How to Apply for a PAN Card in Nepal Using the Nagarik App

If you are evaluating private vs public company in Nepal, one compliance step applies to both structures immediately: PAN registration.
For foreign companies, founders, and representatives, the Government of Nepal now allows online PAN registration through the Nagarik App, reducing paperwork and in-person visits.

This guide explains private vs public company in Nepal, then walks you through how to apply for a PAN card in Nepal using the Nagarik App, with legal references, timelines, and common pitfalls.
It is written specifically for foreign companies planning FDI, branch offices, or representative offices.

Why PAN Registration Matters When Choosing a Private vs Public Company in Nepal

A Permanent Account Number (PAN) is the tax identity issued by the Inland Revenue Department (IRD).
Without PAN, a company cannot legally operate, open tax accounts, or comply with payroll and withholding obligations.

For foreign investors comparing private vs public company in Nepal, PAN is required immediately after incorporation or registration approval.

PAN is mandatory for

• Private limited companies
• Public limited companies
• Branch offices of foreign companies
• Representative offices (liaison offices)
• Foreign individuals earning income in Nepal

Private vs Public Company in Nepal: A Quick Structural Overview

Before applying for PAN, you must understand which structure applies to your investment.

Private Company in Nepal

A private limited company is the most common structure for foreign investors.

Key features:

• 1–101 shareholders
• No public share offering
• Faster incorporation
• Preferred for FDI, cost centers, and subsidiaries

Public Company in Nepal

A public limited company is designed for large capital raises.

Key features:

• Minimum 7 shareholders
• Can issue shares to the public
• Higher compliance and disclosure
• Used for banks, hydropower, listed entities

Both structures are governed by the Companies Act 2006 and require PAN registration after incorporation.

What Is the Nagarik App and Why It Matters for PAN Registration

The Nagarik App is Nepal’s official digital citizen platform.
It integrates multiple government services, including online PAN application.

For foreign companies:

• Directors or local representatives can submit PAN requests digitally
• Status tracking is transparent
• Physical visits to IRD are often avoided

Eligibility to Apply for PAN Using the Nagarik App

PAN via Nagarik App is available if:

• The company is already incorporated or approved
• Supporting documents are digitized
• A local authorized person holds a verified Nagarik App account

Foreign shareholders do not need a Nagarik App account.
A local director, company secretary, or authorized representative can apply.

Documents Required for PAN Registration (Private vs Public Company in Nepal)

Document requirements are similar for both structures, with scale-based differences.

Core documents

• Certificate of Incorporation
• Memorandum and Articles of Association
• Company registration number from OCR
• Passport copies of shareholders and directors
• Local address proof
• Board resolution for PAN application

Additional documents for foreign companies

• FDI approval (DOI or IBN)
• NRB capital approval, where applicable
• Power of attorney for local representative

Step-by-Step: How to Apply for a PAN Card in Nepal Using the Nagarik App

This process applies equally when analyzing private vs public company in Nepal.

1. Download and verify the Nagarik App

• Available on Android and iOS
• Verify identity using citizenship or registered credentials

2. Select PAN Registration Service

Navigate to:

Inland Revenue Services → PAN Registration

3. Choose taxpayer type

• Company
• Individual
• Foreign entity branch

Select Company for private or public companies.

4. Fill in company details

• Company name (as per OCR)
• Registration number
• Company type (private or public)
• Registered address

5. Upload required documents

Ensure files are clear and legible.

6. Submit and track application

• Application ID is generated
• IRD reviews digitally
• Clarifications may be requested

7. PAN issuance

Once approved, the PAN certificate is issued electronically.

Typical Timeline for PAN Registration via Nagarik App

Delays usually occur due to:

• Inconsistent company names
• Missing FDI approvals
• Incorrect address details

Private vs Public Company in Nepal: PAN Compliance Obligations Compared

Insight:
Public companies face higher post-PAN scrutiny, even though the PAN application process itself is identical.

Common Mistakes Foreign Companies Make During PAN Application

Avoid these issues early.

• Applying for PAN before OCR incorporation
• Uploading unsigned MOA or AOA
• Using shareholder passports instead of company documents
• Selecting the wrong taxpayer category
• Ignoring follow-up notices inside the Nagarik App

These errors delay approvals and may trigger manual IRD reviews.

PAN, FDI, and Tax Residency for Foreign Companies

PAN registration does not automatically:

• Confirm tax residency
• Approve profit repatriation
• Replace NRB approvals

However, PAN is required for:

• Opening operational bank accounts
• Payroll registration
• VAT enrollment
• Filing income tax returns

Foreign companies comparing private vs public company in Nepal should treat PAN as the first tax activation step, not the last.

Legal and Regulatory Basis (EEAT Reinforcement)

PAN requirements and digital registration are backed by:

• Income Tax Act 2002
• Companies Act 2006
• Inland Revenue Department directives
• Government of Nepal digital governance policies

According to IRD guidance, all entities conducting economic activities in Nepal must obtain PAN before commencing operations.

When PAN via Nagarik App Is Not Enough

In some cases, manual IRD visits are still required:

• Large public companies
• Regulated sectors
• Complex foreign ownership structures

A hybrid approach is often used:

• Online submission via Nagarik App
• Physical verification if requested

Final Thoughts: Private vs Public Company in Nepal and PAN Strategy

Choosing between private vs public company in Nepal affects governance, capital strategy, and compliance intensity.
What does not change is the importance of timely PAN registration.

Using the Nagarik App allows foreign companies to:

• Reduce setup delays
• Maintain audit-ready records
• Signal compliance readiness to regulators

If Nepal is part of your Asia growth strategy, PAN registration is your first operational checkpoint.

Frequently Asked Questions (People Also Ask)

Is PAN mandatory for foreign companies in Nepal?

Yes. All foreign companies operating in Nepal must obtain PAN before conducting taxable activities or opening operational accounts.

Can a foreign director apply for PAN using the Nagarik App?

Usually no. A local authorized representative with a verified Nagarik App account applies on behalf of the company.

Is PAN registration different for private vs public company in Nepal?

The application process is the same. Public companies face higher post-registration reporting obligations.

How long does PAN approval take through Nagarik App?

Private companies usually receive PAN within 2–5 working days if documents are complete.

Does PAN registration allow profit repatriation?

No. PAN enables tax compliance. Profit repatriation requires NRB and FDI approvals.