The consequences of using an incorrect SIC code
Fortunately, nothing. Unlike non-filing of the confirmation statement or annual accounts, where Companies House can impose penalties and eventually strike your company from the register, there are no regulations in place with the incorrect use of an SIC code.
Can I add another SIC code?
You can update the stored SIC code on Inform Direct and then file the Confirmation Statement to report this to Companies House, which is the only way to update the SIC code stored at Companies House.
Do I need to change my SIC code?
Change Your SIC Code Along with Your Annual Return While it is not legally required that you submit an early confirmation statement before changing your SIC code, some businesses choose to do so.
Can a company have two SIC codes?
Companies can have multiple SIC codes to reflect the various activities they engage in, but they must periodically confirm that these codes are still applicable.
You can either wait until your confirmation statement is due (a companys first confirmation statement is due one year and 14 days after incorporation) or you can file an early confirmation statement, but there is only one way to update your companys SIC code.
How many SIC codes can you have?
However, if your business activities are varied or complex and cannot be adequately described by just one code, you may use up to four SIC codes. The majority of people find that one SIC code suffices for their business.
How do you change business classification?
Register your new business structure with the state. Reapply for state licensing. Update your bank accounts and records to reflect your new business. Register with the IRS to request an updated Employer Identification Number (EIN), which youll need to file your taxes and pay your employees.
Can you change nature of business on Companies House?
If you make changes to your companys constitution or articles of association, you must notify Companies House within 15 days. If you issue more shares, you must notify Companies House within a month. If you make any other changes, you must notify Companies House within 21 days.
What is the SIC code for my business?
If there are multiple corresponding SIC codes, choose the one that best describes your companys operations by going to the SIC to NAICS Crosswalk Page and entering your NAICS code to find the corresponding SIC codes.
How do I get a SIC code?
- North American Industry Classification System, or NAICS.
- SIC can be found at https://classcodes.com/sic-code-list/.
- SIC – For a list of codes or to search for a company in the EDGAR Filings, go to https://www.sec.gov/info/edgar/siccodes.htm. The company SIC data is listed with the filing data.
If youre purchasing properties with the intention of renting them out, the SIC code 68209, which is defined as Other letting and operating of own or leased real estate, is the right choice.
Use the SIC code 68100 if youre trading in properties (also known as buying and flipping).
All limited companies and LLPs are required to file confirmation statements at least once per year, but sole proprietors and other partnerships are exempt from this requirement. The purpose of a confirmation statement is to confirm that your business details are current.
A confirmation statement, formerly known as an annual return, is required each year to verify that the data that Companies House has on your company is accurate.
Using an incorrect SIC code has no consequences, which is fortunate because there are rules regarding using incorrect confirmation statement or annual account filings, which could result in penalties from Companies House and the eventual removal of your company from the register.
If your main business activities change after the formation of your company, or if you provide the incorrect SIC code when setting up your company, you can update your SIC code when you file your next confirmation statement. If you must change your SIC code right away, you can file a confirmation statement early.
The short answer is yes; starting on June 30, 2016, you must provide a SIC code when incorporating a company at Companies House in order to avoid having your request for company formation denied.
You must still provide a SIC code even if your business is dormant or non-trading; the SIC code for dormant businesses is 99999, and the SIC code for non-trading businesses is 74990.