Know About Your NIC Code

NIC stands for National Industrial Classification. It’s a system used in India to group and identify different types of business activities. Each business type is given a unique NIC code, which helps the government organize data and understand what different industries do.

Starting a Company in India

You can start a company in India with very little capital. There’s no fixed minimum amount required. The people starting the company (called shareholders) can decide how much money they want to invest.

When planning your company’s capital, it’s important to:

• Decide how much each person will contribute.
• Know that capital can be increased later if needed.

NIC 1970 - A Simplified Overview

The NIC 1970 (National Industrial Classification) was based on the ISIC 1968 system (International Standard Industrial Classification), but it made some changes to better fit India’s needs.

Key Differences from ISIC 1968:

• Restaurants and hotels were moved from the "services" category to "trade".
• A new main category was created by grouping banking, insurance, real estate, and business services.
• While ISIC tried to classify businesses in more detail (up to 4 digits), NIC 1970 only used 3 digits to classify businesses. The 4th digit was added only to give more detailed information about individual establishments, not entire companies.

Special Feature:

• Repair services could be classified in two different ways:
  • Under manufacturing (division 3)
  • Or under household and personal services (division 9)
    This was left to the user's choice, depending on what suited their needs better.

NIC Code for All Hardware Businesses Online

To make sure all types of businesses, including hardware businesses, are properly classified with NIC codes, a special committee was formed. This committee created five sub-groups to focus on different parts of the economy:

1. Agriculture and related activities
2. Mining and quarrying
3. Manufacturing
4. Financial, insurance, real estate, and business services
5. Other services (excluding financial services)

The committee also knew that businesses are always evolving. So, they decided to involve people from different industries who had experience with new and growing business activities. This helped improve and update the NIC codes to match current business trends.

NIC Code for Shops

In 1990, the ISIC Revision 3 was introduced internationally to reflect changes in how businesses operate, especially due to new technologies and the growth of service-based industries. Because of these changes, it became necessary to review and update the older NIC 1987 classification system to keep it relevant and accurate.

Repair NIC Code

The NIC 1998 is used to classify businesses based on the type of economic activity they perform. It does not take into account factors like ownership, legal structure, technology used, or the size and method of operation. These factors are not considered because they don’t affect the nature of the activity itself.

Businesses that do the same type of work are grouped under the same NIC code, whether they are private companies, sole proprietors, government units, or even large organizations with multiple locations.

For example, manufacturing units are classified based on what they produce, not how or where they do it-whether the work is done using machines or by hand, in a factory, or at home.

This same rule applies to repair services-they are classified based on the main activity, not who owns the business or how it’s done

NIC Code for Power-Driven Machinery

ower-driven machinery businesses fall under NIC Division 28 (Manufacture of Machinery & Equipment) and Division 27 (Electrical Equipment)

Common NIC codes include:

• 28110 - Engines and turbines
• 28131 - Pumps for liquids
• 28221 - Machine tools (turning, drilling, etc.)
• 28299 - Other special-purpose machinery

Conclusion

Businesses that repair or overhaul capital goods are generally classified under the same NIC code as those that manufacture those goods. However, there are three main exceptions to this rule:

1. Repair and maintenance of motor vehicles - classified under NIC Group 502
2. Repair of motorcycles - classified under NIC Group 504
3. Repair of personal and household goods - classified under NIC Group 526
4. Repair and maintenance of computers and office equipment - classified under NIC Class 7250

If you're unsure about which NIC code applies to your business in the MSME Registration sector, you can visit msmeregistrar.org for accurate guidance and support.

If you have any queries, simply fill out the enquiry form, and one of our executives will contact you promptly through the MSME helpline number.

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