Before setting up your mining business, you will need to incorporate your company. 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 codes on the list of 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 mining business.
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 mining 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 or you carry-out new activities.
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What SIC code should I use for my mining company?
The SIC code you should use for your mining or quarrying company depends largely on the material that you will be collecting. Below we list the different SIC codes that relate to mining and quarrying so you can determine which SIC code is most appropriate for your business:
- 05101 Deep coal mines
- 05102 Open cast coal working
- 05200 Mining of lignite
- 06100 Extraction of crude petroleum
- 06200 Extraction of natural gas
- 07100 Mining of iron ores
- 07210 Mining of uranium and thorium ores
- 07290 Mining of other non-ferrous metal ores
- 08110 Quarrying of ornamental and building stone, limestone, gypsum, chalk and slate
- 08120 Operation of gravel and sand pits; mining of clays and kaolin
- 08910 Mining of chemical and fertilizer minerals
- 08920 Extraction of peat
- 08930 Extraction of salt
- 08990 Other mining and quarrying n.e.c.
- 09100 Support activities for petroleum and natural gas mining
- 09900 Support activities for other mining and quarrying
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Conclusion
Once you have navigated the industry classification system and chosen a SIC code for your mining business 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.