NIC codes, or National Industrial Classification codes, are used to classify different types of economic activities in India. These codes are used by various government agencies, including the Ministry of MSME Registration, to identify and categorize businesses.
MSMEs are an important part of the Indian economy, and the government has taken several steps to support and promote their growth. One such step is the classification of MSMEs based on their size and type of economic activity using NIC codes.
Here is everything you need to know about NIC codes for MSME enterprises:
What are NIC codes?
NIC codes are a standardized system of codes used to classify economic activities in India. These codes were developed by the Central Statistical Organisation (CSO) under the Ministry of Statistics and Programme Implementation (MOSPI) and are based on the International Standard Industrial Classification (ISIC) system.
How are NIC codes used for MSME enterprises?
NIC codes are used by the government to identify and classify MSME enterprises based on their economic activity. The MSME Development Act of 2006 defines MSMEs based on their investment in plant and machinery or equipment. The government has set different investment limits for micro, small, and medium enterprises, and each category has a different set of NIC codes.
How can businesses find their NIC codes?
Businesses can find their NIC codes by referring to the NIC code directory published by the Ministry of MSME. The directory contains a list of all the NIC codes for different economic activities. Businesses can search for their NIC codes based on their economic activity or by using a keyword search.
Why is it important for MSME enterprises to know their NIC codes?
It is important for MSME enterprises to know their NIC codes because it helps them to identify their category and avail the benefits provided by the government for that category. MSME enterprises are eligible for various schemes and incentives provided by the government, such as subsidies, tax exemptions, and credit guarantees. Knowing their NIC codes helps businesses to apply for these schemes and avail the benefits.
All About MSME Registration
MSME registration refers to the process of registering a micro, small, or medium enterprise under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. The registration is voluntary, and it is aimed at providing various benefits and support measures to registered MSMEs. Here is all you need to know about MSME registration:
Eligibility for MSME registration
Any entity that is engaged in manufacturing or service activities can register under the MSME Act. The eligibility criteria for MSME registration are based on the investment in plant and machinery or equipment for manufacturing enterprises and investment in equipment for service enterprises.
Micro-enterprises: Investments up to Rs. 1 crore for manufacturing enterprises and up to Rs. 10 lakh for service enterprises.
Small enterprises: Investments between Rs. 1 crore to Rs. 10 crores for manufacturing enterprises and between Rs. 10 lakhs to Rs. 2 crores for service enterprises.
Medium enterprises: Investments between Rs. 10 crores to Rs. 50 crores for manufacturing enterprises and between Rs. 2 crores to Rs. 5 crores for service enterprises.
Benefits of MSME registration
MSME registration offers various benefits to the registered entities, including:
Access to credit at lower interest rates
Preference in government procurement
Exemption from direct tax laws
Eligibility for government schemes and incentives
Protection against delayed payments
Documents required for MSME registration
The documents required for MSME registration are as follows:
Aadhaar card of the owner
PAN card of the entity
Business address proof
Bank account details
Investment details in plant and machinery or equipment
Details of the activities carried out by the entity
Process of MSME registration
The registration process for MSMEs is simple and can be completed online through the Udyog Aadhaar portal. The following steps are involved in the registration process:
Visit the Udyog Aadhaar portal and create an account using Aadhaar card details.
Fill in the relevant details of the enterprise, including investment, activities, and bank details.
Submit the application and get an acknowledgement number.
The MSME registration certificate will be issued once the application is verified.
Renewal of MSME registration
The Print MSME registration certificate
is valid for the lifetime of the entity, and there is no need for renewal. However, any change in the details provided during registration, such as investment or activities, must be updated on the Udyog Aadhaar portal.
NIC codes are a standardized system of codes used to classify economic activities in India. They are an important tool for identifying and categorizing MSME enterprises based on their investment in plant and machinery or equipment. MSME enterprises should know their NIC codes to avail the benefits provided by the government for their category.
MSME registration is a voluntary process aimed at providing various benefits and support measures to micro, small, and medium enterprises. The registration process is simple and can be completed online through the Udyog Aadhaar portal. MSME registration offers various benefits, including access to credit at lower interest rates, preference in government procurement, and exemption from direct tax laws. MSMEs must ensure that their details are updated on the Udyog Aadhaar portal in case of any changes.