If you are weighing a private vs public company in Nepal, the PAN card application is one of the first regulatory gates you must pass. Foreign companies often underestimate how entity type shapes PAN eligibility, timelines, and post-registration compliance. In this guide, we break it all down clearly. You will learn how PAN registration works for each structure, what documents you need, and how to avoid costly delays straight from Nepal’s regulatory playbook.
A Permanent Account Number (PAN) is the tax identity issued by Nepal’s tax authority. Without it, you cannot open operational bank accounts, issue invoices, hire staff, or file taxes.
For foreign investors, PAN is not a formality. It is the bridge between incorporation and lawful operations. The private vs public company in Nepal decision directly affects how fast you get PAN, how many disclosures you make, and what ongoing filings look like.
A private company is the most common structure for foreign investors entering Nepal.
Key traits
Private companies are preferred for subsidiaries, FDI projects, and operational entities.
A public company is designed for large capital mobilization.
Key traits
Public companies are rare for initial foreign entry due to complexity.
The PAN application process is administered by the Inland Revenue Department after incorporation with the Office of Company Registrar.
| Area | Private Company | Public Company |
|---|---|---|
| PAN approval speed | Faster | Slower |
| Document scrutiny | Moderate | Extensive |
| Disclosure burden | Limited | High |
| Suitable for foreign entry | Yes | Rarely |
| Ongoing tax filings | Standard | Enhanced |
Insight: For foreign companies, PAN delays almost always stem from choosing a structure misaligned with the investment size and timeline.
PAN registration is governed by:
These laws collectively define who must register, when, and under what disclosures.
You must first incorporate the entity. PAN cannot be issued without a registration certificate.
Foreign investors must show capital commitment approval if applicable.
Application is filed at IRD with prescribed forms.
IRD verifies documents and issues the PAN certificate.
Avoiding these saves weeks.
Private company:
Public company:
Timelines depend on document quality and regulatory load.
Once issued, PAN triggers ongoing obligations.
Failure to comply can freeze bank accounts.
For most foreign investors, the answer is clear.
Private company advantages
Public company drawbacks
Unless you plan a public listing, private companies dominate.
Banks require PAN to:
No PAN means no lawful cash movement.
You cannot legally:
PAN is the backbone of compliant payroll.
Choosing private vs public company in Nepal is not about prestige. It is about regulatory efficiency. PAN registration exposes the true compliance cost of your structure early.
When comparing private vs public company in Nepal, PAN card registration is where theory meets reality. Private companies offer speed, simplicity, and predictability. Public companies bring complexity and delay. For most foreign companies entering Nepal, a private company paired with a clean PAN registration strategy is the fastest path to lawful operations.
If you want a smooth PAN application without rework, structure matters first.
Yes. Every company must obtain PAN before conducting taxable activities.
No. PAN is issued only after local incorporation or registration.
Private companies usually receive PAN within a week. Public companies take longer.
The number is the same. Compliance and scrutiny differ.
Yes. PAN can be cancelled upon company liquidation or deregistration.