PAN Registration of IT Company in Nepal | Online Registration Process

Why PAN Registration Is Mandatory for IT Companies

In Nepal, PAN (Permanent Account Number) registration is legally required for all businesses — including IT companies — under the Income Tax Act, 2058. It ensures your business complies with national taxation rules and allows you to operate formally, issue invoices, and bid for contracts.

Failure to register a PAN before business commencement can result in penalties, fines, or legal issues. Without a PAN, you're also unable to open a business bank account or legally receive payments from clients.

Whether you run a software development firm, a startup offering SaaS, or a digital agency — PAN registration is your first step to legitimize and scale.

Benefits of PAN Registration for IT Firms

Let’s break down why you should not delay getting a PAN:

1. Legal Compliance: Stay in good standing with IRD and Nepal Rastra Bank.
2. Business Banking: Needed to open a current account in your company’s name.
3. Invoice Legally: Only PAN holders can issue official invoices with tax calculation.
4. Eligibility for Government Contracts: You must quote PAN for tenders or tech projects.
5. Tax Deductions & Refunds: Access to VAT credit and income tax deductions.
6. International Billing: Required when working with foreign clients via remittance or wire transfers.

Documents Required for PAN Registration in Nepal

The lists of all required documents are:

Tip: Ensure documents are scanned properly, under 500KB in size (JPEG/PDF), and legible.

Eligibility Criteria for IT Company PAN Registration

You're eligible if:

1. You have a registered IT company with OCR.
2. You’ve secured a working address for your business.
3. You’ve appointed a managing director and have a valid citizenship/passport.
4. Your business falls under IT service codes (software development, web services, etc.)

Types of PAN Registration in Nepal

There are two main PAN types depending on your business structure:

If you're running an IT company or agency, always go for Business PAN.

Step-by-Step PAN Registration Process (Online)

Nepal’s Inland Revenue Department (IRD) offers an online portal for PAN registration:

Step 1: Prepare the Required Documents
Gather and scan all the documents listed above.

Step 2: Register on IRD’s e-Services Portal

• Visit https://ird.gov.np
• Click on “Taxpayer Portal”
• Select e-Registration
• Register using your personal details and email

Step 3: Fill Out PAN Application Form
Choose PAN Registration under Business category

Fill in:

• Business name
• Nature of business (IT services, software, etc.)
• Address
• Director info

Step 4: Upload Documents & Submit Form

• Upload scanned documents
• Check the size limits
• Submit and note down the reference number
• Step 5: PAN Certificate Collection
• You'll receive an email or SMS once it’s approved
• You may download or physically collect the PAN certificate

Offline PAN Registration Process

Prefer old-school? Here’s the offline route:

• Visit your local Tax Office (Inland Revenue Department).
• Fill out the PAN application form manually.
• Attach photocopies of required documents.
• Submit to the front desk officer.
• Collect the PAN certificate after 3–5 working days.

Estimad Costs and Timelinete

Common Mistakes to Avoid During PAN Registration

1. Using incorrect business category (select IT or tech services)
2. Uploading unclear documents
3. Not matching address details with OCR data
4. Submitting application without board decision letter
5. Using personal instead of business PAN for corporate accounts.

PAN vs VAT for IT Companies in Nepal

Pro Tip: Start with PAN. Register for VAT later as your turnover grows.

How to Update or Correct PAN Details

1. Changed address or director? Here's how you update:
2. Log in to IRD portal
3. Select “PAN Update”
4. Provide revised documents (e.g. new lease agreement)
5. Submit online or visit IRD with physical proof
6. Processing usually takes 2–3 days.

Compliance After PAN Registration

Once registered, your IT company must:

• File monthly tax returns
• Maintain proper billing system
• Renew PAN in case of address change
• Maintain clear bookkeeping and audit records
• Importance of PAN for Freelance Developers

Freelancers often assume PAN is optional. It’s not.

If you’re billing clients in Nepal or abroad, banks may freeze remittances without a PAN. Plus, PAN lets you:

1. Bid on freelance platforms with verified status
2. Open business accounts on Upwork, Fiverr, etc.
3. Show income proof when applying for loans or visas

FAQs

1. Is PAN registration free for IT companies in Nepal?
Yes, the IRD does not charge any fee for PAN registration.

2. Can freelancers in Nepal get a PAN?
Yes, individual PAN registration is available for freelancers and sole traders.

3. What is the difference between personal and business PAN?
Personal PAN is for individuals; business PAN is for companies and organizations.

4. How long does it take to get a PAN certificate?
Typically, 2–5 working days if all documents are correct.

5. Can foreign nationals apply for a PAN in Nepal?
Yes, with proper visa, passport, and company setup, foreign nationals can obtain PAN.

6. Do I need PAN before starting my business?
Absolutely. PAN must be registered before commencing commercial activity.