Foreign Company PAN Card – Application Procedure

When a business from abroad steps into India, the initial process can feel like opening doors in a long hallway each leading to another form, rule, or approval. One of the earliest and most crucial steps is obtaining a PAN card for the entity. Whether you already operate a foreign subsidiary, plan to set up a foreign subsidiary company, or are establishing a foreign owned company in India for long-term operations, the PAN serves as the foundation of your compliance under the Indian tax system.

Why a Foreign Company Needs a PAN Card

Any company earning income in India is required to obtain a Permanent Account Number (PAN). It doesn’t matter if the entity is fully owned abroad or operates as a Foreign Subsidiary. A PAN is essential for paying taxes, complying with regulatory requirements, entering into contracts, and conducting routine financial transactions. Without it, a foreign company will face roadblocks such as difficulty opening a bank account, undertaking high-value transactions, or communicating with Indian tax authorities.

For a Foreign Subsidiary Company, the PAN also acts as a key credibility marker. Indian partners, banks and government authorities expect it as part of onboarding documentation, tender submissions, and financial agreements. If you plan to operate a foreign subsidiary in India, a PAN is mandatory and can’t be skipped and one of the first compliance requirements that must be completed before business activities can move forward.

How the Process Works

Many companies assume the PAN application process is complicated. It’s not. It just requires accurate paperwork and attention to detail. The process can be understood in four clear stages: document preparation, application filing, submission and verification, and issuance of PAN.

Gather the Necessary Documents

A foreign company must prepare the following:

• A certificate of incorporation issued in the home country
• The company’s registered address proof
• A copy of the company’s tax identification number in the home country
• Passport copies of authorized signatories
• A board resolution appointing the authorized representative

If you operate as a Foreign Subsidiary Company, you may already have Indian registration documents. The same applies if you’re setting up a foreign subsidiary in India with plans to expand operations. Proper documentation keeps you from running in circles later.

All foreign documents must be apostilled, consularized, or notarized in accordance with the rules. Any document not in English must be accompanied by a certified translation. This is one of the most common reasons PAN applications get delayed, so it’s important to address it upfront.

Fill Out Form 49AA

Form 49AA is the prescribed PAN application form for foreign entities and is available online through authorized service providers. The structure is simple, but pay attention to how you fill in the company name and address. The details must match your incorporation certificate exactly.

If your business is a Foreign Subsidiary, use the registered Indian address where official communication can reach you. This helps when the tax department sends acknowledgment letters or queries. For a foreign subsidiary in India, the process is easier because the entity already has an Indian presence.

Check every line twice. Even a minor spelling error or spacing issue can push the form into dispute.

Submit Supporting Documents and Pay the Fee

After filling the form, upload or courier copies of your documents to the processing center. The system will tell you which method applies. The fee varies depending on whether the address is inside or outside India.

Once the form and documents reach the team, they review everything. If your business structure is clear and the documents are certified properly, the review usually moves quickly.

Track the Status and Receive the PAN

After submission, you’ll receive an acknowledgement number. Use it to check the progress online. Once approved, the PAN is generated digitally and shared through email or post. The physical PAN card is no longer necessary for most operations, but many companies still request it for internal records.

For a Foreign Subsidiary Company planning cross-border transactions, the digital PAN is enough for tax filings, GST registration, compliance filings, imports and exports, and bank processes.

Why This Step Matters for Long-Term Operations

A PAN card does far more than identify your company. When you operate a Foreign Subsidiary, the PAN ties your home country’s setup to India’s tax rules. Without it, the company can’t withhold taxes, request refunds, or even complete basic agreements involving financial transactions.

If you’re forming a Foreign Subsidiary Company for long-term expansion, the PAN becomes part of your compliance backbone. It appears in almost every regulatory form, including GST, TDS, and annual tax filings. The same applies when you set up a foreign subsidiary company in India with plans to scale. Having a PAN early makes banking, hiring, and reporting far smoother.

Common Challenges Companies Face

Let’s talk about the hurdles companies usually hit. Knowing these earlier makes the process easier.

• Document authentication: A Foreign Subsidiary may face delays when its documents originate from multiple countries, so keeping everything consistent and properly aligned from the beginning makes the process much smoother.
• Mismatch in company name: If the spelling or punctuation differs even slightly between your application and incorporation documents, the system flags it. This is especially common with long corporate names.
• Incorrect authorized signatory details: The board resolution must clearly mention who is signing the form on behalf of the company. Without it, the application stalls.
• Address issues: If you’re creating a foreign subsidiary company in India, use the correct registered office address. Don’t mix communication and operating addresses.

How PAN Impacts Banking and Tax Compliance

With PAN, a Foreign Subsidiary Company can open an Indian bank account without repeated document checks. You also become eligible for tax deductions and refund claims. If you work with vendors or government bodies, they’ll require PAN in their systems before making payments.

For companies operating as a Foreign Subsidiary, the tax department uses the PAN to track withholding tax, transfer pricing filings, and cross-border transactions. If you’re setting up a foreign subsidiary company in India to handle imports or exports, customs clearances will also tie back to your PAN.

Tips for a Smooth Application

• Keep one person in charge of compliance: This avoids miscommunication and document errors. A dedicated representative works best for Foreign Subsidiary operations since the paperwork crosses borders.
• Prepare documents well before applying: A Foreign Subsidiary Company often has layered ownership. Ensure the documentation clearly reflects this.
• Double-check translations: Authorities need the exact meaning. Wrong translations cause unnecessary questions.
• Save both digital and physical copies: You’ll need them again while setting up a foreign subsidiary company in India for tax, GST, and banking.
• Respond quickly to queries If the department asks for clarification, reply right away. Slow responses delay the process.

How the PAN Connects to Other Registrations

Think of the PAN as the foundation block. Once you have it, other registrations fall into place:

• GST
• TAN
• Import export code
• Tax filings
• Corporate bank accounts

If you plan to run a Foreign Subsidiary with local operations, you’ll rely on this number more often. The same goes for a Foreign Subsidiary Company handling revenue in India. And if you’re expanding as a foreign subsidiary company in India with plans to scale, the PAN is tied to every compliance update you make.

Final Thoughts

Setting up a business in another country always comes with unfamiliar rules, but the PAN application shouldn’t intimidate you. Once you understand the requirements, it becomes a clean administrative step. Working with experienced professionals, at Finguru India we help foreign companies navigate documentation, verification, and follow-ups with greater confidence.

Whether you’re running a Foreign Subsidiary, registering a Foreign Subsidiary Company, or laying the foundation for a foreign subsidiary company in India, the PAN card is your entry point into India’s tax and regulatory systems. Get this step right, and the rest of your setup becomes much easier to handle.

Frequently Asked Questions