PAN stands for Permanent Account Number. Individuals, firms, companies, limited liability partnerships, associations of persons or trusts, a body of individuals, artificial juridical persons and also even non-residents are given an identification number by the government and so, a PAN card for your company is a government-approved form of identification.
The issuing authority of PAN cards is the Income Tax Department, also known as the IT Department. The PAN system enables the tax authority to keep track of people and their finances that are subject to taxation. All of the taxpayer’s tax-related information is recorded against a PAN number.
Classification Of Characters of PAN Card
A PAN card can be classified based on its characters in the following way:
First Three Characters: The first three characters of a PAN Card consist of a sequence of alphabets, ranging from AAA to ZZZ. These characters are selected randomly.
Fourth Character: The fourth character of the PAN represents the status of the taxpayer. For most PAN holders, it is the letter ‘P,’ indicating ‘person.’ However, there are other possible letters representing different taxpayer categories:
- A: Association of Persons (AOP)
- B: Body of Individuals (BOI)
- C: Company
- F: Firm/ Limited Liability Partnership
- G: Government Agency
- H: Hindu Undivided Family
- L: Local Authority
- J: Artificial Judicial Person
- T: Trust
Fifth Character: The fifth character of the PAN Card corresponds to the first letter of the applicant’s surname or last name.
Sixth to Ninth Characters: The following four characters of the PAN are sequential numbers, ranging from 0001 to 9999. The selection of these numbers is entirely random.
Tenth Character: The tenth and last character of the PAN is an alphabetic check digit. This digit is generated using a formula applied to the preceding nine letters and numbers. It serves as a verification code to prevent errors in PAN identification.
Businesses Requiring a PAN Card in India
The businesses that need a PAN card as per Indian laws are:
1. Indian Companies
All Indian companies, regardless of their size and scale, must possess a PAN card for conducting business operations.
2. Foreign Companies with Indian Operations
Even foreign companies generating revenue from outside India but having registered their operations in the country, a permanent establishment or a simple office in India, are required to obtain a PAN card.
3. Other Entities Requiring a PAN Card
The following entities are mandated to hold a PAN card for conducting any business activity:
- Partnership Firms
- Associations of Persons
- Limited Liability Partnerships (LLPs)
- Bodies of Individuals
- Trusts
- Incorporated Entities
- Limited Companies
- Private Firms
- Associations
- Foreign Institutional Investors
- Hedge Funds
Documents Required for Applying PAN Card for your Company
There are a number of documents required for applying for a PAN card, including:
For an Indian Company:
To apply for a PAN card for an Indian company, the following documents are required:
1. Identity or Address Proof: An identity proof like Aadhaar card or voter ID and an address proof of the company’s authorised representative.
2. Certificate of Incorporation: A copy of the CoI issued by the Registrar of Companies.
3. No Objection Certificate from MCA: A No Objection Certificate that has been issued by the Ministry of Corporate Affairs stating there is no objection to the company obtaining a PAN card.
For a Foreign Company:
To apply for the PAN card for a foreign company, prepare the following documents:
1. Registration Certificate for Office in India: Submit a copy of the certificate of registration that is issued by Indian officials, allowing the foreign company to establish an office in India.
2. Certificate of Registration from Applicant’s Native Country: Include a copy of the registration certificate that has been issued to the foreign company in its native country. Make sure this document is duly attested by Apostille or even by the Indian Embassy or High Commission or authorised officials of overseas branches of scheduled banks registered in India.
How to Apply for a Business PAN Card
The procedure to apply for a PAN card can be done through two methods, which are online and offline, as provided below:
Offline Application Method to Get PAN Card for your company
The offline application method to get PAN card for your company is as follows:
- Download Form 49A: Obtain a copy of Form 49A from either the NSDL website or the UTIITSL website. This form is essential for applying for a business PAN card.
- Attach Supporting Documents: Gather all necessary supporting documents, including proof of address and Certificate of Registration, required for the PAN card application.
- Submit Form and Documents: Submit Form 49A along with the supporting documents to the nearest NSDL centre for processing.
- Receive Acknowledgement Number: After submission, NSDL will issue an acknowledgement number as proof of document submission. Use this number to track the status of the PAN card application.
- PAN Card Issuance: NSDL will process the application and issue the PAN card for the company. The PAN card will be then dispatched to the given registered address of the business.
Online Application Method to Get PAN Card for your company (via NSDL Website)
The online application method to get PAN card for your company via NSDL website is as follows:
- Visit NSDL Website: Go to the official NSDL website to start the online application for a company’s PAN card.
- Read Instructions: Before filling the form, read and understand the instructions provided on the website.
- Choose Form 49A: Select the option for Form 49A, suitable for company PAN card application.
- Select Company Type: Choose the type of business you run from options like body of individuals, association of persons, trust, firm or limited liability partnership. Note that for companies, only physical submission mode is applicable; digital submission or signing is not available.
- Fill in Company Details: Provide company details such as the company name, date of incorporation, email ID and contact number.
- Generate Token: After submitting the form, a token will be generated, which must be saved for use later.
- Enter Personal Details and AO Code: Enter personal details, contact information and other required information, along with the Assessing Officer (AO) code for your jurisdiction.
- Upload Scanned Documents: Upload scanned copies of necessary documents, which includes the Registration Certificate that is issued by the Registrar of Companies, for identification and address proof.
- Specify Applicant’s Relationship: Indicate the applicant’s relationship with the company; only a director or an authorised signatory has authority to apply for a PAN card for the business.
- Review and Submit: Check the form for errors or omissions before submitting it.
- Pay Fees: Pay the PAN card fees, which may vary based on the company’s location (domestic or international).
- Receive Acknowledgement Number: After successful payment, a receipt with an acknowledgement number will be generated. Note down this number to track the PAN card status.
- Print, Sign and Send Acknowledgement: Print the acknowledgement, sign it and send it to the NSDL office along with copies of supporting documents for further processing.
Online PAN Card Application through UTIITSL Website
The online application method to get PAN card for your company via UTIITSL website is as follows:
- Visit UTIITSL Website: Visit the official UTIITSL website for applying for a business PAN card.
- Access PAN Card Services: Then, click on the ‘PAN Card Services’ option there and go to ‘PAN Card as an Indian Citizen/NRI’ button.
- Choose Application Mode: Select ‘PAN Card as an Indian Citizen/NRI,’ and decide whether you want to download a blank form for offline application or apply online.
- Select Company Type: Choose the appropriate company type from options such as firm, company, LLP, trust or association of persons. Note that only the physical submission mode is applicable for companies and digital mode is not available.
- Upload Company Details and Documents: Provide company details, incorporation date, name, email ID, phone number, address and other required information. Upload the necessary documents as per guidelines.
- Pay Processing Fee and Get Acknowledgement Number: Pay the necessary processing fees for the PAN card application and obtain the acknowledgement number.
- Track PAN Card Progress: Use the acknowledgement number to track the progress of your company’s PAN card application.
- Send Printed Acknowledgement Form: Print the acknowledgement form, sign it and send it to the UTIITSL office along with copies of supporting documents for further processing.
How to Check and Track the Status of PAN Card Application for your Company
To track the status of your PAN card application in India, the following instructions must be followed:
Step 1: Visit NSDL or UTIITSL Website – Go to either the NSDL or UTIITSL website and locate the ‘Track PAN Card’ option.
Step 2: Provide Acknowledgment Number or PAN Number – Enter the 15-digit unique acknowledgment number or the 10-digit PAN number in the designated field. This information is essential for tracking the application.
Step 3: Enter Captcha Code – Input the captcha code displayed on the screen. This helps verify that you are a human user.
Step 4: Submit and Check Status – Finally, click on the ‘Submit’ option for viewing the current status of your PAN card application. The website will then display the relevant information about the progress of your application.
Final Thoughts
Obtaining a PAN card is an important step for businesses and individuals in India. The PAN card is a unique identification number for income tax purposes and facilitates various financial transactions. It is mandatory for businesses to have a PAN card for opening bank accounts, investing in securities, applying for loans and conducting business activities. The PAN card system helps the government track financial transactions, preventing tax evasion and ensuring proper tax compliance. By following the procedure given for PAN card application, both Indian and foreign companies can successfully acquire a PAN card for your company.
Additionally, tracking the status of the PAN card application is made simple through online platforms like NSDL and UTIITSL websites. Overall, the PAN card plays a dynamic role in the financial ecosystem of India and offers numerous advantages for businesses and taxpayers.
For more information on the process of obtaining a PAN card for your company, connect with our experts at StartupFino.
