How to Take a Company PAN Card: A Detailed Guide

Why Does a Company Need a PAN Card?

A company need a PAN Card for the following purposes:

• To file income tax returns and comply to tax laws
• Creating and managing bank accounts
• Performing high-value transactions
• Activities related to import and export
• Compliance with government regulations

A business in India is not permitted to carry out a number of regulatory and financial operations without a PAN card.

Documents Required for PAN Application - Indian Company

1. Copy of Certificate of Registration issued by the Registrar of Companies (RoC):

This is the primary and mandatory document for all Indian companies applying for a PAN. It serves as:

• Proof of Identity - confirming the legal existence of the company under the Companies Act.
• Proof of Address - as it includes the registered office address of the company.

The certificate is issued by the Ministry of Corporate Affairs (MCA) through the Registrar of Companies after successful incorporation and includes key details such as the company’s name, Corporate Identification Number (CIN), and date of incorporation.

2. Declaration/Affidavit by Authorised Signatory (For Companies Incorporated Before 1 February 2017):

For domestic companies that were incorporated prior to 1st February 2017 and have not obtained PAN until now, the application must be accompanied by a declaration or affidavit. This document should be:

• Duly signed by the authorised signatory of the company (such as a director).
• It must state the valid reasons why the company did not apply for or obtain a PAN earlier.

3. The Ministry of Corporate Affairs' No Objection Certificate (NOC) for businesses incorporated after February 1, 2017:

It is customary for domestic companies that were incorporated on or after February 1, 2017, to apply for PAN at the time of incorporation via the Simplified Proforma for Incorporating Company Electronically Plus (SPICe+) procedure. A company established after this date must file a No Objection Certificate (NOC) from the Ministry of Corporate Affairs (MCA) if it has not received a PAN for whatever reason.

This NOC

• Serves as an official MCA approval, enabling the business to move forward with the PAN application outside of the incorporation procedure.
• Verifies that there are no procedural or legal problems with the company's PAN allocation after incorporation.

The company's formal incorporation and recognition as a legal entity under Indian law are attested by the Certificate of Registration, an official document issued in accordance with the Companies Act. This certificate is a legitimate and accepted document for PAN application purposes because it contains important information including the Corporate Identity Number (CIN), date of incorporation, and registered office address.

When filing Form 49A (the prescribed form for PAN application by Indian entities), attaching a copy of this certificate is mandatory along with the declaration (applicable to certain companies) and NOC from MCA.

Documents Required for PAN Application- Foreign Company

The Income Tax Department must issue a PAN to foreign businesses wishing to operate or carry out financial operations in India. Valid evidence proving the company's identity and address must be submitted with the PAN application. According to the regulations, any combination of the following sets of documents can be used as proof of address and identity:

1. Certificate of Registration in the Home Country

• A copy of the Certificate of Registration issued in the country where the foreign company is incorporated or registered.
• This certificate must be duly attested by one of the following:
• Apostille (if the applicant's country is a signatory to the Hague Convention of 1961),
• The Indian Embassy, High Commission, or Consulate located in that country,
• Authorised officials of overseas branches of Scheduled Banks that are registered in India.

This attestation ensures the authenticity of the foreign company’s legal status in its home country.

2. Certificate of Registration or Approval from Indian Authorities

• A copy of the Registration Certificate issued by Indian regulatory authorities such as:
• The Registrar of Companies (RoC) in India, or
• Any other appropriate body that authorizes the foreign corporation to establish a liaison office, branch office, or project office in India, including the Reserve Bank of India (RBI) or other governmental organizations.

This is evidence that Indian authorities have acknowledged the foreign organization and given it permission to operate there.

3. Application Fee Payment - Demand Draft

• The foreign company must make a bank draft or foreign currency draft payable to: Protean eGov Technologies Limited, Mumbai (formerly NSDL e-Gov), which is the authorized agency processing PAN applications on behalf of the Income Tax Department.
• This payment covers the processing and dispatch fees for the PAN card application, especially for applicants with addresses outside India.

Step 1: Access the NSDL Portal: Visit the official NSDL (Protean eGov) website for PAN services

Step 2: Complete the Application: The form must be signed by the director of the company or another authorized signatory.

Step 3: Attach the necessary files: As directed, include the Certificate of Incorporation along with any additional supporting documentation.

Step 4: Send it in to the PAN Center: Pay the application fee and turn in your paperwork and application at the closest PAN center.

Step 5: Collect Recognition: Receive an acknowledgment receipt, which can be used to follow the application status.

The PAN card will be sent to the company's registered office following document verification.

How Company PAN Card is Different from Individual PAN