The Permanent Account Number (PAN) is Nepal's foundational business identifier — the equivalent of a tax identification number in other countries. Issued by the Inland Revenue Department (IRD), it is required for almost every significant formal business activity: filing taxes, opening a business bank account, printing invoices, registering for VAT, bidding on government contracts, and importing or exporting goods.
If you're operating a business in Nepal without a PAN, you're in a legal grey zone that becomes increasingly problematic as your business grows. This guide covers everything you need to know about PAN registration in Nepal — who needs it, how to get it, what to do with it once you have it, and the consequences of operating without one.
What Is PAN and Why Does It Exist?
PAN stands for Permanent Account Number. The IRD assigns a unique PAN to every registered taxpayer in Nepal — individuals and businesses alike. It is the identifier that links all your tax filings, registrations, and financial records in the IRD's system.
The PAN serves three purposes from the IRD's perspective:
- It creates a unique identity for each taxpayer, preventing duplicate registrations and making it harder to hide income across multiple identities
- It enables cross-referencing of financial data — the IRD can link your bank transactions, property ownership, and business income through your PAN
- It creates a chain of accountability — large transactions must be reported with both parties' PANs, making it very difficult to hide significant income
From your perspective as a business owner, PAN is simply the entry fee for operating formally in Nepal. Without it, you can't access the banking, contracting, and regulatory systems that enable a business to grow.
Who Must Register for PAN
PAN registration is mandatory for:
- Individuals with annual income above NPR 4 lakh: This includes salary income, business income, rental income, and professional income. If your combined income from all sources exceeds NPR 4 lakh per year, you must have a PAN.
- All companies, partnerships, and cooperatives: Regardless of size or income, all formally registered business entities must have a PAN.
- Anyone doing business with government entities: Government procurement rules require PAN from all suppliers and contractors.
- Businesses buying or selling property: Property transactions in Nepal require PAN from both buyer and seller.
- All importers and exporters: Customs clearance requires a valid PAN.
- VAT-registered businesses: PAN is required before VAT registration can be completed.
Even if you technically fall below the income threshold, having a PAN is practically necessary if you want to run a business that anyone takes seriously. Banks require it for business current accounts. Larger suppliers and corporate clients expect it on invoices. Landlords may require it for commercial leases.
Documents Required for PAN Registration
Individual / Sole Trader
- Citizenship certificate (original and photocopy)
- Recent passport-size photos (2)
- Business registration certificate (from your local ward office or OCR — required if you have a registered business name)
- Rental agreement or property ownership document for business address
- PAN application form (available at IRD office or downloadable from ird.gov.np)
Private Company (Pvt. Ltd.)
- Company registration certificate from the Office of Company Registrar (OCR)
- Memorandum and Articles of Association
- Citizenship certificates and PAN of all directors
- Office address proof (rental agreement or ownership document)
- Board resolution authorising PAN registration (for company with multiple directors)
Partnership
- Partnership deed
- Citizenship certificates of all partners
- Office address proof
- Business registration from ward office
The Registration Process
In-person registration
- Visit the nearest IRD office. Kathmandu District: IRD headquarters in Lazimpat; other districts: respective district IRD office.
- Collect the PAN application form from the counter (or download in advance from ird.gov.np).
- Complete the form — all fields in capital letters, no corrections permitted (start fresh if you make a mistake).
- Submit completed form with all required documents to the designated counter.
- Pay the registration fee: typically NPR 200–500 (confirm current fee at the office).
- Receive a token/acknowledgment slip with your expected collection date.
- Collect your PAN certificate. For most offices, this is same-day to 3 working days.
Online registration
The IRD offers partial online registration at ird.gov.np. You can complete and submit the application form online, upload supporting documents, and track your application status. However, you still typically need to visit the IRD office once to verify your identity and collect the physical PAN certificate.
Online registration is faster and avoids the queuing typically required for in-person applications. Where available, use it.
What Your PAN Number Looks Like
A Nepal PAN is a 9-digit number. Once issued, it is permanent — you keep the same PAN for life (for individuals) or for the life of the business entity. If your business closes and you register a new one, the new business gets a new PAN, but your personal PAN remains the same.
Keep your PAN certificate safe. You'll need the number for:
- All tax returns and correspondence with the IRD
- Opening bank accounts
- Printing on invoices
- Government tender applications
- Property transactions
- Import/export documentation
PAN on Invoices: The Rules
Nepal's tax regulations require PAN to appear on invoices in specific circumstances:
- For transactions above NPR 10,000: the seller's PAN must appear on the invoice
- For transactions above NPR 50,000: both the seller's and buyer's PAN must appear on the invoice
- For all VAT invoices: the seller's PAN and VAT registration number must both appear
These rules exist to create a paper trail for significant commercial transactions. When a buyer includes a transaction on their expense records, the IRD can cross-reference the seller's income records using the PAN. This makes hiding income progressively harder as transaction values increase.
For a POS or billing app, your PAN should be stored in your business profile and automatically printed on every invoice above the threshold — no manual entry required each time.
Consequences of Operating Without PAN
The IRD conducts raids and inspections of businesses operating without PAN, particularly in commercial areas. Consequences include:
- Fines of NPR 2,000–10,000 for non-registration
- Retrospective assessment of income for the period of non-registration, with tax and interest applied to estimated income
- Potential criminal proceedings for deliberate evasion in significant cases
Beyond IRD enforcement: without PAN, you cannot open a business bank account (blocking eSewa merchant registration, online banking, and loan access), cannot issue compliant invoices to corporate customers, and cannot bid on government contracts. The practical walls around informal operation get higher every year as Nepal's financial system digitises.
PAN vs. VAT: What's the Difference?
Business owners sometimes confuse PAN with VAT registration. They are different:
- PAN is your basic taxpayer identity number — every business needs one, regardless of size or type
- VAT registration is additional registration for businesses that meet the VAT threshold (NPR 50 lakh annual turnover) or are in specified sectors — it adds the ability to charge and collect VAT
You get PAN first. VAT registration comes later, if required. On invoices, both numbers appear for VAT-registered businesses; only PAN appears for non-VAT businesses.
Updating Your PAN Records
If your business address, name, or other registered details change, you must update your PAN records at the IRD. Similarly, if a business closes, the PAN should be formally surrendered. Keeping PAN records current prevents administrative complications during audits or when dealing with other government agencies that verify PAN details.
Frequently Asked Questions
Q: I'm just starting my business. Should I register PAN before or after registering my business?
A: For a sole trader without a formal business name, you can register PAN with your citizenship certificate — business registration isn't required. If you're registering a company with OCR, you need to complete company registration first, then use the company registration certificate to apply for company PAN. Your personal PAN can be registered at any time independently of business registration.
Q: Can I have one PAN for multiple businesses?
A: Your personal PAN covers all your income-generating activities as an individual — whether from one business or many. If you have multiple sole trader businesses, they all report under your single personal PAN. Each separately incorporated company (Pvt. Ltd.) gets its own PAN, distinct from the directors' personal PANs.
Q: My business is very small — do I really need PAN?
A: If your income is below NPR 4 lakh per year and you have no business activities that require PAN (no government contracts, no corporate clients, no importing), you may technically not require one. However, getting PAN costs less than NPR 500 and one day of your time. The practical benefits of having it — bank accounts, formal invoicing, future growth — far outweigh the minimal cost and effort. Register now.
Q: What if I registered PAN long ago and forgot my number?
A: Visit any IRD office with your citizenship certificate. They can look up your PAN using your name and citizenship number. You can also check at the IRD's online portal if you have your registered details available.
Q: I paid someone to register my PAN and they did it incorrectly. What do I do?
A: Visit the IRD office with your citizenship certificate and request a correction. Bring documentation showing the correct information. PAN record corrections are processed at the district IRD office. This is a known problem with informal "agents" who handle PAN registration — always verify your PAN certificate details before leaving the office.
Q: How long is PAN valid?
A: A PAN has no expiration date. It is permanent for individuals and for companies for as long as they remain registered. You do need to file annual income tax returns to keep your PAN "active" in the IRD system — inactive PANs (no filing for 3+ years) may be flagged, which can cause issues with future registrations or transactions.
Q: Can I lose my PAN?
A: The PAN number itself cannot be taken away. However, the IRD can suspend your PAN's ability to be used in transactions in cases of serious tax evasion or fraud. For normal businesses operating in good faith, this is not a realistic risk.
PAN registration takes one day and costs less than NPR 500. There is no legitimate reason to delay it if you're operating a business in Nepal. Do it today — every month you wait makes your situation more complicated, not less.