This project describes the development of multi colored code. The main objective is to develop a code which has a higher data capacity than the current QR code system. This paper describes the layout design of the proposed multi colored code. The multi colored code employs Hamming data error correction technique and color multiplexing using 8 types of colors. These colors are namely red, green, blue, cyan, magenta, yellow, white and black. A decoder application is also designed in order to process and decode the captured multi colored code. From result, it shows that the decoder is able to decode the multi colored code with low decode error rate within the range of 6cm to 13cm. The first prototype of the proposed color code is having approximately same number of module as QR code Version 10. As result, the proposed color code is able to store almost double of the data capacity compared to the QR code Version 10.