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PAN card required for a Company

PAN card required for a Company


A Permanent Account Number or PAN is a vital document for any taxpayer. It is unique 10-character string of letters and digits. Income Tax Act, 1961 enclose about the details of PAN Card. It is not just for individual but for Companies as well. It also use as identity proof.

A PAN Card is a mandatory requirement for all taxpaying individuals, partnerships, companies etc. It also treats as an identity proof for many of purposes. For you to get unique 10-character PAN, you need certain documents and identifications.

Which Business requires a PAN Card?

Any individual or corporate business situated in India requires a PAN Card. An Indian company and also a Foreign company needs to get registered and obtain PAN card. Also, If your company registered in India but receive money from outside India or has a permanent establishment in India, you need a PAN Card.

If you come under any of the following entities, then you should be having a PAN Card to deal many kind of business.

Documents required for PAN Card for Indian company

The following documents are required for PAN card of a company are:

  • Proof of identity/proof of address
  • Copy of Certificate of Incorporation
  • Copy of NOC issued by MCA

At the time of Incorporation of a company, ROC generate our PAN Card and mail the soft copy of PAN Card.

Why does your company need a PAN Card?

The government of India made the PAN Card compulsory for all entities that are generating income in-country, whether it is a company, individual business, HUF, partnership firm or trust. Every transaction in a company transacts by the PAN number so it is required for company and it is a important document for any company. It also helps in the recognition of tax flow of your company. The following are the reasons why your company need it:

  • You need have a PAN card for any tax related transactions. The Income Tax Department may trace the company’s transactions by PAN number.
  • If your company is a foreign company, then you are required a PAN to operate in India. Otherwise, the government can levy some charges on you with the highest possible tax rates.
  • In the case of payment of the invoices without any deduction, filing of tax returns, remittances, and much more
  • A PAN number is required in case of TRN (Tax Registration Number) generation.
  • The Government of India will charge withholding tax which can be higher than 30% rate of the total invoiced payment, if you don’t have a PAN number.


After reading all the above needs of a PAN card, it is very clear about the importance of a PAN card of any company. By this, no one can avoid taxes by unfair means and make multiple PAN cards with the same name holder. If you want to know more related this topic you can contact company suggestion.

CS Deepa Sharma

Author is a associate member of the Institute of Company Secretaries of India (ICSI) and apart from that she holds LLB degree and Master in Commerce degree from Rajasthan University. She is having over 5 years of experience as a Practicing Company Secretary. She is well versed with all the matters related to Company Law and ROC matters, RERA , statutory reporting, Compliance Report and Corporate Governance. She is having good exposure in maintaining secretarial records as prescribed under Companies Act, 2013.

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