PAN Card for Foreign Companies in India

Foreign companies need a PAN card for various reasons, including filing ITR, opening a bank account, GST registration, etc. Starting from 1st April, 2026, foreign companies are required to fill out Form 96 for 'Allotment of New PAN', instead of the old Form 49AA. Using the old form for PAN applications will be considered invalid.

The PAN application process can be completed online through the NSDL (Protean) or UTIITSL portal. Additionally, physical presence is not mandatory to obtain a PAN. The PAN card fees and processing time for foreign companies may vary based on the mode of submission and the communication address. Keep reading further to know more about the PAN card form changes, application process, fees, documents, and much more.

What is a PAN and Why Do Foreign Companies Need It?

A PAN (Permanent Account Number) is a unique 10-digit alphanumeric identifier issued by India's Income Tax Department. It is issued to every entity that is involved in taxable financial activities within the country. It serves as the key tax identifier for individuals, Indian companies, and foreign companies.

Under Section 139A of the Income Tax Act, 1961, having a PAN is mandatory for foreign companies. A foreign company needs a PAN card, even without physical presence in India, if:

• It earns income in India
• Receives any payment from Indian counterparts
• Participate in any financial or commercial transaction, subject to Indian tax law.

A PAN is mandatory the moment a foreign company fulfills any of the aforementioned conditions. Let's now understand why foreign companies need a PAN card.

Key Uses of PAN for Foreign Companies in India

A foreign company can conduct the following activities within India's financial and regulatory framework by using a PAN:

Which Foreign Companies Must Apply for a PAN?

The following foreign companies need to obtain a PAN in India:

• Foreign companies with a Liaison Office, Branch Office, or Project Office registered in India.
• Overseas entities investing in Indian securities, stocks, or mutual funds.
• Foreign companies incorporated outside India but earning income in India. It includes business, royalties, dividends, capital gains, etc.
• Foreign entities receiving payments from Indian companies are subject to TDS (Tax Deducted at Source).
• Foreign companies engaged in import/export transactions requiring foreign exchange dealings.
• Foreign trusts, LLPs, partnerships, or body corporates with financial connections to India.
• Any entity required to file an Income Tax Return (ITR) or Form 10F in India.

**Note: Being physically present in India is not mandatory for obtaining a PAN.

Which Form Must be Used for PAN Application by Foreign Entities?

Foreign companies and individuals must use Form 96 for PAN applications. Conversely, Form 94 must be used by Indian citizens and entities incorporated in India. Submitting the wrong PAN form can lead to application rejection. To avoid that, here are the key differences between Form 94 and Form 96:

How to Apply for a PAN Card for Foreign Companies?

Follow the steps below to apply for a PAN card for foreign companies using Form 96:

• Visit the Official Portal and Select Form 96: Go to the UTIITSL portal and find the 'PAN Card Services' option. Under 'PAN Card for Foreign Citizen/ Foreign Entity', select 'Apply for new PAN card'. Choose your entity category, such as Company, Firm, Trust, etc.

• Fill in the Application Details: Enter all the required details accurately without making any errors. It includes the company name, date of incorporation, taxpayer Identification Number (TIN), and registered address.
  Additionally, fill out the country of registration, ISD-prefixed contact details, and the assessing Officer Code (AO) code. Make sure to fill out the form in English only.

• Upload the Supporting Documents: Upload scanned copies of all the required documents, such as the address proof, certificate of incorporation, etc. Check the required file size and format on the portal itself.

• Pay the Applicable Fees: Make payment for the PAN card fees via net banking, credit card, debit card, or UPI. The fees may vary based on whether the communication address is in India or abroad.

• Submit and Note the Acknowledgement Number: Upon successful submission, an acknowledgment number is generated. Note and use this number to monitor the PAN card status online whenever required.

• Send Physical Documents (if required): In many cases, physical copies of attested/apostilled documents must be couriered to the designated PAN processing office within 15 days of submitting the online application. The PAN application is processed only after the documents are received and verified.

• Receive e-PAN and Physical Card: The PAN number is allotted upon successful verification and approval. It usually takes 5-10 working days. After allotment, an e-PAN is sent via email within 2 working days. Also, the physical PAN card is dispatched by registered post/courier within 2 additional weeks.

What Documents Are Required for a PAN Application for Foreign Companies?

Apart from Form 96, foreign companies (non-individual entities incorporated outside India) need to submit the following documents. Any document that is in a foreign language must have a certified English translation.

Provide a certified English translation for every document that is not in English. Ensure that the translation is done by a certified translator or a recognised authority.

PAN Application Fees & Processing Time for Foreign Companies

The PAN application fees structure for foreign companies depends on the mode of submission and the applicant's communication address. The table below lists the current fees (inclusive of applicable taxes):

Fee payment can be made online via net banking, credit or debit card, or UPI. For dispatch to a foreign address, the fees may be higher as it covers international courier charges.

PAN Card Processing Time

Here are the processing times for a PAN card application for foreign companies:

• PAN Number Allotment: 5-10 working days after successful verification.
• e-PAN Delivery via Email: Within 2 working days of allotment.
• Physical PAN card dispatch: Approximately 2 additional weeks after allotment.

To Conclude

With effect from 1st of April, 2026, foreign companies incorporated or earning income in India are required to submit their application for a new PAN using Form No. 96. The old Form 49AA has now been replaced, and applications made using the old form will be considered invalid. To ensure you use the correct form, based on the type of your entity, seek assistance from an expert at Savetaxs.

At Savetaxs, we are a team of experts who can offer end-to-end assistance with applying for a PAN card for a foreign company. Our team can offer guidance on documentation, preparation and filing of Form 96, communicating with the official PAN service provider in case of issues, and much more. Contact us right away, and we will ensure a hassle-free and quick process while you focus on your business.