Essential Documents for PAN Card Registration in Nepal

If you are comparing a private vs public company in Nepal, one of the first compliance checkpoints you will face is PAN card registration. For foreign companies, this step is not just procedural. It determines how you pay tax, open bank accounts, hire employees, and repatriate profits.

Within the first days after incorporation, the Permanent Account Number (PAN) issued by Nepal’s tax authority becomes mandatory. Yet, the documents required differ subtly but critically depending on whether your entity is a private limited company or a public limited company.

This guide breaks it all down. No legal fog. No generic lists. Just a clear, authoritative explanation tailored for foreign investors and international businesses entering Nepal.

What Is a PAN Card in Nepal and Why It Matters

A PAN card is a unique tax identification number issued by the Inland Revenue Department under the Income Tax Act 2002.

Without a PAN, a company in Nepal cannot legally operate.

A PAN is required to:

• File corporate income tax returns
• Register for VAT if applicable
• Open and operate corporate bank accounts
• Withhold and remit employee taxes
• Enter enforceable commercial contracts

For foreign companies, PAN registration also becomes the anchor document referenced by banks, regulators, and auditors.

Private vs Public Company in Nepal: Why Structure Affects PAN Registration

Before listing documents, it is important to understand how company structure affects scrutiny level.

Private Company in Nepal

• Limited to private shareholding
• Shares are not publicly traded
• Common for foreign subsidiaries and joint ventures
• Faster incorporation and PAN processing

Public Company in Nepal

• Can raise capital from the public
• Heavily regulated
• Mandatory disclosures and approvals
• PAN registration involves additional verification

Both structures are governed by the Companies Act 2006, but public companies trigger higher compliance thresholds.

Essential Documents for PAN Card Registration in Nepal

Core Documents Required for All Companies

Whether private or public, every company must submit the following:

1. Application Form for PAN Registration
   Prescribed format issued by the Inland Revenue Department.
2. Certificate of Incorporation
   Issued by the Office of the Company Registrar.
3. Memorandum of Association (MOA)
   Defines the company’s objectives and capital structure.
4. Articles of Association (AOA)
   Governs internal management and shareholder rights.
5. Company Registration Certificate
   Proof that the entity legally exists in Nepal.
6. Registered Office Address Proof
   Lease agreement or ownership document.
7. Board Resolution for PAN Registration
   Authorizing a representative to apply.

Additional Documents: Private vs Public Company in Nepal

This is where the distinction starts to matter.

Documents Specific to a Private Company

Private companies benefit from simpler disclosure requirements.

Additional documents typically include:

• Shareholder identification documents
• Director citizenship or passport copies
• Capital structure confirmation
• Power of attorney if filed by a consultant

Processing is usually faster, provided foreign ownership approvals are already in place.

Documents Specific to a Public Company

Public companies face expanded compliance checks due to public interest risk.

Additional requirements may include:

• Prospectus approval evidence
• Share allotment details
• SEBON or sectoral regulator approvals
• Enhanced board resolutions

The Inland Revenue Department often conducts manual verification before issuing PAN.

Comparison Table: Private vs Public Company PAN Documentation

Insight: Most foreign investors choose a private limited company unless capital markets access is required.

Foreign-Owned Companies: Extra Compliance Layer

For foreign companies, PAN registration is linked to investment approvals.

Additional documents may include:

• Foreign investment approval letter
• Capital inflow confirmation
• Bank advice letter
• Shareholding disclosure for non-residents

These align PAN registration with Nepal’s foreign investment framework.

Common Mistakes Foreign Companies Make

Avoid these pitfalls during PAN registration:

• Submitting MOA and AOA with inconsistent objectives
• Mismatch between company address and lease documents
• Missing board authorization wording
• Applying for PAN before investment approval

These errors cause avoidable delays.

PAN vs VAT Registration: Know the Difference

PAN registration does not automatically mean VAT registration.

• PAN is mandatory for all companies
• VAT applies only if turnover thresholds are crossed
• Some sectors require mandatory VAT regardless of turnover

Foreign companies often confuse these steps. PAN always comes first.

How Long Does PAN Registration Take in Nepal?

Typical timelines:

• Private company: 3 to 7 working days
• Public company: 7 to 15 working days

Delays usually arise from document inconsistencies, not system issues.

Why PAN Registration Impacts Long-Term Tax Strategy

Your PAN registration data influences:

• Tax classification
• Withholding tax treatment
• Audit scope
• Profit repatriation documentation

This is why structure selection matters early when deciding between a private vs public company in Nepal.

Strategic Takeaway for Foreign Companies

If your goal is:

• Market entry
• Back-office operations
• Regional cost optimization

A private limited company with clean PAN registration is almost always the optimal choice.

Public companies make sense only for capital-intensive or regulated industries.

Conclusion

Choosing between a private vs public company in Nepal is not just a corporate law decision. It directly affects PAN card registration, compliance burden, and operational speed.

For most foreign companies, private entities offer:

• Faster PAN issuance
• Lower regulatory friction
• Predictable tax compliance

Getting the documents right from day one saves months later.

If you are planning market entry, treat PAN registration as a strategic foundation, not a clerical task.

Frequently Asked Questions

Is PAN mandatory for foreign companies in Nepal?

Yes. Every company operating in Nepal must obtain a PAN, regardless of ownership.

Can a foreign director apply for PAN on behalf of the company?

Yes, with a proper board resolution or power of attorney.

Does PAN registration differ for branch offices?

Yes. Branch offices submit parent company documents instead of MOA and AOA.

Is PAN issued before opening a bank account?

In most cases, yes. Banks require PAN for full account activation.

Can PAN details be changed later?

Yes, but amendments require formal application and supporting documents.