A statistical framework must be capable of calculating the contribution of all economic operations to national wealth and must be attentive to the demands of planners to objectively assess the measures required for planned growth. These calculations may also include estimates that are equivalent over time between regions and allow for disciplinary actions to meet the objective of optimal value to society as a whole. Official statistical statistics must be compiled and interpreted under classifications intended to promote their use in national economic policy and international comparison.
The National Industrial Classification Code (‘NIC code’) is a statistical standard that establishes and maintains a comparable database for various economic activities. This code was developed to assess and measure how each economic operation relates to national wealth.
The National Industrial Classification 2008 (NIC-2008) replaces the NIC-2004. The Department of Policy and Promotion decided to move from the NIC 1987 to the NIC 2008 in its Press Note 4 (2014 series) dated June 26, 2014. Since then, every Indian company has been urged to adhere to NIC 2008. NIC 2008 is more consistent with the international classification scheme, which allows the registration enforcement procedures to run smoothly.
What is NIC code
The NIC code, or National Industrial Registration, is a classification scheme used to track a company’s operations. The majority of government departments in India use the NIC code to identify companies. Such classifications are often used in the organization of the monetarily diverse population, metrics of new generation and conveyance, the various fields of job insights, and other financial data, for example, national wages.
The similarity of perspectives available from various sources on various aspects of the economy, as well as the convenience of such knowledge for financial analysis, is needed for the institutionalisation of a characterization arrangement.
In a nutshell, it is a classification scheme that categorizes the business activities performed by a business enterprise or organization. It is a set of numerical codes. It is a 2-3 digit number, a 4 digit code, and a 5 digit code. 2 and 3 digit codes denote a group of business activities, 4 digit codes represent a class of business activities, and 5 digit codes represent a sub-class of business activities.
NIC code for retail shop can be found out quite easily by visiting the website msmeregistrar.org. The NIC code for the retail business is usually a two-digit number that varies from company to company.
The government of India must regulate the business under the scheme of Udyog Aadhar to allow the traders to enjoy the benefits of loans and other benefits in the MSME sector. NIC code for services can be found out quite easily by visiting the website msmeregistrar.org. The NIC code for import-export is required for any company registered in the MSME medium market. These companies have a strong need for import and export functions, which can be sustained if they are classified as national industries.
The code can be found on the website msmeregistrar.org. It is essential to note that lower taxes on imports and export can be obtained if the company is registered in the MSME market. The NIC code for auto repair and servicing is a 5-digit number that can be found on the website msmeregistrar.org. It is critical to note that the government of India has established these codes to assist organizations in the MSME market.
Where is NIC code used
1. Udyam Registration: To register as a micro, small, or medium-sized company under the Micro, Small, and Medium Enterprise Development Act of 2006, one must apply for registration on the Udyam portal. A NIC code must be submitted when applying for registration on the Udyam portal.
2. Formation of a Company and LLP: To incorporate a corporation or a limited liability partnership (LLP), the company or LLP must be registered on the MCA (Ministry of Corporate Affairs) Portal. The NIC code of the company is needed when registering.
Significance of NIC code in myBillBook Invoice
- Most government departments in India use it to ensure that companies are properly classified. It is used to keep track of a company’s marketing operations.
- If you have registered for NIC, then make sure to mention in all your invoices allowing the government to track your business.
- You can easily avail of all privileges announced by the government once your business is NIC registered.
NIC code lists are available on the website. Use the myBillBook app for generating invoices and you can directly include the NIC code.
Steps to apply for NIC code for MSME registration
When registering an MSME under the Udyog Aadhaar scheme, NIC is required. Aadhar card number, name of the entrepreneur and company, the essence of the firm, operations of the MSME Unit, phone number, postal address, bank details, and NIC code must be entered. The NIC code in MSME is a classification scheme that allows one to categorize the business operations of different MSMEs.
The below are the steps to filling out the NIC code for MSME:
- To fill the code, you can perform a quick NIC code search by entering a keyword, or
- You can take the other alternative, which requires you to first choose a business operation, such as manufacturing or service, and then enter two-digit, four-digit, and five-digit NIC codes.
- If you enter an incorrect NIC code by mistake, you can edit or fix it in Udyog Aadhaar and create an acknowledgement.
- The NIC code must be entered from the National Industrial Classification handbook.
- Applicants can choose more than one National Industrial Classification Code-2008 to encompass all of their business activities.
How to generate Udyog Aadhar NIC code
- When you fill out the Udyog Aadhar form, you will see that it is divided into numerical parts. For example, in section 10 you must fill out Major Activity and section 9 bank data, among other things.
- Fill out the NIC code list in the 11 number sections. To fill out the code, perform a quick NIC code check by entering some keywords, such as machinery for Bakery, into the search bar.
- There is also another method for entering a NIC code, in which you must first choose a business operation, such as manufacturing or service.
- Then you must type a two-digit NIC code, a four-digit code, and a five-digit code.
- Even if you previously entered the incorrect NIC code, you can edit or fix it in Udyog Aadhar and generate the acknowledgement.
- You can find the National Industrial Classification code by simply searching it in the search bar or you can download the NIC code list in PDF format.
FAQs on NIC Code
- What are 2 digit and 4 digits NIC codes?
2 digit codes indicate a category of business operations, while four-digit codes represent a kind of business operation.
- Who prepares NIC code?
The National Statistical Office (NSO), which is part of the Ministry of Statistics and Programme Implementation, is the nodal authority in India for developing the National Industrial Classification.
The first designation was NIC-62, which was followed by NIC-70, NIC-87, NIC-98, and NIC-2004. NSO has established and published the new and sixth Industrial Classification, NIC-2008.
- What is NEC in the NIC code?
The meaning of NEC in NIC code is Not Elsewhere Classified, which means those products are not specifically classified under any other head.