How to choose the right SIC code for your new recruitment agency business

Charles BrecqueCharles Brecque
Last updated on:
May 25, 2022
Published on:
March 10, 2022

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When starting out your own recruitment agency in the United Kingdom, you will need to incorporate your company before you find new clients. During the company incorporation process on Companies House, you will need to provide a SIC code based on your company type. There are over 600 SIC codes to choose from which can be overwhelming for first time entrepreneurs. This article explains what a SIC code is and how to choose a SIC code for your recruitment 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. These codes help the Office for National Statistics (ONS) track the state and growth of UK companies. The condensed list maintained by Companies House is available on the website. A limited company can have multiple SIC codes.

What are the SIC codes related to the activities of employment placement agencies?

Employment placement agencies find work for work-seekers who are employed and paid by employers. Multiple SIC codes apply to employment placement agencies depending on the nature of their recruitment business:

Motion picture, television and other theatrical casting

This class includes activities of casting agencies and bureaus, such as theatrical casting agencies. Casting agencies decide what parts actors will play whereas casting bureaus provide a list of available actors and their information. The appropriate SIC code for casting agents and bureaus is 78101.

Activities of employment placement agencies (other than motion picture, television and other theatrical casting) n.e.c.

Outside of motion picture, televisions and other theatrical casting, this class includes listing employment vacancies and referring or placing applicants for employment, where the candidates referred or placed are not employees of the employment agencies. The appropriate SIC code for this category is 78109 and it can be adopted by executive recruitment consultants or recruiters specialised outside of 78101.

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What is the SIC code related to the activities of temporary employment agency activities?

Employment agencies engage a work-seeker under a contract who then works under the supervision of someone else. This is normally called ‘temporary agency work’ or ‘temping’. The appropriate SIC code for employment agencies is 78200 and this classification includes the activities of supplying workers to clients' businesses for limited periods of time to temporarily replace or supplement the workforce of the client. For example a nursing agency supplying nurses or a teaching personnel agency would fall under this category.

What is the SIC code for the provision of other human resources activities?

Specialised recruiters might also provide human resources related activities to clients such as payroll, taxes, and other fiscal and HR issues. These agencies will usually provide human resources on a long-term or permanent basis. The appropriate SIC code for these types of agencies is 78300.

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 such as for your recruitment agency terms of business. 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!

About Legislate

Legislate is a contracting platform where businesses, letting agents and landlords can create, sign and manage lawyer-approved contracts. Book a demo and sign up today to put the confidence back into contracting.

The opinions on this page are for general information purposes only and do not constitute legal advice on which you should rely.

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