Understanding SIC Codes: What They Are and Why They Matter

When starting a company in the UK, you might come across the term SIC code and wonder what it actually means. While it sounds technical, it’s really quite simple — and important for your business.

A SIC code, or Standard Industrial Classification code, is a short number that describes what your company does. It’s how Companies House and HMRC classify your business activity, from IT consultancy to catering, retail, or construction.

Think of it as a label that tells the government and other official bodies the type of business you run — a simple step that keeps your company compliant and helps with official statistics.

Why Your Business Needs a SIC Code

Every company registered in the UK must include at least one SIC code when filing with Companies House. It’s not just a bureaucratic formality — it actually helps in several ways:

• Compliance: Ensures your company is correctly categorised for legal and tax purposes.

• Clarity: Gives HMRC and Companies House a clear picture of your business activity.

• Growth insights: Investors, lenders, and industry analysts often use SIC codes to understand market sectors.

Even if your business has multiple activities, you can include a main SIC code along with secondary codes to give a fuller picture of what you do.

Choosing the Right SIC Code

Choosing the right SIC code doesn’t have to be complicated. The code should reflect your primary business activity, not every single thing your company might do.

For example:

• A software consultancy might use 62012 – Business and domestic software development.

• A small bakery might use 10710 – Manufacture of bread; manufacture of fresh pastry goods and cakes.

Selecting the correct SIC code helps your business stay accurate in the eyes of Companies House and HMRC — a simple but essential step for building your company the right way.

Start Your Business with Confidence

At Quick Company Formations, we make choosing a SIC code straightforward. Whether you’re starting a tech startup, a retail shop, or a consultancy, we’ll guide you through the process so you can focus on what really matters — growing your business.

Form your company today with Quick Company Formations and get your SIC code right from the start.