Before setting up your freight 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 freight 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 freight 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.
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What SIC code should I use for my freight business ?
When choosing a SIC code for your freight business you will need to determine how you will be handling the freight as different SIC codes apply:
- 49200: Freight rail transport
- 49410: Freight transport by road
- 50200: Sea and coastal freight water transport
- 50400: Inland freight water transport
- 51210: Freight air transport
If your business is less concerned with the delivery of freight, the above SIC codes might not be appropriate for you. For example, if your business concerns the operation of rail freight terminals you might want to consider using SIC code 52211.
Alternatively, you should use a different SIC code from the ones mentioned above if your freight company concerns the renting of related materials. For example, if your business provides rental and leasing services for freight air transport equipment you will want to use the SIC code 77352 or if it provides rental and leasing services of freight water transport equipment you will want to use the code 77342.
Once you have navigated the industry classification system and chosen a SIC code for your freight 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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The opinions on this page are for general information purposes only and do not constitute legal advice on which you should rely.