The NIC code follows a systematic and hierarchical format. It is generally structured into two, three, four, and five-digit levels depending on the specificity of the business activity. Each section and division categorises a broader area, followed by subclassifications for accuracy. Understanding the structure helps businesses choose the exact match for their activity during registrations.
- Section C – Manufacturing
- Division 29 – Manufacture of motor vehicles, trailers
- Group 291 – Manufacture of motor vehicles
- Class 2910 – Motor vehicle manufacturing
- Sub-Class 29101 – Manufacture of passenger cars
List of NIC code
NIC codes are organised by divisions, each representing a particular industry or sector. The following table lists a few major divisions commonly used during Udyam registration. Businesses must refer to the detailed NIC code list provided by the Ministry to ensure proper selection.
| Division |
Industry category |
| 01 |
Agriculture and Allied Activities |
| 10 |
Manufacture of Food Products |
| 13 |
Manufacture of Textiles |
| 27 |
Manufacture of Electrical Equipment |
| 41 |
Construction of Buildings |
| 45 |
Wholesale and Retail Trade, Repair of Vehicles |
| 62 |
Computer Programming and IT Services |
| 70 |
Real Estate Activities |
| 86 |
Human Health and Social Work Activities |
| 96 |
Other Personal Service Activities |
Importance of NIC code for Udyam registration
NIC codes are mandatory while registering under Udyam for MSME classification. They ensure precise identification of business activities, enabling better policy-making and fund allocation. A correct NIC code helps businesses access relevant government schemes, financial support, and subsidies. For Indian MSMEs, it also ensures compliance with statutory obligations and promotes easy access to benefits provided by ministries and banks under various development programmes. Want to see if you already qualify for financing? Check your pre-approved business loan offer and take the next step toward business growth.
How to choose the right NIC code
Selecting the correct NIC code is crucial for Udyam registration and related filings. An incorrect code can lead to delays, ineligibility for government schemes, or compliance issues. Businesses should carefully analyse their core activities, refer to the NIC list, and use government tools for accuracy. Cross-verification with industry bodies or professionals is also recommended.
- Identify your business’s core activity
- Refer to the latest NIC code directory
- Use search filters on the Udyam portal
- Choose the most relevant five-digit code
- Consult with a professional to avoid errors
Conclusion
The NIC code serves as an essential identifier for businesses in India, streamlining their classification across government and financial platforms. It simplifies the Udyam registration process and unlocks access to credit, subsidies, and compliance benefits. Whether applying for subsidies or a business loan, selecting the correct NIC code ensures your business remains eligible, compliant, and well-recognised across various administrative systems.
Helpful resources related to Udyam
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