Published on:
December 30, 2022
Swathi v prabhu

NIC code- features, usage and importance

National industrial classification code or its short form of NIC code is an analytical code for developing and maintaining a comparable database for various economic activities. The importance of this code is to ascertain how each economic activity is contributing towards the overall national wealth of an economy.

The national industrial classification code is an important code that is widely utilized by many different establishments like government agencies, industry organizations, and scholars for many administrative, analytical, and research objectives, in addition to it being the standard industrial classification under the Indian industrial statics.

However, the most important function of this code is to measure the parameters between the economic operations of each industry in a sector and the economic wealth.

let us go ahead and understand a little more about NIC code

Where is the NIC code used?

The department of policy and promotion decided to switch over from NIC 1996 to NIC 2008, in July 2014. Since this declaration, every company has changed its NIC code to NIC 2008. The main objective of making this change is the fact that NIC 2008 is much more compatible with the international system of classification.

The two important segments where the NIC code is used are the following:-

1. Udyam registration:

You must first apply on the Udyam portal for registration as a micro, small, or medium-sized business. Under the micro, small, and medium enterprise development act of 2005, it is important to get registered.

While registering on the Udyam portal, it is mandatory to provide your NIC code. 

2. Formation of a company or LLP

A company or a corporation is required to be registered under the Ministry of corporate affairs portal to be declared a valid business. For this purpose, it is mandatory to provide your NIC code, while registering under the MCA portal.

These are the two important establishments, where having a NIC code is mandatory.

Importance of having a NIC code

Here are some important points which denote the weight of having a NIC code:-

1. It is required to maintain track of business activity which affects the economic health. It is also used by the majority of government departments to make sure the businesses are classified correctly

2. The benefits offered by the government if your business contains a NIC code will help take your business further

3. It is important to mention your NIC code on all your invoices to make sure you can avail the benefits offered by the government

4. To obtain Udyog Aadhar to register a corporation or limited liability partnership

Let us further understand how to obtain a NIC code for MSMEs

Some NIC codes

Here are some NIC codes which are used for the following businesses-

1. Raising of swine/pigs: 0145

2. Retail sale of pharmaceuticals, medical and orthopedic goods: 47721

3. Sale of motor vehicle parts and accessories: 45300

4. Hotels and restaurants: 55101

5. Manufacture of articles, cement, and plaster: 2395

6. Wholesale of pharmaceuticals and medical goods: 46497

7. Weaving, manufacture of wool and wool mixture fabrics: 13123

8. Manufacture of chemical products or preparations of a kind used in textiles, paper, leather, and the like industries: 20297


Who is responsible for the code preparation?

The national statistical organization of India is responsible for designing the National industrial classification in India.

NIC-62 was the first design, followed by NIC-70, NIC-87, NIC-98, and NIC-2004. However, the national standards organization (NSO) has designed and released the new and latest NIC, i.e., NIC-2008, the new industrial classification, which establishments have to abide by.


1. What are the differences between 2-digit and 4-digit NIC codes?

Two-digit codes designate a type of business operation, whereas four-digit codes designate a category of business operations.

2. Specify NEC in the NIC code                                                                                                                                

NEC stands for Not Elsewhere Classified in the NIC code. It further indicates that the products are not specifically classified under any other heading.

3. How many days does it take for Udyam Registration

Once you submit the application, it may take around four to five days. Also, you will obtain an email notification along with your registration number.

4. How many days does it take for an MSME certificate?                                                                          

Once you submit the application, it may take around two days. Also, the MSME certificate will be delivered to your address.


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Updated on:
March 16, 2024