NIC Code for Worker Hostels Boarding Houses - 55902

The National Industrial Classification (NIC) Code refers to a standardised system that is applicable in India for classification of business activities in assisting in regulation, statistical and compliance purposes. This classification is mandatorily required with Udyam Registration (MSME), Udyog Aadhaar, company incorporation, LLP registration, GST registration, bank documents and approvals relating to business activity.

Businesses that are engaged in Worker hostels and boarding houses, the appropriate category of NIC is displayed as Class 5590 and Subclass 55902 that allows the activity to be registered as being official government and financial systems. The classification is used by businesses in the industries such as AC repair, water purifier servicing, building material supply, digital signature services, IT consulting, trading, transport, and agricultural trading, painting, recycling, etc.

The NIC Code for Worker hostels and boarding houses falls under:

• NIC Class: 5590
• NIC Subclass: 55902

This subclass includes all activities linked with Worker hostels and boarding houses that are connected to service delivery, manufacturing, trading, supply, installation, support, and maintenance. The business entities that are registered in the form of MSME or as a company will have to use this subclass in order to be properly classified by the ministry of corporate affairs (MCA), GST authorities, and Udyam portal.

Proper selection of NIC Code not only helps in compliance but also in recognizing various government records, tenders, industry licensing, and financial audits.

The NIC Code is vital in the Udyam Registration process where all the businesses are required to declare the type of operations they are involved in. To businesses engaged in Worker hostels and boarding houses the right NIC Class 5590 and Subclass 55902 helps in:

• Correctly classify as Micro, Small or Medium enterprise
• Eligibility for MSME subsidies and government schemes
• Eliminate errors in Udyam portal verification process
• Easy linking with GST, PAN, bank accounts and MCA documents
• Preferred in government tenders under MSME schemes
• Prevents rejection and delays caused by incorrect classification

Uninterrupted Legal and Financial Compliance

Banks, NBFCs, and government portals verify business activities through NIC codes because they need an accurate classification.

Access to MSME Incentives

• Collateral-free loans
• Interest rate subsidies
• Technological upgrades plans
• Government reimbursement programs

Fast Company/LLP Incorporation

The MCA system is automatic in cross-verifying the NIC codes and allows a much quicker approvals of businesses in Worker hostels and boarding houses

Evading Non-compliance Problems

Inaccurate NIC codes can be a problem when you are submitting tax, during audits or when tenders are being applied.

Improved Government Data Transparency

Proper classification improves visibility in Udyam, GST, GeM and industry databases.

Proper Industry Positioning

The NIC code specifically positions your business as a useful part in AC repair, RO maintenance, building materials, electrical stores, IT systems, transport and agricultural trading, other services or manufacturing businesses.

The NIC is organized in a hierarchical system that assist government to classify the businesses accurately:

• 2-digit Division Code: This recognizes the industry sector.
• 3-digit Group Code: Classifies businesses in that division.
• 4-digit Class Code 5590: Defines the primary industrial class.
• 5-digit Subclass Code 55902: Identifies the specific activity being carried out.
• Used for NIC Code search, Udyam, Udyog Aadhaar & industry mapping

All businesses, regardless of whether they are suppliers, manufacturers, traders or service providers, have to categorize themselves according to this structure.

NIC Code 55902 of Class 5590 covers all businesses that are involved in Worker hostels and boarding houses and all associated commercial, operational, servicing, manufacturing or trading operations.

Under this code of business, the business can be service centers, consultants, technicians, wholesalers, retailers, manufacturing units, distributors, or support-oriented firms based on the nature of Worker hostels and boarding houses.

This NIC Code is applied during MSME Udyam Registration, Udyog Aadhaar, GST registration, incorporation of companies, tenders, bank loan applications, government licensing and compliance.

This classification enables government agencies to find the correct business and put into place the correct economic sector.