MSMEs must have a NIC code in order to fill out the Udyog Aadhar form. It is also required when forming a corporation or a limited liability partnership (LLP). Micro Small and Medium Enterprises (MSME) and any other business entities that come under this category are referred to as MSME.
In MSME, what is a NIC Code?
MSMEs must have a NIC code in order to fill out the Udyog Aadhar form. It’s also required when forming a corporation or a limited liability partnership (LLP). Micro Small and Medium Enterprises (MSME) and any other business entities that come under this category are referred to as MSME.
The National Industrial Classification Code (NIC Code) is a statistical standard created to ensure and evaluate how each corporate organisation contributes to the government of India’s asset development.
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What Is a NIC Code and How Is It Used?
The NIC Code is necessary when filling out the Udyog Aadhar form as well as for forming an LLP firm.
Udyog Adhar: To represent the type of their firm, the applicant can select a nic code for Udyog aadhaar from the options offered.After selecting the “Manufacturing” or “Services” radio option, the applicant can add several NIC Codes by clicking the “Add More” button.
Company/LLP Registration: This code must be entered when a company or an LLP is formed on the Ministry of Corporate Affairs portal.
NIC Code’s Importance:
- It is utilised by the majority of Indian government departments to guarantee that firms are classified correctly.
- It is used to maintain track of a company’s commercial operations.
- Udyog Aadhar is required in order to get an Udyog Aadhar number.
- For the purpose of creating a company or a Limited Liability Partnership (LLP)
MSME Registration in Detail:
MSME is the abbreviation for and the businesses that fit into these categories. The Micro Small and Medium Enterprise Development Act of 2006 provides a definition of MSME that is divided into two categories:
Manufacturing Enterprises: Firms engaged in manufacturing or production as defined in the first schedule of the Industrial Development and Regulation Act 1951, or in the establishment of plants and machinery to improve product quality.
Service Enterprises: Service enterprises are businesses that are active in the servicing industry.
The significance of the NIC Code in MSME registration under Udyog Aadhaar:
When registering a Micro, Small, and Medium Enterprise under the Udyog Aadhaar programme, a NIC is necessary. Aadhar card number, name of the entrepreneur and enterprise, type of the firm, MSME Unit activities, phone number, email address, postal address, bank details, district industry centre, and NIC Code must all be filled out.
The applicant may simply fill in all of the above-mentioned data in the form, but the NIC code is where the applicant gets stuck. Applicants are frequently unclear about the National Industrial Classification code for their Micro, Small, or Medium-Sized Enterprise.
The NIC Code in MSME is a categorization system that allows one to categorise the various Micro, Small, and Medium Enterprises’ business operations. It is a numeric code that can be two to three digits long, four digits long, or five digits long. 2-3 digit codes indicate a set of business activities, a four-digit code represents a business activity class, and a five-digit code denotes a business activity subclass.
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In order to register an MSME online, you must first input your NIC code.
When filling out the Udyog Aadhaar form, one may see that it is divided into numerical parts. For example, the applicant must fill out Major Activity in the 10th number part, and bank information in the 9th number portion. Similarly, the NIC Code list must be filled up in the 11 number section. The following are the procedures to filling out the NIC Code for an MSME:
- You may either do a basic NIC Code search by entering a keyword, or
- you can use the other option, which requires you to first select a company activity, such as manufacturing or service, and then input two-digit, four-digit, and five-digit NIC codes. If you input an incorrect NIC Code by accident, you may also modify or rectify it in Udyog Aadhaar and generate an acknowledgment.