PAN Cards For Partnership Firm

In India, partnerships are governed and regulated by the Indian Partnership Act of 1932. In accordance with Section 4 of this Act, a partnership is simply a relationship between two people who agree to split profits.

These people usually sign a Partnership Agreement that outlines their roles, responsibilities, tasks, and profits. A valid PAN card is required for such business partners under Indian law. Due to this requirement, partners in partnership firms are required to produce PAN cards. Moreover, a PAN card is required for filing IT returns and paying taxes on time. 

A Partnership Firm’s Essential Elements

It is important to get a few things in order before two people form a Partnership Firm. An overview of what you need to do to form a Partnership Firm in India can be found below.

1. Contract of Partnership 
2. The number of people
3. A contract of business 
4. Ratio of profit sharing
5. Agency between two parties 

It is imperative to formulate and adhere to these elements in order to construct a Partnership Firm in India. If the individuals fail to follow any of the above requirements, the business will not be considered a Partnership Firm.

How do companies apply for a PAN card?

In order to apply for a PAN card, partnership firms must satisfy the following requirements:

1. Notarized partnership deed. The partnership deed format must mention the date of formation and the address of the firm. The deed must be signed by all partners 
2. A managing partner is assigned to sign on behalf of the partnership firm
3. To authorise the deed, the word ‘Partner’ must also be stamped at the bottom of every page. 

PAN cards can be applied for online by partnership firms?

It is possible for partnership firms to apply for a PAN card online by following these steps:

1. The first step for partners is to visit the official NSDL website through this link.
2. There will be a PAN Application Form available on the website that they must search for and locate.
3. They must then fill out and submit Form 49A online. In the event that the applicant’s data does not meet the required format or is missing crucial information, the system will generate a response highlighting the errors, allowing the applicant to fix them.
4. The applicant can then resubmit the application after ensuring everything is in order. You will be taken to a screen displaying all the information you have entered. You can confirm everything on this page by clicking ‘Confirm’, or make changes by clicking ‘Edit’. 
5. Once all the required supporting documents have been uploaded, partners can proceed.
6. The next step is to select the payment method – Cheque, Visa, MasterCard, DD, or Net Banking.
7. The applicant will receive a message indicating that the payment was successful after making the payment.