How to Apply and Get a Business PAN Card in 2024?

A business PAN card refers to a permanent account number (PAN) specifically issued for businesses or entities in India. Business PAN cards are typically required for tax filing, opening bank accounts, legal compliance, claiming tax deductions, and conducting other financial activities on behalf of the business entity.

To get the unique 10-character PAN, you need certain documents and identifications. In this article, we address all the aspects that you should know to get a PAN card for your company.

Which Types of Businesses Require a PAN Card? 

There are many documents you need to start a business in India and a PAN card is among the most important ones. Any individual or corporation (Indian or foreign) involved in business in the country needs to get registered and have a company PAN card. 

Additionally, if your company is generating money from outside India but was registered in India, has a permanent establishment, or even has an office in India, will need a PAN card.

If you come under any of the following entities, you should have a business PAN card:

• Company
• Partnership firm
• Association of persons
• Limited Liability Partnership (LLP)
• Body of Individuals
• Trust
• Incorporation
• Limited company
• Private firm
• Association
• Foreign institutional investor
• Hedge fund

Read More: Documents You Need to Start a Business in India

Why Should Your Company Have a PAN Card?

Your company’s PAN card enables invoice payments, remittances, and tax returns. Like individuals, companies need to provide their Tax Registration Number (TRN) to payers, which is obtainable only after acquiring a PAN.

Below are some of the key reasons to have a company PAN card:

• For any tax-related transactions and documentation, you need to present your business PAN number so that the Income Tax department can track your transactions, thereby avoiding any potential troubles.
• If you are a foreign company, you need a corporate PAN card to operate to avoid the highest possible tax rates otherwise.
• The company PAN card helps you in the payment of your invoices without deduction, filing of tax returns, remittances, and much more.
• If you need a TRN (Tax Registration Number), having a PAN is mandatory.
• According to the amendments made under Section 206AA in 2009, every foreign company must have its PAN to continue doing business with a company in India.
• The Indian government has the right to charge you 30% or more of your invoiced payments in case you do not have a PAN.

How to Apply for a Business PAN Card?

Now, let’s explore the process of applying for a company PAN card. You have the option to apply online via the NSDL (National Securities Depository Limited) website or through offline methods.

How to Get a Business PAN Card Online?

Here’s the procedure for obtaining a PAN card online:

• STEP 1: Visit the NSDL website and fill out Form 49A.
• STEP 2: For the option of ˜Application Type’, fill the form listed under ˜Firm’. Fill in all the details like company name, date of application, etc.
• STEP 3: Provide the income details, number of company registrations for online sellers and communication address.
• STEP 4: Fill in the assessing officer code (AO code). It can be found in the AO code search panel on the NSDL website. 
• STEP 5: Upload copies of the required documents including essential ones like certificate of incorporation and address proof and pay the fees.
• STEP 6: After these steps, you will get an acknowledgement number to track progress details regarding your PAN card.
• STEP 7: Send a signed acknowledgement form to the NSDL head office within 15 days

How to Get a Business PAN Card Offline?

Here’s the procedure for obtaining a PAN card offline:

• STEP 1: Download the Form 49A from the NSDL website.
• STEP 2: Fill out the form and attach the necessary documents.
• STEP 3: Submit the form and documents to the nearest NSDL centre. The website provides the address of the nearest centre.
• STEP 4: The centre will issue a letter of acknowledgement.
• STEP 5: Post verification of your details, you will receive the business PAN card at the mentioned company address. The cost of this whole procedure is Rs.100.

Documents Required for Business PAN Card (Indian Company)

Here are the key documents required for obtaining an Indian Company PAN Card:

• An identity or address proof
• A copy of the certificate of incorporation
• A copy of a no objection certificate (NOC) issued by MCA (Ministry of Corporate Affairs)

Documents Required for Business PAN Card (Foreign Company) 

Here are the key documents required for obtaining a Foreign Company PAN Card:

• A copy of the registration certificate issued by Indian officials to set up an office in India
• A copy of the certificate of registration from the applicant’s native country, duly attested by Apostille, the Indian Embassy, the High Commission, or even by authorised officials of overseas branches of scheduled banks registered in India.
• A bank draft to pay the issuance fee to the tax department to get a corporate PAN card. Ensure that the payment is made in Indian currency. You can also draw a foreign currency draft in favour of NSDL. 

The corporate PAN card issuance fee payment is mandatory, and the accepted payment method is a bank draft payable in INR (Indian rupee) to PAN or UTIITSL (UTI Infrastructure Technology And Services Limited), Protean eGov Technologies Limited, with Mumbai as the destination. When making this payment, you must know how to choose a payment gateway that aligns with your business needs.

Apostille Process for Documents 

An apostille is a certificate that authenticates the origin of a public document so that it can be recognised in foreign countries. It verifies that the signer’s signature, capacity, and seal/stamp on a document are genuine. In the context of foreign companies seeking a PAN card in India, apostilled documentation proves the organisation’s legitimate existence and operation outside India. 

Requirements for Obtaining Apostilles

Here are the key requirements:

• Notarisation: Documents must be certified by a notary public.
• Original Seals and Signatures: Every seal and signature on the document must be genuine.
• Translation: The original foreign language documents have to be translated into English, besides a notarisation that the translation is actual should be added.

Steps Involved in Obtaining Apostilles

Follow the below steps to obtain apostilles:

1. Identify Relevant Office

For U.S. federal, apostilles are provided by the U.S. Department of State. The documents must be authenticated by the competent state authority where the document was executed.

2. Submission Process

The original documents in the notarised and authenticated way should be submitted to the appropriate office together with any necessary forms and fees.

For countries which are signatories to the 1961 Hague Convention, apostilles can be obtained from specific authorities such as the U.S. Department of State for federal documents and the state authorities for state-issued documents. It is worthwhile to seek guidance from local officials or legal experts on the authentication processes that are unique in the countries that are not a part of the Hague Convention.

Business PAN Card Processing Time and Fees 

Getting a PAN card for your business is one of the crucial steps to ensure that you maintain financial integrity. Detailed below are the processing time and fees associated with applying for a business PAN card.

Related Read: What is GSTIN Number & Why It Is Required?

Estimated Processing Time for Business PAN Card Issuance

The estimated processing time for a business PAN card issuance is around 15 days. 

Business PAN Card Fee Structure for Different Entities

The fee structure for different entities varies. For applicants residing in India, the fee is Rs. 110, which includes a processing fee of Rs. 93 and 18% GST. For foreign communication addresses, the fee is Rs. 864 (excluding GST). The PAN card can be applied both online and offline and remains valid for a lifetime.

Advantages of a Business PAN card

The PAN for business is an essential instrument that serves as a basis for financial transactions, besides ensuring compliance with financial regulations. As a primary benefit, it helps track all the financial transactions mandated by the Income Tax Department.

Not having a PAN card can potentially result in higher rates of tax and non-eligibility for specific tax-related procedures. A PAN card is necessary for filing income tax returns, opening a bank account and making investments. Additionally, it enables businesses to claim tax breaks and benefits.

It is important to know how to get a business PAN card. Applying for a business PAN card is comparable to the process of applying for an individual PAN card, and the difference lies in some details like the need for a Certificate of Registration in case of a business PAN Card. While the issuance processing time is estimated to be approximately 15 days, the fee structure varies for different organisations.

A business PAN card is indispensable for businesses in India as it assists in smooth transactions, adherence to tax laws, and receiving approval for TRN (tax registration number). There are additional benefits of a PAN card, including eligibility for tax rebates and incentives.

The absence of a PAN card may lead to higher tax rates and ineligibility to meet specific tax-related prerequisites. Legal business operations necessitate getting two vital documents including GST (goods and services tax) and PAN numbers. The process of how to get a GST number for a business is very important for businesses to run their business smoothly.

Common Challenges and Solutions

After knowing how to apply for a business PAN card, you must know about some of the key challenges and their solutions to avoid unnecessary hassles:

1. Incomplete Documentation

• Issue: Submit all the necessary documents to prevent slowing down the application process.
• Troubleshoot: To guarantee a hassle-free process, ensure all the documents, including your ID, address proof and business registration certificate are valid and updated.

2. Incorrect Information

• Issue: Avoid providing wrong information in the application as it may result in discrepancies and multiple complications.
• Troubleshoot: You should verify that all information is correct before submitting to prevent any errors. Compare the names, addresses, and other supporting ID documents to confirm the correctness and accuracy of the details.

3. Mismatch in Business Details

• Issue: When the information on the form differs from the data that is registered with the other government authorities, it may lead to confusion and delays.
• Troubleshoot: You must be consistent with all business details mentioned in different documents and registrations like GST. Verify and rectify any possible discrepancies in your registered details before requesting any services.

4. Non-compliance With Legal Requirements

• Issue: Not being able to fulfil the eligibility criteria or the legal requirements can lead to an application being turned down.
• Troubleshoot: Know the eligibility criteria and legal obligations for your business entity. Resolve any non-compliance issues before applying to boost chances of approval.

5. Address Discrepancies

• Issue: If a business address is provided with conflicting data, it may need clarification and delay the application process.
• Troubleshoot: Use the registered address listed officially and update the address in case of any changes. Check that the address on the documents needed to start a business matches the one mentioned in the application to eliminate discrepancies.

6. Non-verification of Documents

• Issue: Authenticate supporting papers during the application process to avoid rejection or delay.
• Troubleshoot: Cross-check all documents regardless of clarity, readability, and anything that is specified to be acceptable. The document copies must be clear and legible to avoid any inconvenience.

7. Incorrect Business Category

• Issue: Selecting the wrong category or type of business entity can lead to complications and delays.
• Troubleshoot: Understand the correct category based on their business structure and choose accordingly. Review the guidelines provided by the authorities to ensure the proper selection of the business category.

8. Digital Signature Issues

• Issue: Technical issues or errors related to the digital signature can cause delays or rejection of the application.
• Troubleshoot: Ensure that the digital signature is valid and meets the specified requirements. Resolve any technical glitches before applying to ensure a smooth process.

9. Delayed Processing

• Issue: Delays in processing the application can cause inconvenience and frustration.
• Troubleshoot: Apply well in advance of any deadlines to avoid last-minute delays. Regularly check the status online, and contact the relevant authorities for updates and clarification in case of undue delays.

10. Communication Gaps

• Issue: Lack of communication or updates on the application status can lead to confusion and uncertainty.
• Troubleshoot: Stay proactive by checking the application status online. If there is a need for communication, reach out to the designated authorities for updates and clarification. You must stay informed throughout the application process.

Tips on PAN Card for Business 

It is essential to know some tips on how to get a PAN card for business. Read all the instructions provided in the PAN card application form and submit the required supporting documents. The application form should be filled out using block letters and a black pen, preferably for the offline form so that the information is easy to read and understand. To ensure compliance with regulation, the CEO or the authorised signatory must sign the form.

Use the customer care services in case you have any questions related to the application process. There is a variety of payment methods available for Indian and foreign companies, and it is crucial to choose the right one based on the company’s status. This will minimise issues that may arise during the application process.

Frequently Asked Questions (FAQs)

1. What is the PAN Card fee?

The fee for applicants residing in India is INR 110, which includes a processing fee of INR 93 plus a GST of 18%. For citizens outside the country, the cost is INR 864, exclusive of GST.

2. How can I get a hard copy of my PAN card?

To get a hard copy of your PAN card, you can submit a request through the official NSDL or UTIITSL websites. The physical PAN card will be processed and dispatched to the address provided in your application form. Additionally, an E-PAN for a private limited company in PDF format will be sent to the e-mail ID mentioned in the application form.

3. How can I get PAN details?

You can get the PAN card details by taking the company PAN number, searching for the name of the PAN card holder, by date of birth, or by address.

4. What is the business PAN format?

The PAN format for businesses is similar to that for individuals. It is a 10-digit alphanumeric number, which the Income Tax Department allows. The initial three characters are alphabets, followed by four digits, and terminated with a single alphabet. This PAN number is often used for GST search by PAN.

5. How can I get a PAN card in 2 days?

Currently, there is no option of getting a PAN card within two days. Generally, processing the PAN card takes around 15 days. The applicants are encouraged to apply in advance to enable them to receive the PAN card in time.

6. How do you identify a PAN?

A PAN card is an alphanumeric 10-digit number issued by the income tax department. The first three characters are invariably letters. The fourth type of character stands for the entity that owns it (individual, company, etc.). The rest of the characters are a mixture of figures and symbols. 

7. What is the full form of PAN?

The PAN is an abbreviation for permanent account number. It is a unique identification (UID) number issued by India’s Income Tax Department.

8. Why is a PAN card required?

A PAN card is necessary for different financial processes such as filing income tax returns, opening a bank account, and making high-value transactions. It assists the government in tracing financial transactions and avoidance of tax.

9. Is PAN for business mandatory for GST registration?

Yes, a PAN card is a mandatory document for obtaining GST registration. Additionally, understanding how to register a business in India is crucial for new entrepreneurs.

10. What is the Apostille Convention?

The Apostille Convention is an international pact that makes the procedure of verifying documents to be used in other nations a lot easier. It eliminates the need for extra certification by endorsing the original document with an apostille certificate.

11. From where can I download the PAN application form?

You can get the PAN application form either from the official website of either NSDL or UTIITSL.

12. Who is eligible for a business PAN card?

Businesses, which include sole proprietorships, partnerships, companies and other legal entities, are entitled to apply for a business PAN card.