At a glance
| Parameter | Detail |
|---|---|
| Classification in use on Udyam | NIC 2008, five-digit sub-class |
| Total sub-class codes | 1,301 across 21 sections and 89 divisions |
| Issued by | Ministry of Statistics and Programme Implementation |
| Next version | NIC 2025, released 18 November 2025, six-digit, aligned to ISIC Rev. 5 |
| Cost to add or change a code | Zero. Editable on the Udyam portal at any time |
| Does it decide micro, small or medium? | No. That is the composite investment and turnover test |
| Where else it is used | MCA incorporation, several state incentive schemes |
What the NIC code actually does
The National Industrial Classification code is a numeric code that records what economic activity your enterprise carries on. When you register on the Udyam portal you are asked to select one, and the code sits on your Udyam certificate permanently until you change it.
It is worth being precise about what the code controls, because a lot of published advice overstates it. The NIC code does not decide whether you are micro, small or medium. That is decided purely by the composite test on investment in plant and machinery and on annual turnover, under notification S.O. 1364(E) dated 21 March 2025. What the NIC code does decide is which schemes, subsidy lines and procurement categories you appear eligible for when a department filters its database.
The five levels of NIC 2008
NIC 2008 is hierarchical. A section is a letter from A to U, a division is two digits, a group three, a class four, and a sub-class five. The Udyam portal wants the five-digit sub-class, which is the most specific level available.
| Level | Digits | Example |
|---|---|---|
| Section | 1 letter | C, Manufacturing |
| Division | 2 | 14, Manufacture of wearing apparel |
| Group | 3 | 141, Manufacture of wearing apparel except fur |
| Class | 4 | 1410 |
| Sub-class, used in Udyam | 5 | 14101, Manufacture of all types of textile garments and clothing accessories |
How to choose your primary code
Rank your activities by turnover. The one earning the most is your primary code, and it is the one most departments read first.
Separate manufacturing from trading. Making a product sits in Section C. Buying and reselling it sits in Section G. This is the single most consequential distinction, because the delayed payment machinery of the MSMED Act is built around manufacturers and service providers.
Add a code for every real activity. The Udyam portal accepts multiple codes and there is no advantage in under-declaring.
Use n.e.c. codes last. Where nothing fits, a code ending in 9 for not elsewhere classified within the closest group is the fallback, not the first choice.
Check the code against the scheme you want, because several central and state incentive lines are drawn by NIC division.
NIC 2025: what changes and when
MoSPI released NIC 2025 on 18 November 2025. It aligns India with ISIC Rev. 5 and moves the sub-class from five digits to six, adding coverage for renewable energy, fintech, e-commerce and digital services that NIC 2008 handles poorly.
It is being adopted progressively across government portals rather than all at once. As things stand, Udyam registration runs on NIC 2008, so that is the version to use when you file today. The practical rule is simple: use the version the form in front of you asks for, and re-check if you are filing after a portal update.
Four mistakes we see repeatedly
One generic code for a business that does three things. It works at registration and fails later at subsidy stage.
A trading business registered under a manufacturing code, which creates an inconsistency between the Udyam certificate and the GST return.
A code copied from a similar business without checking that the description actually matches.
Codes never revisited after the business pivoted, so the certificate describes an activity that stopped years ago.
How many NIC codes can I add on Udyam?
There is no fixed cap. Record one primary activity and as many secondary activities as you genuinely carry on. Make the activity generating the largest share of turnover the primary code, because departments read that one first when filtering scheme eligibility.
Does the NIC code change my MSME category?
No. Micro, small and medium are decided only by the composite test on investment in plant and machinery or equipment and annual turnover under notification S.O. 1364(E) dated 21 March 2025. The NIC code records what you do, not your size.
Can I change the NIC code after registration?
Yes, free of cost. Log in to the Udyam portal with your Udyam Registration Number, verify by OTP and edit the activity details, adding or removing codes as needed. It is sensible to do this alongside the annual update of turnover and investment, so the certificate stays consistent with what the business actually does.
Which NIC version does Udyam use in 2026?
NIC 2008 five-digit sub-class codes. NIC 2025, released on 18 November 2025, moves to a six-digit structure aligned with ISIC Rev. 5 and is being phased in across portals, so check which version the form asks for before filing. Filing under the wrong version is a rejection risk, so confirm on the portal itself rather than relying on a third-party list.
Is the NIC code the same as an HSN code?
No. NIC classifies the business activity for registration and statistical purposes. HSN and SAC classify goods and services for GST. They serve different systems and the numbers are unrelated. NIC classifies the business activity for registration and statistical purposes, while HSN and SAC classify goods and services under GST. The numbering systems are unrelated, and quoting one where the other is asked for will fail validation.
About the author
CA & CS Team
Regikart at Regikart. Want to discuss this in the context of your business?