Update: Introduction of principal business activity for new company formations

Published 14 July 2016

Applications to register a company (IN01) will now include a new requirement to state the company’s principal business activity.

The United Kingdom Standard Industrial Classification of Economic Activities (SIC) is used to classify business establishments and other standard units by the type of economic activity in which they are engaged.

Both paper and online application will require applicants to enter a SIC Code upon formation. At least one trade classification code will need to be entered and a maximum of four codes.

Previous legislation only required a code to be entered on a company’s first annual return.

Although not a lengthy step, prospective companies will need to ensure they have the correct principal activity from the outs et.