Starting a business in India comes with a lot of paperwork, and one of the first legal documents you need is a business PAN card. In India, a PAN or Permanent Account Number is issued by the Income Tax Department and is required for any financial transaction that your business carries out.
The government uses it to monitor financial activity and make sure people pay their taxes correctly. If you’re a startup founder, entrepreneur, or running a small company, your business needs its own PAN, not just your personal one.
Let’s look at what a business PAN card is, who needs it, how to apply, and the documents required.
What is a Business PAN Card?
A business PAN card is an identification number issued to a registered business or legal entity, and it’s different from an individual’s PAN. Every business in India, including companies, LLPs, partnerships, and trusts, must have one.
This card helps your business with everything from tax filing and bank dealings to entering into contracts and applying for government tenders.
A PAN card for businesses follows a specific format: it’s a 10-character alphanumeric code like ABCCX1234D. Each character has a meaning:
| Character Position | What It Represents |
| The first three characters | Alphabetic sequence, ranging from AAA to ZZZ |
| Fourth character | Entity type (C for Company, F for Firm, T for Trust, P for Individual) |
| Fifth character | First letter of the business entity’s name |
| The next four characters | Numeric code between 0001 and 9999 |
| Tenth character | Alphabetic check digit |
Who Needs a Business PAN Card?
The following types of businesses must apply for business PAN card to follow the law and operate properly:
- Private Limited or Limited Companies: Required for opening a current account, applying for GST, or filing tax returns.
- Partnership Firms: Compulsory for profit-sharing businesses that are registered under partnership law.
- LLPs (Limited Liability Partnerships): Essential for LLPs to manage taxes, banking, and legal contracts.
- Sole Proprietorships Operating Under a Trade Name: While individuals use personal PANs, businesses under a trade name need a separate corporate PAN card.
- Trusts and NGOs: Necessary for receiving donations, grants, or working with government bodies.
- Foreign Institutional Investors, Hedge Funds, and Associations: Required for foreign entities to do business legally in India.
Without a valid PAN card of business, it becomes difficult to even open a bank account in the name of your entity.
According to the PIB, the government has launched PAN 2.0, a major upgrade to India’s Permanent Account Number system, with a ₹1,435 crore outlay to modernize taxpayer registration through a single, secure, and paperless digital platform.
Business Standard reports that the new PAN 2.0 will serve as a common business identifier and feature a stronger system for individual taxpayers.
How to Apply for a Business PAN Card Online in 2025?
The online process has become smoother over the years. Here’s how the business PAN card apply online process works:
- Head over to the official NSDL (Protean) or UTIITSL website.
- Select “Apply for New PAN (Form 49A)”, Form 49AA for foreign individuals or Non-Indian companies.
- Choose the correct applicant type, such as Company, Firm, LLP, or Trust.
- Fill in all the details like your business name, registration number, incorporation date, and office address.
- Enter the correct AO Code, which you can look up on the same website.
- Upload scanned copies of required documents (proof of identity and address).
- Pay the application fee using net banking, UPI, credit card, or debit card.
- Submit the form using Aadhaar-based OTP (for individuals) or a Digital Signature Certificate (for entities like companies or LLPs).
- Save the acknowledgment number and track your application status online.
You will receive both a physical PAN card and an e-PAN at your registered address and email. The digital copy is often accepted in most cases today.
How to Apply for a Business PAN Card Offline?
If you’re facing trouble uploading documents online, applying offline for a business PAN card works just as well. Here’s how to go about it in a few clear steps:
Step 1: Download Form 49A from the official NSDL website. Make sure you choose the correct version for entities like firms, LLPs, or companies.
Step 2: Fill out the form accurately with your business details. Then, attach the required documents that serve as identity and address proof.
Step 3: Visit the nearest NSDL center with the completed form and all supporting documents. You can find the center’s address on the NSDL portal.
Step 4: Submit everything at the counter and collect your acknowledgment receipt. This receipt will contain a unique tracking number.
Step 5: After successful verification, your company PAN card will be sent by post to the business address mentioned in the form. The process usually takes about 15 business days.
Documents Required for Business PAN Card
Here’s what documents you’ll need based on your business structure:
- Private or Limited Company: Certificate of Incorporation, GST registration, or company bank statement.
- LLP (Limited Liability Partnership): LLP Registration Certificate, office rent agreement, or utility bill.
- Partnership Firm: Partnership Deed, bank statement, or electricity bill in the firm’s name.
- Sole Proprietor (Using a Business Name): Aadhaar card of the proprietor, utility bill for business address.
Fees and Processing Time
Fees are different depending on the applicant’s communication address. If your business is registered in India, it’s lower than if your business address is international.
| Applicant Location | New PAN Card Fee | e-PAN Only Fee |
| India | ₹101 | ₹66 |
| Outside India | ₹1011 | ₹66 |
Final Thoughts
Getting a business PAN card is one of the first steps in setting up a business the right way. It makes your business visible to the financial system and helps you follow the legal tax rules.
Once your corporate PAN card is active, you’re ready to open accounts, apply for licenses, file returns, and access financial services without delay. It’s a small but powerful move that sets your business up for long-term success.
FAQs
- Can a business operate without a PAN card?
No, a PAN card is mandatory for opening a current account, paying taxes, issuing invoices, and conducting financial transactions above ₹50,000.
- Can a sole proprietor use their personal PAN card?
If operating under their legal name, yes. But if the business name is different, it is advised to apply for a separate business PAN card.
- How long does it take to receive a corporate PAN card?
After successful submission and verification, it usually takes 10 to 15 working days to receive the physical PAN card.