NIC Code – the National Industrial Classification Code.
NIC is crucial for those looking to start a business, participate in various government schemes, or for registering a company on the Udyam portal. Originally, the NIC Code system was designed to easily identify businesses based on various industrial activities that happen in their enterprises. It is important for India’s economic growth as it brings in transparency, boosts efficiency, and streamlines business operations. It aids precise classification of the economic activities taking place in the country.
What is the NIC Code?
The National Industrial Classification Code was developed by the Ministry of Statistics and Programme Implementation (MoSPI) and the Central Statistical Office (CSO).
- NIC classification code is given to various industries in India and this unique 5-digit NIC code helps determine the nature of the business and the sector and sub-sector to which a company belongs.
- The business activities are grouped in Sections Alphabetically (from A to U). Each Section is divided into Divisions having 2-digit numeric code. Each Division is further divided into Groups having 3-digit numeric code. Each Group into Class having 4-digit numeric code, which is further divided into Subclass having 5-digit numeric code.
- On 26th June 2014, there was a switch from NIC 1987 to NIC 2008. Since 2014, NIC 2008 has been in use. Today, all the businesses in India are classified and categorized according to NIC 2008.
NIC Code List
Here is the NIC Code list showing the various Sections assigned to each industry. This NIC Code list helps categorization of their businesses depending on the industry which they belong to.
| Section
(According to NIC 2008 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 defense; 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 |
Breakdown into Subclass level 5-Digit Code for Manufacturing
Here is an example of a structure divided into a 5-digit subclass level.
| Level | Description |
| Section C | Manufacturing |
| Division 13 | Manufacture of textiles |
| Group 139 | Manufacture of other textiles |
| Class 1392 | Manufacture of made-up textile articles, except apparel |
| Subclass 13926 | Manufacture of blankets |
How to find your NIC code?
When filling up the registration form for your business for Udyam registration or any other purpose, NIC Code will be asked. The NIC Code helps the government to determine the type of your business.
If you want to do a NIC Code search on the Udyam portal, follow the steps given below.
Step 1: Visit the Udyam registration portal (https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm)
Step 2: Click on the NIC Code option at the top of the home page.
Step 3: A pdf file will open on your screen. (https://udyamregistration.gov.in/docs/NIC-code-for-MSME-classification-definition.pdf)
Step 4: Find the Section that classifies your business in the pdf file.
Step 5: Trace the Division, Group, Class and Subclass according to the nature of your business.
Step 6: Note down the NIC Code written against the Subclass.
Steps to Apply for NIC Code for MSME Registration
If you want to register your business then NIC Code is needed. Along with the NIC Code, you will also require the Name of the company and entrepreneur, Aadhaar Number, business operation of the MSME unit, contact number, postal address, and bank details.
Here are the various steps to follow for filling out the NIC Code for MSME Registration.
- Step 1: Perform a quick NIC Code search by entering a keyword.
- Step 2: You can follow an alternative approach by selecting a business operation such as transport and storage, and then entering two-digit- four-digit, and five-digit codes.
- Step 3: If an incorrect NIC Code is entered, it is possible to rectify it in Udyog Aadhaar and generate an acknowledgement.
- Step 4: The NIC Code must be entered only from the National Industrial Classification Handbook 2008.
- Step 5: Applicants for MSME Registration can select more than one NIC Code 2008 to include all their business activities.
Also Read: MSME Registration in India: Procedure, Documents Required
Where is the NIC Code required (used)?
There are several uses of NIC Code. These include:
| Use | Description |
| Company and LLP Registration | For a business entity to register as a Company or Limited Liability Partnership (LLP), registration with the Ministry of Corporate Affairs (MCA) is a must. During registration, the NIC Code of the Company is required. |
| Udyam Registration | As per the Micro, Small, and Medium Enterprises Development Act, 2006. Micro, small, and medium-sized enterprises (MSMEs) in India need to obtain MSME Udyam registration.
During the Udyam registration procedure, businesses need to provide the exact 5-digit NIC Code. This helps in accurate categorisation and hassle-free identification of various businesses. |
| Government policies and planning | NIC Codes helps the Government in the formulation of various policies for businesses.
It also helps in understanding economic growth and the progress made by each specific sector. |
| Economic research and analysis | NIC Codes are used by economic researchers and data analysts to dive into specific sectors, chart the economic growth, track patterns, and analyze economic activities. |
| Studies of various industries and data gathering | NIC Codes are used for data collection, This ensures uniform classification and reporting during surveys. |
At present, all companies follow NIC 2008 as it is most consistent and suited according to the International Classification System. It aids the government in identifying the nature of the industry to which a business belongs. The NIC Code also helps businesses to avail various government subsidies, tax benefits, incentives along with government support for their business. As several businesses continue to evolve along with growth in economic activities, the NIC Code remains a key resource for understanding and utilizing the diverse industrial landscape in India.
