does a Company Need a PAN Card?
A PAN card is crucial for businesses in India due to the following reasons:
- Ensures Legitimacy – Helps maintain transparency and accountability, preventing tax evasion.
- Acts as a Proof of Identity – Essential for business verification and credibility.
- Legal Requirement – Mandated under the Income Tax Act for financial transactions and GST registration.
- Income Tax Compliance – Necessary for filing tax returns, paying taxes, and receiving remittances.
- Tax Registration Number (TRN) – Required for issuing TRN, which is essential for businesses collecting taxes.
- International Transactions – Required for companies involved in import/export or cross-border transactions.
- Opening a Business Bank Account – Mandatory for banking operations under the company’s name.
- Investment and Financial Transactions – Essential for investing in stocks, mutual funds, or other financial instruments.
- High-Value Transactions – Required for purchasing/selling assets, vehicles, or properties.
- Government Tenders and Contracts – Necessary for businesses bidding for government projects.
How to Apply for a Company PAN Card?
A company can apply for a PAN card through either online or offline methods. Below is a step-by-step guide:
Online Process
- Visit the NSDL website.
- Choose ‘New PAN – Indian Citizen (Form 49A)’ or ‘New PAN – Foreign Citizen (Form 49AA)’, and select ‘Company’ as the category.
- Fill in the details, including company name, incorporation date, contact information, and submit the form.
- Opt for digital submission using e-KYC and e-Sign.
- Provide necessary documents and company details, then make the payment.
- Upon successful submission, an acknowledgment slip will be generated.
- The PAN card will be sent to the registered office or email within 15-20 days.
Offline Process
- Obtain Form 49A from a PAN Centre or download it from the Protean PAN website.
- Complete the form in block letters using a black pen and have the company director sign it.
- Submit the application with supporting documents and pay the required fee.
- Collect the acknowledgment receipt as proof of submission.
- After verification, the PAN card will be dispatched within 15-20 days.
Tips for Filling the PAN Application Form
- Read the instructions carefully and attach all necessary documents.
- Fill out the form in capital letters if submitting offline.
- Mention the full company name in the ‘Last Name/Surname’ section.
- Enter the date of incorporation in the ‘Date of Birth’ field.
- Leave the gender, Aadhaar number, and residential office fields blank.
- Ensure the company director signs the form before submission.
- Choose the correct business code based on the nature of operations.
Documents Required for Company PAN Card
For Indian Companies
- Certificate of Incorporation issued by the Registrar of Companies (ROC).
- Declaration stating reasons for not obtaining PAN before (for companies established before February 1, 2017).
- No Objection Certificate (NOC) from the MCA for companies incorporated after February 1, 2017.
For Foreign Companies
- Certificate of Registration issued in the country of incorporation, attested by the Indian Embassy, High Commission, or Apostille.
- Registration certificate issued in India or approval from Indian authorities to establish an office.
- Bank draft or foreign currency draft payable to NSDL for PAN application fees.
Apostille Process for Foreign Companies
Foreign businesses must authenticate their documents through an Apostille, a certification verifying the authenticity of official documents. Depending on the country of origin, companies must approach the relevant authority, such as:
- UK – Foreign and Commonwealth Office
- USA – Secretary of State Office
Fees for Company PAN Card Application
| Mode of Submission | Mode of Dispatch | Fee (Including GST) |
|---|---|---|
| Physical/Online (Physical PAN Card) | Within India | Rs. 107 |
| Physical/Online (Physical PAN Card) | Outside India | Rs. 1,017 |
| Online (Paperless PAN) | Within India | Rs. 101 |
| Online (Paperless PAN) | Outside India | Rs. 1,011 |
| Physical/Online (e-PAN Only) | Sent to Email | Rs. 72 |
| Online (Paperless e-PAN) | Sent to Email | Rs. 66 |
Challenges in PAN Card Application for Companies
- Incorrect Information – Ensure accuracy in company details to avoid rejections.
- Failure to Meet Legal Requirements – Verify all compliance requirements before submission.
- Address Mismatch – Ensure all official records reflect the correct business address.
- Unverified Documents – Cross-check documents for legibility and completeness.
- Processing Delays – Apply well in advance and track the application regularly.
Conclusion
A PAN card is a crucial requirement for companies operating in India, ensuring tax compliance and enabling smooth financial transactions. By understanding the application process, required documents, and potential challenges, businesses can efficiently obtain their PAN and avoid unnecessary delays.
Frequently Asked Questions (FAQs)
Q1: Is it mandatory for all companies to have a PAN card in India?
A: Yes, all companies incorporated in India and conducting business must obtain a PAN card. It is required for financial transactions, tax filings, and compliance with the Income Tax Act.
Q2: Can a foreign company operating in India apply for a PAN card?
A: Yes, foreign companies doing business in India must obtain a PAN card. They can apply through the NSDL website and submit the necessary documents, including proof of identity and address.
Q3: How can a company apply for a PAN card online?
A: Companies can apply online through the NSDL website by selecting the appropriate application type, filling in the required details, uploading documents, and making the necessary payment. The PAN will be issued after verification.
Q4: What are the documents required to obtain a PAN card for an Indian company?
A: Indian companies must submit:
- A copy of the Certificate of Incorporation issued by the Registrar of Companies (RoC).
- Declaration or affidavit (if applicable) for companies registered before February 1, 2017, that have not applied for PAN.
- No Objection Certificate (NOC) from the Ministry of Corporate Affairs for companies incorporated after February 1, 2017.
Q5: What documents are needed for a foreign company to apply for a PAN card?
A: Foreign companies must submit:
- Certificate of Registration issued in the country of origin, duly attested.
- Registration Certificate issued in India (if applicable).
- Approval document for setting up an office in India.
Q6: How long does it take to receive a PAN card after applying?
A: The PAN card is usually issued within 15-20 days after successful submission of the application and documents.
Q7: What is the fee for obtaining a company PAN card?
A: The fee varies based on the mode of application and dispatch method:
- Physical PAN card (India) – ₹107
- Physical PAN card (Outside India) – ₹1,017
- e-PAN card (India) – ₹66
- e-PAN card (Outside India) – ₹1,011
Q8: Can an existing company without a PAN card apply now?
A: Yes, companies that were incorporated before February 1, 2017, but did not apply for a PAN can still obtain one by following the application process on the NSDL website.
Q9: Why is a PAN card important for a company?
A: A PAN card is essential for:
- Filing income tax returns.
- Conducting financial transactions.
- Opening business bank accounts.
- Applying for loans and investments.
- Ensuring tax compliance and transparency.
Q10: What happens if a company does not obtain a PAN card?
A: Without a PAN card, a company may face:
- Higher tax rates.
- Ineligibility for certain tax benefits and deductions.
- Difficulty in financial transactions.
- Compliance issues with government authorities.
Would you like any modifications or additional FAQs?
