The SIC code (Standard Industrial Classification) is a 5-digit code that sets out the industry you’ll be operating in. When completing the company formation process you must select at least one code but can choose up to 4.
The codes can be remarkably specific, for example, 01110 is the code for the Growing of cereals (except rice), leguminous crops and oil seeds. Or not so specific, 99999 is the code for Dormant companies. You can see more examples in the Companies House condensed list of SIC codes or the Office for National Statistics full list.
The consequences of using an incorrect SIC code
So, what happens if you use the wrong SIC when forming your company? Fortunately, nothing. Unlike non-filing of the confirmation statement or annual accounts, where Companies House can impose penalties and eventually strike your company from the register, there are no regulations in place with the incorrect use of an SIC code.
Perhaps you made an error and selected the wrong SIC code during the company formation process. Or maybe you used a code in good faith, only to find a few months into your company’s lifetime that the code was inappropriate. Either way, it’s easily fixed.
How do I correct my company’s SIC code?
All you need to do is file a confirmation statement. This is the annual report that provides Companies House with a general snapshot of your company’s general, non-financial, situation. The confirmation statement will allow you to add and remove SIC codes.
It’s up to you when you do this. You can wait until your confirmation statement is due, or if you’re eager to make the change, you can file an early confirmation statement. If you do require assistance, we can help via our confirmation statement filing service.
We hope this post has allayed any fears you may have about selecting the wrong SIC code. If you do have any questions, please get in touch and we’ll be happy to help.