Pan registration process in Nepal

What is pan?

 A PAN or Permanent Account Number, is a ten-digit identification alphanumeric identifier issued by the Inland Revenue Department (IRD) in Nepal. A PAN card is an identification document issued to an individual by the government of Nepal to identify them as tax payer, and keep track of the taxes paid by the citizen. PAN is made up of Polycarbonate material in Nepal which looks like this:

A Permanent Account Number (PAN) is an identification number that identifies an individual as a tax payer in Nepal. PAN is also called as Tax Payer Identification Number (TPIN), and the document which the number is printed as PAN card and PAN certificate.

This number is an identification document for any individual or a tax payer and is meant for the government to keep track of taxed paid by the citizens. Once a PAN number is issued it cannot be changed and also does not need to be renewed.

Types of PAN in Nepal

There are two types of PAN:

1. Business PAN
2. Personal PAN

Business PAN and personal PAN are not same in Nepal.

A personal PAN is issued to individuals by the government of Nepal for personal income tax and TDS purpose. Business PAN are issued for businesses, corporation, companies to handle tax matters of business entities.

Why is Pan important?

The permanent Account Number (PAN) is an essential identification document for individuals and businesses in Nepal for taxation purposes. PAN in Nepal serves as a unique identifier for individuals, businesses, and organization engaging in financial transactions within Nepal.

In Nepal whatever you are a salaried employee, freelancer, entrepreneur, or a corporate entity, obtaining a PAN is mandatory for the compliance and incorporation of company. The income tax act of Nepal governs this system in Nepal. Beside taxation and revenue tracking, A PAN is required for following:

1. Opening business account
2. Receiving payments from clients
3. Participation in business tenders
4. Conducting high value transaction

Why we need to register Pan?

Under the government of Nepal and the national law of Nepal, PAN is one the mandatory official document for taxation in Nepal. PAN registration in Nepal is done by the inland revenue department of Nepal. Tax is the major source of revenue of the government of Nepal. The Inland revenue department (IRD) of Nepal manages the PAN registration process, ensuring transparency and accountability in the natin’s tax system.

With growing digitization and a push toward financial formalization, having a PAN has become essential for anyone looking to operate legitimately and efficiently around Nepal economy.

In Nepal, registering for a Permanent Account Number (PAN) is mandatory for a wide range of individuals and entities involved in economic activities. The Inland Revenue Department (IRD) has outlined specific categories of people and organizations who are required to obtain a PAN for tax compliance and financial transparency.

1. Salaried Individuals

• Any individual earning a salary from an employer must have a PAN.
• Employers are required to deduct Tax Deducted at Source (TDS), which is only possible if the employee has a PAN.

2. Business Owners and Entrepreneurs

• Sole proprietors, partnerships, and companies involved in trade, commerce, or any profit-generating activity must register for a PAN.
• It is essential for issuing VAT bills, filing taxes, and participating in business transactions.

3. Freelancers and Self-Employed Professionals

• Professionals such as consultants, designers, IT specialists, and others offering services independently must obtain a PAN.
• This ensures they can legally invoice clients and pay income tax.

4. Companies and Organizations

• All registered companies, NGOs, INGOs, and other institutions must have a PAN to operate legally in Nepal.
• PAN is required for corporate tax filing, audits, and official transactions.

5. Importers and Exporters

• Individuals or businesses engaged in importing or exporting goods and services must register for a PAN to comply with customs and tax regulations.

6. Contractors and Service Providers

• Anyone providing services to government or private sectors on a contractual basis must have a PAN for receiving payments and filing taxes.

7. Individuals Conducting High-Value Transactions

• PAN is required for certain high-value transactions such as:
  • Opening a bank account
  • Purchasing land or property
  • Investing in shares and mutual funds
  • Receiving payments exceeding a specified amount

How can we register PAN number in Nepal?

Step 1: Access the IRD Taxpayer Portal

To kick-start your PAN registration process in Nepal, the first step is to visit the official Inland Revenue Department (IRD). This portal acts as a comprehensive digital gateway for accessing a variety of tax-related services.

Once on the homepage, navigate to the “Registration” section. This area offers multiple registration options, including PAN registration for both individuals and companies.

Tip: Use a desktop or laptop for a smoother experience as the mobile version may have limited functionality.

Step 2: Fill Out the Application for Registration

Next, you'll find yourself on the Comprehensive Registration Form. Here, you must provide accurate personal or business details such as:

• Full legal name
• Date of birth
• Nationality
• Address (permanent and temporary)
• Contact details (email and mobile number)

In the “Verifying Offices” section, make sure to choose the IRD office closest to your current residence or business location. After filling in all the required fields, a unique submission number will be auto-generated—save this number for future steps.

Step 3: Submit the PAN Application E-Form After Company Registration

Once you have your submission number, click on the ‘Continue’ button to proceed to the PAN Application E-form. This form is essential for applicants who’ve already registered a company in Nepal and are now seeking a PAN.

At this stage, ensure you:

• Upload a recent passport-size photograph
• Attach all required supporting documents (e.g., company registration certificate, citizenship copy, etc.)

After thoroughly reviewing all entries, click ‘Save’ to temporarily store your progress. If you need to make corrections, log in again using your username, password, and submission number. When everything looks perfect, hit ‘Submit’ and don’t forget to generate a printout using the ‘Print’ button.

Step 4: Submit the Printed PAN Application Form at the IRD Office

Now that your application is submitted online, it’s time to complete the process offline. Take the printed PAN application form and head to the IRD office you selected earlier.

Make sure to carry the following documents:

• Printed PAN application form
• Citizenship certificate
• Two recent passport-size photographs
• Any valid identification document (especially important for foreign nationals)

Once at the IRD office, your documents will be verified. Upon successful verification, your PAN card will be issued either immediately or within a few business days, depending on the office workload.

Cost of pan registration in Nepal.

PAN can be registered in Nepal without any cost. PAN registration in Nepal is free.

Documents required for the registration of PAN in Nepal

Documents required for PAN registration in Nepal.

1. 1. Citizenship of the applicant
   2. Passport- size photo of applicant
   3. If foreign citizen, passport of the country

Is pan registration possible through Nagarik app?

Step-by-Step Guide to PAN Registration Using Nagarik App in Nepal

If you're looking for a faster and more convenient way to get your PAN number, using the Nagarik App for PAN registration in Nepal is a smart move. This government-backed mobile application simplifies the process, allowing you to apply for your PAN card directly from your smartphone without visiting the Inland Revenue Department in person.

Here’s how to complete the PAN registration using the Nagarik App in Nepal:

1. 1. Download the Nagarik App

Start by downloading the Nagarik App from your respective app store:

• For Android users: Google Play Store
• For iOS users: App Store

Make sure the app is developed by the Government of Nepal to ensure authenticity.

1. 2. Register with Your Mobile Number

Once installed, open the app and register using your mobile number. This number must be linked to your identity for successful verification.

1. 3. Verify with One-Time Password (OTP)

You will receive an OTP via SMS. Enter this code into the app to verify your mobile number.

1. 4. Validate Your Identity Using Citizenship Details

Next, you'll be asked to verify your identity using your Citizenship Number and associated personal details like your name, date of birth, and issuing district.

1. 5. Navigate to PAN Registration Option

Once your identity is verified, go to the services section and select “PAN Registration” from the list of government services offered within the app.

1. 6. Choose Your Nearest Revenue Office

Select a revenue office that is most convenient or nearest to your current address. This is the office that will handle your PAN card processing.

1. 7. Capture and Upload a Passport-Size Photo

Take a passport-sized photo using your mobile camera directly through the app. Ensure the photo is clear, recent, and meets standard ID photo guidelines.

1. 8. Fill Out the Required PAN Details

Provide any remaining personal or contact information required in the form. Ensure accuracy, as this data will be used for official records.

9.  Submit the PAN Application

Review all entered details and submit your PAN application through the Nagarik App. You will receive a confirmation or reference number for tracking purposes.

FAQS

1. 1. Can I apply for a PAN card online in Nepal through the Nagarik App?
      Yes, the Nagarik App allows users to apply for a PAN card online in Nepal. The process includes identity verification, form submission, and uploading a passport-size photo directly from your mobile device.

1. 2. Is it mandatory to visit the IRD office after applying via the Nagarik App?
      In most cases, if all details and documents are correctly submitted and verified through the Nagarik App, visiting the IRD office may not be required. However, some applicants might be asked to appear in person for further verification.

1. 3. What documents do I need for PAN registration via the Nagarik App?
      You need your citizenship certificate details, a mobile number linked to your identity, and a passport-size photo taken during the application process.

1. 4. How long does it take to receive a PAN card after applying through the Nagarik App?
      Typically, the PAN number is issued within a few working days. However, delays can occur depending on the verification load at the selected revenue office.

1. 5. Is the Nagarik App safe for PAN registration in Nepal?
      Yes, the Nagarik App is developed and maintained by the Government of Nepal, ensuring a secure and official platform for services like PAN registration.

Can foreigners use the Nagarik App to apply for a PAN card in Nepal?

1. Currently, the Nagarik App is designed primarily for Nepali citizens. Foreign nationals may need to visit the IRD office physically for PAN registration.