MSME/SME Loans Apply Online

Know About Your NIC Code

NIC stands for National Industrial Classification. It is a statistical standard used in India to classify economic activities into different sectors. The NIC code provides a systematic framework for organizing and analyzing data related to industries and businesses.

A company can be started in India with a very minimum amount of capital. There is no fixed amount and the shareholders of the company being incorporated can determine the capital they wish to contribute. While setting up the capital structure of the company, the following are some of the concepts to be kept in mind. All companies registered in India are required to maintain a registered office in India. The registered office must have a board with the name of the company and should be a place where notice or communication if any can be served. Hence, the registered office of a company cannot be vacant land or under construction premises.

The NIC 1970

The NIC 1970 while accepting the major features of ISIC-68, departed from the latter in regard to certain aspects. For example, “restaurants and hotels” was shifted from “services” to “trade” and a new first-digit classification was formed by clubbing Banking, Insurance, Real Estate, and Business Services. Moreover, in ISIC 1968 attempt had been made to classify enterprises in addition to establishments up to the fourth digit of the classification. In NIC 1970 on 5 the other hand, it was not found necessary to extend beyond the third digit level for the classification of enterprise-type units. The fourth digit extension in NIC 1970 was made for a different reason altogether, namely, the need for more details in classifying establishments. Another differential feature in the NIC 1970 was the possibility of the inclusion of Repair Services under manufacturing instead of Household and Personal Services as was in ISIC. In fact, an option was provided in NIC 1970 to include Repair Services either in division 3 (manufacturing) or under division 9 according to convenience and requirement of users

All business

The first three levels (i.e. one-digit, two-digit, and three-digit) of NIC 1970 witnessed expansion, whereas at the ultimate digit level there was a compression of categories. The NIC 1970 consists of 9 Divisions with 2 special Divisions X & Y; 64 Major groups; 383 Groups and 590 Sub-groups as compared to 9 Divisions, 55 Major Groups, 284 Groups, and 753 Subgroups of SIC-62.
To accomplish the task of revising the NIC – 1987 consistent with the ISIC Rev.3, the CSO constituted a Steering Committee in November 1997, under the Chairmanship of Director General,

NIC code for all the Hardware Business online

The Committee constituted five subject-specific sub-groups to cover all sectors of the economy viz. (a) agriculture and allied activities (b) mining and quarrying (c) manufacturing (d) financial, insurance, real estate, and business services (e) services sector (except financial services). Recognizing the experience gained by the user organizations in the identification of new / emerging activities, the committee also decided to involve them in the subject-specific subgroups to undertake the revision of economic activities.

NIC Code for shops

With the advent of ISIC Rev.3 in 1990, at the international panorama to enfold the changes in the organization of economic activities on account of technological evolution and to capture the emergence of new activities, especially in the services sector, since the last classification, it was exigent to review and revise NIC 1987.

Repair NIC code

The NIC-1998 is a classification of economic activities undertaken by the economic units. It does not draw the distinction according to the kind of ownership, type of legal organization, type of technology, and scale/mode of operation. This is because such criteria do not relate to the characteristics of economic activity. Economic units engaged in the same or similar kind of economic activity are classified in the same category of the NIC, regardless of whether they are incorporated enterprises, individual proprietors, or government, and whether or not the parent enterprise consists of more than one establishment. Similarly, manufacturing units are classified according to the principal kind of economic activity in which they engage, whether the work is performed by power-driven machinery or by hand, or whether it is done in a factory or in a household.

NIC Code for power-driven machinery

The NIC 1998 has followed the principles of ISIC Rev.3 and unlike in NIC 1987, the scale of operation/technology has not been used as a criterion for classifying certain activities in the manufacturing sector. To meet the national requirements at the 5-digit level, efforts have been to restrict categories in such a manner that the resultant activity does not become a product classification.

Conclusion

Units that repair or overhaul capital goods are classified in the same class as the units that produce the goods. Three main exceptions exists to this rule; repair and maintenance of motor vehicles and motorcycles, which is classified in group 502 and 504, respectively; repair of personal and household goods, which is classified in group 526; and repair and maintenance of computers and office equipment, which is classified in class 7250. The website http://msmeregistrar.org/ can help you to find the exact answers to your queries related to the NIC Code in the MSME sector.

Other Related Latest Post
  • Apply For Udyam Registration
  • Re register Under Udyam
  • Know About Your NIC Code
  • Udyam Registration Benefits
  • What is Udyog Aadhar Memorandum? Benefits, Documents, Registration Process
  • MSME Loan Know How to Apply for MSME Loan
  • What is the Full form of MSME?

LAST UPDATED ON : 22/05/2024
TOTAL VISITOR : 1,74,250
WEBSITE MAINTAINED BY MSME REGISTRAR

THIS WEBSITE IS A PROPERTY OF A CONSULTANCY FIRM, PROVIDING CONSULTANCY SERVICES.More...

Lokesh Rawat, From Madhya Pradesh

Recently applied Udyam Certificate

⏰(1 Hours ago) Verified