New Firms to Get PAN Automatically during Registration

After years of effort, the Office of the Company Registrar and the Inland Revenue Department have integrated their electronic systems, enabling new companies to receive a Permanent Account Number (PAN) immediately upon registration.

Previously, businesses only received a reserved PAN number at the time of registration and had to visit the Inland Revenue Office separately to activate it. With the new system, PANs will now be issued automatically based on company registration details.

Acting Director General of the Inland Revenue Department, Ramesh Aryal, said the integration eliminates the need for separate forms and repeated visits. “Now, PAN numbers will be generated directly from the Company Registrar’s system, ending the hassle of standing in line at revenue offices,” he explained.

Director of Information Technology at the department, Thaneshwar Paneru, added that the reform also aims to reduce paperwork. Businesses will be able to download and print their PAN certificates directly from the registrar’s system, significantly reducing crowds at service counters. He said the department plans to extend this technology to all 753 local governments and the Department of Industry, ensuring PAN issuance wherever businesses are registered.

Officials believe the reform will simplify procedures for new investors and startups, reduce tax leakage, and expand the tax base. The initiative is part of the government’s governance reform agenda, which emphasizes technology-driven service delivery.

Economist Chandramani Adhikari welcomed the integration, saying it would ease bureaucratic hurdles that often discourage both domestic and foreign investors. “Providing tax services from the starting point of business registration will encourage investment and create a more business-friendly environment,” he noted.

Despite the progress, companies are still required to submit annual income statements and audit reports separately to both the Company Registrar and the Inland Revenue Office, with penalties imposed for non-compliance at either office. Registrar Balram Niraula said efforts are underway to resolve this duplication, with discussions focused on legal adjustments to allow submission at a single agency.