Introduction
If you are running a business in the United Kingdom, you will have come across the term SIC code at some stage. A SIC code, or Standard Industrial Classification code, is the official way your company’s activities are categorised when you register with Companies House. Choosing the right SIC code is vital, as it not only reflects your company’s identity but also ensures compliance with legal reporting obligations.
There are many situations where a business might need to update or correct its SIC code. Whether you have expanded into new activities, realised you chose the wrong code at incorporation, or are filing your confirmation statement, it is important to know how to change SIC code on Companies House correctly. This guide walks you through the process step by step, explains the reasons behind making the change, and highlights the consequences of getting it wrong.
Understanding SIC Codes and Their Importance
A SIC code is a four-digit number that describes the primary nature of your business. The system is maintained by the Office for National Statistics (ONS) and is used across government and industry to classify businesses into sectors. For example, 47190 is the code for “Other retail sale in non-specialised stores,” while 62020 is the code for “Information technology consultancy activities.”
SIC codes serve multiple purposes. They allow Companies House, HMRC, and government departments to compile statistics and monitor business activity in the economy. They also influence how your company appears in official registers, which can affect how investors, lenders, or partners perceive your business. Selecting the correct code therefore helps build trust and ensures you are recognised in the right industry.
Many businesses, especially start-ups, make the mistake of rushing through incorporation and selecting an inaccurate SIC code. Over time, as activities evolve, the chosen code may no longer represent the business correctly. This is where changing your SIC code becomes essential.
Reasons You May Need to Change Your SIC Code
There are several reasons why you may want or need to change your SIC code on Companies House. One of the most common is a shift in your core business activities. For example, a company that began as an online retailer might later move into manufacturing, which would require a new SIC code to reflect the change.
Errors made at the point of incorporation are another key reason. Many entrepreneurs select the wrong code simply because they are unsure which option applies. Over time, this misclassification could cause issues, particularly if your company is applying for finance, tenders, or tax reliefs that require accurate industry categorisation.
Another reason relates to the annual confirmation statement (CS01). Every company is legally required to submit this form once a year, confirming its details are up to date. This is the point at which you can amend your SIC code. Failing to update it means your company could remain misclassified for another year, which could create reputational or compliance risks.
The Official Process: How to Change SIC Code on Companies House
If you are wondering how to change SIC code on Companies House, the process is straightforward but must be done correctly. The official way to update your SIC code is by filing your annual confirmation statement (Form CS01). This document allows you to confirm and update various company details, including your registered office address, shareholder information, and of course, your SIC code.
The process can be completed either online through the Companies House WebFiling service or by submitting a paper form. Most businesses choose the online route, as it is quicker, more convenient, and reduces the risk of errors. You simply log in, select the confirmation statement, and amend the SIC code section to reflect your company’s current activities.
If you need to change your SIC code outside of the annual confirmation statement cycle, the practical reality is that you must still file a CS01. You cannot make the change independently through any other filing. Therefore, timing your update to coincide with your confirmation statement is essential.
Costs, Timescales, and Legal Considerations
One of the most reassuring aspects of this process is that there are no additional fees charged by Companies House specifically for changing your SIC code. However, you will need to pay the standard confirmation statement filing fee, which is currently £13 if filed online or £40 for paper submissions.
In terms of timescales, once your confirmation statement is submitted, the updated SIC code usually appears on the Companies House register within 24 to 48 hours if filed electronically. Paper submissions naturally take longer due to postal and processing delays.
From a legal perspective, ensuring your SIC code is correct is part of your statutory obligation to maintain accurate company records. Providing false or misleading information could lead to compliance issues, though genuine errors are usually corrected without penalty. The key is to ensure changes are made promptly and accurately to avoid unnecessary complications.
Practical Tips for Choosing the Correct SIC Code
Selecting the correct SIC code is often more challenging than it first appears, especially if your company operates across multiple areas. A good starting point is the official Companies House list of SIC codes, which is available online and searchable by industry. You should carefully review the descriptions to determine which most closely matches your primary activity.
If your company engages in more than one type of business, you are allowed to choose multiple SIC codes. However, you must ensure the first code listed reflects your principal activity. For example, a company that primarily provides IT consultancy but also sells computer hardware might list 62020 as its main SIC code and 46510 as a secondary code.
It is also advisable to seek professional guidance if you are uncertain. Accountants and company secretaries often have experience helping businesses choose the right codes and can prevent costly mistakes. Ultimately, the accuracy of your SIC code reflects how well your business is represented in official records.
Potential Consequences of Incorrect SIC Codes
Having the wrong SIC code may seem minor, but the consequences can be significant. For instance, misclassification could affect how lenders view your business when applying for credit. Some banks and investors rely on SIC codes to assess risk, so being listed in the wrong sector may disadvantage you.
Similarly, companies applying for government grants, tax incentives, or tenders could face delays or rejection if their SIC code does not align with their stated activities. From a compliance perspective, repeated errors or inconsistencies could raise red flags with regulators such as HMRC.
Even reputationally, being misclassified could create confusion for potential partners or customers reviewing your official company profile. For this reason, ensuring your SIC code is correct should be treated as a key part of your corporate governance.
Conclusion
Understanding how to change SIC code on Companies House is an important part of keeping your business records accurate and professional. Whether you are correcting a past mistake or updating your classification to reflect new activities, the process is straightforward when carried out through the confirmation statement.
Taking the time to select the correct code helps you avoid compliance risks, maintain credibility, and ensure your company is properly represented in the UK’s official registers. By reviewing your SIC code regularly and updating it as necessary, you strengthen your company’s position and safeguard its reputation.
FAQs
What is a SIC code and why is it important?
A SIC code is a four-digit number that categorises a company’s main business activity. It is used by Companies House, HMRC, and government bodies to classify businesses for statistical, regulatory, and industry purposes.
How do I find my current SIC code on Companies House?
You can find your current SIC code by searching for your company on the Companies House register. The SIC code will be displayed in your company’s filing history and confirmation statement records.
Can I have more than one SIC code for my company?
Yes, companies can have multiple SIC codes if they operate in more than one industry. However, the first SIC code listed must represent your primary activity.
Is there a penalty for having the wrong SIC code?
There is no direct fine for an incorrect SIC code, but providing inaccurate information can cause compliance issues and affect funding, partnerships, or credibility.
How long does it take to change a SIC code on Companies House?
If filed online with your confirmation statement, the update is usually reflected on the public register within 24 to 48 hours. Paper filings can take several days longer.
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