How to Apply Pan for Firm

Applying for a Permanent Account Number (PAN) for a firm is a critical step in establishing legal and financial credibility for any business entity in India. Whether you're launching a partnership firm, limited liability partnership (LLP), private limited company, or proprietary concern, a PAN is mandatory for opening a bank account, filing income tax returns, conducting high-value transactions, and complying with statutory requirements under the Income Tax Act, 1961. Unlike individual PAN applications, applying for a firm requires additional documentation, accurate entity classification, and precise legal representation. This comprehensive guide walks you through every phase of the process—from understanding eligibility and preparing documents to submitting the application and tracking its status—ensuring a smooth, error-free experience. By the end of this tutorial, you’ll have a clear, actionable roadmap to secure your firm’s PAN without delays or rejections.

Step-by-Step Guide

Step 1: Determine the Type of Firm and Eligibility

Before initiating the PAN application, identify the legal structure of your firm. The most common types include:

• Proprietary Firm (owned by a single individual)
• Partnership Firm (governed by the Indian Partnership Act, 1932)
• Limited Liability Partnership (LLP) (registered under the LLP Act, 2008)
• Private Limited Company (registered under the Companies Act, 2013)
• Public Limited Company

Each entity type has specific documentation requirements, but all require a PAN for tax compliance. Only registered business entities are eligible to apply. Unregistered sole proprietorships may apply under the proprietor’s name, but if the business operates under a trade name, a firm-specific PAN is recommended for clarity and legal protection.

Step 2: Gather Required Documents

Accurate documentation is the cornerstone of a successful PAN application. The following documents are typically required:

• Proof of Incorporation or Registration: Certificate of Incorporation for companies, LLP Incorporation Certificate, Partnership Deed (signed by all partners), or Registration Certificate from the Registrar of Firms.
• Address Proof of the Firm: A recent utility bill (electricity, water, or telephone) in the firm’s name, rent agreement with landlord’s ID proof, or property tax receipt. If the address is not in the firm’s name, a No Objection Certificate (NOC) from the owner is mandatory.
• Identity and Address Proof of Authorized Signatory: This is typically a partner, director, or proprietor. Acceptable documents include Aadhaar card, passport, driver’s license, or voter ID.
• Photograph: One recent passport-sized color photograph of the authorized signatory.
• Board Resolution or Authorization Letter (for Companies and LLPs): A resolution passed by the Board of Directors or Designated Partners authorizing a specific individual to apply for the PAN on behalf of the firm.

Ensure all documents are clear, legible, and unaltered. Scanned copies must be in PDF or JPEG format, not exceeding 100 KB per file. Avoid using blurry, cropped, or watermarked documents.

Step 3: Choose the Correct Application Form

The Income Tax Department provides two forms for PAN applications: Form 49A and Form 49AA. For Indian firms, use Form 49A. Form 49AA is reserved for foreign entities.

Form 49A has two versions: online (for e-filing) and offline (for physical submission). The online method is faster, more secure, and recommended for all applicants. You can access Form 49A through the official portals of NSDL (National Securities Depository Limited) or UTIITSL (UTI Infrastructure Technology and Services Limited), the two authorized agencies appointed by the Income Tax Department.

Step 4: Fill Out Form 49A Accurately

When filling out Form 49A online, pay close attention to the following fields:

• Entity Type: Select “Firm” from the dropdown. Do not select “Individual” or “Company” unless applicable.
• Name of the Firm: Enter the exact legal name as mentioned in the registration certificate or partnership deed. Avoid abbreviations or informal names.
• Address of the Firm: Provide the complete registered office address, including pin code. This must match the address on your proof of address document.
• Name of the Authorized Signatory: Enter the full name of the partner, director, or proprietor who will sign on behalf of the firm.
• PAN of the Authorized Signatory (if any): If the signatory already holds a personal PAN, mention it. If not, leave it blank.
• Place and Date of Application: Fill in the city and date of submission.

Double-check all entries. A single typo in the firm’s name or address can lead to rejection. Once completed, review the summary before submission.

Step 5: Upload Documents

After completing the form, upload scanned copies of all required documents in the prescribed format:

• Proof of Incorporation: PDF or JPEG
• Address Proof: PDF or JPEG
• Photograph: JPEG (3.5 cm x 2.5 cm, white background, no glasses or headgear)
• Authorization Letter (if applicable): PDF or JPEG

Ensure each file is under 100 KB and clearly legible. Do not compress or merge files unless explicitly instructed. For partnership firms, upload the complete Partnership Deed, not just the first page. For companies, upload the Certificate of Incorporation and Board Resolution.

Step 6: Pay the Application Fee

The application fee varies based on the communication address:

• ₹107 (inclusive of GST) for an Indian address
• ₹1,017 (inclusive of GST) for a foreign address

Payment can be made via credit/debit card, net banking, or UPI. Ensure the payment is completed successfully. A failed transaction does not save your application data—you’ll need to restart the process. After successful payment, you’ll receive a unique 15-digit acknowledgment number. Save this number securely; it’s your only reference for tracking the application status.

Step 7: Submit and Receive Acknowledgment

After reviewing all entries and confirming payment, click “Submit.” You will immediately receive an acknowledgment receipt via email and on-screen. This receipt includes your acknowledgment number, date of submission, and a list of uploaded documents. Print or save this receipt for future reference.

Do not assume your application is complete until you receive this acknowledgment. If the system does not generate one, your submission was not processed. Reapply immediately.

Step 8: Track Application Status

Use your 15-digit acknowledgment number to track your application status on the NSDL or UTIITSL website. Status updates typically appear within 48 hours. Common statuses include:

• Application Received: Documents are under review.
• Documents Verified: Your documents have passed initial checks.
• Under Processing: The Income Tax Department is finalizing your PAN.
• Dispatched: Your PAN card has been printed and sent via post.
• Approved: Your PAN has been allotted and is active in the database.

Most applications are processed within 7–15 working days. Delays may occur during peak seasons or if documents are incomplete.

Step 9: Receive and Verify Your PAN Card

Once approved, your PAN card will be delivered via India Post to the registered address. It may take up to 20 days from approval for delivery. The card includes:

• Firm’s legal name
• PAN number (10-character alphanumeric code)
• Photograph of the authorized signatory
• Date of issue
• Permanent Account Number

Upon receipt, verify all details carefully:

• Ensure the firm’s name matches exactly with your registration documents.
• Confirm the PAN number is correctly printed.
• Check that the photograph is clear and matches the signatory.

If any discrepancy is found, initiate a correction immediately through the official portal using Form 49A (for corrections) or contact NSDL/UTIITSL support.

Step 10: Link PAN with Bank Account and GST

Once you have your PAN, link it to your firm’s bank account and GST registration:

• Bank Account: Visit your bank branch with your PAN card and firm registration documents. Fill out the KYC form and submit a copy of the PAN. Without PAN linkage, you cannot make or receive payments above ₹50,000.
• GST Registration: During GST enrollment, you’ll be asked to provide your firm’s PAN. If you applied for GST before receiving your PAN, update your GST portal with the new PAN under “Amendment of Registration.”

Failure to link PAN with GST or bank accounts may result in transaction restrictions, non-acceptance of input tax credit, or penalties under GST law.

Best Practices

1. Always Use the Legal Name of the Firm

Never use a trade name, brand name, or abbreviation in the PAN application. The Income Tax Department cross-verifies your application with official registration records. Any mismatch—even a missing “Pvt. Ltd.” or an extra space—can lead to rejection. For example, if your partnership deed reads “Rajesh & Sons Enterprises,” do not enter “Rajesh & Sons” or “Rajesh Enterprises.”

2. Ensure Address Consistency Across All Documents

The address on your PAN application must match the address on your firm’s registration certificate, bank statement, and utility bill. If you’ve recently moved offices, update your registration documents first before applying for PAN. Inconsistent addresses trigger verification delays.

3. Use Authorized Signatories with Valid IDs

Only individuals with government-issued photo IDs (Aadhaar, passport, etc.) should be nominated as authorized signatories. Avoid using minors, non-residents without valid Indian IDs, or individuals without a PAN if one is required. If the signatory is a foreign national, additional documentation such as a visa and passport copy is mandatory.

4. Avoid Third-Party Intermediaries

While many agencies offer PAN application services, they often charge unnecessary fees and may submit incorrect data. The process is straightforward and free to complete online. Use only the official NSDL or UTIITSL portals. Third-party sites may collect your data or charge for services you can perform yourself.

5. Retain Digital and Physical Copies

Keep a digital backup of your filled application form, payment receipt, and uploaded documents. Also, retain a printed copy of the acknowledgment and the final PAN card. These may be required for audits, loan applications, or legal disputes.

6. Apply Early, Especially Before GST or Bank Registration

Many firms delay PAN application until they need to open a bank account or file GST returns. This creates bottlenecks. Apply for PAN as soon as your firm is registered. It’s a prerequisite for most compliance tasks and can save weeks of waiting.

7. Update PAN Details if Firm Information Changes

If your firm relocates, changes partners, or modifies its legal structure, update your PAN details using Form 49A. Failure to update may cause mismatches in tax filings, bank records, or GST records. The process is simple and can be completed online in under 10 minutes.

8. Cross-Verify PAN in the Income Tax Portal

After receiving your PAN, log in to the Income Tax e-Filing portal (www.incometax.gov.in) using your firm’s PAN and the authorized signatory’s credentials. Verify that your firm’s details are correctly displayed. If not, contact the department immediately to rectify the error.

Tools and Resources

Official Portals

• NSDL PAN Portal: https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html
• UTIITSL PAN Portal: https://www.utiitsl.com/UTIITSL-portal/pan
• Income Tax e-Filing Portal: https://www.incometax.gov.in
• GST Portal: https://www.gst.gov.in

These are the only authorized platforms for PAN applications and verification. Bookmark them to avoid phishing sites.

Document Templates

Download official templates for:

• Partnership Deed (available on Ministry of Corporate Affairs website)
• Board Resolution Format (for companies)
• No Objection Certificate (NOC) for Address Proof

Many state government websites and legal portals offer free downloadable templates. Always use the latest version provided by official sources.

Document Scanning Tools

Use mobile apps like Adobe Scan, CamScanner, or Microsoft Lens to scan documents. These apps auto-crop, enhance contrast, and compress files to meet the 100 KB limit. Avoid using low-quality camera photos—blurry scans are a leading cause of rejection.

Document Checklist Generator

Create a custom checklist using Google Sheets or Notion with the following columns:

• Document Name
• Required?
• Uploaded?
• Notes

Use this checklist before submitting your application to ensure nothing is missed.

Support and Helpline (Non-commercial)

For technical issues with the NSDL portal, email: tininfo@nsdl.co.in

For UTIITSL support, email: pan@utiitsl.com

Both agencies respond within 48–72 hours. Do not call helplines—email is the preferred and documented method of communication.

Real Examples

Example 1: Partnership Firm Registration

Mr. Arjun and Ms. Priya registered a partnership firm named “Arjun & Priya Legal Consultants” in Mumbai. They prepared the following:

• Partnership Deed (notarized)
• Rent agreement for office space with landlord’s Aadhaar
• Latest electricity bill in firm’s name
• Aadhaar cards of both partners
• Photograph of Mr. Arjun (nominated as authorized signatory)

They applied online via NSDL, selected “Firm” as entity type, and entered the exact name from the deed. Payment was made via UPI. Within 10 days, their PAN (AAJPA9628D) was approved. They linked it to their bank account and GST registration the same day. No delays occurred.

Example 2: LLP with Address Discrepancy

“TechFlow LLP” applied for PAN using their registered office address. However, the electricity bill was in the name of the landlord, not the LLP. They attached a notarized NOC and a copy of the lease agreement. Their application was initially flagged for verification. After submitting additional documents via email within 48 hours, their PAN was approved in 14 days. This highlights the importance of including NOCs when addresses don’t match.

Example 3: Company with Incorrect Entity Selection

A startup applied for PAN under “Company” instead of “LLP,” even though they were registered as an LLP. Their application was rejected due to mismatched entity type. They resubmitted using the correct classification and attached their LLP Incorporation Certificate. The second attempt was approved in 8 days. Always confirm your legal structure before applying.

Example 4: Sole Proprietor Using Trade Name

Ms. Neha runs a boutique under the name “Elegance Wear” but is registered as a sole proprietor under her personal name. She applied for PAN under her personal name but included “Elegance Wear” as the trade name in the application. The PAN was issued under her personal name, but she can now use “Elegance Wear” as the business name on invoices and bank statements. This is acceptable—PAN is linked to the legal owner, not the trade name.

FAQs

Can a firm apply for PAN without a registered office address?

No. A registered office address is mandatory. If you’re operating from a residential address, you must provide proof of residence and a No Objection Certificate (NOC) from the property owner.

Is it possible to apply for PAN for a firm online without a digital signature?

Yes. For firms, a digital signature is not mandatory. You only need to upload scanned documents and pay the fee. The application is verified manually by NSDL/UTIITSL.

How long does it take to get a PAN for a firm?

Typically 7–15 working days from submission. If documents are incomplete, the process may extend to 20–30 days.

Can I apply for PAN for a firm if I’m not an Indian resident?

If the firm is registered in India, yes. However, the authorized signatory must have a valid Indian address and ID. Foreign nationals can apply as authorized signatories only if they have an Indian residential address and supporting documents.

What happens if my PAN application is rejected?

You’ll receive an email or SMS detailing the reason. Common reasons include mismatched names, unclear documents, or incorrect entity type. Correct the issue and resubmit using the same acknowledgment number. There is no additional fee for resubmission within 30 days.

Can I use the same PAN for multiple business entities?

No. Each legal entity—whether a partnership, company, or LLP—must have a unique PAN. Even if owned by the same person, separate entities require separate PANs.

Do I need to renew my firm’s PAN?

No. PAN is permanent and does not expire. However, you must update it if your firm’s name, address, or authorized signatory changes.

Can I apply for PAN for a firm that hasn’t started operations yet?

Yes. You can apply as soon as your firm is legally registered. Many firms apply for PAN before commencing operations to prepare for future compliance.

Is it mandatory to have a PAN for a firm to open a bank account?

Yes. Banks in India require a firm’s PAN to open a current account. Without it, the account cannot be activated under the KYC norms of the Reserve Bank of India.

What if I lose my PAN card?

You can download a duplicate copy from the Income Tax e-Filing portal using your PAN number and registered mobile number. A physical duplicate can be requested via Form 49A for a nominal fee.

Conclusion

Applying for a PAN for your firm is not merely a bureaucratic requirement—it is a foundational pillar of your business’s legal and financial identity. A correctly issued PAN enables seamless banking, tax compliance, vendor onboarding, and government interactions. By following this detailed guide, you eliminate the guesswork, avoid costly delays, and ensure your firm starts operations on solid legal ground. Remember: accuracy in documentation, attention to detail in form filling, and reliance on official portals are the keys to success. Do not rush the process. Verify every field, cross-check every document, and retain every record. Once your PAN is secured, you unlock the door to formal business operations, credit access, and long-term growth. Treat this step not as a chore, but as a strategic investment in your firm’s future. With the right preparation and discipline, obtaining your firm’s PAN is a simple, efficient, and empowering milestone.