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Business PAN Registration in Nepal

A Business PAN (Permanent Account Number) is a 9-digit tax identification number issued by the Inland Revenue Department (IRD). It is mandatory for every registered company in Nepal and must be obtained immediately after company registration.

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What Is a Business PAN?

A Business Permanent Account Number (Business PAN) is a 9-digit unique identification number issued by Nepal's Inland Revenue Department (IRD) to businesses and companies for tax-related purposes. It functions as your company's official tax identity — the government uses it to track your company's taxable transactions, tax filings, and compliance.

Every business in Nepal — whether it is a Private Limited Company, Public Limited Company, partnership, or sole proprietorship — must have a Business PAN to legally operate.

Why Is Business PAN Compulsory?

Legal Requirement:Under Nepal's Income Tax Act, 2058, all businesses must register with the IRD and obtain a PAN. Operating without a PAN is illegal and can result in penalties.

Corporate Bank Account:Every commercial bank in Nepal requires a valid Business PAN before opening a corporate bank account.

Tax Filing:You cannot file income tax returns, TDS returns, or VAT returns without a PAN. All tax obligations are linked to your PAN number.

VAT Registration:If your business crosses the VAT threshold, you need a Business PAN to register for VAT at the IRD.

Government Tenders:Government procurement rules require bidders to have a valid, active Business PAN. Without it, you cannot participate in government tenders.

Business Transactions:When you issue invoices, make large payments, or receive payments exceeding certain limits, the PAN number must be mentioned.

Step-by-Step Process

1
Register Your Company at OCR First
You must have a valid company registration certificate from the OCR before applying for a Business PAN. The PAN application requires your company registration number and certificate details.
2
Ensure All Directors Have Personal PAN
All directors of the company must have their own personal PAN numbers before the company's Business PAN can be issued. If any director does not have a personal PAN, they must get one first from the IRD.
3
Apply Online at IRD Portal or Visit Your Tax Office
Apply for your Business PAN at the Inland Revenue Department. You can apply online at ird.gov.np or visit the nearest IRD office (your local tax office based on your company's address). The online application makes the process faster.
4
Complete Biometric Verification
After submitting the online application, visit the IRD office for biometric verification (fingerprint scan). At least one director must be physically present for this verification. Bring original citizenship documents of the directors.
5
Receive Business PAN Certificate
After successful verification, the IRD issues your Business PAN Certificate. This document shows your company's PAN number and is required for all future tax-related activities. Keep multiple copies — you will need it frequently.

Required Documents

Company Registration Certificate from OCR
Memorandum of Association (MOA) and Articles of Association (AOA)
Citizenship certificates of all directors
Personal PAN numbers of all directors
Registered office address documents (lease agreement or ownership proof)
Ward Registration Certificate (helpful but not always mandatory)
Passport-sized photographs of directors
Mobile phone number and email address of the company

After Getting Your Business PAN

Your Business PAN is the foundation for all future tax compliance. Here's what you need to do after getting it:

→Open your corporate bank account — present the Business PAN Certificate to your bank.
→If your annual turnover exceeds NPR 50 lakhs (goods) or NPR 30 lakhs (services), register for VAT.
→File quarterly advance income tax (if applicable).
→Deduct TDS (Tax Deducted at Source) when making payments to service providers, rent, etc.
→File annual income tax returns before Poush end (mid-January) of each year.
→Display your PAN number on all invoices, receipts, and business communications.

PAN vs VAT: PAN is required by all businesses. VAT is only required if your annual turnover crosses the threshold. Getting a PAN does not automatically mean you need VAT. But if you do cross the VAT threshold, you must register for VAT within 30 days of crossing it.

Need help with this process? Chartered Corporate Business Consulting handles it all for you — from start to finish.

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