The Ministry of Micro, Small, and Medium Enterprises (MSME) in India has introduced the Udyam Registration process for small and medium enterprises. Udyam Registration is a single-window registration process that replaces the earlier registration processes like Udyog Aadhaar, MSME Registration, etc.
National Industrial Classification (NIC) codes are used to identify the type of economic activity undertaken by an enterprise during the Udyam Registration process. These codes are based on the type of goods and services provided by the enterprise.
Here are some NIC codes for Udyam Registration:
15 – Food Products
16 – Beverages
17 – Tobacco Products
18 – Textiles
19 – Wearing Apparel
20 – Leather and Related Products
21 – Wood and Products of Wood and Cork
22 – Pulp, Paper, and Paper Products
23 – Printing and Reproduction of Recorded Media
24 – Chemicals and Chemical Products
25 – Pharmaceuticals, Medicinal Chemicals,s, and Botanical Products
26 – Rubber and Plastics Products
27 – Non-metallic Mineral Products
28 – Basic Metals
29 – Fabricated Metal Products
30 – Machinery and Equipment
31 – Electrical Equipment
32 – Other Manufacturing
33 – Repair and Installation of Machinery and Equipment
34 – Electricity, Gas, Steam, and Hot Water Supply
35 – Water Supply; Sewerage, Waste Management, and Remediation Activities
36 – Construction
37 – Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles
38 – Transportation and Storage
39 – Accommodation and Food Service Activities
40 – Information and Communication
41 – Financial and Insurance Activities
42 – Real Estate Activities
43 – Professional, Scientific, and Technical Activities
44 – Administrative and Support Service Activities
45 – Public Administration and Defence; Compulsory Social Security
46 – Education
47 – Human Health and Social Work Activities
48 – Arts, Entertainment, and Recreation
49 – Other Service Activities
Please note that these codes are indicative and not exhaustive. Enterprises are advised to carefully evaluate their economic activity and choose the appropriate NIC code during Udyam Registration.
What is the NIC Code’s purpose?
The National Industrial Classification (NIC) code is a system used to classify economic activities undertaken by enterprises in India. The primary purpose of NIC codes is to provide a standardized classification of economic activities to facilitate the collection, analysis, and dissemination of data related to various economic sectors.
NIC codes are used by various government agencies, such as the Ministry of Corporate Affairs, the Central Board of Indirect Taxes and Customs (CBIC), and the Ministry of Micro, Small, and Medium Enterprises (MSME), to register, regulate and monitor economic activities.
In particular, the MSME sector in India uses NIC codes for registration and availing various benefits and schemes. For example, during Udyam Registration, the enterprise needs to choose an appropriate NIC code based on its economic activity to register under the MSME sector and avail of the benefits and incentives provided by the government.
In summary, the NIC code serves as a standardized system for identifying and classifying economic activities, facilitating the collection and analysis of data, and enabling the government to regulate and monitor various sectors of the economy.
In Udyog Aadhaar MSME Registration, What Role Does the NIC Code Play?
In Udyog Aadhaar MSME Registration, the NIC (National Industrial Classification) code plays a crucial role in identifying the type of economic activity undertaken by an enterprise. The NIC code is a system used to classify economic activities and is used by the government for various purposes, including registration, regulation, and monitoring of economic activities.
During Udyog Aadhaar MSME registration, the enterprise needs to choose an appropriate NIC code based on its economic activity. The NIC code is selected from a list of codes available in the NIC code directory. The enterprise needs to select the code that best represents its primary line of business or economic activity.
The NIC code is used by the government to classify the enterprise into a specific sector and to determine its eligibility for various benefits and incentives provided to MSMEs. For example, an enterprise classified under the manufacturing sector may be eligible for different schemes and benefits than an enterprise classified under the service sector.
Therefore, it is essential for the enterprise to choose the appropriate NIC code during Udyog Aadhaar MSME registration to avail of the benefits and incentives provided by the government. The enterprise must ensure that the NIC code selected accurately reflects its primary line of business or economic activity to avoid any potential issues during the registration process.
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The Udyam Registration process is for Micro, Small, and Medium Enterprises (MSMEs) in India. To be eligible for Udyam Registration, an enterprise must fulfill the following criteria:
- Micro, Small, or Medium Enterprise: The enterprise must fall under the definition of a Micro, Small, or Medium Enterprise as per the definition under the MSME Act, 2006.
- For a manufacturing enterprise, the investment in plant and machinery should not exceed Rs. 50 crore and the annual turnover should not exceed Rs. 250 crores.
- For a service enterprise, the investment in the equipment should not exceed Rs. 10 crores and the annual turnover should not exceed Rs. 50 crore.
Valid Aadhaar Number: The authorized signatory of the enterprise must have a valid Aadhaar number.
PAN Number: The enterprise must have a valid PAN (Permanent Account Number) card.
Business Entity: The enterprise must be a legally recognized business entity like a partnership firm, limited liability partnership (LLP), private limited company, or any other legal entity.
Previous Registration: An enterprise previously registered under Udyog Aadhaar or any other registration scheme under the Ministry of MSME must register under Udyam Registration.
If an enterprise fulfills the above criteria, it is eligible to register under Udyam Registration and avail of the benefits and incentives provided by the government for MSMEs.