What happens if I use the wrong SIC code when setting up my company?

Selecting a SIC (Standard Industrial Classification) code is one step of many when completing the paperwork of forming a new company. If you are worried about what happens if you accidentally choose the wrong code, we are here to put your mind at ease.  

In this article, we’ll explore the consequences of using an incorrect SIC code and how to correct it so it accurately reflects your business. 

What is a SIC code?

SIC codes (Standard Industrial Classification) are 5-digit codes that indicate which industry or industries you will be operating in. When completing the company formation process you must select at least one code but can choose up to 4.

The codes can be remarkably specific, for example, 01110 is the code for the Growing of cereals (except rice), leguminous crops and oil seeds. Or not so specific, 99999 is the code for Dormant companies. You can see more examples in the Companies House condensed list of SIC codes or the Office for National Statistics full list.

The consequences of using an incorrect SIC code

So, what happens if you use the wrong SIC when forming your company? 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 for the incorrect use of an SIC code.

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Perhaps you made an error and selected the wrong SIC code during the company formation process. Or maybe you used a code in good faith, only to find a few months into your company’s lifetime that the code was inappropriate. Either way, it’s easily fixed.

That being said, investors, banks, and funding organisations often use SIC codes to assess the nature of your business. An incorrect code might result in your business being categorised incorrectly. This can initially make your business appear less relevant for certain investment opportunities. This is a low-risk consequence and can easily be corrected by the rest of the evidence provided in your application.

Another low-risk consequence is that SIC codes contribute to official industry data and statistics. An incorrect code can skew the data for your sector, but it will not harm your business.

How do I correct my company’s SIC code?

All you need to do is file a confirmation statement, known as a CS01 form, to Companies House. This is the annual report that provides Companies House with a general snapshot of your company’s general, non-financial situation. The confirmation statement will allow you to add and remove SIC codes.

• The confirmation statement explained

It’s up to you when you do this. You can wait until your confirmation statement is due, which is no later than 14 days after the end of your 12-month ‘review period’. The review period starts on:

• the date of company formation, or
• the ‘statement date’ of the previous confirmation statement

For example, if you form a company on 1 May 2025, your 12-month review period starts on 1 May 2025 and ends on 30 April 2026. The statement date for your first confirmation statement will be 30 April 2026, and the filing deadline will be 14 days later, on 14 May 2026.

If you’re eager to make the change, you can file an early confirmation statement. You can file a confirmation statement at any time during the 12-month review period. You don’t need to wait until the deadline. Furthermore, you can file multiple statements throughout the review period for no additional charge.

If you do require assistance, we can help via our Confirmation Statement Service, where one of our company experts will complete and file the relevant form for you. You can trust us to report changes to your SIC codes and any changes to shareholder information or statement of capital.

Wrapping up

We hope this post has allayed your fears about selecting the wrong SIC code.

If you’ve identified an error with your SIC codes, all you need to do is submit a confirmation statement with the correct code. Ensuring your SIC code is accurate helps your business present itself correctly to stakeholders and authorities.

If you have any questions, please leave a comment below or contact us, and we’ll be happy to help. 

Take a look at more of our 1st Formations blogs for other information and guidance on running your company.