In the United Kingdom, every company will have at least one SIC code which is used by Companies House to understand what the business does. SIC codes can be confusing, so we’ve put together a guide to help you understand what SIC codes are, how to choose to the right SIC code during incorporation, how to find SIC codes, and how to change the SIC code if necessary.
What Are SIC Codes?
A SIC code has five digits and stands for Standard Industrial Classification code. Government agencies like Companies House as well as the Office for National Statistics use them to officially identify and properly categorise the main activities of businesses and limited companies that are in the United Kingdom. At present, there are over 600 SIC codes in circulation. The government agencies collect and record the SIC codes. With that data, they can know and monitor the total number of companies and businesses that are in the UK and what industries and activities they do. They are also able to see any current trends or any new ones that are emerging. All of the classifications that businesses have are open for anyone who wishes to learn more about them since they are public record. SIC codes are grouped by sections or trades. They are then organized so that those that are similar in classification are in the same group. Checking out the group on Agriculture, Forestry, and Fishing would allow one to see a variety of SIC codes that can go from logging to growing fruits to marine aquaculture.
How Do You Choose the Right SIC Code/s During Incorporation?
To get the right SIC code/s to classify your business correctly, you can view the full list of SIC codes right from Companies House. It is quite an exhaustive list. It is incredibly important when setting up your business that you select the correct SIC code from Companies House pre-approved list. If the SIC code/s used is not on the list, the application for registration is highly likely to be rejected.
How Do You Find the Right SIC Code/s?
Many business owners find it difficult to find the right SIC code/s. If you are struggling, you can use many of the guides and list available to help you choose the right code. You may find that you struggle to find the perfect SIC codes that are spot on when it comes to describing your business. The next best thing to do would be to find the one that is nearest to the description of what your business does. The condensed SIC code sections are as follows:
● Section A – Agriculture, Forestry and Fishing ● Section B – Mining and Quarrying ● Section C – Manufacturing ● Section D – Electricity, Gas, Steam and Air Conditioning Supply ● Section E – Water Supply, Sewerage, Waste Management and Remediation Activities ● Section F – Construction ● Section G – Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles ● Section H – Transportation and Storage ● Section I – Accommodation and Food Service Activities ● Section J – Information and Communication ● Section K – Financial and Insurance Activities ● Section L – Real Estate Activities ● Section M – Professional, Scientific and Technical Activities ● Section N – Administrative and Support Service Activities ● Section O – Public Administration and Defence; Compulsory Social Security ● Section P – Education ● Section Q – Human Health and Social Work Activities ● Section R – Arts, Entertainment and Recreation ● Section S – Other Service Activities ● Section T – Activities of Households as Employers; Undifferentiated Goods- and Services-Producing Activities of Households For Own Use ● Section U – Activities of Extraterritorial Organizations and Bodies
Each section has individual SIC codes under them. The entire list can be found here.
How Do You Change Your Business’ SIC-Code?
Good news; business owners who may have indicated the wrong SIC code upon registration can change their SIC code. Changing the SIC code can also be done by owners of businesses which may have changed their activities during the duration of their operations. To change the SIC code, owners can indicate the right SIC code/s when they file the next confirmation statement for their business. However, those who wish to have their SIC code/s changed at the soonest time possible, can go online and access the WebFiling service of Companies House.
published under Business Address Guides
