A Permanent Account Number – A PAN card is a vital document for any taxpayer in the country. PAN card consists of a unique 10-character string of letters and digits and is mandatory for all tax-paying individuals, partnerships, companies, etc. and it also serves as identity proof for several purposes for individuals across the country.
Companies, entities, and business organisations too need a PAN card to file their income tax returns and avail of rebates – be it any individual or corporate involved in business in India.
Also, if the company generates money from outside India but is registered in India or has a permanent establishment or even office in India, a PAN card is mandatory.
Why is the PAN card mandatory for any company?
Any company’s PAN card carries a huge significance as every transaction will go through the 10-digit number. Furthermore, the PAN card helps identify the company’s tax flow. Even if the organisation is not eligible to pay tax under income tax benefits given to startups, owning a PAN card is necessary. The importance of a business PAN card can be listed as follows:
- For tax-related transaction documentation, you companies need to have their business PAN Card. Using the ten-digit number, the Income Tax Department can track your transactions, therefore keeping the entire tax process transparent.
- Business PAN help in paying invoices without deduction, filing tax returns, and remittances.
- A business PAN card is a must to obtain the TRN – Tax Registration Number.
- As per the amendments under Section 206AA in 2009, every foreign company functioning in India needs to have its own business PAN to continue with any business with a company in India.
- In case of no PAN card, the Indian government has the right to charge you 30% or more of your invoiced payments.
In India, a partnership firm is regulated under The Partnership Act of 1932. In partnership firms, two or more people can come together as partners to carry on a business. In such firms, the partners need to file tax returns under the Income Tax Act 1961 every year irrespective of the profit or loss.
Hence the partners must obtain a PAN card for the partnership firm for filing income tax returns.
Mandatory steps before partnership firms can apply for business PAN card.
- The partnership deed duly notarized by a notary in India.
- The deed should define one partner as the managing partner who has the authority to sign on behalf of the firm.
- Date the partnership was formed must be mentioned along with the address of the firm.
- The partners need to make sure that all the pages of the deed are thoroughly signed.
- Rubber stamp with the partnership firm’s name followed by the word – partner.
- Name of the Firm.
Documents Required
- Partnership deed.
- Authorised partner’s digital signature certificate (DSC).
- Address proof of the office – rental agreement, sale deed, NOC from the owner, and utility bills not older than three months.
- All partners’ Identity and address proof.
- Partnership firm’s Certificate of registration.
Application Process
The partners have two options to apply for a business PAN card for the partnership either – online or offline.
Online Mode
Step 1 – The applicant can use the following link from the NSDL website to apply for the business PAN online –
https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html
Step 2 – For the option of ‘Application Type,’ the applicant needs to fill the form listed under ‘Form 49A and select ‘Firm’ from the ‘Category’ drop-down.
Step 3 – Form the ‘Category’ option, the applicant must select the ‘Firm’ option from the drop-down list.
Step 4 – Fill in the application – details such as contact details, partnership firm income, business code and documents.
Step 5 – Once the entire form is filled, the applicant must then choose the mode of payment and make the payment of ₹110.
Step 6 – Once the payment process is done, the applicant must get a printout of the acknowledgement slip.
Step 7 – The applicant needs to then attach a passport-sized photograph of the authorised partner on the acknowledgement receipt and attest the with a black pen.
Step 8 – The applicant then must send the acknowledgement slip to the Income Tax Department with the documents within 15 days of filing the application.
Step 9 – Once a thorough verification of the documents is done, the business PAN Card will be dispatched to the registered office address of the partnership firm within 15-20 days.
Offline Mode
- The applicant must visit the nearest PAN Centre and get the application form – Form 49A. One can also download the application form from the TIN/TAN website.
- The applicant must then fill the form using only a black ballpoint pen which needs to be signed by the authorised partner.
- Once all the details are filled in, the authorised partner then must sign the form which must be then submitted to the TIN-FC office along with the required documents.
- The applicant must make the payment of ₹110 while submitting the form.
- After thorough verification, the PAN card should reach the registered office address of the partnership firm within 15-20 days.
Details required on Form 49A.
- Firm’s name as it is on the Certificate of Registration or in the Partnership Deed. If the partnership is a non-individual, the applicant must select “M/S” and write the name from the first block. The name mentioned here will appear on the PAN card.
- Date the partnership firm was incorporated, complete office address as mentioned on the deed.
- The registration number of the firm provided in the partnership deed.
- Under the ‘Status of Applicant,’ the applicant needs to select ‘Partnership firm.’
- Mention all the supporting documents the applicant is submitting for proof of identity, address, and date of birth.
- The applicant can also submit the Partnership deed.
- If the partnership firm is registered with the Registrar of Firms, the applicant can also submit a copy of the Certificate of Registration.
- Under the declaration section, the applicant must mention the name of the authorised partner duly signed by the same.
B. Procedure for Pvt Ltd & LLP Company to apply for a business PAN card.
For a Private Limited Company or an LLP (Limited Liability Partnership), the applicant must have the below-mentioned documents to obtain the business PAN card
- A copy of the Certificate of Incorporation issued by the Registrar of Companies (RoC)
- Address proof of the registered company’s office
For companies incorporated abroad
- One needs to submit either a copy of a Certificate of Registration issued in the applicant’s country and duly attested by the Apostille* or by the Indian Embassy, High Commission, or Consulate there or by a representative of an overseas branch of a Scheduled Bank with Indian registration as ID and address proof.
- Copy of registration certificate issued in India of approval to set up an office in India by the Indian authorities.
What is Apostilles?
An Apostille is a type of attestation in which documents are legalised in a format acceptable in all nations belonging to the Hague Convention (for Abolishing the Requirement of Legalization for Foreign Public Documents) of 1961. Since India is a member of this convention and one of the signatories of the treaty, if the applicant’s country too is part of the same convention, no other authorisation of documents is required, after you get them apostilled.
Procedure to apply for a business PAN Card for a Private Limited Company
- The applicant can use the following link from the NSDL website to apply for the business PAN online – https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html
- For the option of ‘Application Type,’ the applicant needs to fill the form listed under ‘Form 49A and select ‘Firm’ from the ‘Category’ drop-down.
- The applicant then needs to fill in the complete personal details. The title must be M/S and your company name needs to be mentioned in the ‘Last Name’ box.
- Then the applicant needs to specify the source of income of the company on the next page. There also is an option for income from other sources which the applicant must tick appropriately.
- Similarly, the applicant needs to fill in the exact office address as it will be the official communication address in the PAN database.
- Once all the details are filled in, the applicant needs to upload the required documents related to the company.
- Once all the documents are uploaded, the applicant will have a chance to review all the details filled in. Once reviewed, the form can be submitted for further verification.
- Once the application is submitted, the applicant must make the payment of ₹110 via net banking, debit/credit card, or demand draft.
- Upon following all the steps, the applicant will get an acknowledgement number on the email address using which he/she can track the details of progress regarding your PAN Card.
- The applicant then must send the signed acknowledgement receipt to the NSDL head office within 15 days along with the hard copies of the documents uploaded.
- Once the officials thoroughly verify the details provided, the applicant should receive the PAN card at the mentioned company address.