What is a SIC (Standard Industrial Classification) Code?
Step Three of how to register a company name: What is a SIC code, and how and when do you choose it?
The Standard Industrial Classification (or SIC) is a code that categorises a limited company’s industry. In this article we’re going to cover some SIC code basics including how and when you select your company’s code, and what to do if you wish to change the SIC code.
First, let’s take a look at the codes themselves.
A company does not create its own SIC from scratch; instead company directors select a code (or codes, companies can have up to four) from this SIC code list. As you’ll notice, there are quite a few to choose from, with some of the codes being remarkably specific. For example:
01120 – growing of rice
10520 – manufacture of ice cream
23120 – shaping and processing of flat glass
29203 – manufacture of caravans
43110 – demolition
There is also a code dedicated to dormant (not trading) companies: 99999.
When to select your company’s SIC code
Since April 2016 directors need to select a SIC code as part of the company formation process. For companies formed before this date, the SIC code was first chosen when companies filed an annual return (which has since been renamed the confirmation statement).
Changing the SIC code
To update a company’s code or codes all you need to do is file a confirmation statement with the new code/s included.
As a final note, it’s worth pointing out that the SIC code is simply a reference. If company directors have innocently selected a code that turns out be inaccurate, they’re not tied down to operating in that industry. All they’d need to do is update the code.
Do you want to form a company? Company Formation MadeSimple have registered over 500,000 UK limited companies and offer a number of low cost online formation services and associated services, including the filing of the confirmation statement. Find out more now: Company Formation MadeSimple