PAN Card for Company - How to Apply & Document Required

Permanent Account Number or PAN Card is an important document for individuals and organizations making a taxable income in India. A PAN card is a 10-digit account number that can be used for several important purposes, such as filing taxes, applying for loans or credit cards, and proof of identification. Any organization that wants to set up a business in India or make a transaction must possess a PAN Card for the company. Also, any Indian-origin company wanting to earn profit abroad or make transactions should attain a PAN card for business.

This article will discuss the importance of PAN card for companies, who can apply for it, and how:

What is a Business PAN Card?

A PAN Card for the company is your organisation's tax identity, which will used by the income authorities to track and report your financial transactions. It is the same as a normal PAN card and consists of 10-digit account numbers.

Step-by-step Process to Apply for a PAN Card for Company Online

Here is a step-by-step process to apply for a business PAN Card online:

Step 1: Start by visiting the NSDL website and find the application form. From the main menu, choose Form 49A.

Step 2: Now, select 'Firm' from the 'Application Type' drop-down list and provide details like the firm's name, date of establishment, and more.

Step 3: Fill in the corporation registration number, income details, and contact address.

Step 4: Look for the Assessing Officer Code, which you can find on the Income Department website's 'AO Code Search for PAN' page.

Step 5: Don't forget to upload photocopies of the required documents and make the payment.

Step 6: After completing these steps, you'll receive an acknowledgment number. This number will help you track your PAN application.

Step 7: Finally, mail the signed acknowledgment form to the NSDL office below within 15 days of finishing the online application:

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.

Step-by-step Process to Apply for a PAN Card for Company Offline

Let's delve into the process of applying for a PAN Card for company offline:

Step 1: First, you need to attain the Form 49A via the NSDL website and print it.

Step 2: Then, you must fill out the form with the requested information and attach any documents mentioned.

Step 3: The filled form, along with supported documents, should be mailed to the nearest NSDL department; you can find the address of your nearest department through the government's TIN site.

Step 4: For all the submitted documents, you will be given an acknowledgment letter.

Step 5: The PAN Card for a company you applied for is sent to your registered address after reviewing the documents is complete. A fee of Rs 110 is mandatory for the application form.

Why is a PAN Card for a Company Crucial?

You should know why a PAN Card for the company is important and the various factors affecting not possessing one. Below are the reasons you should know about:

Issuing a PAN card for a company is quite important. It is like a special number that the Income Tax authorities use to keep tabs on your financial moves. Whether dealing with transactions or tax-related forms, your PAN is an important document.
Even if your company is not in the tax-paying bracket, having a PAN is necessary if you are earning money. For businesses, whether they are from India or coming from abroad, they have to deal with taxes on Indian transactions. If your PAN is missing, the government might deduct the heftiest tax bill.
But PAN is not just about taxes; it's also handy for paying bills, sending and receiving money, and sorting out your income tax forms. When companies get paid, they need to share their TRN, and your company can only get that if you have a PAN.
For foreign organizations, Section 206AA of the Finance Act of 2009, modified in 2009, was made necessary. Under this, any foreign entity offering or producing a transaction to its counterpart in India must possess a PAN Card. This section implies not only that individuals must disclose their PAN card but also that partnerships, organizations, LLCs, etc., must do the same.
Without a PAN Card, the government has the authority to impose a withholding tax, which can be around 30% more of the whole invoiced payment.

Important Documents for a PAN Card for Company

Documents for Indian Companies:

Any Indian corporation applying for a PAN card must have certain documents to disclose for Income department authorities to assess. Here is the list of the required documents for Indian companies:

Proof of identity and Proof of Address documents
Photocopy of the certificate of Incorporation
A photocopy of the NOC (No Objection Certificate) allocated by the Ministry of Corporate Affairs

Documents for Foreign Companies:

When seeking a PAN card as a foreign company, you'll need to provide specific documents. The list of documents required:

Provide a photocopy of your Certificate of Registration issued in your home country. Ensure it's appropriately validated, either through an "Apostille," the Indian Embassy, High Commission, Consulate, or a representative from an overseas branch of a Scheduled Bank registered in India.
Include a copy of the registration certificate issued in India, indicating approval for establishing an office in the country by Indian authorities.

Tips for a Business PAN Card

There are certain things that should be kept in mind when applying for a PAN Card for the company to avoid any errors and rejection. Here are the tips you should follow:

Before applying, go through all the instructions given and make sure that you attach all the supporting documents properly.
It is vital for the application's acceptance by the authorities that only the CEO of the company's authorized signatory should sign the form.
If you are applying for the PAN Card for Company form offline, you must use a black pen and fill the form in capital letters.
Note that the mode of payment can vary on whether your company is situated in India or Abroad.
The PAN Card department also provides customer support so that you can contact them in case of any technical issues or queries.

Conclusion

A PAN Card for company is a crucial document for businesses operating in India, whether they are Indian or foreign-based. It serves as a tax identity and is essential for various financial transactions, including tax filings, bill payments, etc. Having a PAN card is not only necessary for compliance but also for smooth financial operations. Clear communication with the PAN department can help address any concerns or inquiries.