What Is the National Industrial Classification Code (NIC Code) for Udyam Registration

When it comes to running an MSME (Micro, Small, and Medium Enterprise) in India, understanding the National Industrial Classification Code (NIC code) is crucial.

Whether you're applying for Udyam Registration or seeking financial support, this code plays a significant role.

In this article, we’ll break down what the NIC code is, why it matters for Udyam Registration, and how to choose the right one for your business.

What Is NIC Code? 

The NIC code is a system used to classify businesses and industries in India. It assigns a unique code to each type of business activity, helping the government and financial institutions accurately identify the nature of an enterprise.

This standardised NIC code system is widely used for statistical analysis, policy-making, and regulatory compliance.

For example, if you operate a textile manufacturing business, your NIC code will differ from that assigned to a software development company.

The NIC code list is comprehensive and covers nearly every industry, making it easier to categorise businesses effectively.

What Is the NIC Code in Udyam Registration? 

Udyam Registration is a government initiative to register and support MSMEs in India. During the registration process, you are required to provide your NIC code to specify the type of business activity you are engaged in. 

Importance of NIC Code in Udyam Registration 

The NIC code for businesses is a vital component of Udyam Registration, as it classifies enterprises based on their activities.

This classification helps the government identify, track, and categorise businesses across sectors, enabling targeted schemes, tax exemptions, and benefits.

Additionally, the NIC code simplifies the differentiation between similar businesses, ensuring proper categorisation and preventing delays in accessing benefits.

Accurate use of the NIC code not only streamlines registration but also ensures that MSMEs receive the right support to grow, in alignment with government objectives.

Ways to Identify the NIC Code 

Finding the correct NIC code for Udyam Registration is crucial for accurately classifying your business. The easiest way is to search the National Industrial Classification directory on the government’s official website. For specialised services like manufacturing, ensure you select the relevant sector-specific code for precise registration. 

Alternatively, use online NIC code search tools available on Udyam Registration portals, which guide you based on your industry type.

Why NIC Code Is Important for an MSME Owner 

As an MSME owner, the NIC code is your gateway to numerous benefits: 

• It helps you access government schemes and subsidies.
• It simplifies the process of applying for loans and grants.
• It ensures your business is recognised under the correct industry category.
• It aids in compliance with regulatory requirements.

The National Industrial Classification code list is extensive and covers a wide range of industries. In this list, every section is divided into ‘divisions’ with a 2-digit numeric code, every division into ‘groups’ with a 3-digit numeric code, every group into ‘classes’ with a 4-digit numeric code, and every class into 5-digit ‘sub-classes.’

For example:  

• Section: Agriculture, forestry, and fishing
• Division 01: Crop and animal production, hunting, and related service activities
• Group 011: Growing of non-perennial crops
• Class 0111: Growing cereals (except rice), leguminous crops, and oil seeds
• Sub-class 01111: Growing of wheat

Conclusion 

Understanding the National Industrial Classification Code (NIC code) is essential for every MSME owner. It not only simplifies the Udyam Registration process but also opens doors to numerous government schemes, tax benefits, and financial support.

If you’re exploring financial support options for your MSME, SMFG India Credit offers tailored, unsecured business loans of up to INR 75 lakhs* at competitive interest rates. Check your eligibility and apply online today to take the next step towards business growth.