What is a SIC Code and Why Does Your Business Need One?

by/13th February 2025/inRunning a business, UK Startup
SIC code for UK companies

When registering a company in the UK, one essential requirement is selecting a Standard Industrial Classification (SIC) code. SIC code for UK companies categorise businesses based on their economic activity, helping regulatory bodies, government agencies, and industry analysts understand what a company does. In this quick guide, we’ll explain what a SIC code is, why it matters, and how you might choose the right one for your UK business.

What is a SIC Code?

A SIC code is a five-digit number used by Companies House to classify a business according to its primary and secondary activities. These codes are part of a standardised system that allows organisations to collect and analyse data on industries in the UK.

The UK SIC codes are regularly updated, with the latest revision being the UK SIC 2007.

Why is a SIC Code Important?

SIC codes serve several key purposes:

  • Legal Requirement: When registering a company with Companies House, selecting a SIC code is mandatory.
  • Tax and Regulatory Compliance: HMRC and other government bodies use SIC codes to determine tax obligations and eligibility for incentives.
  • Industry Analysis: Investors, analysts, and policymakers rely on SIC codes to monitor industry trends and business growth.
  • Funding & Grants: Some business grants and government support schemes require businesses to operate within specific SIC-coded industries.

How to Find the Right SIC Code for UK Companies

Choosing the correct SIC code for your business ensures compliance and helps accurately represent your business activity. Here’s how to find the right one:

  1. Use the Companies House SIC Code List – You can browse the official Companies House SIC Code List to find the best match for your business.
  2. Search Online Tools – Websites like SICCode.com allow you to search for relevant SIC codes by keyword.
  3. Consult an Accountant or Business Formation Specialist – If you’re unsure which SIC code applies, seeking professional guidance can help you select the most suitable one.

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SIC code for UK companies

Can You Change Your SIC Code?

Yes, if your business activities change, you can update your SIC code when filing your next confirmation statement with Companies House. If you’ve selected the wrong SIC code, it’s essential to correct it as soon as possible to avoid misrepresentation.

When Do You Need to Choose or Update a SIC Code?

Selecting the correct SIC code is essential when registering and maintaining a UK company. Here’s when you need to choose or update yours:

✅ Company Incorporation: You must provide at least one SIC code when registering with Companies House to classify your business.

✅ Updating Business Activities: If your company’s focus changes, update your SIC code in your next confirmation statement—there’s no need to do it immediately.

✅ Annual Confirmation Statement: Every company must confirm or update its SIC code yearly. If your activities remain unchanged, no update is needed.

✅ LLPs & SIC Codes: Limited liability partnerships (LLPs) are exempt from SIC code requirements at all stages.

Choosing the right SIC code ensures compliance, transparency, and proper business classification. While your initial selection is important, updates are flexible to match your business growth.

How Many SIC Codes Can a Business Have?

A company can have up to four SIC codes, which is useful if your business operates in multiple sectors. For example, a digital marketing agency that also offers software development services may use two different SIC codes to cover both activities.

Common SIC Codes for UK Companies

Here are a few examples of frequently used SIC codes:

  • 62020 – Information technology consultancy activities
  • 68209 – Other letting and operating of own or leased real estate
  • 96090 – Other service activities not elsewhere classified
  • 47110 – Retail sale in non-specialized stores with food, beverages, or tobacco predominating

For a full list, refer to the official UK SIC codes.

SIC Code for UK Companies Final Thoughts

Selecting the correct SIC code for UK companies is a crucial step when forming a company in the UK. It ensures compliance with Companies House regulations and helps define your business in legal and financial contexts. If you’re unsure about the right SIC code for your company, consulting a company formation expert can simplify the process.

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Formations Wise is a trading style of Accounting Wise Ltd, a limited company registered in England under company number 09365202. Our registered office is: The Carriages, Station Road, Ware, SG12 9PL UK.

Content is for general information only. Always take advice.

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