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Understanding NIC Code for Udyam Registration

calendar24 May, 2024
timeReading Time: 6 Minutes
NIC Code for Udyam Registration

NIC Code for Udyam Registration: Before beginning commercial operations or requesting any financial help from banking institutions or government departments, MSMEs must register under the Udyog Aadhaar Act. The NIC code you receive when registering your business with the authorities will be used as a unique identification code going forward in any correspondence with them. For state and central agencies to understand who to call in the event that your business operations are compromised in the future, you must include this code with each certificate and permission request that you submit.

In this blog, we will discuss the NIC Code for the Udyam Registration list, its meaning, and other information.

Page Contents

What is Udyam Registration?

Udyam registration is also known as MSME registration. When businesses complete their MSME registration procedure, they get a certificate known as the Udyam Registration certificate. Registration was introduced with the objective of streamlining procedures and converting them into an online process for convenience and flexibility. 

What is the NIC Code for Udyam Registration?

The National Industrial Classification Code, or NIC code in its complete form, is a unique system of categorization and identification numbers assigned to various industries operating in the entire country. The code identifies the kind of enterprise you run and the primary industry and sub-industry to which your business relates.

Based on commercial activity, each industry and sub-sector is represented by a distinct 5-digit code. There are now 21 primary business activity sections (A to U) in the NIC Code for Udyam Registration list, along with 99 divisions and subgroups. Understanding the list of NIC codes for Udyam Registration is crucial for MSME businesses, particularly the codes for services, manufacturing, and commerce since they are necessary for Udyam portal registration.

The objective of NIC Code for Udyam Registration

Objectives of the NIC codes:

  • The main objective of the NIC code for Udyam registration is to categorize business activities. The NIC code helps classify businesses based on their activities. This makes working in different industries accessible to implement the different programs and policies for the targeted MSME. 
  • The next objective of the NIC Code for Udyam registration is to help the government and related authorities keep records and monitor the development and growth of all MSMEs in different sectors. 
  • The NIC Code for Udyam registration helps the government decide the benefits and subsidies that MSMEs are entitled to. The government offers many different benefits to MSMEs. The NIC code helps in determining the criteria for eligibility to avail of these benefits and subsidies.

List of NIC Codes for Udyam Registration

Section A – Agriculture, Forestry, and Fishing

  • Division 01 – Activities related to animal and crop production, hunting, and other related services
  • Division 02 – Logging and Forestry
  • Division 03 – Aquaculture and Fishing

Section B – Mining and Quarrying

  • Division 05 – Mining of lignite and coal
  • Division 06 – Extraction of natural gas as well as crude petroleum
  • Division 07 – Mining of the metal ores
  • Division 08 – Other quarrying and mining
  • Division 09 – Activities of mining support service

Section C – Manufacturing

  • Division 10 – Food products manufacturing
  • Division 11 Beverages Manufacturing
  • Division 12 – Tobacco products manufacturing
  • Division 13 – Textiles manufacturing
  • Division 14 – Wearing apparel manufacturing
  • Division 15 – Manufacturing of the leather and its related products
  • Division 16 – Wood and the products of cork and wood manufacturing, excluding the furniture; manufacturing of the plaiting materials and articles of straw
  • Division 17 – Manufacturing of paper & paper products
  • Division 18 – Reproduction and printing of the recorded media
  • Division 19 – Manufacturing of refined petroleum products and coke
  • Division 20 – Manufacturing chemicals and chemical products
  • Division 21 – Pharmaceuticals, botanical products, and medicinal chemical manufacturing 
  • Division 22 – Manufacture of plastics products and rubber products
  • Division 23 – Manufacturing non-metallic mineral products
  • Division 24 – Basic metals manufacturing
  • Division 25 – Fabricated metal products manufacturing except the equipment and machinery
  • Division 26 – Computer manufacturing and electronic & other optical products manufacturing
  • Division 27 – Manufacturing of electrical equipment
  • Division 28 – Manufacturing of machinery & equipment
  • Division 29 – Manufacturing of trailers, motor vehicles, and semi-trailers
  • Division 30 – Manufacturing of transport equipment
  • Division 31 – Manufacturing of furniture
  • Division 32- Other manufacturing
  • Division 33 – Installation and repair of equipment and machinery

Section D – Electricity, Gas, Steam and Air Conditioning Supply

  • Division 35 – Supply of electricity, gas, air, and steam conditioning

Section E – Water Supply; Sewerage, Waste Management & Remediation Activities

  • Division 36 – collection of water, its treatment and water supply
  • Division 37 – Sewerage
  • Division 38 – Waste collection, disposal, and treatment activities; materials recovery
  • Division 39 – Remediation activities and other services of waste management

Section F – Construction

  • Division 41 – Building constructions
  • Division 42 – Civil engineering
  • Division 43 – Specialized activities of construction

Section G – Wholesale & Retail Trade; Repair of Motor Vehicles & Motorcycles

  • Division 45 – Wholesale and retail trade; repair of motorcycles and motor vehicles
  • Division 46 – Wholesale trade, except for motor vehicles & motorcycles
  • Division 47 – Retail trade, except for motorcycles and motor vehicles

Section H – Transportation and Storage

  • Division 49 – Land transport & transport via pipelines
  • Division 50 – Water transport
  • Division 51 – Air transport
  • Division 52 – Warehousing and the transportation support activities

Section I – Accommodation and Food Service Activities

  • Division 55 – Accommodation
  • Division 56 – Beverage and food service activities

Section J – Information and Communication

  • Division 58 – Publishing activities
  • Division 59 – Motion picture, television video program production, sound recording, and music publishing activities
  • Division 61 – Telecommunications
  • Division 62 – Computer consultancy, programming, and other related activities
  • Division 63 – Information service activities

Section K – Financial and Insurance Activities

  • Division 64 – Activities of financial service, except pension funding and insurance
  • Division 65 – Insurance, reinsurance & pension funding, except the compulsory social security
  • Division 66 – Other financial activities

Section L – Real Estate Activities

  • Division 68 – Real estate activities

Section M – Professional, Scientific, and Technical Activities

  • Division 69 – Activities of accounting and legal
  • Division 70 – Activities of management consultancy, head office activities
  • Division 71 – Activities of architecture & engineering; analysis and technical testing
  • Division 72 – Scientific development and research
  • Division 73 – Market research and advertising
  • Division 74 – Other professional, technical, and scientific activities
  • Division 75 – Veterinary activities

Section N – Administrative & Support Service Activities

  • Division 77 – Leasing  and rental activities
  • Division 78 – Activities of employment
  • Division 79 – Activities of travel agency, other reservation service, and tour operator
  • Division 80 – Investigation and security activities
  • Division 81 – Services to buildings & landscape activities
  • Division 82 – Office support, office administrative, and other activities of business support

Section O – Public Administration & Defense; Compulsory Social Security

  • Division 84 – Compulsory social security and public administration and defense

Section P – Education

  • Division 85 – Education

Section Q – Human Health and Activities of Social Work

  • Division 86 – Activities related to human health
  • Division 87 – Activities related to residential care
  • Division 88 – Activities related to social work without any accommodation

Section R – Arts, Entertainment and Recreation

  • Division 90 – Arts, creative, entertainment activities
  • Division 91 – Libraries, museums, archives, and other cultural activities
  • Division 92 – Betting and gambling activities
  • Division 93 – Sports activities and recreation and amusement activities

Section S – Other Service Activities

  • Division 94 – Activities of membership organizations

Section T – Activities of Households as Employers; -Producing Activities of  Households for own Use – Undifferentiated Goods and Services

  • Division 97 – Activities of households as employers of domestic personnel
  • Division 98 – Undifferentiated goods & services, producing activities of the private households for own usage

Section U – Activities of Extraterritorial Organizations and Bodies

  • Division 99 – The activities of the extraterritorial organizations & bodies

Uses of NIC Code 

There are many uses of the National Industrial Classification Code. The two key uses of NIC code are:

Registration on Udyam Portal

The Udyam portal is used for MSME registration, as per the rules and regulations. The MSME registration is a mandatory requirement for eligible businesses. NIC code is a requirement at the time of registering the business on the Udyam portal.

Company or LLP formation

All companies need to register with the MCA on their official website. When registering an LLP or company on the MCA website, a NIC code is required.

Conclusion

In conclusion, the NIC code for Udyam registration is a vital requirement. It is compulsory for all MSMEs to register using this code. The NIC code is also known as the MSME identification. The NIC code is to be used by the applicants when they are registering their business. You can get the NIC code quickly from an online process. 

The NIC code is an identification code that is assigned as per the classification of the business based on the type of activities they carry out. This classification through the NIC codes is a useful analysis of the various data by the government. The NIC code aids in knowing which type of economic activity the business is engaged in. 

Frequently Asked Questions

  1. How do I get the NIC code for Udyam registration?

    A list of all the details on the NIC code can be found on the Udyam registration portal. The NIC Code for Udyam Registration is available on the website, along with all the details required to fill out the form for the Udyam registration.

  2. How many total sections does the NIC Code for Udyam Registration have?

    There are in total 21 sections in the NIC Code for Udyam Registration, starting from Section A to Section U.

  3. What is the full form of the NIC Code?

    NIC code is the National Industrial Classification Code.

  4. On what basis is the business divided in the NIC Code for Udyam Registration?

    All the businesses are divided as per the activities that they carry on in the NIC Code for Udyam Registration.

  5. What is MSME?

    MSMEs are Micro, small, and medium-sized enterprises. The MSMEs are divided into categories on the basis of their investments, annual turnover, and 

  6. Why is the NIC code needed?

    The NIC code is a requirement for MSME registration and registration of various companies and LLPs.

Read also about MSME Registration Status And Process: All You Need To Know

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