Comparison Guide
EIN vs PAN Compared
Understand the difference between a US EIN and an India PAN. Both are tax identification numbers, but they serve different countries and purposes. ein.so files Form SS-4 for $49.
Last updated: June 2, 2026
India entrepreneurs expanding into the US market encounter both EINs and PANs. Understanding the difference between these two numbers is essential for operating legally in both jurisdictions. This guide compares both identifiers, explains when you need each, and shows how India business owners obtain a US EIN.
The core distinction is jurisdiction. The US Internal Revenue Service (IRS) issues the EIN for US federal tax purposes. The Income Tax Department of India issues the PAN for India tax purposes. Neither number is valid in the other country.
| Factor | EIN (United States) | PAN (India) |
|---|---|---|
| Full name | Employer Identification Number | Permanent Account Number |
| Issuing authority | IRS | Income Tax Department of India |
| Format | XX-XXXXXXX (9 digits) | AAAAA9999A (10 characters) |
| Cost to issue | $0 from the IRS | Set by India authorities |
| Valid in | United States only | India only |
| Application form | Form SS-4 | India Form 49A / 49AA |
| Primary use | US tax, banking, payroll | India tax and finance |
Definition
What Is an EIN?
An EIN (Employer Identification Number) is a 9-digit tax ID issued by the IRS to businesses in the United States. The format is XX-XXXXXXX, for example 12-3456789. The IRS assigns it permanently once issued.
Every US business entity needs an EIN to file federal taxes, open a bank account, hire employees, and accept payments. The IRS charges $0 for an EIN. Non-residents pay ein.so $49 to handle the filing. For a full explanation, read what is an EIN.
Key EIN Facts
The IRS online EIN tool requires an SSN. India residents do not have an SSN, so they file Form SS-4 by fax instead. See how to get an EIN for the full process.
PAN
What Is a PAN?
A PAN (Permanent Account Number) is a 10-character alphanumeric ID issued by the Income Tax Department of India. It uses the format AAAAA9999A: 5 letters, 4 digits, and 1 letter. The PAN is the primary income tax identifier for individuals and entities in India.
The Income Tax Department of India issues the PAN under Section 139A of the Income Tax Act, 1961. The fourth character signals the holder type. P marks an individual. C marks a company. H marks a Hindu Undivided Family. F marks a firm. India requires a PAN for many financial transactions, including bank accounts, property purchases, and large payments.
Key PAN Facts
- Issued by: Income Tax Department of India
- Format: AAAAA9999A (5 letters + 4 digits + 1 letter)
- Country: India
- Purpose: Income tax identification for individuals and entities
- Holder type: Encoded in the fourth character (P, C, H, F, and others)
A PAN does not authorize US tax filing. It has no standing with the IRS. Confirm any India-specific PAN rules with a chartered accountant in India.
Comparison
How Does an EIN Compare to a PAN Side by Side?
An EIN identifies a business to the US government. A PAN identifies a taxpayer to the India government. They never overlap in jurisdiction. Cross-border founders hold both numbers at once without conflict.
| Factor | EIN (United States) | PAN (India) |
|---|---|---|
| Full name | Employer Identification Number | Permanent Account Number |
| Issuing authority | IRS (Internal Revenue Service) | Income Tax Department of India |
| Format | XX-XXXXXXX (9 digits) | AAAAA9999A (10 characters) |
| Who needs it | US business entities | India individuals and entities |
| Cost to obtain | $0 from the IRS | Set by India authorities |
| Validity | United States only | India only |
| Used for | US tax filing, banking, payroll | India tax filing, banking, transactions |
| Application | Form SS-4 to the IRS | Form 49A or 49AA in India |
| SSN needed | No (passport on Line 7b) | No (India identity documents) |
The Core Difference
An EIN links your company to the US financial system. A PAN links you to India's tax system. You apply to each authority separately. Holding a PAN does not speed up or replace your EIN application.
For India Entrepreneurs
How Do India Entrepreneurs Get a US EIN?
India entrepreneurs get a US EIN by submitting IRS Form SS-4 by fax to 855-215-1627. No SSN is required. The India passport number goes on Line 7b. The IRS issues most error-free EINs within 4-7 business days.
Form Your US Entity
Complete Form SS-4
Submit by Fax
Receive Your EIN
India-Specific SS-4 Field Guide
| SS-4 Field | India Entry |
|---|---|
| Line 1 (Legal name) | Your US LLC name |
| Line 4 (Address) | Your India address (street, city, PIN code) |
| Line 7a (Responsible party) | Your full name as on your passport |
| Line 7b (SSN/ITIN/EIN) | Your India passport number |
| Line 10 (Reason) | Started new business |
| Line 16 (Principal activity) | E.g., "software," "e-commerce," "consulting" |
Your existing PAN has no bearing on the EIN application. The IRS does not ask for or verify foreign tax IDs. Your passport is sufficient identification. Read more in EIN for non-residents and how to get an EIN without an SSN.
Both Numbers
Do India Founders Need Both Numbers?
India founders need both numbers only when they operate in both the US and India. A PAN covers India tax duties. An EIN covers US tax duties. A US LLC owned from India creates a US obligation that a PAN cannot satisfy.
You Need an EIN When
You Need a PAN When
You Need Both When
They Coexist
Tax & Compliance
What US Filings Does an India-Owned US LLC Face?
A foreign-owned single-member US LLC files Form 5472 with a pro-forma Form 1120 each year. The penalty for not filing is $25,000. This is an information return, not always a tax bill. Your EIN is the starting point for these filings.
Annual US Compliance for an India-Owned LLC
- File Form 5472 with a pro-forma Form 1120 each year. The non-filing penalty is $25,000.
- File your BOI report with FinCEN as required for most LLCs.
- Track US and India deadlines separately. The IRS and the Income Tax Department of India do not share filing calendars.
- Confirm specifics with a CPA. ein.so files your EIN and does not provide tax advice.
A single-member US LLC owned by an India resident is usually a disregarded entity for US federal income tax. This means the LLC itself often pays no US federal income tax on non-US-sourced income. India residents still declare income under India rules. Work with a US CPA and an India chartered accountant for your exact position.
Cost & Timing
How Much Does a US EIN Cost an India Applicant?
The IRS charges $0 for an EIN. ein.so charges $49 for Standard service (4-7 business days) or $97 for Express (2-3 business days). The fee covers Form SS-4 preparation, the IRS fax submission, and email delivery of your assignment letter.
| Path | Cost | Delivery | Best For |
|---|---|---|---|
| ein.so Standard | $49 | 4-7 business days | Most India founders |
| ein.so Express | $97 | 2-3 business days | Urgent banking or platform deadlines |
| DIY fax to IRS | $0 | 4-7 business days if error-free | Founders comfortable with Form SS-4 |
| IRS phone | $0 | Same call if it connects | Hard for India callers across time zones |
The DIY path costs nothing but exposes you to rejection from address formatting and Line 7b errors. India PIN codes and city formats do not always map to the SS-4 fields cleanly. ein.so reformats the address to an IRS-accepted style. Compare options in EIN cost and EIN processing time.
India founders who also need a personal US tax ID can add an ITIN. ein.so files ITIN applications for $197 Standard or $297 Express.
Next Steps
After Comparing EIN and PAN
- Apply for your EIN — ein.so files Form SS-4 by fax for $49 Standard or $97 Express
- Open a US bank account — Mercury and Relay accept non-resident LLC owners
- File your BOI report — required for most LLCs at fincen.gov/boi
- File Form 5472 — annually for foreign-owned LLCs ($25,000 penalty for non-filing)
- Learn the basics — read how to get an EIN and EIN without an SSN
More comparisons: EIN vs ITIN | EIN vs SSN | EIN vs Tax ID. Country guides: EIN for India | EIN for non-residents.
Frequently Asked Questions
Is an EIN the same as a PAN?
No. An EIN is a 9-digit US federal tax ID from the IRS. A PAN is a 10-character alphanumeric ID from the Income Tax Department of India. Different authorities issue them in different countries for different purposes. An EIN identifies a US business. A PAN identifies an India taxpayer.
Do I need both an EIN and a PAN?
You need both only if you operate in both the United States and India. Your EIN identifies your US business to the IRS. Your PAN identifies you to the Income Tax Department of India. Each number works only in its own jurisdiction. One does not replace the other.
Can I use my PAN instead of an EIN in the US?
No. The IRS does not accept a PAN or any foreign tax ID for US tax reporting. If you run a US LLC or corporation, you must obtain a separate EIN from the IRS. A PAN has zero legal standing for US federal tax purposes, regardless of your India status.
How do India entrepreneurs get a US EIN?
India entrepreneurs get a US EIN by submitting IRS Form SS-4 by fax to 855-215-1627. No SSN or ITIN is required. Your India passport number goes on Line 7b. ein.so handles the entire filing for $49 Standard (4-7 business days) or $97 Express (2-3 business days).
What format is a PAN compared to an EIN?
A PAN uses the AAAAA9999A format: 5 letters, 4 digits, and 1 letter. An EIN uses the XX-XXXXXXX format: 9 digits with a hyphen after the second digit. The formats differ completely. The fourth PAN character signals the holder type, such as P for individual or C for company.
Is an EIN valid in India?
No. An EIN is valid only for US federal tax purposes. It has no legal standing in India. A PAN has no legal standing in the United States. Each country issues its own tax identification numbers and recognizes only its own. You file with each authority separately.
Does the IRS online EIN tool work for India residents?
No. The IRS online EIN tool requires a valid SSN or ITIN, which most India residents do not have. India applicants must use the fax method with Form SS-4 and a passport number on Line 7b. ein.so prepares and faxes the form, then delivers your EIN by email.
What does an India-owned US LLC file each year?
A foreign-owned single-member US LLC files Form 5472 with a pro-forma Form 1120 each year. The penalty for not filing is $25,000. This is an information return, not always a tax bill. Confirm your specific US and India tax duties with a CPA and a chartered accountant.
How much does an EIN cost for India applicants?
The IRS charges $0 for an EIN. ein.so charges $49 for Standard service (4-7 business days) or $97 for Express (2-3 business days) to prepare Form SS-4, fax it to the IRS, and deliver the assignment letter. India residents avoid international IRS phone calls this way.
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