SIC codes for limited companies

Standard Industrial Classification (SIC) codes are codes that group companies in the UK by their business activities. They are important to get right when setting up your limited company or potentially diversifying your business into other areas.

Here, exclusively for ContractorUK, the tax director of DNS Accountants, Siddharth Agarwal, explains everything that contractors need to know about Standard Industrial Classification (SIC) codes, and why they are important to limited companies.

What is a SIC code?

A SIC code is a five-digit code used by Companies House to classify your business activities. It gives Companies House and other organisations a way to group businesses by industry-type.

SIC codes are also used in other countries around the world and each country will have their own version of SIC codes (for example ‘NACE’ in the European Union).

What are SIC codes used for?

SIC codes are used by several official organisations, such as Companies House, the Office for National Statistics (ONS) and the Health and Safety Executive (HSE).

These organisations use SIC codes to measure, analyse and share data across organisations and for official statistics. For example, they use them to track the number of companies operating in different industry sectors, analyse existing or emerging trends, and monitor the UK economy based on sectors.

Your SIC code, along with other company details registered at Companies House, will also be displayed on the public register of companies.

Other companies may also use SIC codes for marketing or finding your business. This will allow people who want to contact companies in a particular sector to do this more accurately using SIC codes.

It is also possible for you to use SIC codes to find other companies undertaking similar activities to your own or that operate in your sector or to market to your target customers.

How are SIC codes classified?

SIC codes are split into groups dependent on trade (using letters ‘A’ to ‘U’) and then split into sub-groups as well. For example, Section ‘J’ is Information and Communications and under this section are several 5-digit codes – likely to be of interest to IT contractors:

SIC Code       Description

62012              Business and domestic software development

62020              Information technology consultancy activities

62030              Computer facilities management activities

62090              Other information technology service activities

63110              Data processing, hosting, and related activities

A full list of SIC codes can be found on the Companies House website.

Does my company need a SIC code?

The simple answer to this is ‘yes,’ your limited company does need a SIC code. Every limited company in the UK requires a SIC code when registering as a limited company. You won’t be able to incorporate or register your company without a SIC code.

You will also be required to use the code when you complete your Confirmation Statement (‘annual return’) for your company.

Even if the limited company is not active, it still requires a SIC code. You will also require a SIC code when registering for VAT. As you can see, SIC codes are important and required at key turns of a limited company director’s journey!

How do I find the right SIC code for my company?

To find the right SIC code for your business, use the Companies House SIC code list. This has a search facility, based on keywords, which is useful to begin searching what may be relevant to your business.

The list is by no means exhaustive -- some are very niche, and others are more generic. Take your time to find the nearest SIC code to most accurately describe your business activities.

Can my business have more than one SIC code?

Most businesses find that one SIC code is sufficient for their business. However, if your company carries out a range of different business activities, then you can register up to four SIC codes.

How important are SIC codes?

SIC codes are very important to be able to register and incorporate your business, register for flat rate VAT scheme, and file your annual returns.

Do Limited Liability Partnerships (LLPs) need a SIC code?

Limited companies and Limited Liability Partnerships (LLPs) are required to have a SIC code. Sole traders and other partnerships are not required to have one.

Can I change or update my SIC code?

SIC codes can be changed as your business grows or diversifies. Every company must confirm or update their SIC code each year on the Confirmation Statement. If you want to change your SIC code before your Confirmation Statement is due, you can do this by filing your Confirmation statement early.

What are the SIC codes for dormant and non-trading companies?

If your company is dormant or non-trading, you will use one of the following codes. For dormant companies the SIC code is 99999. The SIC code for non-trading companies is 74990.

If your dormant or non-trading company becomes active, you will need to assign the relevant SIC code on the next Confirmation Statement.

SIC codes – In summary…

SIC codes are important and necessary for all UK limited companies and limited liability partnerships. You cannot register a limited company with Companies House without assigning it a SIC code. Choose your SIC code, or codes given you can have up to four in total, from the list provided at Companies House and if you need to change it at any point, do this via your next Confirmation Statement.