The NIC Code, or National Industrial Classification Code, is a crucial statistical standard designed to examine and compare each corporate entity’s contribution to the development of the Indian government’s assets. To assess economically active population and its conveyance, arrange different sorts of labour, work insights of various fields, and other financial information, such as national salary, accumulative data from many enterprises is employed. NIC Code evaluates and analyses statistical data from a variety of sources, which is necessary for the standardisation of an economic classification system. The importance of the NIC Code for MSME Registration is highlighted in this blog.
What is Udyog Aadhaar, and how does it work?
Under the MSMED Act of 2006, micro, small, and medium-sized firms in India are given a free registration called Udyog Aadhaar. NIC Code is required for Udyog Aadhaar Registration applicants.
Registration as a Limited Liability Partnership (LLP) or a Corporation
During LLP formation, the applicant must register the proposed company or LLP on the MCA’s official website (Ministry of Corporate Affairs). As a result, the business’s NIC Code is a must-have.
The significance of the NIC Code in MSME registration under Udyog Aadhaar
When registering a Micro, Small, and Medium Enterprise under the Udyog Aadhaar programme, a NIC is necessary. Aadhar card number, name of the entrepreneur and enterprise, nature of the firm, MSME Unit activities, phone number, email address, postal address, bank details, district industry centre, and NIC Code must all be filled out.
The applicant may simply fill in all of the above-mentioned facts in the form, but the NIC code is where the applicant gets stuck. Applicants are frequently unsure of the National Industrial Classification code for their Micro, Small, or Medium-Sized Enterprise.
The NIC Code in MSME is a categorization system that allows one to categories the various Micro, Small, and Medium Enterprises’ business operations. It is a numeric code that can be two to three digits long, four digits long, or five digits long. 2-3 digit codes reflect a collection of business activities, a four-digit code represents a business activity class, and a five-digit code denotes a business activity subclass.
Udyog Aadhaar Registration Benefits
The government’s Udyog Aadhaar initiative aims to boost the growth of small companies. It is a perfect substitute for MSME or SSI registration. The MSME industry is becoming increasingly organized and systematized, with over two lakhs enterprises registered. Consider the following advantages of having a NIC code for MSME registration under Udyog Aadhaar:
- Udyog Aadhaar Registration provides an entrepreneur with a number of government-sponsored incentives, including lower-interest loans, secured loans, and loans without a guarantee, among others.
- MSMEs that are registered are also eligible for financial assistance when they exhibit their products at international trade shows.
- The holder of an Udyog Aadhaar card is eligible for government subsidies.
- MSME Registration facilitates the opening of bank accounts in the name of the company.
- It enables businesses to apply for micro-loans and other programmes.
List of MSME NIC Codes
The government has introduced NIC Codes for registering a company/LLP or obtaining an Udyog Aadhaar. This link will take you to the complete list. The following is a list of NIC codes.
- Education’s NIC Code is: NIC Codes for the education sectors are found in Section P, Division 85 of the National Industrial Classification 2008. Primary education codes are found in Group 851, whereas secondary education codes are found in Group 852. There are also codes for higher education in Group 853, various education sectors in Group 854, and educational support services in Group 855.
- NIC Code for Extraterritorial Bodies and Organizations Activities: NIC Codes for Extraterritorial Organizations and Bodies are found in Section U, Division 99 of NIC-2008. The actions of international organisations such as the World Bank, the United Nations and its agencies, the IMF, OPEC, the European Commission, and others are included in this category. 99000 is the code for these.
- Hairdressing and Beauty Treatment NIC Code: Hairdressing and beauty therapy for men and women, such as shaving, beard trimming, hair straightening, cutting, colouring, trimming, waving, and tinting, are covered by Section S, Division 96 of the NIC-2008. This section also includes other related activities such as face massage, manicure, pedicure, and cosmetics. 96020 is the code assigned to these activities.
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