What is a business PAN?
A Business Permanent Account Number (Business PAN) is a nine-digit unique identification number issued by the Inland Revenue Department (IRD) to businesses for tax-related purposes. It serves as an official tax identity of a company, partnership firm, or any business entity operating within the legal framework. A business PAN is used for filing taxes, maintaining accounting transparency, and ensuring compliance with government regulations.
Whether your business is small or large, this number acts as its tax “fingerprint,” allowing the government to track taxable transactions, verify legal operations, and assess revenue activities.
Why is a business PAN compulsory?
A business PAN is mandatory for the following reasons:
1. Establishes the Legal Identity of a Business
Without a PAN, a business cannot be recognized as a taxable entity. It is an essential registration for conducting lawful financial transactions.
2. Ensures Tax Compliance
It enables the government to track income, expenses, and tax liabilities. Businesses must provide the PAN while filing VAT, income tax returns, or claiming tax rebates.
3. Required for Financial Transactions
Banks require a business PAN to open a current account, apply for loans, or make high-value transactions. It is also needed when issuing invoices or participating in government tenders.
4. Mandatory for Business Operations
Certain licenses, registrations, and contracts require a Business PAN, making it a core document for running any legal business in Nepal.
Who Must Register a Business PAN?
Any individual or organization engaged in business activities for profit must register for a Business PAN. This includes:
- Registered companies (Pvt. Ltd., Public Limited)
- Partnership firms
- Sole proprietorships
- NGOs or INGOs involved in revenue-generating activities
- Traders, manufacturers, or service providers
- Online businesses and freelancers earning taxable income
In short, any person or entity that conducts business and earns money must obtain a business PAN.
Is a Business PAN Different from a Personal PAN?
Yes, they are different.
- A personal PAN is issued to individuals for personal income tax purposes.
- A business PAN is issued specifically to legally registered businesses.
A personal PAN cannot be used for business transactions, and a business PAN cannot be used for personal tax filings. Every business must have its PAN, regardless of whether the owner has a personal PAN or not.
Required Documents for Business PAN Registration
The following documents must be prepared before applying for a business PAN:
- PAN Application Form
- Company Registration Certificate
- PAN Letter
- MOA & AOA (Memorandum and Articles of Association)
- Citizenship of Shareholders
- Citizenship of Landowner
- Lalpurja Certificate (Land ownership document)
- Lease Agreement
- Map indicating the Business Address
- Company Board of Directors (BOD) Minute stating approval to register the Company PAN
These documents help verify the authenticity, location, and structure of the business.
Government Fee for Business PAN Registration
There is no government fee for registering a business PAN. The process is completely free of cost.
Process of Business PAN Registration
Below is the step-by-step procedure for registering a business PAN with the IRD:
1. Filing the Online PAN Application Form
Please ensure that you accurately complete the required details on the IRD’s online portal.
2. Collect All Required Documents
Gather all documents listed above in printed and digital format.
3. Pinch Documents into a Record File
Organize all documents neatly in a file as required by IRD guidelines.
4. Visit the Inland Revenue Department (IRD)
Please submit the application file to the relevant IRD office.
5. Verification of Documents by Tax Officers
Tax officers carefully review the application and verify authenticity.
6. Biometric Process
The authorized representative completes fingerprint and photograph verification.
7. Issue of PAN Certificate
Once verified, IRD issues the Business PAN Certificate, allowing the business to legally operate and conduct tax-related activities.
How Can We Help You?
Our professional team can assist you with various services, including
- Consultation on whether your business needs a PAN
- Preparing and organizing all required documents
- Filling out the online Business PAN application correctly
- Coordinating with tax offices for smooth processing
- Handling any queries or issues during verification
- Ensuring fast and hassle-free Business PAN registration
We make the process simple, quick, and compliant with government regulations.
Conclusion
A business PAN is more than just an identification number—it is the foundation of a legally recognized business. It ensures transparency, enables financial operations, and establishes credibility in the market. Whether you are starting a new venture or formalizing your existing business, obtaining a Business PAN is an essential and mandatory step.
With the right guidance and preparation, registering a business PAN becomes a smooth and efficient process. Expert support is always available to assist you at every stage if you need it.
