A partnership firm is a type of business structure where two or more partners run a business. They agree to share profits and also take care of responsibilities and obligations related to business. Like any other business, a firm also needs certain documents for its financial and tax-related work. One of the important documents among them is partnership firm PAN card.
It is required for a number of activities, such as filing income tax returns, opening a bank account, carrying out financial transactions and meeting numerous tax requirements, to name a few. In this blog, we will discuss how you can apply for partnership firm PAN card online.
A partnership firm is a popular business model in India. It is started and run by two or more persons who agree to work together and share the profits of the business. These persons are known as partners. They also decide who will be responsible for different work and obligations of business. In India, partnerships are governed by Indian Partnership Act, 1932. The partners can also put their agreed terms in a partnership deed. This deed generally mentions things like the profit-sharing ratio, contribution of capital, duties of each partner and other conditions agreed between the partners.
A written partnership deed is not compulsory under the Indian Partnership Act, 1932. So, a partnership can even be formed on the basis of an oral agreement. However, it is always better to have the terms in writing. When everything is clearly mentioned in the deed, it becomes easier for the partners to understand their respective roles and deal with any disagreement that may arise later.
The registration of a partnership firm is also not compulsory. The partners can run an unregistered firm. However, registering the firm with the Registrar of Firms is generally recommended. An unregistered firm has certain restrictions under the law, particularly when it wants to enforce its contractual rights through a court.
So, although law does not make registration or a written deed compulsory in every case, having both is certainly a sensible choice. It gives partners a clear record of their agreement and can prevent many problems from arising during the course of business.
A partnership firm PAN card is a unique 10-digit alphanumeric Permanent Account Number that the Income Tax Department issues in the name of firm. This document is used to identify firm for income tax and other financial purposes. It is separate from PAN cards that the firm’s individual partners possess.
A firm needs a PAN card for several purposes. For instance, this document required to open a current bank account in the name of firm and to file its income tax return. PAN card partnership firm may also be required while applying for GST registration, MSME/Udyam registration and certain business licences.
The PAN of firm is also used while carrying out regular business activities, such as entering into contracts, issuing invoices and handling payments from clients/vendors. Therefore, getting a PAN card is one of the most basic requirements for a firm to carry out its financial and tax-related activities properly.
Below, we have explained all the steps involved in the partnership firm PAN card application process:-
Step 1:- As the first step, you need to visit the Protean eGov PAN Portal or UTIITSL Portal.
Step 2:- After that, you need to choose Form 94 for new PAN application.
Step 3:- Now, in this step, you have to select Firm under the application category type.
Step 4:- Start filling in the firm details in the form, such as its legal name, date of incorporation and firm address.
Step 5:- Thereafter, provide contact details (i.e., mobile number and email ID) for receiving updates.
Step 6:- Finally, pay the prescribed fee so you can submit the form. You can pay the fee online through net banking, UPI or credit/debit card.
Also Read: Limited Liability Partnership v/s Partnership Firm
A PAN card for a firm is an essential document. At the time of carrying out various financial and tax-related activities, this document is required. After going through this blog post, we hope you have now learnt how to apply for a PAN card for a partnership firm. If you have not started a partnership firm yet and need assistance with the process, you can get in touch with our business registration consultants at Registrationwala.
Q1. How to apply for firm PAN card?
A. To apply for firm pancard online, you need to visit Protean eGov Technologies or UTIITSL portal. You then need to fill out Form 94 with firm details, pay processing fee and submit the completed application.
Q2. Can I apply for partnership PAN card online?
A. Yes. You can apply for partnership pancard online via Protean eGov Technologies (formerly NSDL) portal or via UTIITSL portal.
Q3. How many digits does a partnership PAN contain?
A. A PAN card issued by the Income Tax Department to a partnership firm contains 10 alphanumeric characters. These include 5 letters, 4 numbers and 1 final letter.
Q4. Which portal do I need to visit for partnership firm pancard download?
A. You need to visit Protean or the UTIITSL Portal for downloading firm pancard.
Q5. Is a firm’s pancard separate from the pan cards of its partners?
A. Yes, exactly. A firm’s pancard is entirely separate from the pan cards its partners possess.
Q6. Can I apply for firm pancard for free?
A. No, you cannot apply for firm pancard for free. To apply for a firm PAN card, you need to pay an application fee of Rs. 107, which is inclusive of 18% GST, if your communication address is in India. However, if your communication address is outside India, the fee ranges from Rs. 989 to Rs. 1,020, including applicable taxes and dispatch charges.
Sunny Goel is a Chartered Accountant (CA) and the Senior Finance & Regulatory Consultant at Registrationwala. He has expertise in accounting, taxation, finance, regulatory compliance, and insurance compliance. He writes simple and easy-to-understand content to help businesses understand financial rules, tax laws, insurance regulations, compliance requirements, and other regulatory matters.
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