Before setting up your education business, you will need to incorporate your company. 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 services. There are over 600 codes on the list of SIC codes to choose from which can be overwhelming. This article explains what a SIC code is and how to choose one for your new education business.
What are standard industrial classifications?
A Standard industrial classification code (SIC code) is a five-digit business 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 United Kingdom (UK) companies. The condensed UK SIC code list maintained by Companies House is available on the gov.uk website. A private limited company (the most popular type) can have multiple SIC codes. Dormant companies and non-trading companies are also required to have a SIC code.
Your education business can have multiple SIC codes if it has multiple business activities. SIC codes can also be updated via a confirmation statement if ever the business’ activities evolve or you carry-out new activities.
What SIC code should I use for my education company?
The SIC code you should use for your education company depends on what type of education your business will engage in. This section we categorise the different types of educational activities with their SIC codes so that you can easily choose the SIC code that is right for you and your new education business.
Education levels
The first way that the education-related SIC codes have been categorised is through the different educational levels that businesses might engage with. Each educational level has a different SIC code:
- 85100 Pre-primary education (such as nurseries)
- 85200 Primary education
- 85310 General secondary education
- 85320 Technical and vocational secondary education
- 85410 Post secondary non-tertiary education
- 85421 First-degree level higher education (such as undergraduate)
- 85422 Postgraduate level higher education (such as Master’s programmes)
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Educational SIC codes are also tailored to the type of education that is being provided. For example, you should use the following SIC codes for the following educational activities:
- 85510 Sports and recreation education (such as swimming clubs)
- 85520 Cultural education
- 85530 Driving schools
- 85600 Education support services
Finally, if you feel as though none of the above fit your education business you can use the SIC code 85590 for all other educational activities and services n.e.c. (not elsewhere classified.)
Conclusion
Once you have navigated the industry classification system and chosen a SIC code for your education 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!
Are you ready to start a business?
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The opinions on this page are for general information purposes only and do not constitute legal advice on which you should rely.