The National Industrial Classification Code (“NIC Code”) is a statistical standard for developing and maintaining a comparable data base for various economic activities. The government has developed the NIC code with an intent to ascertain and analyse as to how each economic activity is contributing towards national wealth.
The NIC code is a classification system based on the activities undertaken by a business. The government uses the NIC code to classify and identify businesses according to their business activities. It is an unique 5-digit code assigned to each business activity. The 5-digit NIC code represents the sector and sub-sector of the business activity.
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 must 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) Udyam Registration:
One has to apply for registration on the Udyam portal, to register as micro, small or medium sized businesses under the Micro, Small and Medium Enterprise Development Act, 2006. While applying for registration on the Udyam portal , a 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.
NIC Codes
NIC Codes are divided into different sections based on the nature of business or services. They are classified into Sections A to U. Under different sections, they are further divided into divisions 01-99. Under the divisions are the NIC code for the group, class and sub-class of a service or business activity.
Examples of NIC Code
Growing of cereals (except rice), leguminous crops and oil seeds: 0111
Retail sale of pharmaceutical and medical goods, cosmetic and toilet articles in specialized stores: 4772
Sale of motor vehicle parts and accessories: 45300
Hotels and restaurants: 55101
Manufacture of articles of concrete, cement and plaster: 2395
Wholesale of pharmaceutical and medical goods: 46497
Weaving, manufacture of wool and wool mixture fabrics: 13123
Manufacture of chemical products or preparations of a kind used in the textiles, paper, leather and like industries: 20297
You can find the entire list of NIC Codes in this document.
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