For an individual taxpayer and company, PAN is an important document, which needs to be submitted along with other documents. Whether the company is incorporated in India or abroad, PAN card is important. Companies can apply for PAN Card online or offline. The process is completely simple and easy. PAN card is an essential document for a company needed when opening up a bank account or any conducting any process.
If you are starting a company and want to know how to apply for the PAN card then below is the process to follow-
Check the online process-
- Visit the NSDL website where you will get Form 49A and 49AA. Check the right form for PAN card for your company.
- After downloading the form, fill out all the information including Name of the Company (in the ‘Last Name’ Box), Date of Incorporation of the Company, email ID and Contact Number. Once done, token number generated and sent to the email address provided by you. You can now continue the PAN Application.
- For company’s PAN application, there is no e-KYC and e-sign facility available. The company’s name, email ID and contact number will be prefilled. You only have to fill the Registration Number of your company.
- Now mention the source of income of the company. You need to select “Income from Business/Profession and select the type of business. If you are also earning other income from house property, capital gains or other sources, mention the same.
- Next, fill the office address and other communication address.
- Next, you need to provide the Assessing Officer (AO) Code designated according to the area jurisdiction of your location. You can click on the ‘Indian Citizen’ option and then select ‘State’ and ‘City’.
- You need to pay Rs 110/- the processing fees for the PAN card. You can do the payment online. Once the payment and the entire document are submitted with signature, the process is completed within a week.
Documents required for PAN card for company–
There are multiple documents required while applying for PAN card for company. It also depends on the type of company you own-
- For Companies- Certificate of Registration issued by the Registrar of Companies
- For Limited Liability Partnership Firm-Certificate of Registration issued by the Registrar of LLPs
- For Partnership Firm- Partnership Deed; or Certificate of Registration issued by the Registrar of Firms
Uses of PAN card for company-
Since one can go for PAN apply online, there are multiple benefits of issuing one for the company. Let us check some of the benefits-
- To open up bank account of your company. PAN card details is required for a time deposit of amount exceeding Rs 50,000 or totaling more than Rs 5, 00,000 during any financial year.
- To issue a credit card
- To open up demat account which is done with any depository, or with a custodian of securities or any person with Securities Exchange Board of India (SEBI).
- To make cash deposit which is more than Rs 50,000 in any bank
- To buy or sell securities for any amount which is more than Rs 100,000 per transaction.
- For buying and selling of a company’s shares where the company is not listed in a recognized stock exchange for any amount more than Rs 1,00,000 per transaction.
- To buy and sell immovable property for the amount more than Rs 10, 00,000 or if it is valued by a stamp valuation authority to an amount which is more than Rs 10, 00,000.
- To declare the Form 60.
Company can submit the PAN card application online to any of the two- UTI Infrastructure Technology and Services Limited (UTIITSL) and National Securities Depository Limited (NSDL). Having a company PAN card is very important to ensure you do not face any issues during transaction or legal things.