PAN Card for Company: Permanent Account Number Card is a unique identification number issued by the Income Tax Department of India to all individuals, businesses etc.
businesses and companies, getting a PAN card is very important as it is required for various financial matters. and tax related transactions. So, let’s know how to apply for company pan card.
Why does your company need a PAN card?
A PAN card is an important piece of document for businesses in India. Here are the reasons why your company needs a PAN card:-
1. Legal Requirements
It is mandatory under the Income Tax Act for businesses and entities to have a PAN card for financial transactions and tax-related purposes.
2. Tax compliance
A PAN card is essential for filing income tax returns, paying taxes, and complying with tax regulations imposed by the government.
3. Opening of Bank Account
Banks need a PAN card to open a business account. It is the primary document for financial transactions and business-related banking activities.
4. Investments
A PAN card is necessary for making investments in the business’s name, such as stocks, mutual funds, and other financial instruments.
5.Business Transactions
A card is needed for high-value business transactions, including the sale or purchase of assets, property, or vehicles, ensuring transparency and legality.
6. Govt Tenders
A PAN card is often a prerequisite for participating in government tenders and contracts, enabling businesses to engage in government projects.
7. Avoiding tax evasion
A PAN card ensures that your business transactions are legitimate and accountable, preventing tax evasion and legal complications.
8.Identity Verification
It serves as a valid proof of identity, often required during business-related verifications, ensuring credibility and authenticity.
Documents Requires for PAN Card for Indian Company
In the process of how to make business pan card Indian company need following documents; –
1. Certificate of Incorporation
It must be given by the Ministry of Corporate Affairs.
2. Memorandum of Association and AOA
Documents outlining the business objectives and internal regulations.
3. Board Resolution
Authorizing the application and specifying the authorized signatories.
4. Identity Proofs
Aadhar, Voter ID, or Passport copies of directors and shareholders.
5. Address Proofs
Aadhar, Voter ID, Passport, or utility bills of directors and shareholders.
6. PAN of Directors
PAN cards of all directors.
7. Photographs
Passport-sized photos of directors.
Documents Required for PAN Card For a Private Limited Company
1. Certificate of Incorporation
Need a copy of the Certificate of
Incorporation offered by the Ministry of Corporate Affairs.
2. Memorandum of Association and AOA
Need copies of MoA and AoA define the Company’s objectives and rules governing its internal affairs.
3. Board Resolution
A board resolution authorizing the application for a PAN card and specifying the authorized signatories.
4. Identity Proofs
Identity proofs (Aadhar, Voter ID, Passport) of all directors and shareholders.
5. Address Proofs
Address proofs (Aadhar, Voter ID, Passport, utility bills) of all directors and shareholders.
6. PAN of Directors
PAN cards of all directors of the Company.
7. Photographs
Passport-sized photographs of all directors.
8. Office Address Proof
Utility bill, rent agreement, or property tax receipt as proof of the registered office address.
9. Duly Filled Form
Form 49A, the PAN application form, duly filled and signed by an authorized signatory.
Why does your company need a PAN card?
A PAN card is an important piece of document for businesses in India. Here are the reasons why your company needs a PAN card:-
1. Legal Requirement: It is mandatory under the Income Tax Act for businesses and entities to have a PAN card for financial transactions and tax-related purposes.
2. Tax Compliance: A PAN card is essential for filing income tax returns, paying taxes, and complying with tax regulations imposed by the government.
3. Opening Bank Account: Banks require a PAN card to open a business account. It is a primary document for financial transactions and business-related banking activities.
4. Investments: A PAN card is necessary for making investments in the business’s name, such as stocks, mutual funds, and other financial instruments.
5. Business Transactions: A card is needed for high-value business transactions, including the sale or purchase of assets, property, or vehicles, ensuring transparency and legality.
6. Government Tenders: A PAN card is often a prerequisite for participating in government tenders and contracts, enabling the business to engage in government projects.
7. Avoiding Tax Evasion: A PAN card ensures that your business transactions are legitimate and accountable, preventing tax evasion and legal complications.
8. Identity Verification: It serves as a valid proof of identity, often required during business-related verifications, ensuring credibility and authenticity.
How to Get PAN Card For Business?
Step 1: Visit NSDL Website To start the process of how to apply for business PAN card, visit the official website of the National Securities Depository Limited (NSDL). After that, access the PAN application section on the website, where you’ll find the necessary forms and guidelines.
The NSDL website provides a convenient online platform to apply for a PAN card, check application status, and access vital information. By using this user-friendly portal, individuals and businesses can initiate the PAN card application process from the comfort of their homes or offices, ensuring a hassle-free and efficient experience.
Step 2: Select Application Type Upon visiting the official NSDL website, locate the section enabling the selection of the suitable application type for your business. Choose the specific category matching your business entity, such as Company, partnership firm, LLP, or relevant classification. Thoroughly assess the options and choose the one that accurately reflects your business structure for a precise application process.
This step is crucial, as selecting the correct application type ensures that your PAN card application is processed accurately and in compliance with the legal requirements, setting the foundation for the subsequent stages of the application process.
Step 3: Provide Company Details After choosing the type of application, you’ll be asked to enter all the important information about the business in the process of how to get company pan card. Now, fill in the business legal name, registration number, and office address correctly. Furthermore, ensure the details match the official records, as any discrepancies may lead to application rejection or delays.
Don’t forget to double-check the provided information for accuracy before proceeding to the next step. Providing accurate and up-to-date company details is vital, as they serve as the foundation for your PAN card application, ensuring seamless processing and alignment with the official records of your business entity.
Step 4: Specify Income Source In this step, indicate the primary source of income for your business. Specify whether the income arises from sales, services, investments, or other revenue streams. Provide accurate and comprehensive details about your business’s income sources, as this information is essential for tax assessment and compliance.
Clearly outlining your income sources helps tax authorities understand your business’s financial activities, ensuring proper categorization and adherence to tax regulations. Accurate reporting at this stage ensures that your PAN card application aligns with your business’s financial profile, facilitating smooth processing and compliance with tax laws.
Step 5: Provide Jurisdiction Details Next, specify the jurisdiction under which your business falls for tax purposes. This includes the area code, assessing officer, and range code. Accurately providing these details ensures that your PAN card application is routed to the correct tax office. It enables proper tax assessment and compliance.
Double-check the jurisdiction information to prevent misdirection of your application, ensuring it reaches the appropriate authorities for timely processing and approval of your business PAN card.
Step 6: Upload Company Documents Upload essential company documents such as the registration certificate, partnership deed (if applicable), and identity/address proofs of authorized signatories, partners, or directors. Ensure these documents are clear, complete, and in the specified format.
Uploading accurate and verified documents is crucial, as they validate your business’s authenticity. Proper documentation enhances the credibility of your PAN card application, expediting the verification process and ensuring your business PAN card is issued without delays.
Step 7: Pay Application Fee After uploading the necessary documents, pay the PAN card application fee. The PAN card fee is different for every business. While paying fees, always take the help of secure online payment methods like credit/debit cards, net banking, or digital wallets. Ensure the payment is made in the correct amount and confirm the transaction.
Timely payment is essential, as it validates your application and enables the processing of your business PAN card request, leading to its prompt issuance once all formalities are complete.
Step 8: Receive Acknowledgment Number Upon successful payment and submission of your PAN card application, you will receive an acknowledgment number. This unique identifier is crucial for tracking your application status. Keep this number safe, as it allows you to monitor the progress of your business PAN card request and ensure a smooth and efficient application process.