Introduction: National Industrial Classification Code

NIC Code for MSME is a unique identification number provided by the government to all micro, small and medium enterprises (MSMEs) in India to facilitate their registration with different authorities. The National Industrial Classification (NIC) provides NIC code to all MSMEs in India and this code helps them to be identified easily by various government departments.

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The NIC code is also known as National Industrial Classification Code or MSME identification number. MSME registration, Udyam registration, and Udyog Aadhaar registration all require NIC codes. Applicants should use these codes when submitting for registration for their businesses.  The NIC provides a unique identification code for each industry. The NIC code is composed of 6 digits, with each digit representing a sub-sector within the main manufacturing sector. The first two digits represent the broad group category, while the third and fourth digits represent sub-groups within this category. The fifth and sixth digits provide further detail at a more granular level.

Purpose of the National Industrial Classification Code in MSME Registration

The National Industrial Classification Code (NIC) is a partial index of industrial activities, prepared by the Central Statistics Office (CSO), Ministry of Statistics, and Programme Implementation. It is used to classify the different industries in India.

In the MSME registration portal, the NIC code is used to classify the business into appropriate industries according to their nature of activities viz., Manufacturing and Service Sector Businesses.

For a manufacturing business, NIC code is needed for classification purposes only and it does not need any further validation or verification with other agencies like DIPP, etc... In the case of service sector business, NIC code is needed for classification purposes only but it should be validated with other agencies like DIPP, etc.

Role of NIC Code for MSME Registration under Udyog Aadhaar

It is mandatory for all MSMEs to register under Udyog Aadhaar Act before starting their business operations or applying for any financial aid from banks or government agencies. When you register your enterprise with the government, they will assign you a NIC code which will serve as your identification number in all future dealings with them. It is necessary that you provide this code when applying for any kind of license or permit from various state and central departments so that they know whom to contact if there are any problems related to your company’s performance later on down the line.

The NIC classifies all the Indian industries into major groups namely

• Agriculture, Forestry, and Fishing Industry
• Mining and Quarrying Industry
• Manufacturing Industry
• Electricity, gas, water, steam, and air conditioning supply services
• Construction industry
• Wholesale And Retail Trade; Repair of Motor Vehicles And Motorcycles, Hotel, Restaurants, And Similar Activities
• Transport, Storage, and Communication Services
• Accommodation and Food Service Activities
• Financial Intermediation Services excluding Insurance, Real Estate, and Renting Activities
• Information And Communication
• Real Estate Activities including Renting of Property for Residential Purposes; Business Enterprise with Architectural/Technical Servicing; Business Enterprise with Medical/Health Care Servicing; Retail Sale in Non-specialized Stores; Retail Sale through Mail Order Houses or via Internet; 
• Administrative And Support Service Activities
• Public Administration and Defence; Compulsory Social Security
• Human Health And Social Work Activities
• Arts, Entertainment, And Recreation
• Activities Of Extraterritorial Organizations And Bodies 

NIC Code List For Udyam Registration