If implemented effectively, PAN 2.0 could pave the way for an enterprise DigiLocker—a secure digital repository for storing government-issued licences, registrations, and permits
India’s complex regulatory landscape is set for a significant transformation with the introduction of PAN 2.0, a unified business identifier aimed at streamlining compliance and reducing bureaucratic hurdles for entrepreneurs. Currently, businesses in India juggle over 23 different identifiers issued by various central and state authorities. Common identifiers include PAN, GSTN, CIN, TAN, and Factory Licence Number, each with distinct lifecycles and renewal processes, creating unnecessary complexity.
Rishi Agrawal, CEO and Co-Founder of TeamLease, highlights the inefficiency caused by this multi-identity system. “What India truly needs is a unified identity system, akin to Aadhaar for citizens. The absence of a single, unified identifier is a major obstacle to creating a paperless, presence-less and cashless compliance ecosystem,” Agrawal explains. The proposed PAN 2.0 aims to serve as a common business identifier, simplifying compliance by acting as a single source of truth for businesses.
If implemented effectively, PAN 2.0 could pave the way for an enterprise DigiLocker—a secure digital repository for storing government-issued licences, registrations, and permits. Such a system could dramatically ease regulatory compliance. “A factory application can currently require thousands of sheets of paperwork across more than 40 government departments. By implementing a common business identifier alongside a tamper-proof and authenticated document repository, approvals could become significantly faster,” Agrawal adds. This system could streamline regulatory inspections, enhance transparency, and significantly reduce the reliance on paper-based filings, alleviating what Agrawal refers to as “regulatory cholesterol.”
In addition to simplifying compliance for businesses, PAN 2.0’s integration of QR codes adds a new layer of security to identity verification processes. Abhishek Saxena, MD and Co-Founder of Omnicard, believes this upgrade is crucial in the fight against fraud. “The introduction of PAN 2.0 with QR codes is a game-changer for India’s identity verification system. By making PAN data easily scannable and securely encrypted, this upgrade makes it much harder for fraudsters to misuse personal information,” he states. The QR codes, directly linked to government databases, enable quick and accurate identity verification, significantly reducing the risk of identity theft and payment scams.
For individuals and businesses alike, the enhanced security features of PAN 2.0 promise smoother interactions with government agencies and a safer digital payment environment. “It’s a step toward a future where managing your finances and personal details online is not only simpler but also safer,” Saxena notes.
With the dual focus on reducing regulatory burdens and enhancing security, PAN 2.0 could mark a pivotal shift in India’s compliance ecosystem. If executed well, it holds the potential to make doing business in India more efficient, transparent, and secure, benefiting both businesses and the broader economy.