The NIC code or the National Industrial Classification code serves as a statistical standard for comparing economic activities in India. With the NIC code, the authorities can track and compare the progress and development of the businesses taking place within the country. The primary purpose of the NIC code is to analyze, compare, and determine the contribution of every business sector to the country’s overall economy.
The NIC code is necessary to carry out businesses in the MSME sector.
The NIC code is unique and differs from sector to sector. Read on to find out more about the NIC code, its types, and its relevance to our country’s economy.
NIC Code in the MSME Sector
The NIC code is a classification code used to distinguish one type of business from the other. The number of digits in the NIC code varies from two to five, each corresponding to a particular sector or type of business. For example, the NIC code for hardware businesses is usually a five-digit code like 47522.
Why Do We Need A NIC Code?
In India, you will need a NIC code for the following purposes:
When you are starting a business in India, the first step is to register your company. You can register your company in the official portal of the Ministry of Corporate Affairs, MCA. While doing so, you will have to submit your NIC code.
The NIC code of your business is essential even if your company is a Limited Liability Partnership firm. During the registration process in the official portal of the MCA, you will have to submit our NIC code to complete your registration process successfully.
Udyog Aadhar registration, also known as the MSME registration, is another place where you will need a NIC code. The process is completely online, during which you will have to submit your business’ NIC code.
How Do I Get A NIC Code For My Business?
To find the NIC code for your business, you will have to conduct a simple NIC code search in the official portal.
Enter a keyword that describes the type of business or the sector it falls in.
Or else, you can enter a four-digit or five-digit code in the NIC code search toolbar to get a prompt from the portal.
Make sure you enter a code following the National Industrial Classification handbook.
According to the latest NIC code regulations, you can select two or more sectors or categories under which your business activity falls.
By doing so, you will get a relevant NIC code that commensurates all the categories.
You can also generate multiple NIC codes for your business by selecting the add more button in the portal.
The government or concerned authorities can track every type of business, including large scale companies using its NIC code.
Advantages of NIC code:
The NIC code makes businesses eligible for availing benefits from the government’s schemes.
The NIC code is an essential requirement for registering our business successfully.
By registering your business using a NIC code, you can get financial support and recognition from the government.
By having a NIC code and a Udyog Aadhaar, your business automatically becomes eligible for getting subsidies from the government.
Registering your business simplifies the process of bank loan approval and account setup.
Frequently Asked Questions
Why do I need a NIC code for my business?
Your business will need a NIC code for successful registration, getting government subsidies, bank loans, and legal recognition. A NIC code is also necessary to carry out business in the MSME sector. (https://vakilsearch.com/online-udyog-aadhaar-registration)
Do I need a NIC code for carrying out businesses online?
Yes, you will need a NIC code for online businesses too. The code for online businesses is 47912. With this NIC code, you become eligible for legal registration and getting financial support and subsidies from the government.
Can we track the business proceedings of large scale companies using NIC code search?
Yes, you can track business proceedings of every type of business using the NIC code, provided it has one. It includes large scale companies, MSMEs, LLPs, and every other sector functioning within the country.
How does the NIC code help our economy?
The government and concerned authorities track the progress and development of your business using the NIC code of your company. With the help of the data collected, they analyze and determine your business’ contribution to our country’s economy. It will also help compare and collate the overall profits.