When you register a company, one of the first things you tell Companies House is what your business does. You do this by selecting a standard industrial classification (SIC) code – a 5-digit code that describes your company's economic activity.
SIC codes might seem like a minor administrative detail, but they matter more than you might think. Under new legislation, keeping them accurate is now more important than ever.
Even if your company is dormant (99999) or non-trading (74990), you still need to supply a SIC code. But if you’re actively trading, it's essential that your code reflects this. Using a dormant or non-trading code for an active company is one of the most common discrepancies we see, and one that's likely to attract scrutiny under our new powers.
Why accurate SIC codes matter
Your SIC code is a part of how your company presents itself to the world. When a potential investor searches for your company, or a lender reviews your application, your SIC code helps them understand what you do and if you're the right fit for what they're offering.
If your code does not match your actual activity, for example you're actively trading but still showing as dormant (99999) or non-trading (74990), it can create confusion, raise questions, and in some cases actively work against you. Lenders and funding bodies use SIC codes to assess eligibility, and a mismatch can be enough to cause delays or complications in an application.
Getting it right means your company is accurately represented, and that the right opportunities can find you.
Beyond your individual business, SIC codes feed into data used by government bodies including Companies House, HMRC and the Office for National Statistics. This data helps track industry trends, informs policy, and provides an indication of the strength of the UK economy. When SIC codes are accurate across the register, that picture becomes more reliable, and sectors are better supported as a result.
New powers under the Economic Crime and Corporate Transparency Act
The Economic Crime and Corporate Transparency Act has introduced stronger requirements for all information on the Companies House register to be accurate. This applies to SIC codes just as it does to any other information you file with us.
Under these new powers, Companies House can challenge, reject or remove information that appears incorrect, inconsistent or misleading. If your SIC code does not reflect your company's actual activity, you may experience filing rejections or delays while discrepancies are investigated.
This means it's no longer enough to set a SIC code when you incorporate and leave it unchanged. You must make sure it continues to reflect what your company actually does.
Choosing the right SIC code
There are more than 600 SIC codes to choose from, divided into 21 main industry categories. You can find the right code for your company using our condensed list of SIC codes.
You must provide at least one code, and you can select up to 4 if your company carries out a range of different activities.
If you're not sure which code applies to you, it can help to search the Find and update company information service for companies offering similar services. For example, a coffee shop that also sells records might find it useful to look up how similar businesses have described their activities.
Three questions to ask yourself now
It's worth taking a moment to consider:
- Are you trading? If so, does your SIC code reflect this, rather than showing a dormant (99999) or non-trading (74990) status?
- Has your business activity changed? If you've moved into a new sector or changed what your company does, your SIC code should reflect your current activity.
- Does your SIC code accurately describe what your company does? If there's a mismatch, it could affect your relationships with lenders or your eligibility for certain funding.
You can check your current SIC code on the Find and update company information service.
How to update your SIC code
If you need to update your SIC code, file a confirmation statement. You only pay the annual fee for a confirmation statement once within any 12-month payment period.
Keeping your SIC code up to date is part of your wider responsibility as a company director to maintain accurate information on the register. Our directors' toolkit has useful links and tools to help you understand your legal responsibilities.
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