Guides · MSME
NIC code basics
An NIC code is a number that describes what a business actually does. The National Industrial Classification is the standard scheme used to identify economic activities — and it comes up when registering as an MSME.
What an NIC code is
The National Industrial Classification assigns codes to economic activities so that businesses doing the same kind of work are identified consistently. It is a way of saying, in a standard form, whether a business manufactures, trades, or provides a service, and in what line.
During Udyam registration, a business selects the NIC code or codes that match its activity, which is how the registration records what the enterprise does.
Why picking the right one matters
The activity a business registers under can affect how it is treated — for instance, whether it is recorded as a manufacturer or service provider, or as a trader, which carries different consequences for the delayed-payment protections. So the code should reflect what the business genuinely does.
A business with more than one activity may need more than one code, and the current process should be checked when registering.
How Lekha reflects your line of business
Lekha records the documents and dealings of your actual trade, tracking supplier purchases and buyer receivables the way your business runs, whatever activity it is registered under.
Lekha records what your documents say and tracks the money on both sides — what you owe and what you are owed. It records and tracks; it does not replace your accountant.
Questions
- What is an NIC code?
- A code from the National Industrial Classification that identifies a business's economic activity in a standard form, used during Udyam registration.
- Why does the NIC code matter for MSMEs?
- It records what the business does — such as manufacturing, services, or trading — which can affect how it is treated, including for the delayed-payment protections.
- Can a business have more than one NIC code?
- A business with more than one activity may register more than one code. Check the current process when registering.
This guide is general information, not legal or tax advice. Confirm the current rules and your own circumstances for any specific case.