By Rupin Chopra and Apalka Bareja
The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 aims at facilitating the promotion, development and enhancing the competitiveness of micro, small and medium enterprises.
In accordance with the provisions of MSMED Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified into two categories:
- Manufacturing Enterprises
- Service Enterprises
The NIC Code in MSME is a classification system that enables one to classify the business activities carried by various Micro, Small and Medium Enterprises. It is a numeric code in the form of a 2 to 3 digit code, a four digit code and five digit code. 2-3 digit codes represent the group of business activities, four digit code symbolizes a class of business activity while five digit represents sub-class of the business activity.
Therefore, all enterprises which are doing activities which are mentioned under the NIC Code List are eligible for MSME registration under Udyam
ACTIVITIES ADDED UNDER THE NIC CODE LIST
On the basis of various representations received by government, the government has decided to validate and include “Retail and Wholesale trades as MSMEs” for Udyam Registration for the following activities under INC Code 45, 46 and 47 vide O.M 5/2(1)/2020-P&G/Policy dated 17.07.2020:
|45||Wholesale and retail trade and repair of motor vehicle and motorcycles|
|46||Wholesale trade except of motor vehicles and motor cycles|
|47||Retails Trade Except of Motor Vehicles and motor cycles.|
The Udyam Registration is allowed for the above three NIC Codes and activities mentioned against them.