PAN card for companies plays the same role as the PAN for individuals. The differences between the PAN card for individuals and for organizations is that, there's no photograph in the PAN meant for an organization/company but when the PAN card issued for an individual has a photograph in it. Moreover, on an organization's PAN card instead of date of birth, the date of inception of the company is mentioned.
Which Company needs a PAN Card?
Any company registered in India or abroad is required to have a PAN card. Also, any individual/entity undergoing any form of business with a company/firm based in India is also required to have a Permanent Account Number. The list of entities that require PAN card in India are:
- Limited Liability Companies(LLC)
- Limited Liabilities Partnerships(LLP)
- Sole proprietorship
- Limited companies
- Private firms
- Foreign institutional investors
- Hedge funds
Reasons why Your Company needs a PAN Card
- The Income Tax Act, 1961 states that it is mandatory for all the companies, incorporations, limited liability companies to have a PAN Card. If the companies do not have a PAN Card, they'll be taxed at the rate of 30% irrespective of the tax slab that they belong to.
- It is necessary for companies to quote their PAN card number while filing for Income Tax and while making financial transactions.
- If a company is established abroad, it is still required to make tax payments. To file Income Tax in India, any company, irrespective of the country that they are based on.
- PAN could help you in the printing of invoices, remittances and file IT returns.
- It is necessary for the companies to provide their Tax Registration Number while filing their tax returns. TRN can be availed by a company only when it has a PAN card number.