How to Get a PAN Number in Nepal and Why Your Online Business Needs One

If you are starting a business in Nepal — whether it is a clothing store in Pokhara, a home-baking page on Instagram, or a full retail shop in New Road — one piece of paperwork will follow you everywhere: the PAN (Permanent Account Number). Many first-time entrepreneurs treat it as scary government red tape and delay it for months. The truth is simpler. Getting a PAN from the Inland Revenue Department (IRD) is usually a same-day process, it is often free, and without it you will hit a wall the moment you try to accept digital payments or sell at scale.

This guide walks you through exactly what a PAN is, what documents to bring, how long it takes, and why your online store genuinely needs one.

What is a PAN and how is it different from VAT?

A PAN is a unique tax identification number issued by the IRD to individuals and businesses. Think of it as your business's permanent tax identity. Every invoice you issue, every tax return you file, and most formal payments you receive are tied to it.

People often confuse PAN with VAT. Here is the simple distinction:

• PAN is mandatory for almost any business that wants to operate formally, issue bills, or work with registered partners. It is the starting point.
• VAT (Value Added Tax) registration is an additional step. It becomes mandatory once your annual turnover crosses the threshold set by the IRD, or immediately if you deal in certain categories of goods and services. VAT-registered businesses charge 13% VAT and file returns more frequently.

For most small shops and new online sellers, you start with a PAN. You can move to VAT later as you grow.

Personal PAN vs. business PAN

If you are a sole proprietor selling online by yourself, a Personal PAN (also called PAN for individuals) is often enough to get started. If you have registered a firm or company at the Office of Company Registrar or your local ward/municipality, you will register a business PAN tied to that registration. When in doubt, ask the IRD service desk — they will tell you which category fits your setup.

What documents do you need?

Requirements vary slightly by office and by whether you are registering as an individual or a firm, but for a basic individual/sole-proprietor PAN you should bring:

• A copy of your citizenship certificate (and the original for verification).
• Two recent passport-size photos.
• Your mobile number and a personal email (used for the online registration and for receiving updates).
• If registering a firm or company: your business registration certificate and the registration details from the ward office, municipality, or Office of Company Registrar.
• A note of your business address and the nature of your business (for example, "online retail of clothing").

For a rented business location, some offices may ask for a rent agreement or proof of address, so keep that handy if you have a physical shop.

The step-by-step process

The IRD has moved most of this online through its taxpayer portal, which has made things much faster than the old days of standing in long queues.

1. Register online first. Go to the IRD taxpayer portal (ird.gov.np) and create a registration application for PAN. You will fill in your personal details, business type, and address, then submit and get a submission number.
2. Visit your local IRD or Taxpayer Service Office. Take your submission number, original documents, and photos. The staff verify your details, capture your biometrics/photo where required, and process the application.
3. Collect your PAN certificate. In many cases this is issued the same day. You walk out with a PAN card or certificate showing your number.

Realistically, budget a few hours to one working day if your documents are in order. Going early in the morning helps you avoid the midday rush. The PAN itself is typically issued without a fee, though you may pay small charges for things like the physical card depending on the office.

Why your online business actually needs a PAN

This is the part many sellers underestimate. A PAN is not just for tax season — it unlocks the rails your business runs on.

1. Payment gateways often require it

If you want to accept eSewa, Khalti, or bank/connectIPS settlements as a registered merchant, the providers will generally ask for your PAN as part of merchant onboarding and KYC. Operating a personal wallet is fine for tiny, informal sales, but the moment you want a proper merchant account — with settlement to your bank, higher limits, and a payment button on your website — your PAN becomes a requirement. No PAN often means no merchant gateway.

2. Suppliers and B2B partners expect it

Wholesalers, distributors, and any VAT-registered supplier will ask for your PAN to issue you a proper invoice. Without it, you cannot claim purchases formally, and many suppliers simply will not deal with unregistered buyers for larger orders.

3. It makes you eligible for bigger opportunities

Corporate clients, marketplaces, government tenders, and larger logistics/courier contracts almost always require a PAN-registered business. If you ever want to scale beyond cash-on-delivery to retail partners, you will need it.

4. It keeps you clean before Dashain and Tihar

The festive season is when Nepali businesses make a huge share of yearly sales. The last thing you want during a Dashain–Tihar rush is a payment gateway holding your funds or a settlement blocked because your KYC is incomplete. Sort the PAN out in the quiet months so your busiest weeks run smoothly.

Where Saauzi fits in

Once your PAN is sorted and your eSewa/Khalti/bank merchant accounts are approved, you still need somewhere to actually sell — an online store, a POS for your counter, and a clean way to track orders and COD deliveries. That is exactly what Saauzi is built for: you connect your approved payment gateways, list your products, and run both your online store and your physical retail POS from one dashboard, with delivery and logistics handled in the same place. Your PAN gets you the merchant accounts; Saauzi turns them into a working storefront.

Common mistakes to avoid

• Waiting until you "get serious." You will need the PAN before payment gateways approve you, so do it early — ideally before you launch.
• Mismatched names. The name on your PAN, your bank account, and your gateway merchant profile should match. Inconsistencies cause settlement delays.
• Ignoring filing duties. A PAN comes with the responsibility to file returns on time, even if your income is small. Mark the deadlines.
• Mixing personal and business funds. Open a dedicated bank account for the business so your records stay clean.

Your takeaway

Don't let a single piece of paper stall your business. This week, do three things: gather your citizenship copy, photos, and email; submit your PAN application on the IRD portal and visit your local office to collect it; then use that PAN to apply for eSewa/Khalti/bank merchant accounts. With those rails in place, you can open your store, accept digital payments, and be ready well before the Dashain rush — instead of scrambling when sales peak.