What is a Business PAN Card?

•6 min read•by Angel One

A business PAN is a tax identity for registered and unregistered business entities. It connects all income, filings and value transactions of high value to a single account.

A business PAN card number is a tax identity of organisations with operations in India. It applies to organisations other than individuals, like businesses, partnerships, and other business groups. Being a tax document, it monitors income, payments, and statutory filings in a single location. This recognition creates financial transparency, supports regulatory reporting, and segregates business operations and individual documentation, which are necessary as more transactions, vendors, and compliance obligations are generated.

Key Takeaways

Business PAN links all business income and filings under one tax ID.

Each legal entity needs its own PAN for clear compliance.

PAN format helps banks and tax systems verify businesses fast.

A valid PAN supports banking, GST, and smooth financial reporting.

Who Can Apply for a Business PAN Card?

In India, every business entity, be it a sole proprietorship, Limited Liability Partnership (LLP), private limited company, public limited company, or even a foreign enterprise with a branch in India, needs to obtain a business PAN card.

Sole proprietorships are unique as they use the proprietor's individual PAN. This also applies to non-profit entities, trusts, and societies involved in monetary dealings within the country. They too are required to have a PAN. It's crucial to remember that each distinct business entity, even if under the same ownership, requires a separate PAN card.

For instance, if an individual owns three different companies (e.g., a Pvt Ltd, an LLP, and a Partnership Firm), each of those entities must have its own unique PAN card for the company.

A sole proprietor, however, uses their individual PAN for all business activities, as the business is not legally separate from the owner.

Business PAN Number Example

Business PAN is characterised by a uniform structure that assists in the determination of the type of entity and ownership. It is composed of ten characters. The first five are letters, the other four are numbers and the last letter. The fourth character is of great significance to businesses. It shows the type of entity, e.g. company, firm or trust.

After all, with a sample Business PAN such as ABCDE1234F, the fourth letter is the classification of the business. The numeric part remains specific to the entity, whereas the final alphabet serves as a checksum. Such a system enables tax systems and financial platforms to realise, immediately, that the PAN is of an individual or a business.

The Business PAN, when provided to banks, vendors, or payment platforms, will establish legitimate transactions and map the transactions appropriately. This standardised format leads to fewer errors in verification and reporting.

How To Apply for a Company PAN Card?

Applying for a company PAN number is a streamlined process, which can be accomplished both online and offline:

Note: For new incorporations in 2026, the PAN application is mandatory via the MCA SPICe+ form.

Step 1: Starting the Online Process: Navigate to the official NSDL or UTIITSL website dedicated to PAN services. Choose the option for a new PAN application for 'Company'. Alternatively, new businesses use the integrated MCA portal.

Step 2: Filling the Form: The application form, Form 49A, must be meticulously filled out. It will solicit details such as the company’s name, date of incorporation, communication address, and Corporate Identification Number (CIN).

Step 3: Documentary Evidence: Businesses must upload essential documents to corroborate their claims made in the application. This typically includes a Certificate of Incorporation issued by the Registrar of Companies, along with other necessary documents depending on the business type.

Step 4: Paying the Fees: A nominal fee is required to process the PAN application. Payment can be made via credit/debit cards, net banking, or demand drafts. The current fee for a domestic physical card is around ₹107.

Step 5: Physical Submission: Digital submission is highly encouraged. Though the application process can be entirely online, certain business types or those without a Digital Signature Certificate (DSC) may be required to send a physical copy of the form and documents to the NSDL or UTIITSL office.

Step 6: Track application: Once submitted, the application can be tracked using the 15-digit acknowledgement number provided.

Step 7: Receiving the PAN card: Post successful verification, the business PAN card will be dispatched to the mentioned address and should reach the applicant within 15-20 business days. An e-PAN is usually delivered via email even sooner.

Also, Read More About: How to Apply for a PAN Card

Documentation To Get a PAN Card for a Company

Type of Business Entity	Document for Proof of Identity & Address
Indian Company	Copy of Certificate of Incorporation issued by the Registrar of Companies (ROC).
Foreign Company	Copy of Certificate of Registration from the home country, duly apostilled or attested by the Indian Embassy/Consulate, or a registration certificate issued by Indian authorities to set up an office.
Limited Liability Partnership (LLP)	Copy of Certificate of Registration issued by the Registrar of LLPs.
Partnership Firm	Copy of Partnership Deed (duly notarised) or Certificate of Registration issued by the Registrar of Firms.
Trust	Copy of Trust Deed or Certificate of Registration Number issued by the Charity Commissioner.
Association of Persons (other than Trusts), Body of Individuals, Local Authority, or Artificial Juridical Person	Copy of Agreement or Certificate of Registration Number issued by a Charity Commissioner, Registrar of Co-operative Societies, or other competent authority. Alternatively, any government document establishing identity and address.

Read More About: How to Check PAN Card Status?

Tips on PAN Card for Companies

Accuracy is key: Always double-check the details filled in the application. Any discrepancy between the Certificate of Incorporation (CoI) and the PAN application can lead to a delay in the issuance or even rejection.

Safekeeping: Once obtained, the business PAN card should be kept securely to prevent misuse. It is highly advisable to link the PAN to your business's Digital Signature Certificate (DSC) and store an e-PAN copy on a secure corporate cloud for quick reference.

Timely updates: If there are changes in the company's structure, name, or registered office address, it’s crucial to file a PAN Change Request (Correction Form). An updated PAN is mandatory for maintaining compliance with GST and MCA (Ministry of Corporate Affairs) filings.

Avoid multiple applications: If there's a delay in receiving the PAN card, avoid applying multiple times. Having more than one PAN for a single legal entity is illegal and can lead to a penalty of ₹10,000 under Section 272B of the Income Tax Act. Use the application tracking system instead.

Stay informed: Regularly check official announcements. In 2026, it is critical to ensure your business PAN is properly integrated with your GSTIN and Corporate Identification Number (CIN) for seamless tax filing and to avoid "inactive" status.

Guidelines for a Company PAN Card

Mandatory requirement: A businessPANn card isn’t just for businesses earning above a threshold. Any registered business operating in India must obtain one.

Not a substitute: The business PAN card isn't a substitute for the Corporate Identification Number (CIN). Both have different purposes, with CIN being specifically for company registration.

Tax deduction: Without a PAN card for the company, any taxable transaction or service might attract the highest TDS rate, regardless of the actual liability.

Foreign transactions: For businesses involved in foreign transactions, having a PAN is crucial, as many processes require PAN details for validation.

Non-transferable: Just like individual PAN cards, business PAN cards are non-transferable, regardless of changes in ownership or business structure.

Benefits of a Business PAN Card

The business PAN card holds paramount importance, not just as an identification tool but also as a passport to various financial avenues. Here are the primary benefits:

Loan applications: When businesses require financial aid or loans, having a PAN card accelerates the verification process, making it smoother to obtain credits.

Foreign trade: For businesses aiming to spread their wings internationally, the PAN card is crucial for export and import.

Asset purchase: When buying assets for the company, like property or vehicles, the PAN card is necessary to validate and finalise the transaction.

Preventing misuse: With a PAN card, businesses can prevent financial misuse under their name. It brings transparency and accountability to the company's operations.

Which Types of Businesses Require a PAN Card?

Any entity that earns income or enters reportable financial transactions must apply business PAN card registration. Companies registered under corporate law need it for filings, audits, and banking. Partnership firms and LLPs require it to report profits, pay taxes, and open current accounts.

Trusts, societies, and associations also apply business PAN card status to manage donations, investments, and compliance. Even foreign entities with taxable income in India must hold a PAN. Proprietorships differ slightly. In many cases, the proprietor PAN is used, yet separate business PAN card registration becomes relevant when operations scale or compliance expands.

Startups, small traders, and online sellers also apply for business PAN card credentials when tax filings, GST registration, or payment settlement require it. Essentially, when a business needs to be recognised as a distinct financial unit, PAN registration becomes unavoidable for lawful operations.

Also Read: What is GST and Types of GST?

Why is Issuing a PAN Card for a Company Crucial?

The significance of a PAN card for a company isn't limited to the aforementioned benefits. It's fundamentally vital for:

Regulatory compliance: The Indian government mandates every registered business operating within its jurisdiction to possess a PAN. It ensures adherence to financial regulations and aids in monitoring taxable activities.

Avoiding penalties: Operating without a PAN can result in hefty penalties. Transactions without PAN might be subjected to higher TDS rates.

Creditworthiness: For businesses looking to expand or venture into new realms, creditworthiness becomes essential. A PAN card, reflecting timely tax payments and transparent financial activities, augments the company's credibility.

Conclusion

The Business PAN card is essential for every company functioning in India, promoting financial clarity and compliance. Its importance goes beyond simple identification, enhancing a firm's standing in the economic landscape.

FAQs

Is a Business PAN mandatory?

Yes, all businesses operating in India need a PAN card. It's essential for tax filings, and financial transactions, and to prevent tax evasion. Even foreign businesses transacting in India require one.

How does a Business PAN differ from an Individual PAN?

While both are tax IDs, a Business PAN is for firms, companies, and partnerships. An Individual PAN is personal and meant for individual taxpayers.

Can foreign companies obtain an Indian PAN card?

Absolutely. If a foreign company transacts or operates in India, it must have a PAN card. It ensures they're tax-compliant.

What documents are needed for a Business PAN?

Companies need a Certificate of Registration. Depending on the entity type, other documents like Partnership Deed or Trust Deed might be needed.

What if a business loses its PAN card?

The PAN format of the business has ten characters. This consists of the first five letters, which are then succeeded by four digits and then by a single letter. The fourth character shows the kind of organisation, i.e. company or firm. It is a format through which tax systems can categorise income properly. A sound Business PAN Number is always of this format, and it does not change over the lifetime of the entity.

Is PAN for business mandatory for GST registration?

Generally, a Business PAN Number is required when registering under GST. GST systems incorporate the use of PAN to make a connection between indirect tax records and the income tax submissions. Registration of normal entities would not take place without a PAN. This interconnection enables governments to monitor turnover, input credits and compliance in tax systems in a uniform manner, minimising discrepancies between reported sales and the reported income.

What is the Apostille Convention?

The Apostille Convention makes the process of document verification between the countries that are members of the convention easier. It permits the public documents issued in one country to be recognised in another with a stamp of apostille. Although this is not directly associated with a Business PAN Number, it comes into play whenever Indian business documents are presented in other countries. The convention eliminates repetitive embassy attestation in the participating countries.

Who is eligible for a business PAN card?

Any organisation that makes taxable income in India can be provided with a Business PAN Number. This covers companies, firms, LLPs, trusts, societies, and foreign organisations whose income is in India. Eligibility is also based on the existence of a business and not the profit levels. The newly formed entities can also be subjected to the application after legal formation documents are organised in order to ensure early compliance and easy operation of finances.

How to apply for a PAN for a proprietorship firm?

A proprietorship utilises the proprietor's personal PAN in a number of instances. Nevertheless, the owner can utilise business PAN card registration when necessary, with the help of business proof and identity papers. The application portrays the name ofthe trade but makes the ownership associated with an individual. Such an arrangement assists in isolating business income reporting and not compromising compliance with the tax rules.

How do I apply for a PAN card for my company, firm, or LLP?

In order to use business PAN card registration, the entity provides formation documents, address proof and authorised signatory information. The legal name and structure are registered under the application. The PAN is issued and is the main reference point of or tax. It is applied to filings, banking and statutory disclosures during the life of the entity in operation.

Is PAN required for a small business?

Previously, even small businesses were required to have a Business PAN Number as soon as they had taxable income or reportable transactions. Large scale does not eliminate the responsibility. PAN facilitates correct income reporting, banking access and compliance with vendors. Lots of small businesses take PAN early to evade time restrictions in times of growth or regulatory inspections.

Can we use a personal PAN for business?

Proprietorships can, in rare situations,s use a personal PAN. A Business PAN Number is, however, required when the business has expanded or the level of compliance becomes higher. The use of a separate PAN enhances individual personal and business revenues. It also eliminates confusion when audits are conducted, when filling tax returns, and when conducting financial reviews.