Standard Industrial Classification SIC Code: All You Need to Know
Understanding SIC Code
The SIC system divides the economy into 11 categories:
·Agriculture, forestry, and fishing
·Transportation and public utilities
·Finance, insurance, real estate
These are further classified into 83 two-digit major groups, 416 three-digit industry groups, and over 1,000 four-digit industries. Every business has a primary SIC code that identifies its core business. The major industry group is identified by the first two digits of the SIC code, the industrial group by the third number, and the individual industry by the fourth number.
How SIC Code is Used?
SIC codes are used by businesses and the government in a variety of ways, as explained below.
·Companies use SIC codes to categorise their current and potential clients based on their industry.
·Companies can be classified using SIC codes for tax purposes.
·When issuing credit, banks and creditors utilize SIC codes to determine which industry a company belongs to.
·Professionals and corporations use SIC codes to establish customised marketing strategies.
·Companies may find out who their competitors are in their sector or location by using SIC codes to look for similar businesses.
·SIC codes are also used by businesses to identify government contracts.
·The government employs SIC codes to organize and standardize essential economic data.
·Data from several government entities can be compared using SIC codes.
·Tax classification is also done using SIC codes.
·When sorting corporate filings, the SEC employs SIC codes.
How to Find A Company's SIC Code?
In order to find your SIC code, go to Companies House https://find-and-update.company-information.service.gov.uk/ and type in a company name. The SIC code will be visible to the general public