If you are registering your business as an MSME under the Udyam Aadhar system, you may come across something called the NIC Code. Many small business owners are confused about what this code is, how to choose it, and why it matters for MSME registration, Udyam registration online in India, or Udyam Aadhar registration.
This blog explains everything you need to know about the NIC Code — in simple terms.
Whether you’re a manufacturer, service provider, freelancer, or startup — understanding NIC Code is important if you want your Udyam registration to be accurate and valid. Let’s begin.
✅ What Is the NIC Code in Udyam Aadhar?
NIC Code stands for National Industrial Classification Code. It is a system developed by the Government of India to classify business activities into categories. Every type of business activity — like farming, retail, construction, IT services, and more — has a unique NIC Code.
When you register your business on the Udyam portal, you must choose the correct NIC Code that represents your main business activity.
???? Why Is the NIC Code So Important?
Many people ask: “Can I just select any code and proceed?”
The answer is No — because the NIC Code directly affects:
✅ Your MSME status
✅ Eligibility for government schemes
✅ Legal compliance and approvals
✅ Environmental clearance needs (if applicable)
✅ Whether you qualify for tenders or subsidies
Incorrect NIC Code can lead to rejection of Udyam application, wrong classification (micro/small/medium), and even legal trouble in the future.
???? How Is the NIC Code Structured?
The NIC Code is structured into digits. For example:
| NIC Code | Business Activity |
|---|---|
| 01405 | Poultry farming |
| 10795 | Manufacturing of snacks & sweets |
| 47414 | Retail sale of mobile phones |
| 62011 | Software development services |
So, if your business is manufacturing, the NIC code starts with a 1 or 2 series. If you're in services, it usually starts with 5 or 6.
You can add multiple NIC Codes if your business has more than one activity. But your main business activity must be listed first.
???? How to Find the Right NIC Code for Your Business?
Here are 3 simple ways to find your correct NIC code:
1. Use the Udyam Portal Tool
When you start your Udyam Registration on platforms like udyamregisteration.org, they offer a drop-down list of NIC Codes with activity descriptions.
2. Visit the Ministry of Statistics Website
The official NIC Code directory is available on mospi.gov.in for detailed reference.
3. Ask an Expert
Still unsure? Contact udyamregisteration.org – their team can help you pick the correct NIC code based on your nature of business.
???? Real Example: How NIC Code Affects You
Let’s say you run a handmade soap business. Your correct NIC Code might be:
20231 – Manufacture of soaps and detergents
But if you wrongly select:
96020 – Hairdressing and other beauty treatment
Your Udyam certificate will classify you as a service provider instead of a manufacturer. This mistake can:
Disqualify you from certain schemes
Require different environmental permissions
Affect the funding or tenders you can apply for
???? Can You Change the NIC Code Later?
Yes, you can update your NIC Code after registration. If your business activities change or expand, simply visit the Udyam portal or go through udyamregisteration.org to modify your existing certificate.
This is important because:
Your GST and Udyam data must match
Incorrect codes may flag issues during audits or inspections
???? Documents Required for Udyam Registration (with NIC Code)
To register your business using the right NIC Code, here’s what you’ll need:
Aadhaar number of the business owner
PAN card
Mobile number and email ID
Business address
Business activity details (main and additional)
Investment and turnover figures
GST details (if available)
Once this is submitted, your Udyam Certificate will mention:
Your enterprise type (Micro/Small/Medium)
NIC Code(s) selected
Unique Udyam Registration Number
???? How udyamregisteration.org Makes This Easier
Choosing the right NIC code sounds tricky, but platforms like udyamregisteration.org make the process simple and safe.
They help with:
Finding the perfect NIC Code based on your activity
Avoiding mismatches between Udyam and GST data
Ensuring your business is correctly classified
Quick updates if your business activity changes later
Instead of trying to figure it all out alone, you get expert guidance, which saves time and avoids errors.
???? Why NIC Code Matters for Government Schemes
The Indian government uses NIC Codes to filter businesses for schemes like:
Credit Guarantee Fund
Capital Subsidy Scheme
Skill development programs
Procurement through Government eMarketplace (GeM)
Priority lending from banks
So, if you’re not listed under the correct NIC Code, you might miss out on key benefits even if your business qualifies in reality.
✅ Quick Tips for NIC Code Selection
| ✅ Do This | ❌ Avoid This |
|---|---|
| Use the most specific code for your activity | Don’t choose a random code just to complete the form |
| Add multiple codes if you run multiple business lines | Don’t leave out any secondary business activity |
| Keep your GST and Udyam details aligned | Don’t use a manufacturing code for service work |
| Use expert help from udyamregisteration.org | Don’t guess or assume your activity’s category |
???? Final Words
The NIC Code might look like just a number during Udyam Aadhar registration, but it plays a big role in your business journey. From legal compliance to eligibility for MSME schemes — the right NIC Code ensures you’re always on the right track.
Don’t treat it like a formality. Take your time, do it right, and if you need help, use a trusted platform like udyamregisteration.org to make the process stress-free.
Correct NIC Code = Proper Business Identity + Maximum Benefits.