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PAN card or Permanent Account Number is a prime tool to open bank account in the company’s name and do income tax registration and other things.
It is of 10 characters which are made up of numbers and digits; is distinctive for each card holder and made necessary for all Private limited Companies to acquire after registration with the Registrar of companies.
Why does a company need PAN card?
The government of India under the Income Tax Act, 1961 made PAN generation obligatory for individuals and any form of entity while the payment of counterpart in India. Hence those who fail to do so; the government will charge concealing tax which can be at the rate of more than 30% of the total invoiced payment i.e. the government will deduct tax at the highest rate possible.
Having a PAN will grant benefits while paying the invoices, income tax returns and remittances.
Documents required for PAN card registration
The following documents are required for the registration
For ID proof (any one)
An authentic copy of the certificate of incorporation
An authentic copy of the business registration certificate
An authentic copy of articles of association
How to apply for PAN card?
By following these simple steps getting PAN card for a company becomes very simple
Application form 49A can be downloaded from any reliable PAN website
Fill the form with all the necessary information
You need to acquire bank draft for the payment of the pan card fees
The name and the details of accessing officer can be left blank
Once the form has been filled you can download and print it
The form has to be send to any PAN agent or broker of your choice after it has been signed by the authorized director on behalf of the company
You can also send the form directly to any NSDL processing centers in India for those who do not prefer online services
You can note down the PAN card number in order to track down the status of your application
It can take around 15 days to 5 weeks to get PAN card number
Other important details
The question arises that who should sign the PAN application form?
The company has to authorize one of its directors to process the permanent account number on behalf of the company i.e. the authorized director will sign the PAN registration form on behalf of the company.