Congratulations on Registering Your Company! A Guide to PAN Registration in Nepal

Welcome aboard, newly registered shareholders! Congratulations on achieving the milestone of establishing your first business. After company incorporation, the next crucial step is ensuring compliance with Nepal’s taxation system by obtaining a Personal Identification Number (PAN).

What is a PAN?

A PAN, or Permanent Account Number, serves as a unique identifier necessary for individuals and entities in Nepal who earn income from employment, business, or investments. It's mandated under Section 78 of the Income Tax Act 2058 and Rule 23 of the Income Tax Regulations 2059, issued by the Inland Revenue Department.

Key Facts About PAN:

1. Purpose: Essential for professional transactions and tax payments.

2. Validity: Issued once and remains unchanged throughout its holder's lifetime.

3. Format: Consists of 9 digits and is generated via the Inland Revenue Department’s Information Management System.

4. Renewal: Not required; updates regarding changes in contact or business location must be promptly reported.

Types of PAN in Nepal:

1. Personal PAN (PPAN): For individuals.

2. Business PAN: For companies and entities.

3. Withholding PAN (WPAN): For entities obligated to withhold taxes.

Who Needs PAN?

Any individual or entity earning taxable income must obtain a PAN, including those required to withhold taxes.

Applying for PAN Online:

Follow these steps for personal PAN registration:

1. Visit the IRD website at https://taxpayerportal.ird.gov.np/taxpayer/app.html.

2. Click on "Registration (PAN/VAT/Excise)" and select "Application for Registration".

3. Enter your credentials (Username, Password, Contact Number, Email Address).

4. Select "Personal PAN" and your preferred Inland Revenue Office.

5. Submit the application and visit the selected office for PAN certificate collection.

For business PAN, an authorized representative must visit the nearest Inland Revenue Office.

Documents Required for Company PAN Registration:

Prepare the following documents:

• Company registration documents
• Memorandum and Articles of Association
• Passport-sized photos of the signatory
• Citizenship certificates of Board members
• Board resolution for PAN registration
• Power of Attorney (if applicable)
• Ownership or rent agreement for office premises
• Map of the registered office location

Conclusion:

Navigating PAN registration in Nepal is crucial for legal compliance and uninterrupted business operations. Stay informed and compliant as we guide you through the process seamlessly.