What is Nepal Standard Industrial Classification (NSIC Code)? Brief Explanation

NSIC (Nepal Standard Industrial Classification) Code is an economic classification of the economic activities that happen within the territory of Nepal. It has four digits representing different economic transactors bringing in consistency in collection and reporting of the economic data. It is mainly helpful for the economic data analysis hence, the economists, researchers and the policy makers including government will benefit from it.

NSIC Code is formulated in accordance with ISIC (International Standard Industrial Classification) bringing in homogeneity and comparability of economic data with the world who has adopted ISIC framework. To localize the codes, guidance has been followed as prescribed by System of National Account, SNA – 1993 and International Standard Classification of Occupation, ISCO – 88.

NSIC Code has defined Nepalese economic and institutional sector in three categories, mainly, to define the principal activities of the producing agents within Nepalese territory.

1.  Establishment: Enterprise that is in the particular area and manufacturing a prime product that contributes in value addition.
2. Enterprise: Corporate and Unincorporated body that produces one or more than one goods and services from different location within Nepal.
3. Industry: An establishment that produces homogenous products.

The four digits of NSIC code, as ISIC Code, has a hierarchical structure, with highest level being Section, second digit Division, third digit group and the last and fourth one the Class. Major Group has been presented from A to Q category. Following table represents how many codes there are under each major group. For example, in Major Group A there can be 8 codes.

Major Group	Description	Division	Group	Class
A	Agriculture and Forestry	2	5	8
B	Fishing	1	1	1
C	Mining and Quarrying	5	10	12
D	Manufacturing and Recycling	23	54	116
E	Electricity, Gas and Water	2	3	3
F	Construction	1	5	5
G	Wholesale and Retail Trade	3	17	28
H	Hotel and Restaurants	1	2	2
I	Transport, Storage and Communication	5	8	15
J	Financial Intermediation	3	5	11
K	Real Estate, Renting and Business Activites	5	17	31
L	Public Administration and Social Security	1	3	8
M	Education	1	4	5
N	Health and Social Work	1	3	6
O	Other Community, Social and Personal Activities	4	9	22
P	Private Household and Employed Person	1	1	1
Q	Extra-territorial Organization Body	1	1	1
	Total	60	148	275

So, Let’s say your enterprise has a NSIC Code K7412, what does that denote? For that you need to break down each of the components and can be interpreted as follows:

K – Real Estate, Renting and Business Activities

74 – Other business Activities

741 – Legal accounting, book keeping and auditing activities, tax consultancy market research and public opinion polling business and management consultancy.

7412 – Accounting, book keeping and auditing activities, tax consultancy.

Are you thinking of registering your own company and wondering what might be possible NSIC code, go through the Company Registrar of Nepal website.

Here's the link: NSIC CODE WEB PAGE