Object Clause and NIC Code of a Company: What They Mean

The object clause is the part of a company’s Memorandum that lists the business activities it is set up to carry out. The NIC code is a numeric code identifying the company’s industry activity in government records. The two should describe the same business.

Why it matters for business registrations

Both are asked for at the start. When you register a private limited company, you state main objects in the MOA and pick NIC codes for your activity in the application. The clause sets what the company is authorised to do; the code tells the authorities what it actually does.

A company that drifts outside its stated objects may need to alter them first. That is what a change of object clause is for.

Where and when they are used

• In the MOA at incorporation
• In the incorporation application, where the business activity code is selected
• In annual returns and other MCA filings that refer to business activity
• When banks, lenders and tax offices look at what the company does

Say a founder incorporates for software services but later starts trading in garments. The object clause may not cover it, and the NIC code on record would not match either.

Key points: how to choose

Write the main objects around what you will really do in the first few years, and add other objects for what you might plausibly do later. Keep the wording clear; vague or contradictory objects can draw questions from the ROC. Pick the NIC code from the official list nearest to your main activity, and match it to the clause.

A well-drafted clause also keeps the AOA and later resolutions consistent. If your plans shift, ask us about an AOA amendment alongside any object change, since the two documents sometimes need to move together.

Common mistakes

• Choosing a NIC code at random or from a friend’s company
• Objects too narrow, so the business outgrows them within a year
• Copying a long template full of activities you will never do
• Forgetting that a licensed activity, such as finance, may need extra approvals

Related guides: MOA (Memorandum of Association), e-MOA and e-AOA, SPICe+ form

FAQs

What is an object clause?

It is the clause in the MOA that sets out the activities the company may undertake.

What is a NIC code?

It is an industry classification code that identifies a company’s business activity in official records.

Can I change the object clause later?

Yes. It needs a shareholder resolution and filings with the ROC under the Companies Act.

Not sure how to word your objects or pick a code? Talk to a Taxhint expert and we will help you set them up.