Partnership firms generally are created by two or more entities who agree to share profits of their business. The business can be run by one of the partners or all of them. Partnership firms in India are governed by the Indian Partnership Act of 1932. Like all companies and entities, even a partnership firm needs to apply for a PAN card for their partnership firm. There are a few formalities that need to be in place before the firm can apply for a PAN.
To be recognized as a partnership firm you will need to get the following done
1. Get the partnership deed notarized by a notary public.
2. One of the partners should be made the managing partner in the deed. This person will have the authority to sign on behalf of the firm.
3. It is important to state the date of partnership formation.
4. The registered address of the firm should be mentioned in the partnership deed.
5. The partnership deed will be considered to be legal only if each page is signed by all the partners of the partnership firm
6. The deed should be signed by at least 2 witnesses.
7. The firm should have a rubber stamp with ‘Partner’ mentioned at the bottom. This will be used on the application form for the PAN as well
Filling the PAN application for a partnership firm is of course different from an individual applying for a new PAN. Here are a few things you must take care to follow with care
1. The name you use in the Application Form should be the same as in the Partnership deed. Make sure it is entered exactly the same. You can select the prefix option of “M/S” and write the name. This option is for non-individuals applying
2. Enter the Date of Incorporation as mentioned in the Partnership Deed
3. The office address must be the same as that what was mentioned in the Registration deed or Partnership Deed. Select status of applicants as Partnership Firm
4. Enter the registration number of the firm
5. In the ‘Status of Applicant’ select Partnership Firm
6. For ‘Source of Income’ select the option Income From Business or Partnership - if this is applicable
7. Mention which documents the Partnership Firm will be submitting for Proof of Identity, Proof of Address and Date of incorporation.
8. The managing partner will need to sign in the declaration column along with the rubber stamp that mentions ‘partner’. Mention name, place and date.
To apply for a new Pan for Your Firm online has become easier now but will still need time and care for the details. Many firms prefer to leave it to a reputed PAN Card Service Agency to do this for them. However your firm does it, here are the steps to follow.
1. Visit the website of NSDL
2. You will need to select Form 49A same as any Indian resident individual would do.The form is applicable for both Indian citizens residing in India and outside of India.
3. As you fill the form, keep a check on any errors indicated. Else your submission will not be allowed.
4. Select your mode of payment.
5. You can choose between cheque, demand draft, credit card, debit card and net banking.
6. The supporting documents you will submit will be different from those of individuals applying and are already mentioned in this blog.