A Permanent Account Number or widely known as a PAN number, a 10-digit alpha-numeric unique number is one of the essential documents for tax submission by individuals, and organizations be it big or small if operating in India. Not only this, a business PAN Card is an essential document even for Indian-based businesses generating income in foreign premises for various purposes.
In this blog, we will talk about the simple process of how to apply for a company PAN Card, the documents required, and more.
Key Highlights of Business PAN Card
- Form 49A must be filled by companies incorporated in India to avail a new PAN Card.
- PAN Card can be applied through the official portal of NSDL.
- The Certificate of Registration issued by the registrar of companies can be used as Proof of Identity and Proof of Address.
- E-KYC option is not available for companies; hence the documents must be submitted physically.
- The payment mode will depend on whether the firm is Indian or overseas.
- Companies registered abroad or in India are obligated to pay tax on transactions conducted in India.
How to Apply for a Business PAN Card Online?
Follow these simple steps for the Business PAN Card application online:
Step 1: Visit the official website of NSDL and select Form 49A/Form 49AA from the ‘Application Type’ dropdown menu.
Step 2: From the next dropdown menu, select ‘Company’ as the category for PAN
Step 3: Enter all the relevant details, such as the name of the company, date of incorporation of the company, official email address, contact number, etc.
Step 4: Enter the Captcha Code, and a token number will be sent to the registered email address.
Step 5: Enter your company’s registration number to proceed further
Step 6: Now, enter the source of income of your company. Select ‘Income from Business / Profession’ from the drop-down menu and select business type
Step 7: Enter the official address in the PAN database for communication purposes. All other contact details will be prefilled. Click on the ‘next’ button
Step 8: Enter the Assessing Officer (AO) Code designated based on the area jurisdiction of your location. Click on the ‘Indian Citizen’ option and then select ‘State’ and ‘City.’ You can now proceed to the documentation page
Step 9: The declaration must be signed. Enter your relationship with the company(Director /Authorized Signatory) and apply for a company’s PAN. Submit the application form. Once done. Upload all scanned copies of documents.
Step 10: Review your form, and if all the information filled is correct, submit the form.
Step 11: Make the payment by choosing the payment mode, such as Demand Draft/Credit Card/Debit Card/Net Banking.
Once the payment is successfully made, you will receive an acknowledgment receipt for tracking the company’s PAN application status. This receipt must be signed and sent to the NSDL office with a copy of the registration certificate and demand draft (if any).
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While mailing the acknowledgment receipt, you must keep the below-mentioned things in mind:
- Super-scribe the envelope with ‘APPLICATION FOR PAN— N-Acknowledgement Number.’
- The receipt must reach the NSDL office within 15 days from the date of the online application.
- Ensure that the applications received with the demand draft shall be processed only on receipt of relevant proofs and payment realization.
How to Apply for a Business PAN Card Offline?
If you cannot apply for a company PAN Card online, you can choose the alternate method, i.e., offline, by following the steps mentioned below:
Step 1: Download Form 49A from the official website of NSDL.
Step 2: Fill out the form with all the required details and attach the supporting documents and the application form.
Step 3: Send the application form and the annexed documents to the nearest NSDL processing location.
Step 4: An acknowledgment slip will be given for further reference of the form submitted once you make the payment for the same.
Step 5: Company PAN Card application form will be sent to the official address once the documents are thoroughly reviewed.
Documents Required for a Business PAN Card
Below are the Company PAN Card documents required for availing a Business PAN Card number:
Certificate of Registration Granted By Registrar of Companies
Limited Liability Partnership Firms
Certificate of Registration issued by the Registrar of LLPs
Certificate of Registration issued by the Registrar of Firms
Certificate of Registration/ Trust Deed granted by the Charity Commissioner
Association of persons (other than Trusts) or Body of Individuals or Local authority or Artificial Juridical Person
Registration Certificate/Agreement issued by Cooperative society registrar/ Charity commissioner/Any other authority or Certified document issued from either central or state government office
What is the Need for a Business PAN Card?
The Government of India made it mandatory for all entities (individual businesses, a company, partnership firms, a HUF, or trusts) for generating income in India to apply for a PAN Card for the following purposes:
- Company PAN Card is essential for tax identity of the company as it acts as the reference number for the Income Tax Department.
- The Income Tax Department can track all the financial transactions with the company PAN Card.
- If the companies fail to avail a PAN Card and are generating income, it is considered that the companies are trying to hide information from the government. Hence, a Business PAN Card is important.
- It helps fill the Income Tax returns and avail various types of invoices, remittances, bills, etc.
- If the company does not have a PAN Card, the government can levy a withholding tax which might be more than the entire payment of the invoice.