Before setting up your accountancy business, you will need to incorporate your business. During the company incorporation process on Companies House, you will need to provide your company’s SIC code based on the nature of your business and services. There are over 600 SIC codes to choose from which can be overwhelming. This article explains what a SIC code is and how to choose one for your new accountancy company.
What are standard industrial classifications?
A Standard industrial classification code (SIC code) is a five-digit business code which describes a company’s economic activities and business services. These codes help the Office for National Statistics (ONS) track the state and growth of United Kingdom (UK) companies. The condensed UK SIC code list maintained by Companies House is available on the gov.uk website. A private limited company (the most popular type) can have multiple SIC codes. Dormant companies and non-trading companies are also required to have a SIC code.
Your accountancy business can have multiple SIC codes if it has multiple business activities. SIC codes can also be updated via a confirmation statement if ever the business’ activities evolve.
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What SIC code should I use for my accountancy business?
Your accountancy business will likely offer a host of accounting services, such as bookkeeping, auditing, payroll accounting services, and general management consultant advice surrounding accounts. As an accountancy firm or small business you will want to use SIC code 69201 to cover your accounting and auditing activities.
If a part of your accounting firm extends to providing tax consultancy, such as through giving advice on income tax returns, you might want to consider also using the SIC code 69203.
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Conclusion
Once you have chosen a SIC code for your accountancy business and worked out the scope of the accounting activities you will undertake within the financial service sector and finalised the incorporation process, you will need to generate legal contracts to structure your business activities. Creating lawyer-approved agreements can be costly and it can be tempting to download free templates online. However, this process is risky and unnecessary thanks to contract management platforms like Legislate. Legislate allows to tailor the essential agreements to hire and grow your business such as employment, consultancy and internship agreements. To create a lawyer-approved contract for only £9.95, sign up to Legislate today!
The opinions on this page are for general information purposes only and do not constitute legal advice on which you should rely.