Updated August 2026. The PAN timing rule below is quoted from the Income Tax Rules 2059 and corrects a claim repeated across almost every Nepali business-registration article.
Your registration certificate is in hand. What now? There is a correct order, a rule about PAN that nearly everyone states wrongly, and one obligation that starts from your very first employee — not from some staff-count threshold.
The PAN Rule Everyone Gets Wrong
Rule 23 of the Income Tax Rules 2059 requires a person who intends to derive assessable income, or to make a payment from which tax must be withheld, to apply for a PAN “before deriving the income or making the payment”.
The obligation is before you earn — not a countdown that starts after you register. The Income Tax Act sets no 30-day deadline at all; that figure appears to have migrated over from the separate VAT rule, which does give you 30 days after crossing the turnover threshold.
The Correct Sequence
- Entity registration — firm, company or industry, at the appropriate office.
- PAN — before your first transaction. Not after 30 days.
- Ward and municipal business registration, and business tax. Separate obligation; see our local licence guide.
- Business bank account in the entity’s name, with the registration certificate and PAN.
- SSF employer enlistment — before you hire.
- Enrol each employee within 3 months of the employment relationship starting.
- VAT when you cross the threshold — not before, unless your category requires it regardless.
Before You Hire Anyone
Getting this right early matters because SSF liability is retrospective in practice: an employee enrolled late still had an employment relationship from day one. See our SSF employer registration guide.
The VAT Decision
| Trigger | Threshold |
|---|---|
| Turnover of goods | Above Rs 50 lakh |
| Turnover of services or mixed supply | Above Rs 30 lakh |
| Registration deadline after crossing | 30 days |
🤝 Just registered and want the next steps in the right order?
Tell us what you registered and whether you plan to hire. Digital Solution will give you the sequence for your specific situation, including what your ward and SSF will want.
The First-Month Checklist
☑ PAN obtained
Before any income or payment. Details kept current within 15 days of any change.
☑ Ward registration done
Business registered locally and business tax settled.
☑ Bank account opened
In the business name, so business and personal money stay separate from day one.
☑ SSF sorted before hiring
Employer enlisted; employees enrolled within three months of starting.
☑ Books started
Not glamorous, but reconstructing a year of records later is far worse than keeping them now.
☑ Compliance calendar set
Tax filing, VAT if registered, and Registrar filings if you are a company.
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- Namecheap Private Email — info@yourbusiness.com on invoices and PAN documents looks like the company you registered
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Disclosure: the links above are affiliate links — we may earn a commission at no extra cost to you. See our Advertising Disclosure.
Frequently Asked Questions
How many days do I have to get a PAN after registering?
There is no such deadline. The rule requires you to apply before deriving income or making a payment subject to withholding.
Where does the “30 days” come from then?
From the VAT rule, which gives 30 days after crossing the registration threshold. It has been mistakenly applied to PAN across many articles.
Do I need SSF if I have only one employee?
Yes. The obligation applies from the first employee, with enrolment within three months of the employment relationship starting.
When must I register for VAT?
Within 30 days of crossing the turnover threshold — Rs 50 lakh for goods, Rs 30 lakh for services or mixed supply, subject to confirming the current figures.
Do I need a separate business bank account?
Not always legally, but mixing business and personal money makes tax filing and audits considerably harder.
What if my details change?
Notify the Inland Revenue Department within 15 days of any change to your PAN certificate details.
Is ward registration really necessary?
Yes — it is a separate statutory obligation from federal registration.
What is the SSF contribution rate?
A figure around 31% of basic salary is widely cited but the employer-employee split varies between sources. Confirm with SSF before setting payroll.
Sources
- Income Tax Rules 2059 — Rule 23 (application before deriving income) and Rule 24 (15-day notification of changes).
- Contribution Based Social Security Act 2074, section 6 — employer listing of employees within three months.
- Value Added Tax registration thresholds as published for the previous fiscal year.
Related Reading
- The local business licence almost everyone skips
- PAN vs VAT registration
- SSF registration for employers
- TDS rates and credit
Disclaimer: Digital Solution Nepal is an independent educational and digital-service assistance website — not a government office, not a law firm and not an audit firm. Registration procedures, fees and thresholds change through Acts, regulations and local Economic Acts, and requirements differ by office, sector and province. Nothing here is legal or professional advice — the relevant registering office and a qualified professional are final. Confirm before filing or paying anything.
Rabin Paudel
Rabin Paudel is the Founder of Digital Solution, a Content Creator, and an AI Trainer. He shares practical and easy-to-understand content on Artificial Intelligence, Digital Literacy, Online Services, FinTech, and Technology. His mission is to make technology simple, accessible, and useful for everyone.
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