Each Business/Company requires a business PAN card or we can call it a Company PAN card. The procedure as to how to apply for business PAN card is simple and time saving. Business PAN card can be apply online or offline.
But, firstly you will need to understand the concept of PAN card and business PAN card.
PAN is an acronym for Permanent Account Number. It is a 10 digit long number with the first 5 characters being letters, the next four characters being numbers, and the last character also being a letter.
PAN card is issued by the Income Tax Department under the Income Tax Act, 1961. This number is an identity of every tax-paying individual or entity. The main purpose of a PAN card is to prevent tax evasion.
Bifurcation of 10 digits –
- The first three characters of the number are a sequence of alphabets like JJJ, or PPP, or OOO in Capital. It can be anything between AAA and ZZZ.
- The fourth character of the number is also an alphabet that identifies the type of holder who’s getting the card. Like its ‘P for person/individual’, ‘G for government’, ‘C for a company’, ‘F for a firm’, and many other.
- The fifth character of the number is also a letter that represents the First Letter of the Surname of a person in the case of an Individual or the First Letter of the Name of the Entity in the case of Business.
- The next four characters of the number are digits that are given by the authority.
- And the last character of the number is also a letter, which is given by the authority so that the authority can check the validity of that number when being in use.
PAN card is compulsory for all-weather you are an individual, a company, a partnership firm, an organization, or any other body.
Business PAN Card
Anybody that has a business or is setting up a business needs to have a Pan Card and that PAN card will be called a Business PAN card.
The bodies which come under business are as follows –
- Micro company
- Small company
- Large company
- Startup company
- One person company
- Limited liability partnership (LLP)
- Non-government organization (NGO)
- Private limited company
- Foreign institutional investors
- Cooperative society
Why is Business PAN Card a requirement
- The government has made it compulsory, even if you are not eligible to pay tax.
- PAN is essential at the time of filing an Income Tax Return (ITR).
- If a business does not hold a pan card, the government has a right to charge a tax of more than 30% from that business.
- A business will only be eligible to obtain a Tax Registration Number (TRN) if that business has a PAN card.
How to apply for business PAN card
The applying procedure is quite simple. You can apply in both online or offline mode as per your preference.
Business PAN card apply online
Step 1 Go to the NSDL website and click on the link saying ‘online PAN application.’
Step 2 You will see that form 49A is opened. Fill the form properly.
Step 3 Attach all the required documents.
Step 4 Submit the form and pay the fees.
Step 5 Form submission acknowledgments will be generated.
Step 6 The pan will be delivered to your registered office address in between 15 to 20 days.
Business PAN card apply offline
Step 1 Go to the NSDL site.
Step 2 Print form 49A.
Step 3 Fill the form properly and attached all the required documents.
Step 4 Submit the form with all the attached documents to the nearest NSDL office with a fee of Rupees 110.
Step 5 The office will issue an acknowledgment that the documents are submitted.
Step 6 The PAN card will be e deliver to your registered office address within 15 to 20 days.
You can find the nearest NSDL office address on the TIN website of the government.
Documents required for business PAN card
Following are the documents required for business PAN card :
- Proof of address of business’s registered office.
- A copy of the certificate of incorporation of business.
- Bank draft for the payment of fees if applying offline.
- Copy of partnership deed if you are a partnership firm or a Limited Liability Partnership firm.
- Proof of date of birth in case of sole proprietorship firm.
- Certificate of registration issued by the registrar of firms if you are Limited Liability Partnership.
- Copy of trust deed if you are a trust.
- Copy of certificate of registration number issued by charity commissioner if you are a charity.
- Proof of Identity in case of sole proprietorship firm.
- Proof of address in case of sole proprietorship firm.
- Copy of the certificate of registration issued in the country where the applicant is located attached by the Indian embassy in case of a foreign company.
- Any other document originated from the state or central government in establishing that business.
Some important points to keep in mind while applying for a business PAN card –
- The form should be filled in Block letters only.
- The form should be filled using a black pen only if applying through offline mode.
- The form should be filed using only the English language.
- Avoid any correction or overwriting on the application form in case of applying through offline mode.
- The method of paying the fee can differ based on whether your business is in India or in foreign.
- The form should be only signed by an authorized signatory in the case of a firm, or by the CEO in any other case.
- All the documents should be attached properly that are required by the authority.
The validity and existence of business depend on their Business Pan Card also.
Having a business PAN card is a necessity for every business entity, as it is not only useful for tax purposes but it gives businesses a lot of benefits as well.