What is a PAN?
A Permanent Account Number (PAN) is a ten-digit unique alphanumeric ID number issued by the Income Tax Department. Every individual and corporate taxpayer doing business in India must have a PAN.
An e-PAN card is a digitally signed PAN card issued electronically. Your e-PAN card is accepted as valid proof of allotment of PAN and can be used in place of your PAN card.
Do I need a business PAN to do business in India?
If you are doing business in India or plan to do business in India, and your business can be classified as one of the following entities, you need to have a business PAN:
|1. Company||2. Partnership firm|
|3. Association of persons||4. Limited Liability Partnership (LLP)|
|5. Body of Individuals||6. Trust|
|7. Incorporation||8. Limited company|
|9. Private firm||10. Association|
|11. Foreign institutional investor||12. Hedge fund|
Remember, you need to get a business PAN if:
- You’re a domestic entity that meets the requirements mentioned above.
- You’re a foreign company doing business in India, and you meet the classifications mentioned above.
- You’re a domestic company registered in India but earn income from abroad.
- You’re a company that has a permanent establishment or even a simple office in India.
Is there is a fee to get a business PAN?
Yes, there is a fee for getting a business PAN. You can pay the fee online to complete the application process. Depending on the following factors, the fee you pay can range from INR 72 – INR 1017.
- Citizenship: You’re an Indian citizen or a foreigner.
- Digital or hardcopy: You need a physical copy of your PAN card or not.
- Delivery address: The card must be delivered to an address in Indian or abroad.
What are the steps to apply for a business PAN online?
To apply for your business PAN, complete the following steps:
Step 1: Visit the NSDL website.
Step 2: Select the “Apply Online” option.
Step 3: Fill the form with the following details:
- Application Type: select the option that applies to you (Form 49A or Form 49AA)
- Category: Select the entity type that applies to you. For a business, it most likely will be “Firm”.
- Applicant Information:
- Enter the name of your firm in the “Last Name / Surname” option.
- Enter your Date of Incorporation / Formation as mentioned in your GST registration.
- Enter your email ID to which you have easy access.
- Enter your mobile number that is easily accessible.
Step 4: Check the declaration box.
Step 5: Enter the CAPTCHA code and click on “Submit”.
You will now be redirected to a screen that says your request has been successfully registered. You are allotted a Token Number. Remember to make a note of this number. It is also sent to the email ID you entered before.
Step 6: Click on the “Continue with PAN Application Form” option
Now you have entered the Online PAN Application. You will need to complete the 5 sections of the application to submit your PAN application successfully.
Step 7: On the “Guidelines” tab, select how you want to submit your PAN application documents. For FIRMS and PRIVATE LIMITED COMPANIES, you can only select the “Forward application documents physically” option.
Step 8: Depending on whether you want a physical PAN Card or only require a digital version of your card.
CreditEnable Tip: You can see what fee you will be charged depending on whether you want a physical card or not by hovering over the “Fee Applicable” words. The amounts reflected are inclusive of tax.
Step 9: In the “Full Name of the Applicant” section, all the details you filled in previously will be pre-filled. Enter details for “Registration Number” if your business is registered.
Step 10: Scroll to the top of the screen and click on “Save as a draft” so that all the information you’ve entered so far is saved.
CreditEnable Tip: Remember to “Save” your application every time you move from one tab to the next.
Step 11: Scroll to the bottom of your screen and click on “Next”.
Step 12: On the “Contact and other details” tab, begin by filling the respective information in the “Source of Income” section. Don’t forget to enter details in the “Select Business / Profession Code” question from the drop-down menu.
Step 13: In the “Address for Communication” section, the Office option will be pre-selected. Scroll down to the “Office Address” section and enter your details.
Step 14: Enter the necessary details in the “Telephone Number and Email ID” section, including the country code.
CreditEnable Tip: Start typing INDIA, and the country and code will appear.
Sept 15: Now “Save” your application, and then click on “Next”.
Step 16: In the “AO Code” tab, use the “AO Code” drop-down menus to help you find the correct AO Code (Assessing Officer code) details to enter.
Step 17: Select the respective AO code and click on “Next”. The AO Code details will now automatically be filled in the sections above.
Step 18: Click on “Next” to move to the “Document Details” tab.
Step 19: Select the respective document details that apply to your business (Proof of identity and proof of address).
Step 20: In the “Declaration” section, insert the name of the proprietor or partner of the entity, and in the next box, choose the option that applies to you (Authorized Signatory or Partner).
Step 21: Enter the place and date and click on “Submit”.
Step 22: You can now review your entire application for errors. If none are found, click on “Proceed”.
Step 23: You are now redirected to the “Mode of Payment” page, where you need to pay for the business PAN.
- You can use Demand Draft, Net banking (Paytm, RuPay, VISA), or Online Payment through Bill Desk.
Step 24: After successful payment, you will be redirected to a screen where you will see all the details related to your application, including the Transaction Reference Number, Date and Time of Transaction, and Amount Paid. Now click on “Continue”.
Step 25: Now you are on the “Acknowledgement” Page.
- Click on “Generate and Print” to save a PDF file.
- The PDF file is password-protected, and the password is the Date of Incorporation or Formation you entered in your application (in DDMMYYYY format).
Step 26: Scroll to the top of the screen and read the instructions. These include how many photos you need to attach to your application and where to submit your entire application package to.
Step 27: Download the PDF file and print it.
- Attach your photos to the form.
- Sign the acknowledgement form in the 4 spaces provided.
- Remember to also stamp the form in the “Authorized Signatory” section at the bottom of the page.
- Attach copies of the proprietor’s (and partners if applicable) Aadhaar and PAN.
- Attach a copy of the registration you mentioned in the application.
- Mail it to the address mentioned in the instructions or drop it off at an NSDL centre close to you.
CreditEnable Tip: You must send this signed acknowledgement form to the NSDL head office within 15 days of completing the process online.
Do I need a business PAN to apply for an SME loan with a lender in India?
Yes, if your entity is required to have a PAN to do business in India, you will also need the business PAN to apply for an SME loan in India.
Lenders use all the supporting documentation you submit with your SME loan application to do a thorough credit assessment of your business which helps them in their lending decision.
Ensure you have all the necessary supporting documents ready before applying for the SME loan to speed up the loan process and get your money in the bank within days.
Business Loans. Enabled Simply.