NIC codes, also known as National Industrial Classification codes, are used to classify businesses or economic activities based on their primary activity. The Ministry of Micro, Small, and Medium Enterprises (MSMEs) in India has made it mandatory for businesses to mention their NIC code during Udyam registration. Udyam registration is a government registration process that is required for businesses to avail of benefits and subsidies provided by the government.
The following are the NIC codes that can be selected during UDYAM registration:
- Agriculture and Allied Activities
- Manufacturing
- Service Enterprises
- Micro Enterprises
- Small Enterprises
- Medium Enterprises
Under each category, there are several subcategories with specific NIC codes that correspond to specific industries or economic activities. Businesses must select the appropriate NIC code that matches their primary economic activity.
Where will a NIC Code be Used?
NIC code, also known as National Industrial Classification code, is used to identify and classify the primary economic activity of a business. This code is used by various government agencies, including the Ministry of Micro, Small and Medium Enterprises (MSMEs), to track and monitor the performance of businesses in various sectors.
NIC codes are also used by banks and financial institutions to determine the eligibility of businesses for loans and other financial services. It is also used by various government bodies to offer subsidies, incentives and other benefits to eligible businesses. In addition, NIC codes are also used by trade associations and industry bodies to gather data and statistics related to specific industries or economic activities.
Therefore, it is important for businesses to select the appropriate NIC code that matches their primary economic activity during registration. This will ensure that they are able to avail of the benefits and subsidies provided by the government, and also help them in their future interactions with government agencies and financial institutions.
What Function Does the NIC Code Have in the Registration of MSME Under Udyog Aadhaar?
The NIC (National Industrial Classification) code plays a crucial role in MSME (Micro, Small and Medium Enterprises) registration under Udyog Aadhaar. Udyog Aadhaar is a government registration process that enables MSMEs to avail of various benefits and subsidies offered by the government.
During the Udyog Aadhaar registration process, businesses are required to select an appropriate NIC code that corresponds to their primary economic activity. The NIC code is used to classify the business based on its economic activity, and it helps the government in monitoring and tracking the performance of MSMEs in various sectors.
The NIC code also helps in the allocation of subsidies, incentives and other benefits offered by the government to eligible MSMEs. For instance, the government has various schemes such as Credit Guarantee Fund Scheme, Prime Minister’s Employment Generation Programme (PMEGP), etc. which provide financial assistance to MSMEs. The allocation of such schemes is largely based on the NIC code mentioned during the Udyog Aadhaar registration.
Therefore, selecting the appropriate NIC code is critical for MSMEs to avail of the benefits and subsidies provided by the government. It also helps in providing accurate data and statistics related to specific industries or economic activities, which can aid in policy-making and planning at the government level.
For MSME/Udyam registration, where can I locate my NIC code?
To find the appropriate NIC (National Industrial Classification) code for MSME/Udyam registration, you can follow the below steps:
- Visit the official website of the Ministry of Micro, Small and Medium Enterprises (MSME) Click on the “NIC Code” button on the registration page.
- Enter the description of the product or service that your business provides in the search bar.
- The search results will display a list of NIC codes related to the product or service. Select the appropriate NIC code that matches your primary economic activity.
Suggested Read: Udyam Registration Online
Alternatively, you can also visit the official website of the Ministry of Statistics and Programme Implementation to search for the appropriate NIC code. You can enter keywords related to your product or service and the search results will display a list of NIC codes related to the keywords entered.
It is important to select the appropriate NIC code that matches your primary economic activity during the MSME/Udyam registration process as it helps in availing of the benefits and subsidies provided by the government.