Do Not Call
Understanding the National Industrial Classification (NIC) Code is essential for your Udyam registration. This code categorises your business activity, ensuring accurate classification under the Micro, Small, and Medium Enterprises (MSME) framework. By selecting the correct NIC Code, you align your enterprise with government records, facilitating access to various benefits and schemes.
The NIC Code is a numeric system developed by the Ministry of Statistics and Programme Implementation (MoSPI) to classify economic activities in India. It provides a uniform framework for collecting and analysing statistical data related to businesses. The current version, NIC 2008, aligns with international standards, ensuring consistency in economic data reporting.
When registering your business under the Udyam system, selecting the appropriate NIC Code is crucial. It determines your business category and eligibility for various government schemes. Accurate classification ensures that your enterprise receives the benefits and support designed for its specific sector.
NIC Codes are structured hierarchically to provide detailed classification:
Sections: Broad categories denoted by letters (A to U).
Divisions: Two-digit codes representing major industry groups.
Groups: Three-digit codes for specific industry segments.
Classes: Four-digit codes detailing particular activities.
Subclasses: Five-digit codes offering precise activity descriptions.
For example, a business involved in manufacturing textiles would fall under:
Section C: Manufacturing
Division 13: Manufacture of textiles
Group 131: Spinning, weaving, and finishing of textiles
Class 1311: Preparation and spinning of textile fibres
Subclass 13111: Preparation and spinning of cotton fibre, including blended cotton
Identifying the correct NIC Code for your business is a crucial step in completing your Udyam Registration. It ensures your enterprise is classified accurately, helping you access the right regulatory and financial benefits. You can find your NIC Code using the following methods:
1. Search via Official Udyam Portal
The Udyam Registration portal provides a built-in search feature to help you locate the correct NIC Code. Here's how to use it:
Visit the official portal (https://udyamregistration.gov.in/)
Click on “NIC Code List” or begin your registration process
Enter keywords related to your business activity (e.g., garment manufacturing, IT services)
Select the most accurate subclass code from the suggestions
2. Refer to the NIC 2008 Code List (PDF)
The Ministry of Statistics and Programme Implementation (MoSPI) has published a detailed NIC 2008 document that includes a hierarchical list of all available codes:
You can download the complete NIC 2008 PDF (https://udyamindia.in/assets/udyam-NIC-code-list.pdf).
This document shows codes from broad sections (A to U) to specific 5-digit subclasses.
Review both your primary and any secondary business activities to determine applicable codes.
3. Use Online NIC Code Tools
Third-party business registration websites such as Corpbiz, MSME Registrar, and Kinara Capital offer interactive NIC code finders:
Input your business type or keywords.
Get results with division, class, and subclass codes.
Confirm that the codes match your operational activities before submission.
4. Seek Professional Guidance
If your business operates in a niche or has overlapping activities, consider consulting with Chartered Accountants Company Secretaries MSME consultants. They can help you assign a primary and secondary NIC Code, especially when multiple codes may apply.
The NIC Code is not just for Udyam Registration; it is used across various government and regulatory platforms. Here are some key areas where NIC Codes are applied:
1. Udyam/MSME Registration
NIC Codes are compulsory for classifying your business in the MSME database. The selected code determines sector-based eligibility for benefits like:
Interest subsidies
Collateral-free loans
Subsidised electricity
Preferential procurement policies
2. Company Incorporation (MCA SPICe+ Forms)
When registering a company through the Ministry of Corporate Affairs, you must include the NIC Code to define the principal business activity. This helps regulators assign industry-specific compliance norms.
3. Goods and Services Tax (GST) Registration
NIC Codes correlate with HSN (Harmonised System of Nomenclature) and SAC (Services Accounting Code) classifications. Accurate NIC input simplifies GST returns and reduces the risk of mismatch or scrutiny.
4. Filing Income Tax Returns (ITRs)
In ITR forms (especially ITR-3, ITR-4), taxpayers engaged in business or profession must provide the appropriate business code, which is derived from NIC Codes. This helps the Income Tax Department assess sector-wise tax data.
5. Government Subsidy & Incentive Applications
Government schemes such as the Credit Linked Capital Subsidy Scheme (CLCSS), MUDRA loans, and state-specific industrial incentives rely on NIC Code-based classification to filter eligible applicants.
6. Tenders & Procurement Portals
Portals like GeM (Government e-Marketplace) and eProcurement systems use NIC codes to match suppliers with relevant tenders and procurement categories.
Here is a reference table with sample NIC Codes for some commonly registered business activities in India. These codes are frequently used during Udyam Registration:
Business Activity |
NIC Code |
Industry Type |
|---|---|---|
Retail sale in non-specialised stores |
47110 |
Trade – Retail |
Manufacture of jewellery |
32111 |
Manufacturing – Precious Metals |
IT consultancy and software services |
62020 |
Information Technology |
Road transport (freight) |
49231 |
Transport & Logistics |
Restaurant and mobile food services |
56101 |
Food & Beverage |
Tuition or coaching centres |
85500 |
Education Services |
Advertising agencies |
73100 |
Professional Services |
Event management services |
82300 |
Business Support Services |
Manufacture of garments |
14101 |
Manufacturing – Textiles |
Yoga and fitness centres |
93199 |
Other Personal Services |
Note: Always verify whether your business activity falls under a subclass code with a 5-digit format for better precision in your Udyam application.
Selecting the appropriate NIC Code during Udyam Registration is not merely a formal requirement. It serves as the basis for accurate MSME classification, legal recognition, and eligibility for financial incentives. It plays a significant role in determining how your enterprise is taxed, regulated, and supported under various government schemes.
Take time to carefully assess your business's main revenue-generating activity, consult the NIC Code directory or a professional if needed, and ensure your selection is accurate. You can update your NIC Code as your business evolves. Keeping your records aligned with operations is key to staying eligible for benefits and remaining compliant.
The NIC Code (National Industrial Classification Code) is a numeric code used by the Indian government to classify business activities. It helps in identifying the nature of your business for records, schemes, and statistics.
A 4-digit NIC Code gives a more detailed classification than the broad 2-digit or 3-digit codes. For example, code 5610 refers to food service, but 56101 specifically refers to full-service restaurants.
NIC Code 25999 stands for “Manufacture of other fabricated metal products not elsewhere classified.” This includes custom metalwork not part of a larger standardised category.
NIC Code 49231 is used for “Urban or suburban passenger land transport,” such as city buses and commuter vans.
To choose the right NIC Code:
List your business activities.
Match these activities with the NIC descriptions in the official NIC Code list (NIC 2008).
Choose the code that best represents your primary business.
Yes, selecting the correct NIC Code is mandatory for Udyam registration. It ensures your enterprise is accurately classified and eligible for MSME schemes.
You can find your NIC Code by:
Visiting the Udyam registration portal.
Searching for your business activity.
Using government-issued NIC Code PDFs or lookup tools.
You may also consult an accountant or registration consultant.
Once registered, your business receives a 12-digit Udyam registration number. This is a unique ID linked to your enterprise, used for verification and accessing MSME benefits.
Yes. If your business activity changes or was misclassified earlier, you can modify the NIC Code by updating your Udyog Aadhaar details through the Udyam portal.
Yes, Udyam allows updates. Simply log in to your account and select the “Update” option. You can edit the NIC Code to match your current business activity.
There are no strict prerequisites, but you must:
Understand your core business activity.
Find the most suitable NIC Code that reflects it.
Use this code consistently in Udyam and related filings.
No. NIC Codes differ based on the type and nature of the business. A manufacturing unit, for example, will have a different NIC Code than an IT consulting firm.
Academy by Bajaj Markets
11324
Navigate the tax maze with ease! Uncover Income Tax 101, demystify jargon with Terms for Beginners, and choose between Old or New Regimes.
6899
Unlock the world of credit! From picking the perfect card to savvy loan management, navigate wisely.
1798
Money Management and Financial Planning covers personal finance basics, setting goals, budgeting...
2448
Explore the investment cosmos! From beginner's guides to sharp-witted strategies, explore India's treasure trove of options.
212
Discover essential insights on various types of insurance in India.
1313
Welcome to Tech in Finance, where we explore the exciting intersection of technology and finance...
