PAN Card Application Guide for Businesses & Companies – Step-by-Step Process

April 02, 2025

12 min read

How To Get A Pan Card For Your Business Or Company?

A Permanent Account Number, or PAN as it is more generally called, is for both people and businesses. All taxpayers who reside in the nation, whether they are an individual, a partnership, or a business, must have a PAN. It also serves as identification verification. You need specific identifications and documents in order to obtain the 10-character PAN that is uniquely yours. We cover a few topics in this article that you should be aware of if you wish to apply for a PAN for your business. For businesses, filing income tax returns and taking advantage of refunds are the two main reasons PAN cards are required. A PAN (Permanent Account Number) card is also necessary to register bank accounts in a company’s name and keep track of all business transactions. Thus, a Permanent Account Number card for a corporation is a crucial document that needs to be obtained as soon as possible. Learn how to apply for a PAN (Permanent Account Number) card for a business below.

Which businesses require a PAN card?

Organizations that require PAN (Permanent Account Number) cards –

Companies
HUF
Firm
Companies that Limited Liability Partnership
Firms in partnerships
A local government entity, a group of people, an organization of people, or an artificial juridical
Person
The Trusts

Business PAN Number Example

A PAN for business is a 10-character alphanumeric code that serves as a unique identifier for a business in India. It facilitates tax-related transactions. It follows a structured PAN format such as “ABCFU1234D.”

First three characters: The initial three characters like ABC are alphanumeric and range from “AAA” to “ZZZ.”
Fourth character: This letter represents the entity type. For instance, “P” indicates an individual, “C” is a company. “F” is a firm, “H” is a Hindi Undivided Family (HUF), and “T” is a trust.
Fifth character: This is the first letter of the PAN holder’s last name or business name.
Remaining digits: The sixth to ninth characters are numeric, ranging from “0001” to “9999.”
Last character: The tenth character is an alphanumeric check digital that helps validate the number.

The Business PAN (Permanent Account Number) card India is essential for any registered business entity in India as it allows participation in financial transactions and helps maintain compliance with tax regulations.

Why should your company have a Permanent Account Number card (PAN)?

The PAN (Permanent Account Number) card for your business is crucial because it will be used for all transactions. It also aids in determining your company’s tax flow. You still need a Permanent Account Number card if you are earning money even though you are not subject to the income tax benefits provided to startups.

To operate in India as a foreign firm, you must get a PAN. If not, the government may impose the maximum possible tax rates on you.
The PAN assists you in many ways, including remittances, tax return filing, and paying invoices without deduction.
A PAN is required if you need a TRN (Tax Registration Number)
If you don’t have a PAN, the Indian government can tax you 30% or more of your invoiced payments.
You must reference your PAN in all tax-related transactions and documentation. The Income Tax Department can monitor your transactions by providing this number. You need to have this so that you won’t run into any difficulties.
Every foreign corporation must have a PAN to conduct business with an Indian company or with other entities inside the country, following the 2009 revisions enacted under Section 206AA. This encompasses all kinds of entities.

How to Apply a Business PAN Card?

You have the option of applying for a PAN (Permanent Account Number) card offline or online through the NSDL website.

Online method

Fill out the “Firm” form for the “Application Type” choice. Complete
all fields, including company name, application date, and so forth.
Following this, you must enter your income information and firm registration information. Also, you must enter your communication address.
Type the Assessing Officer code here (AO Code). If you don’t know it, you can look it up on the NSDL website’s AO Code Search Panel.
You must pay the aforementioned costs and upload copies of the necessary documentation.
The two most crucial copies of information are the certificate of incorporation and address verification.
You will receive an acknowledgment number after completing all the processes, which you may use to track the status of your PAN (Permanent Account Number) card.
Next, within 15 days, you must mail a completed acknowledgment form to the NSDL headquarters.
To complete Form 49A, go to the NSDL website, and select it from the drop-down option.

Offline method

The Form 49A must first be downloaded from the NSDL website before being printed.
Complete the form as directed and include all required supporting documentation.
The paperwork and supporting documentation must be sent to the nearby NSDL center. If you do not already know one, you can look it up on the website.
As evidence that you have submitted your information and supporting papers, the center will provide you with a letter of acknowledgment.
At the above-mentioned corporate address, you will obtain the Permanent Account Number card following full verification of your information. This entire process will only cost you $100.

Pan Card Application Guide For Businesses Companies %E2%80%93 Step By Step Process Visual Selection

Documents Required for PAN Card

For an Indian company

Verification of identity or address, for this documents like aadhar card for individuals, and proof of business registration would be required
A duplicate of the incorporation certificate, this is required to be submitted to ensure that the business for which PAN is being applied, does not hold an existing PAN. This assessment is done basis the incorporation certificate
A replica of an MCA No Objection Certificate (Ministry of Corporate Affairs)

For a foreign company

A copy of the registration certificate for opening an office in India, issued by Indian officials.
A copy of the applicant’s native country’s certificate of registration that has been properly authenticated by “Apostille,” the Indian Embassy or high commission, or even by authorized personnel of scheduled banks with foreign branches that are registered in India.

Business PAN Card Fee and Processing Time

Acquiring a Permanent Account Number card for a shop is a key step in establishing credibility and ensuring smooth financial operations. Here is an overview of the processing time and costs involved:

Estimated Processing Time: Typically, the issuance of a business PAN (Permanent Account Number) card online takes around 15 days once all documents are verified.

Fee Structure for Applicants in India:

New Permanent Account Number card: Rs. 101 (Inclusive of Rs. 86 application fee and 18% GST).
Duplicate/Reprint Permanent Account Number card: Rs. 110 (Rs. 93 application fee plus 18% GST).

Fee Structure for Applicants Outside India:

New Permanent Account Number card: Rs. 1,011 (including Rs. 86 application fee, dispatch charges of Rs. 857, plus 18% GST).
Duplicate/Reprint Permanent Account Number card: Rs. 1,020 (Rs. 93 application fee and dispatch charges of Rs. 771, plus 18% GST).

E-PAN Card Fees:

Applicants in India: Rs. 66 (Rs. 56 fee plus 18% GST).

Applicants Outside India: Rs. 66 (Rs. 56 fee plus 18% GST).

Advantages of a business Permanent Account Number card (PAN)

The following are some significant applications for a corporation PAN (Permanent Account Number) card:

Serves as a guide for the Income Tax Department to keep track of all financial activities.
A corporation is responsible for paying tax (including withholding tax) at the highest rate available without a PAN card.
Only a PAN card is required to obtain a TRN.

A firm PAN (Permanent Account Number) card has many advantages, including:

A PAN (Permanent Account Number) card is required to file income tax for a company.
Moreover, tax refunds require a company PAN (Permanent Account Number) card.

Common Challenges and Solutions for Business Pan Card

Doing a business PAN registration can involve certain challenges. Here are some common issues to get Permanent Account Number card and how to address them:

1. Incomplete Documentation

Issue: Missing or incorrect documents can delay the application process.

Solution: Ensure that all required documents, such as business registration and identity proofs, are valid and up-to-date. A good practice would be to create a checklist and cross-verify all the document before submitting the application to avoid any missouts

2. Incorrect Information

Issue: Discrepancies in information can lead to physical PAN (Permanent Account Number) card rejection.

Solution: Double-check all details, like the business name and address, against supporting documents to prevent errors. If any discrepancy is present, it is essential to also attach the relevant affidavit (if applicable)

3. Mismatch in Business Details

Issue: Inconsistent information across different documents can confuse authorities.

Solution: Ensure that details on the PAN application match those on other government-registered documents, such as GST records.

4. Non-Compliance with Legal Requirements

Issue: Not meeting eligibility criteria can cause delays or rejection.

Solution: Understand the eligibility and legal requirements for the business entity type before you apply for a PAN (Permanent Account Number) card.

5. Address Discrepancies

Issue: Variations in address information across documents may require clarification.

Solution: Use the official registered business address and make updates if necessary to avoid any conflicts. The address updation again, is really simple and quick, the applicant or the cardholder can simply visit the website and make changes using the amendment form.

6. Non-Verification of Documents

Issue: Unverified documents can lead to delays.

Solution: Verify that all document copies are clear and legible. Illegible information on the application or the documents can result in rejection, or delayed assessment. Check readability to ensure swift processing.

7. Incorrect Business Category

Issue: Selecting the wrong category can complicate the application.

Solution: Refer to government guidelines to choose the correct business entity type for accurate categorisation. Failing to do so may result in rejection, or bigger problems in the later stage, to avoid hassle, it is recommended to cross-verify once to ensure correctness.

8. Digital Signature

Issue: Errors with digital signatures can delay getting the PAN number for company.

Solution: Check that the digital signature is valid and compatible with PAN application requirements. Also, there are various forms of digital signature available, make sure to check which digital signature is acceptable. In most cases, DSC class 2 or 3, Aadhar signing are acceptable, however it is recommended to check the latest acceptable forms of digital signature

9. Delayed Processing

Issue: Sometimes, applications face delays even after submission.

Solution: Apply well in advance and monitor application status regularly to address any issues proactively. This not only helps you in understanding realistic timelines for processing, but would also help check and resolve queries or discrepancies on time.

10. Communication Gap

Issue: Lack of updates on the application can create uncertainty.

Solution: Check the status online regularly and contact relevant authorities for updates if necessary.

By addressing these challenges proactively, businesses can experience a smoother PAN application experience. This makes it easier to operate and manage compliance in India.

Conclusion

The article discusses obtaining a PAN, which is more or less comparable to obtaining a HUF PAN (Permanent Account Number) card or an individual’s PAN. The Certificate of Registration, which is issued by a state or federal agency, is the only thing that differs. A bank draught is additionally required to obtain a PAN card and pay the tax department for its issuing. Be careful you pay in Indian Rupees. Drawn in favor of NSDL may also be a foreign currency draught. If all of your identification credentials and business-related paperwork are in order, the entire process shouldn’t even take a month. Getting a PAN (Permanent Account Number) card for your business is simple, allowing you to conduct business without difficulty. It streamlines business operations, enabling smoother financial management and compliance. Lendingkart supports businesses by providing financing solutions that help meet their growth and compliance needs efficiently.

How to Check CIBIL Score Using PAN Card for Free

e-PAN Card – Eligibility & Application Process

PAN Card Status Online by PAN Number, Name, DOB and Coupon Number

PAN Card Correction & Update – How to Change Name, Address in PAN Card

e-PAN Card – How to Download & Reprint Duplicate e-PAN Card Online through NSDL/UTIITSL

PAN Card Details Search By Name, DoB, PAN Number & Address

PAN Card Apply Online: How to Apply PAN Card Online in 5 Minutes

Instant PAN Card through Aadhaar – How to apply for instant PAN?

How to Link Aadhaar with PAN Card Online by Using e Filing Website, SMS

PAN Card Mistakes – To Avoid

How to Get a PAN Card for your Business or Company FAQs:

1. Can companies have a Permanent Account Number card?

Applying for a company’s PAN (Permanent Account Number) card is an easy process that may be completed online. Businesses with Indian incorporation must complete Form 49A to request a new PAN.

2. What are the prices for a business PAN card?

The government charges a fee of Rs 1011.00 [ (Application fee + Dispatch Charges Rs. 857) + 18.00% Goods & Service Tax] for new PAN applications and Rs 1020.00 [ (Application fee Rs.

3. Can Permanent Account Number cards be acquired for proprietorship?

The sole proprietorship firm does not receive a company PAN (Permanent Account Number) card since it does not have a separate legal existence from that of a corporation. A solitary proprietorship business is associated with the owner or proprietor. So, the owner/proprietor of the single proprietorship business may utilise his or her own PAN.