Before setting up your technology 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 technology 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 technology 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.
What SIC code should I use for my Technology company?
The SIC code you should pick for your technology company depends on what area of technology your business will be engaging in and the work you will be carrying out.
Software Development
If your company will be involved in the development of software you will want to use the SIC code 62012 that covers activities relating to business and domestic software development. You will use this SIC code if you are creating a new software product, for example.
Technology Consultancy
If your company will offer consultancy services to others then you will want to use the SIC code 62020.
Curious about automated data extraction from documents?
Computer Facilities Management
If your company will service, manage or monitor a client's computer facilities, such as hardware, software or networks, then you will want to use the SIC code 62030.
Data processing and hosting activities
If your company provides the infrastructure for hosting, data processing and similar activities then you should use the SIC code 63110.
Web portals
If your company designs or produces webs portals then you should use the SIC code 63120
Are you ready to start a business?
Companies MadeSimple helps you register a limited company online, in four simple steps. A Companies House authorised agent, we’ve formed over 1 million companies to date. With company formation packages that can include a registered office address and mail forwarding services, you’ll find what you need to register a company right. Search for a company name and set up a UK company using Companies MadeSimple now.
If you want to run your own technology consultancy, it’s important to get your finances in order. Setting up a business account is the first step, and choosing the right bank can help you save money on your bills and make sure your money is safe.
TransferWise offers affordable business banking that’s made for small businesses like yours. Their fee structure is transparent, simple and cheaper than Paypal. Click here to find out more.
Conclusion
Once you have navigated the industry classification system and chosen a SIC code for your technology 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.