How to Register for a PAN Card in Nepal: A Step-by-Step Process

If you are comparing private vs public company in Nepal, one compliance step quietly underpins everything that follows: PAN registration.
Within the first few days of incorporation, every foreign-owned entity must obtain a Permanent Account Number (PAN) to legally operate, hire staff, open tax accounts, and transact with banks.

Foreign investors often underestimate this step. Delays at PAN stage can stall payroll, VAT, banking, and even capital repatriation later. This guide explains how PAN registration works in Nepal, why the process differs slightly for private vs public companies, and how foreign companies can complete it cleanly the first time.

What Is a PAN Card in Nepal?

A PAN (Permanent Account Number) is a unique tax identification number issued by Nepal’s Inland Revenue Department (IRD).

It is mandatory for:

• Companies
• Branch offices
• Representative offices
• Individuals earning taxable income

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

Why PAN Registration Matters for Foreign Companies

For foreign investors, PAN is not just a tax formality. It is a regulatory gateway.

A PAN is required to:

• Open operational bank accounts
• Register for VAT
• Run payroll and deduct employee taxes
• File income tax returns
• Sign enforceable commercial contracts

In practice, banks, vendors, and even landlords will ask for your PAN certificate before proceeding.

Private vs Public Company in Nepal: Does PAN Registration Differ?

Yes, slightly. The core process is the same, but documentation and scrutiny differ.

Key Differences at PAN Stage

Insight:
Foreign investors almost always start with a private company structure. Public companies are rarely used for initial market entry due to disclosure and compliance burden.

Who Must Register for a PAN in Nepal?

PAN registration is compulsory for:

• Foreign-owned private limited companies
• Public limited companies
• Nepal branch offices of foreign companies
• Representative or liaison offices
• Foreign nationals earning income in Nepal

Even non-profit or cost-center entities must register if they incur expenses or hire staff.

Step-by-Step Process to Register for a PAN Card in Nepal

Step 1: Incorporate the Entity

Before PAN registration, the company must be incorporated with the Office of Company Registrar (OCR).

You will need:

• Company registration certificate
• Approved MOA and AOA
• Shareholder and director details

PAN cannot be issued without legal incorporation.

Step 2: Prepare PAN Registration Documents

Foreign companies must submit the following:

• Company registration certificate
• MOA and AOA
• Board resolution for PAN registration
• Passport copies of foreign directors
• Local address proof
• Lease agreement or office confirmation

Tip:
Mismatch between OCR records and PAN application is the most common reason for rejection.

Step 3: Submit Application to Inland Revenue Department

Applications are filed:

• Online via IRD portal, or
• Physically at the local IRD office

For foreign-owned companies, physical verification is often required.

Step 4: IRD Verification and Review

IRD officers verify:

• Company structure
• Nature of business
• Foreign ownership compliance
• Address authenticity

Public companies and regulated sectors face deeper scrutiny.

Step 5: PAN Certificate Issuance

Once approved, IRD issues:

• PAN number
• PAN registration certificate

This usually takes 3–7 working days for private companies.

Documents Checklist for Foreign Companies

Here is a quick reference list.

• Company incorporation certificate
• MOA and AOA
• Board resolution
• Passport copies
• Local office address proof
• Power of attorney (if applicable)

Having these aligned upfront saves weeks.

Common PAN Registration Mistakes Foreign Companies Make

Avoid these frequent issues:

• Using temporary or incorrect addresses
• Inconsistent director details
• Missing board authorization
• Applying before OCR data sync
• Assuming online filing alone is enough

These errors delay not only PAN but downstream approvals.

How PAN Connects to Other Compliance Obligations

PAN registration triggers multiple next steps.

After PAN, companies must:

• Register for VAT (if applicable)
• Enroll with Social Security Fund
• Open payroll tax accounts
• File monthly and annual tax returns

PAN is the first domino in Nepal’s compliance chain.

PAN Registration Timeline for Foreign Investors

Typical timeline:

1. Company incorporation: 7–10 days
2. PAN application: 1 day
3. IRD review: 3–7 days
4. Certificate issuance: Immediate after approval

Public companies and regulated sectors may take longer.

Legal Basis for PAN Registration in Nepal

PAN registration is governed by:

• Income Tax Act, 2002
• Income Tax Rules, 2003
• Inland Revenue Department directives

These laws mandate PAN before income generation.

Private vs Public Company in Nepal: Which Is Better for Foreign Investors?

Most foreign investors choose private companies.

Why:

• Faster PAN issuance
• Lower disclosure requirements
• Flexible governance
• Easier exit and restructuring

Public companies are usually considered only at scale.

Practical Tip for Foreign Companies

Treat PAN registration as a strategic compliance milestone, not a clerical task.
A clean PAN setup today prevents tax disputes, banking friction, and repatriation issues later.

Conclusion

When evaluating private vs public company in Nepal, PAN registration is one of the first real compliance tests foreign companies face.
Handled properly, it unlocks banking, payroll, and tax operations smoothly.
Handled poorly, it creates compounding delays across your Nepal market entry.

For foreign investors, the smartest approach is to align structure, documentation, and PAN strategy from day one.

Frequently Asked Questions 

1. Is PAN mandatory for foreign companies in Nepal?

Yes. All foreign-owned entities must obtain PAN before operating or earning income in Nepal.

2. How long does PAN registration take in Nepal?

Private companies usually receive PAN within 3–7 working days. Public companies may take longer.

3. Can PAN be applied online by foreign companies?

Yes, but foreign-owned entities often require physical verification at IRD.

4. Is PAN required before opening a bank account?

Yes. Banks will not open operational accounts without a PAN certificate.

5. Does PAN registration differ for branches and subsidiaries?

Yes. Branch offices require parent company documents and additional verification.