PAN Card for Foreign Nationals

PAN registration is mandatory for certain categories of individuals and entities. PAN is not only restricted to Indians, but its applicability is also on foreign nationals. Therefore, a foreign national who is looking to start a business in India needs to get his/her own Permanent Account Number.

PAN cards, also known as Permanent Account Numbers, work as identity proof for an individual. This ten-digit long alphanumeric number comes in a laminated form and is duly issued by the Income Tax Department to the person who applies for it. This permanent account number can be issued by Indian nationals, Indian identities, as well as foreign nationals and foreign identities. The purpose of issuing a PAN by the income tax department is to track down all the financial transactions of an individual. This also includes TDS/TCS credit, tax payments, returns of income/wealth/gift/FBT, specified transactions, correspondence, and many others. 

PAN plays a crucial role and hence is required for most entities that enter into financial transactions with persons or entities of Indian origin. 

PAN Registration by Foreign Nationals 

Proof of Identity (following documents are mandatory to be submitted for Identity proof) 

1. A copy of Passport 
2. A copy of the Indian Origin card of the person issued by the Government of India 
3. A copy of the Overseas Citizenship of India card provided by the Government of India 
4. A copy of the Citizen Identification Number or other national or Taxpayer Identification Number that is duly attested by “Apostille” (in respect of countries which are signatories to the Hague Apostille Convention of 1961) or by the Indian embassy or High Commission or Consulate in the country where the applicant is located.

Proof of Address (following documents are mandatory to be submitted for Address proof )

1. A copy of the duly valid Passport 
2. A copy of the Indian Origin card of the person issued by the Government of India 
3. A copy of the Overseas Citizenship of India card provided by the Government of India 
4. A copy of the Citizen Identification Number or other national or Taxpayer Identification Number that is duly attested by “Apostille” (in respect of countries which are signatories to the Hague Apostille Convention of 1961) or by the Indian embassy or High Commission or Consulate in the country where the applicant is located.
5. A copy of your bank account statement from the country where the person resides
6. A copy of the Non-President External Bank Account Statement issued in India
7. A copy of the certificate of residence of India or Residential permit issued by the State Police Authority
8. A copy of the registration certificate issued by the Foreigner’s Registration Office showing the Indian address
9. A copy of the visa granted and a copy of the appointment letter or contract from the Indian Company and Certificate (in Original) of Indian Address issued by the employer.

Who generally opts for a Permanent Account Number? 

The following are the types of persons and entities who opt for a Permanent Account Number. 

1. All existing assesses, taxpayers, or persons who want to file an income return, or want to file an income return on behalf of other persons, must apply for PAN.
2. Any person or entity thinking of entering into any kind of financial transaction where the application of PAN is mandatory must also obtain PAN
3. Any person or entity that carries any profession or business dealing in total sales, turnover or gross receipts is or is likely to exceed five lakh rupees in any previous year. 

Normally, foreign nationals who want to start a company in India or start an Indian subsidiary apply for obtaining a PAN. 

Conclusion 

Most people and entities who work in India always find it easier and better to obtain a PAN for themselves. PAN is usually used in every financial document and transaction and therefore it is important to obtain it. Once a person or entity has their own PAN, things become much easier for the income tax department as well as for the person.