How to choose a SIC code for your software development agency

Charles BrecqueCharles Brecque
Last updated on:
May 25, 2022
Published on:
March 12, 2022

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Before setting up your software development agency and finding new clients, you will need to incorporate your business. 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 consulting services. There are over 600 SIC codes to choose from which can be overwhelming if your expertise is in computer software development as opposed to company formations. This article explains what a SIC code is and how to choose one for your new information technology agency.

What are standard industrial classifications?

A Standard industrial classification code (SIC code) is a five-digit 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 UK companies. The condensed SIC code list maintained by Companies House is available on the website. A limited company can have multiple SIC codes. Dormant companies and non-trading companies are also required to have a SIC code. Your company’s SIC code can also be converted to a NAICS code (North American Industry Classification System) if ever your business activities expand to North America.

Software development consultancy agencies can have multiple SIC codes if they have multiple business activities. SIC codes can also be updated via a confirmation statement if ever the business’ activities evolve.

What is the SIC code for business and domestic software development?

If your software development agency is writing, modifying, testing and supporting software then it can be classes under business and domestic software development 62012. For example, this can include agencies which design and implement systems software, software applications, databases and web pages for clients.

What is the SIC code for information technology consultancy activities?

Agencies which plan and design computer systems which integrate computer hardware, software and communication technologies and provide user trading can be classed under information technology consultancy activities 62020.

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What is the SIC code for computer facilities management activities?

Technologies agencies which support the on-site management and operation of clients' computer systems and/or data processing facilities fall under computer facilities management activities 62030.

What is the SIC code for other information technology service activities?

Agencies which conduct other information technology and computer related activities not elsewhere classified, such as computer disaster recovery services, installation services (setting-up) of personal computers or other software installation services can fall under other information technology service activities 62090.

What is the SIC code for data processing, hosting, and related activities?

Agencies which provide infrastructure for hosting, data processing services and related activities fall under data processing, hosting, and related activities 63110.

Once you have chosen a SIC code for your 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!

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