Comparison Guide
EIN vs PAN Compared
Understand the difference between a US EIN and a India PAN. Both are tax identification numbers, but they serve different countries and purposes.
India entrepreneurs expanding into the US market frequently encounter both EINs and PANs. Understanding the difference between these two identification numbers is essential for operating legally in both jurisdictions. This guide provides a complete comparison, explains when you need each number, and shows how India business owners can obtain a US EIN.
The key distinction is jurisdiction. An EIN is issued by the US Internal Revenue Service (IRS) for US federal tax purposes. A PAN is issued by Income Tax Department of India for India tax purposes. Neither number is valid in the other's jurisdiction.
Definition
What Is an EIN?
An EIN (Employer Identification Number) is a 9-digit tax identification number issued by the US Internal Revenue Service (IRS) to businesses operating in the United States. The format is XX-XXXXXXX (for example, 12-3456789). The IRS issues approximately 5 million EINs per year.
Every US business entity needs an EIN for federal tax filing, opening bank accounts, hiring employees, and accepting payments. The EIN is free to obtain from the IRS and is permanently assigned to the entity once issued.
For a complete explanation, see our guide on what is an EIN.
Key EIN Facts
PAN
What Is a PAN?
A PAN (Permanent Account Number) is a 10-character alphanumeric-digit identification number issued by Income Tax Department of India in India. It uses the format AAAAA9999A (5 letters + 4 digits + 1 letter). The PAN serves as the primary income tax identification for individuals and entities in India.
The PAN (Permanent Account Number) is a 10-character alphanumeric identifier issued by the Income Tax Department of India under Section 139A of the Income Tax Act, 1961. The format is AAAAA9999A: 5 uppercase letters, 4 digits, and 1 uppercase letter. The fourth character indicates the PAN holder type: P for individual, C for company, H for HUF (Hindu Undivided Family), F for firm, A for AOP (Association of Persons), T for trust. India has issued over 600 million PANs. PAN is required for all financial transactions above specified thresholds, including bank account opening, property purchases, and vehicle registration.
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
Comparison
EIN vs PAN: Side-by-Side
| 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 (5 letters + 4 digits + 1 letter) | | Purpose | US federal tax identification | income tax identification for individuals and entities | | Cost | Free | Varies | | Validity | United States only | India only | | Required for | US tax filing, banking, payroll | India tax compliance | | Application | Form SS-4 to IRS | India tax authority |
The Core Difference
An EIN identifies your business to the US government. A PAN identifies your business to the India government. If you operate in both countries, you need both numbers. One does not replace the other.
For India Entrepreneurs
How India Entrepreneurs Get a US EIN
India entrepreneurs who form a US LLC or corporation need a US EIN. The IRS online application requires an SSN, which India residents do not have. The solution is to submit Form SS-4 by fax.
Form Your US Entity
Complete Form SS-4
Submit by Fax
Receive Your EIN
Your existing PAN has no bearing on your US EIN application. The IRS does not ask for or verify foreign tax IDs. Your passport is sufficient identification.
For the India-specific EIN guide, see EIN for Indian entrepreneurs.
For more details, see our guide on EIN for non-US residents or how to get an EIN without an SSN.
Both Numbers
Do You Need Both Numbers?
You need an EIN if:
- You formed a US LLC or corporation
- You sell on US platforms (Amazon.com, Shopify US store)
- You need a US business bank account
- You hire US-based employees or contractors
- You file US tax returns
You need a PAN if:
- You operate a business in India
- You have tax obligations in India
- You employ workers in India
- You sell goods or services in India
You need both if:
- You operate businesses in both the US and India
- You are a India resident with a US LLC
- You earn income in both jurisdictions
Most India entrepreneurs expanding to the US already have a PAN. They add an EIN when they form their US business entity. The two numbers coexist without conflict.
Summary
Summary: EIN vs PAN
| Question | Answer | |----------|--------| | Are they the same? | No. Different countries, different authorities | | Can one replace the other? | No. Each is valid only in its own country | | Do I need both? | Only if you operate in both countries | | Which do I get first? | Whichever country you start your business in | | Cost of EIN? | Free (IRS) or $49 (ein.so for non-residents) |
For more comparisons, see EIN vs ITIN, EIN vs SSN, or EIN vs Tax ID.
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Frequently Asked Questions
Is an EIN the same as a PAN?
No. An EIN is a US federal tax ID from the IRS. A PAN is a income tax identification for individuals and entities from Income Tax Department of India in India. They are issued by different authorities in different countries for different purposes.
Do I need both an EIN and a PAN?
Only if you operate businesses in both the United States and India. Your EIN identifies your US business for IRS tax purposes. Your PAN identifies your India business for local tax purposes. Each number is valid only in its own jurisdiction.
Can I use my PAN instead of an EIN in the US?
No. The IRS does not accept foreign tax identification numbers for US tax reporting. If you operate a US business entity (LLC, corporation), you must obtain a separate EIN from the IRS regardless of whether you have a PAN in India.
How do India entrepreneurs get a US EIN?
India entrepreneurs can get a US EIN by submitting Form SS-4 to the IRS by fax. No SSN is required. Your India passport number serves as your identification. ein.so handles the entire process for $49 (Standard) or $97 (Express).
What format is a PAN?
A PAN uses a AAAAA9999A (5 letters + 4 digits + 1 letter) format. An EIN uses the XX-XXXXXXX format (9 digits with a hyphen after the second digit). The formats are different and not interchangeable.
Is an EIN valid in India?
No. An EIN is valid only for US federal tax purposes. It has no legal standing in India. Similarly, a PAN has no legal standing in the United States. Each country issues its own tax identification numbers.
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