NIC code

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National Industrial Classification or NIC Code

The National Industrial Classification Code is defined as a statistical standard for creating and keeping up a database of various economic activities that can be frequently compared to rule activities in an orderly fashion. NIC has been aimed at analysing the manner in which each economic activity contributes to national wealth.

The switch from the NIC 1987 version to the NIC 2008 was decided by the Department of Policy and Promotion on a release made in the year 2014. After that amendment, all Indian companies were advised/instructed to follow the code from the new NIC 2008 version.

The reason being that there is increased coherence of the NIC 2008 when it comes to the international system of classification. All this facilitates the compliance processes required for registration to take place in a hassle-free manner.

Uses of NIC Code

1) Registration on Udyam:

In order to enlist as a medium-sized, micro or small business that comes under the Micro, Small and Medium Enterprise Development Act, you can try applying for registration through the Udyam portal. A NIC code is required to be entered when applying for enterprise registration on the online portal of Udyam.

2) LLP/Company Registration:

You will have to register on the online portal of the Ministry of Corporate affairs with your LLP or company in case you wish to incorporate that LLP or company. All this requires a NIC code to be registered.

Importance of NIC Code for MSME Registration

NIC code is important for the registrations under Udyog Aadhar. You will need to submit legal details like the nature of the business, activities of MSME Unit, aadhar card number, district industry centre, postal address, bank details, name of entrepreneur and enterprise, email address, phone number, and NIC Code. An applicant can easily fill all the details mentioned above in the form, but the confusion lies in filling NIC code. All these details can be easily procured, but the problem lies in entering the right NIC code since most people tend to submit the wrong ones.

The NIC Code for MSME is a system that helps to differentiate & smoothen the economic activities carried out by various medium, micro, and small enterprises.

Advantages of NIC for Udyog Aadhaar Registration

Following are the benefits of having your enterprise’s NIC Code for registration under the Udyog Aadhaar Scheme:

A number of benefits under Govt. schemes can be availed of by entrepreneurs under the Udyog Aadhar Scheme, such as loans without guarantee, loans having lower interest rates, secured loaning, etc.
Financial aid is offered to registered MSMEs who showcase their products by registering in foreign exhibitions.
Subsidies given by the Government can be availed by applicants of this scheme.
Processing of bank accounts that are being created in the name of the business becomes easier if MSME Registration is done.
Business faculties can apply for additional schemes & micro business loans due to this scheme.

Checklist of Documents Required for MSME Application

Following are the documents that an applicant must submit for Udhyog Aadhaar Registration:

Aadhaar Number and Aadhar details of the applicant,
Applicant’s name according to their Aadhaar Card,
Enter the section(Category) the applicant belongs to, i.e., Open category / SC or Scheduled Cast / ST or Scheduled Caste / OBC or Other Backward Castes,
Name of the company under which the business is being directed. A candidate can have a number of undertakings, and each one of them can be enlisted exclusively with the same Aadhaar No. for a different Udyog Aadhaar,
Indicate the kind of your business faculty or a legitimate substance like Co-Operative, LLP, Hindu Undivided Family, Pvt. Ltd. Company, Proprietorship, Public Limited Company, Self Help Group, Partnership Firm, and others too,
Number of employees in your business,
Nearest District Industry Center (DIC) to their business,
National Industrial Classification or NIC Code for MSME,
Bank details of the business, like bank account number and IFSC Code,
Key operational sections of the company/entity like service or manufacture,
Postal location of the company so that you can be communicated with. All this along with email address and contact numbers.

Procedure to enter NIC Code for Online MSME Registration

Once you’ve completed previous steps of registration on the MSME portal, you must follow these steps while filling the NIC Code:

To fill it, conduct a simple NIC Code search by entering a keyword, or
Choose the other facility, where you get to choose an economic activity such as service or manufacturing. Then put two-digit, four-digit or five-digit NIC codes. Suppose, by mistake, one enters the NIC Code incorrectly, then also they have the option to correct or edit their response in Udyog Aadhaar and then get their resultant acknowledgement.

FAQs about NIC Code

✅ What does the NIC Code look like?

It is a numeric pin in the form of a 2 or 3 digit, a 4 digit, and a 5 digit number. Two-digit codes/Three-digit codes usually represent the section pertaining to business activity; four-digit code represents a class of business activity while five-digit code stands for sub-class of business activity.

✅ How do I get my NIC code from MSME?

The NIC code for the business activity can be taken easily from the online portal of MSME, i.e., msmeregistrar.org.

✅ Who cannot register under MSME?

Individual applicants cannot register for MSME since this registration is made for businesses and enterprises only. However, an applicant can register if they’re a one-person company or if they’re one in small scale industries who want to register.