The NIC Code for Udyam Registration is an important aspect for any business looking to register as an MSME in India. NIC stands for National Industrial Classification, and this system helps identify and classify businesses based on the industrial activities they perform. In this article, we will explain every section in detail, making it easier for you to understand how to use the NIC Code for Udyam Registration and why it matters for your enterprise.
What is a NIC Code?
The full form of NIC code is National Industrial Classification code. This is a unique identification number assigned to different industries operating in India. It defines the main sector and sub-sector your business belongs to. For example, whether you operate in manufacturing, services, trading, or another industry, the NIC Code will reflect your primary business activity. This five-digit code plays an important role when registering under the Udyam portal to avail MSME benefits. By using this code, the government can track the kind of business activities taking place in the country and offer sector-specific support and schemes.
NIC Code List: Sections Under NIC Code 2008
Currently, the NIC Code list used is the NIC 2008 version. This updated system replaced the older NIC 1987 version. It categorizes activities hierarchically into Sections (A to U), Divisions, Groups, Classes, and Sub-classes. There are 21 main sections, each representing a major area of economic activity, such as agriculture, manufacturing, or services. Below is the overview of the sections and the industries they cover:
Sections as per NIC code |
Industries |
A |
Agriculture, forestry and fishing |
B |
Mining and quarrying |
C |
Manufacturing |
D |
Electricity, gas, steam and air condition supply |
E |
Water supply, sewerage, waste management |
F |
Construction |
G |
Wholesale and retail trade; repair of motor vehicles and motorcycles |
H |
Transport and storage |
I |
Accommodation and food service activities |
J |
Information and communication |
K |
Financial and insurance activities |
L |
Real estate activities |
M |
Professional, scientific and technical activities |
N |
Administrative and support service activities |
O |
Public administration and defence; compulsory social security |
P |
Education |
Q |
Human health and social work activities |
R |
Arts, entertainment and recreation |
S |
Other service activities |
T |
Activities of households as employers; undifferentiated goods and services-producing activities of households for own use |
U |
Activities of extraterritorial organizations and bodies |
These sections are broken down further into Divisions (2-digit code), Groups (3-digit code), Classes (4-digit code), and Sub-classes (5-digit code). This classification helps the government manage and organize industry data efficiently.
What is NIC 4 Digit?
The NIC 4-digit code refers to the Class level within the NIC Code system. For example, let’s look at Division 13 (Manufacture of textiles), which belongs to Section C (Manufacturing):
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Division 13, Group 131: Spinning, weaving and finishing of textiles
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Class 1311: Preparation and spinning of textile fibres
Each class is then subdivided into specific activities using a 5-digit Sub-class code. For example:
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Sub-class 13111: Preparation and spinning of cotton fibre including blended cotton
This structured format allows businesses to identify the most accurate category for their activities, which is important during Udyam Registration.
How Do I Find My NIC Code?
To find your NIC Code for Udyam Registration, you should visit the official Udyam portal (https://udyamregistration.gov.in/). On the homepage, you will see a section labeled "NIC Code." Clicking on this link will open a PDF document listing all available NIC codes. You can scroll through the document or use the search function (Ctrl + F) to locate your business activity. This code is essential during the online registration process because it tells the government what type of activity your MSME engages in.
NIC Code List for Services Sector
For businesses operating in the services sector, the following is a detailed NIC code reference:
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Computer programming, consultancy and related activities fall under:
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Section J: Information and communication
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Division 62: Computer programming, consultancy and related activities
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Group 620: Computer programming, consultancy and related activities
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Class 6201: Computer programming activities
Sub-classes under Class 6201 include:
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62011: Writing, modifying, testing of computer programs to meet the needs of a particular client excluding webpage designing
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62012: Webpage designing
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62013: Providing software support and maintenance to the clients
Each of these codes is specific and helps accurately reflect the nature of the services provided.
NIC Code for Manufacturing Sector
The manufacturing sector, classified under Section C, has several divisions, each covering a range of industries. Here’s the detailed breakdown:
Division |
NIC Code |
Division 10 |
Manufacture of food products - 10101 to 10809 |
Division 11 |
Manufacture of beverages - 11011 to 11049 |
Division 12 |
Manufacture of tobacco products - 12001 to 12009 |
Division 13 |
Manufacture of textiles - 13111 to 13999 |
Division 14 |
Manufacture of wearing apparel - 14101 to 14309 |
Division 15 |
Manufacture of leather and related products - 15111 to 15209 |
Division 16 |
Manufacture of wood and products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials - 16101 to 16299 |
Division 17 |
Manufacture of paper and paper products - 17011 to 17099 |
Division 18 |
Printing and reproduction of recorded media (This Division excludes publishing activities, see Section J for publishing activities) - 181111 to 18200 |
Division 19 |
Manufacture of coke and refined petroleum products - 19101 to 19209 |
Division 20 |
Manufacture of chemicals and chemical products - 20111 to 20304 |
Division 21 |
Manufacture of pharmaceuticals, medicinal chemicals and botanical products - 21001 to 21009 |
Division 22 |
Manufacture of rubber and plastic products - 22111 to 22209 |
Division 23 |
Manufacture of other non-metallic mineral products - 23101 to 23999 |
Division 24 |
Manufacture of basic metals - 24101 to 24320 |
Division 25 |
Manufacture of fabricated metal products, except machinery and equipment - 25111 to 25999 |
Division 26 |
Manufacture of computer, electronic and optical products - 26101 to 26800 |
Division 27 |
Manufacture of electrical equipment - 27101 to 27900 |
Division 28 |
Manufacture of machinery and equipment n.e.c - 28110 to 28299 |
Division 29 |
Manufacture of motor vehicles, trailers and semi-trailers - 29101 to 29304 |
Division 30 |
Manufacture of other transport equipment - 30111 to 30999 |
Division 31 |
Manufacture of furniture - 31001 to 31009 |
Division 32 |
Other manufacturing - 32111 to 32909 |
Division 33 |
Repair and installation of machinery and equipment - 33111 to 33200 |
NIC Code for Retail Shops
Retail businesses that don’t involve motor vehicles and motorcycles fall under Section G, Division 47. Here’s the classification breakdown:
Group |
Class |
Subclass |
Description |
471 |
4711 – Retail sale in non-specialised stores |
47110 |
Retail sale in non-specialized stores with food, beverages or tobacco predominating |
4719 – Other retail sale in non-specialised stores |
|
47190 |
Other retail sale in non-specialised stores |
4721 – Retail sale of food, beverages and tobacco in specialised stores |
|
47211 |
Retail sale of cereals and pulses, tea, coffee, spices and flour |
|
|
47212 |
Retail sale of fresh or preserved fruit and vegetables |
|
|
47213 |
Retail sale of meat, meat products, poultry products, fish, other seafood and products thereof |
|
|
47214 |
Retail sale of bakery products, dairy products and eggs |
|
|
47215 |
Retail sale of sugar confectionery and sweetmeats |
|
|
47219 |
Retail sale of other food products n.e.c. |
4722 – Retail sale of beverages in specialised stores |
|
47221 |
Retail sale of alcoholic beverages not consumed on the spot |
|
|
47222 |
Retail sale of non-alcoholic beverages including ice cream not for consumption on the premises |
These detailed categories ensure that retail businesses can correctly register under the right NIC Code for Udyam Registration.
NIC Code for Trading
Retail and wholesale trading became eligible for MSME benefits in 2021. Here is the NIC code structure for trading businesses:
Division |
NIC Code |
Division 45 |
Wholesale and Retail trade and repair of motor vehicles and motorcycles - 45101 to 45403 |
Division 46 |
Wholesale trade except of motor vehicles and motorcycles - 46101 to 46909 |
Division 47 |
Retail trade, except of motor vehicles and motorcycles - 47110 to 47990 |
For example, NIC Code 47300 refers to the retail sale of automotive fuel in specialised stores, such as petrol pumps.
Importance of NIC Code for Udyam Registration
The NIC Code for Udyam Registration is more than just a formal requirement. It acts as a unique identifier for businesses, helping the government provide targeted benefits and schemes. When you register under Udyam, the NIC Code ensures your business is properly classified and eligible for specific sectoral advantages. Whether it’s tax benefits, subsidies, or easier access to credit, the NIC Code links you to relevant government support.
Conclusion
The NIC Code for Udyam Registration is an important part of the MSME registration process in India. It not only identifies and classifies your business but also enables access to valuable government schemes and financial support. Whether you run a manufacturing unit, a service-based enterprise, or a trading firm, selecting the correct NIC Code is essential for compliance and growth. Make sure to visit the official Udyam portal to find the appropriate code for your business and ensure smooth registration. Proper classification helps streamline access to benefits and aligns businesses with government goals for economic development.
If you need any support or have any queries related to NIC code or Udyam Registration, feel free to contact Compliance Calendar LLP experts through email at info@ccoffice.in or Call/Whatsapp at +91 9988424211.
FAQs
Q1. What is the purpose of the NIC Code in Udyam Registration?
Ans. The NIC Code (National Industrial Classification Code) is used to identify and classify the business activities of an enterprise registering as an MSME under the Udyam portal. It helps the government track the nature of business activities in the country, allowing businesses to qualify for sector-specific benefits, subsidies, credit schemes, and incentives. Without the correct NIC Code, a business may face delays or miss out on government programs designed for its sector.
Q2. How can I find the correct NIC Code for my business?
Ans. To find the correct NIC Code for your business, visit the official Udyam Registration portal (https://udyamregistration.gov.in). On the site, you will find a link to the NIC Code list PDF. You can browse the list manually or use the search function (Ctrl + F) to look up keywords related to your business activities. It’s important to select the code that best matches your main activity to ensure proper classification.
Q3. Can I use multiple NIC Codes if my business has more than one activity?
Ans. Yes, if your business operates in multiple sectors or offers a combination of products and services, you can include multiple NIC Codes during Udyam Registration. This ensures that all aspects of your business are correctly represented and makes you eligible for related government schemes. Be careful to prioritize the main business activity first, followed by the secondary ones.
Q4. Why is it important to select the right NIC Code during Udyam Registration?
Ans. Selecting the correct NIC Code is crucial because it directly affects your business’s eligibility for sector-specific schemes, tax benefits, subsidies, and financial support. It also ensures compliance with government classifications and avoids potential issues during audits or inspections. An incorrect NIC Code can result in rejection or cancellation of benefits, so businesses should be precise and careful during registration.
Q5. Are retail and wholesale traders eligible to register with NIC Codes under Udyam?
Ans. Yes, since 2021, retail and wholesale traders have been allowed to register as MSMEs under the Udyam portal. This inclusion enables them to use appropriate NIC Codes (such as under Division 45, 46, or 47) to qualify for MSME-related schemes, including access to priority sector lending under RBI guidelines. Traders must ensure they choose the correct codes matching their trading activities.
Q6. Where can I get the full NIC Code list for MSME registration?
Ans. The full NIC Code list can be accessed directly from the official Udyam Registration portal. Look for the section labeled “NIC Code” or visit the downloadable PDF link available on the portal. Additionally, the National Classification System (NCS) website at https://ncs.gov.in also provides the full code directory for businesses to refer to while completing their registration.
Q7. What happens if I enter the wrong NIC Code during Udyam Registration?
Ans. If you enter the wrong NIC Code, it can lead to misclassification of your business, making you ineligible for certain schemes, subsidies, or sectoral benefits. It may also cause delays or complications during verification or government assessments. Therefore, it’s recommended to double-check the NIC Code carefully before submission. If you realize an error later, you should promptly update or modify your Udyam registration details through the official portal.