The NIC Code, or National Industrial Classification Code, is a statistical standard for assessing and comparing each business unit’s contribution to the development of the Indian government’s assets. To measure the economically active population and its transportation, as well as to organize various types of labor, work insights from many fields, as well as other financial information, such as national salary, and accumulated data from numerous firms, are employed.
Also, Read- Udyog aadhar registration
The Indian government uses the NIC code, which is a type of company code, to handle and evaluate commercial transactions for MSME businesses (micro, small and medium enterprises).
What is the NIC Code’s purpose?
- Registration for Udyam:
Individuals must apply for registration on the UDYAM portal to register as a micro, small, or medium-sized business under the MSME Development Act of 2006. When registering on the UDYAM portal, you must provide your NIC Code.
- Whether you want to register as a corporation or a limited liability partnership (LLP), there are a few options.
An individual must first register a corporation or a limited liability partnership (LLP) on the MCA (Ministry of Corporate Affairs) Portal before forming the company or LLP. When registering your firm, you must provide your company’s NIC code.
In Udyog Aadhaar MSME Registration, What Role Does the NIC Code Play?
To register as an MSME under the Udyog Aadhaar, you’ll need your NIC to fill out a form. The Aadhar card number, business name, firm type, MSME Unit activity, phone number, postal address, bank information, and NIC Code of the entrepreneur must all be entered.
MSME classifies its multiple commercial activities using the NIC Code as a categorization approach. The three types of numerical codes are two to three digits, four digits, and five digits. A collection of business activities is represented by two to three-digit numbers, whereas four-digit codes reflect a single business activity code indicating a class of business activity, and five-digit codes represent a subclass of business activity.
The NIC Code for a Trading Firm is:
For further information, go to the official website. The NIC code for the trading business is also a two-digit number that the GoI uses for control purposes. The Indian government must regulate businesses utilizing the Udyog Aadhar system in order for traders to benefit from loans and other incentives available in the MSME sector.
Automobile Repair NIC Code:
For car maintenance and repair, the National Insurance Code (NIC Code) is also a five-digit number that may be accessed on the official website. It’s worth noting that these rules were created by the Indian government in order to assist small enterprises.
Import and Export NIC Codes:
The NIC Code is required for import-export if you are registered in the MSME medium category. These companies have a high demand for import and export capabilities, which can be met if they fall within the national industrial umbrella. The code is available on the internet. It’s critical to recognize that if your company qualifies as a micro, small, or medium-sized firm (MSME), you’ll qualify for lower import and export taxes.
Udyam Registration for MSMEs:
Udyam Registration, also known as MSME Registration, is a certificate provided to Micro, Small, and Medium-sized Enterprises in India under the Micro, Small, and Medium Enterprise Development Act of 2006. (MSMED). MSME Registration was the previous name for Udyam Registration. The government has now integrated the MSME and Udyam registration processes and made them both available online. The following are the main objectives of the MSME department in terms of offering Udyam Registration:
- To help Micro, Small, and Medium Businesses compete effectively in the global marketplace.
- To encourage the expansion of Micro, Small, and Medium Enterprises on a big scale in order to effectively combat widespread unemployment and poverty.
- To bring together the benefits of multiple government initiatives for Small Scale Industries (SSI) units in one place.
- To defend SSI against huge enterprises’ financial exploitation.
Udyam registration is not available to all businesses. An enterprise is classified as a micro, small, or medium enterprise based on the following characteristics.
- a microbusiness having a total investment of less than one crore rupees in plant and machinery or equipment and a sales of less than five crore rupees
- a small firm with less than ten crore rupees in plant and machinery or equipment and less than fifty crore rupees in sales; and
- a medium-sized business with a turnover of not more than 250 crore rupees and an investment in plant and machinery or equipment of not more than fifty crore rupees