If you are looking to Update udyam registration then you required to select right NIC Codes (National Industrial Classification) In this blog we will discourse. What is NIC Codes and how you can select right NIC Codes for your Business.
National Industrial Classification (NIC) codes are a standardized system used by Indian Government to categorize economic activities for Udyam Registration. NIC codes ensure businesses are well categorized as Micro, Small, or Medium Enterprises (MSMEs). These codes are also essential if business are looking for MSME Benefits like government schemes and subsidies..
National Industrial Classification (NIC)
Key NIC Code Categories for Udyam
Business have to select 2 Digit, 3 Digit and 4 Digit codes as per their primary and secondary activities.
· Manufacturing Sector (Codes 10 to 33): For businesses creating products like food, clothes, or electronics.
o 10: Manufacture of food products (e.g., dairy, bakery).
o 14: Manufacture of wearing apparel.
o 31: Manufacture of furniture.
· Trading Sector (Wholesale & Retail - Codes 45 to 47): Specifically for retail shops and wholesale distributors.
o 47110: Kirana or grocery stores.
o 47910: Online sellers and e-commerce trading.
o 45300: Automobile spare parts shop.
· Service Sector (Codes 49 to 99): For consulting, IT, and other service-oriented businesses.
o 6201: Computer programming and software development.
o 73100: Digital marketing and advertising agencies.
o 8549: Coaching institutes and tuition centers.
If you want to see full Udyam NIC Code List you can check with this link
How to Find and Use Your NIC Code
1. Identify Business Nature: Determine if your business is primarily Manufacturing, Service, or Trading.
2. Search on the Portal: Use the search feature on the Udyam Registration Portal by entering keywords related to your business.
3. Add Multiple Activities: You can add more than one NIC code if your business performs multiple activities (e.g., manufacturing and selling).
4. Update if Necessary: You have to update your NIC codes after registration through the Update Details section on the official portal if your business model changes.
Why the Correct NIC Code Matters
· Government Benefits: Eligibility for collateral-free loans, interest subsidies, and MSME-specific schemes depends on accurate classification.
· Tenders: Correct codes are often required to participate in government tenders reserved for MSMEs.
· Compliance: Facilitates seamless linking with other registrations like GST, PAN, and bank accounts.
