One of the easiest forms of business registration is sole proprietorship firms. They have very few requirements and formalities. Such kinds of business entities are best for those who are starting from zero without much funds. The sole owner of such businesses is known as the proprietor. One of the key documents of such firms is PAN Card. There is a proper way through which one can get the sole proprietor’s business PAN Card. in the current blog we are going to discuss in detail on whose name the sole proprietor’s business PAN Card is made. This is a common question we have got from the clients, maybe many of you are also struggling with the same question. Hence we have come up with this write-up where we will make sure you will have a clear idea regarding the PAN Card of the sole proprietorship.
What do you mean by Sole Proprietorship Firm?
Entities which are run by a single individual without having advantages like limited liability, perpetual succession, status of juristic person etc are called sole proprietorship firms and the person who runs them is known as proprietor of such firms. In a sole proprietorship firm registration only one can be the member who is taking care of everything of the business as well as the business entity. In order to register such firms one does not need to complete a number of formalities like corporate bodies. They can be recognized by GST registration or MSME registration or Shop and Establishment Certification etc.
What do you Mean by PAN Card?
A PAN card which is a Permanent Account Number card, is a vital identification document issued by the Indian Income Tax Department. It contains a 10-digit alphanumeric code, unique to each PAN cardholder, facilitating the government in monitoring and regulating financial transactions while ensuring transparency and accountability in the taxation system. There is a proper meaning of these 10 digits of the PAN Card.
On Whose Name Sole Propritor’s Business PAN Card Should Be?
As it is already mentioned that sole proprietorships are on the name of their proprietor. He is the one who is solely responsible for activities of the form. Hence we can say that sole prorptito’s business PAN Card will be on the name of the proprietor of the firm. This PAN card is essential for various financial and tax-related transactions undertaken by the sole proprietorship. Thus it must be obtained by the proprietor of the firm timely.
How to Obtain a Sole Proprietor’s Business PAN Card?
Follow the steps given below in order to get sole proprietor’s business PAN Card:
- Obtain Form 49A, the application form for PAN, either online or from the local UTIITSL or NSDL office.
- Fill out the form with accurate details of the Sole Proprietorship, including business name, address, contact information, and other relevant details.
- Attach the necessary supporting documents, such as identity proof, address proof, and proof of the existence of the business (like a registration certificate).
- Pay the applicable processing fee for PAN card application. The fee can be paid online or through demand draft.
- Send the completed application by mail or deliver it to the closest NSDL or UTIITSL office, together with the required supporting documentation and payment.
- After submission, an acknowledgment receipt with a unique 15-digit acknowledgment number will be provided. Keep this number for tracking the application status.
- The authorities will confirm the information included in the application. If there are differences, they might ask for clarification.
- Once verified, the PAN card will be allotted and sent to the registered address. The PAN number is also communicated separately.
- Receive the PAN card at the registered business address. The card will contain the business name, proprietor’s name, and PAN number.
- The obtained PAN card can be used for various financial and tax-related transactions, including filing income tax returns and conducting business activities.
Documents Required to get Sole Proprietor’s Business PAN Card
In order to get sole proprietor’s business PAN Card following documents are required:
- Provide a copy of any one of the following: Aadhar card, Voter ID, Passport, Driving License, or any other government-issued photo ID.
- Submit a copy of any one of the following: Aadhar card, Voter ID, Passport, Driving License, or utility bills such as electricity, water, or gas bill.
- Furnish documents proving the existence of the Sole Proprietorship Firm, such as the registration certificate, business license, or any official document issued by a government authority.
- Attach two recent passport-size photographs of the proprietor.
- Provide a copy of the PAN card of the proprietor.
- In some cases, additional documents may be required based on the jurisdiction and the assessing officer’s discretion.
Conclusion
Sole proprietor’s business PAN Card should be issued in the name of the individual proprietor, as the business and the proprietor are considered a single entity for tax purposes. Obtaining a sole proprietor’s business PAN Card is mandatory for a Sole Proprietorship, serving as a crucial identification document for various financial and tax-related transactions. The application process involves filling out Form 49A with accurate business details, providing necessary supporting documents, paying the applicable fee, and submitting the application to the UTIITSL or NSDL office. Once verified, the PAN card will be allotted and sent to the registered business address, facilitating compliance with taxation regulations and maintaining a clear distinction between personal and business finances.
