What is a NIC Code for MSME Registeration?
A NIC (National Industrial Classification) code is a government-issued numerical code used to classify businesses based on their primary economic activity. It is mandatory during Udyam Registration to identify whether a business belongs to manufacturing, services, or trading sectors.
Brief History
In 1962, SIC or Standard Industrial Classification was introduced to categorise different industries. It was a 4-digit classification that was revised in 1970. The revisions were a result of major changes in the structure and setting of the industries. This revised system came to be known as NIC in 1970.
Post the 1970 revisions, the NIC rules kept on changing to help the classification stay relevant even in the changing economic circumstances. NIC 2008, was the most recent classification that is being followed until now.
Why NIC Code is Important for MSME
NIC Code plays a crucial role in MSME (Udyam) registration as it helps the government classify businesses based on their primary economic activity. This classification ensures that enterprises are correctly identified as micro, small, or medium businesses and are eligible for relevant schemes and benefits.
It is also important because:
- It helps in determining eligibility for government subsidies, loans, and MSME schemes
- It ensures proper industry-wise data collection for policy making
- It defines applicable rules, licenses, and compliance requirements
- It allows businesses to be correctly categorized under manufacturing, services, or trading sectors
Without a valid NIC code, MSME registration cannot be completed successfully, and businesses may miss out on government support and financial assistance.
NIC Code List for MSME
You can also find your NIC code on the Udyam registration portal. Here is a quick list of a few codes to understand your business categorisation.
| NIC Code List | Industries |
| A | Agriculture, fishing, and forestry |
| B | Mining & Quarrying |
| C | Manufacturing |
| D | Electricity, steam, gas, and air supply |
| E | Water supply and water management |
NIC Code for Manufacturing
NIC code lists for manufacturing are listed in section C.
Here are some examples of NIC codes from the manufacturing sector:
| Division | Manufacturing | NIC Codes |
| 10 | Food product manufacturing | 10101 to 10809 |
| 15 | Leather product and related manufacturing | 15111 to 15209 |
| 20 | Chemical and chemical items manufacturing | 20111 to 20304 |
NIC Code for Services
Here are some examples of NIC codes from the services sector:
Section J deals with computer programming and related activities. Here are some of the related NIC codes:
62013: offering software support and maintenance to customers.
62012: Designing webpage
How to find NIC Code for MSME Registration
Are you thinking of registering your company, filling out MSME registration or UDYAM registration? Well, you might need to find your NIC code first. There are several ways to find the NIC code of your business. Here are some of them:
- Using a NIC code search tool may help. You simply fill in relevant keywords related to your business type or activity.
- Try checking the NIC manual to understand which industry your business belongs to.
- You may also find your NIC code on your business registration documents.
- Scrolling on MSME websites with NIC codes can also help.
Common NIC Codes for Small Businesses
Here are some commonly used NIC codes for small businesses in India:
| Business Type | NIC Code |
| Grocery Store / Retail Shop | 47110 |
| Clothing & Garment Shop | 47711 |
| Restaurant / Food Service | 56101 |
| Bakery / Confectionery | 10712 |
| Beauty Parlour / Salon | 96020 |
| Web Design / IT Services | 62012 |
| Software Support Services | 62013 |
| Small Manufacturing Unit | 15111 – 15209 |
| General Trading Business | 46909 |
These codes help small businesses correctly register under MSME and access sector-specific government benefits and financial support.
What is NIC 4 Digit?
As mentioned, NIC 2008 is a 5-digit code. Here, the starting two digits are the classification of division, and the following three digits are the group division. The NIC 4 Digit is nothing but the class of the business.
Let’s understand this with an example.
Section G deals with retail trade except for the trade of bikes and motor vehicles. Let’s understand Division 47 and Group 471.
They further are classified into 4711, which is a retail sale in non-specialised stores.
4719 refers to other retail sales in non-specialized stores.
How to Generate Udyog Aadhar NIC Code
Here is a quick guide to help you understand how to generate your Udyog Aadhar NIC Code.
- Once you start filling out your Udyog Aadhar form, try and observe that the same is divided into several numerical sections. For instance, section 9 is for bank data.
- Now quickly find your NIC code using the keywords for your industry and fill the same.
- Once done, try submitting your 2-digit, 4-digit and 5-digit NIC code.
- You may also edit your previously incorrectly filled NIC code using Udyog Aadhar. Don’t forget to generate your acknowledgement for the same.
Conclusion
All in all, the NIC code can be considered of crucial importance in Udyam registration. Thus, it plays a huge role in classifying businesses and helping them find suitable financial aid, government support, and much more. This effective categorisation of business activities is not only helpful for businesses finding their pathways but also helps policymakers understand different businesses and their needs. This organised classification is of significant importance in ensuring the success of businesses.
FAQs
- How can choosing the wrong NIC code impact your business?
It is important to fill in the correct NIC code to ensure you successfully register your business. In case, you choose the wrong code, your business registration might get delayed or even cancelled. Therefore, make sure to check and fill in the correct code. You may use a NIC code search for the same.
- How do I find out if there are any updates in NIC codes?
You can easily find if there are any updates in the NIC codes on the website of the MSME ministry.
- How is NIC code important?
A NIC code classifies your business into different categories. Thus, helping the government to launch programs and benefits accordingly. It also classifies businesses in an organised manner to track relevant details of MSMEs.
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