National Industrial Classification Code
The National Industrial Classification Code (“NIC Code”) is a statistical standard for developing and maintaining a comparable data base for various economic activities. This code has been developed with an intent to ascertain and analyse as to how each economic activity is contributing towards national wealth.
The Department of Policy and Promotion in their Press Note 4 (2014 series) dated 26 June 2014 decided to switch over to the NIC 2008 from NIC 1987 version. Since then, all Indian Companies are advised to follow NIC 2008.
NIC 2008 is more compatible with the international system of classification. This enables the compliance processes for registration to flow in a smooth manner.
WHERE IS THE NIC CODE USED?
1) UdhyogAadhar:
UdhyogAadhar is a registration provided to micro, small and medium sized businesses in India under the Micro, Small and Medium Enterprise Development Act, 2006 (MSMED Act).
While applying for UdhyogAadhar, the NIC code needs to be submitted.
2) Company Registration/ LLP Registration:
For incorporating a company or a LLP, one needs to register the respective company/LLP on the MCA (Ministry of Corporate Affairs) Portal. While registering, the NIC code of the business is required.
