SIC Code for Software Development

What is SIC Code?

A Standard Industrial Classification (SIC) code is a four-digit numerical code used to identify and classify businesses in the United States. It was superseded by the North American Industry Classification System (NAICS), which employs six-digit codes for a variety of purposes, including software development....

SIC Code for Software Development

The SIC code for Software Development is 7371, and it is classified as “Computer Programming, Data Processing, and Other Computer Related Services” This major category includes businesses that primarily provide services like computer programming, software development, data processing, and other computer-related services....

Which SIC codes can be used by software developers?

All businesses are assigned Standard Industrial Classification codes, or SIC codes for short. These four-digit codes are then used by government agencies, marketing firms, banks, academics, and entrepreneurs to understand and analyse the type of work that a company does....

How do I correct my company’s SIC code?

You need to do is file a confirmation statement to correct your company’s SIC Code. This is the annual report that provides Companies House with a general snapshot of your company’s general, non-financial, situation. The confirmation statement will allow you to add and remove SIC codes....

‍Consequences of Using the Wrong SIC Code:

Having the incorrect SIC code does not result in any government penalties; however, it is factually incorrect and may cause unforeseeable problems in the future; therefore, it is preferable to have your SIC code updated with Companies House....

Why is it important to keep information up to date?

Keeping your information up to date ensures that anyone interested in doing business with your company has the most up-to-date information available. If a stakeholder looks up your company on Companies House and the SIC code is incorrect, it can cause confusion. This can result in lost business or even suspicion from authorities....

Altering your SIC code:

If you provided an incorrect code when registering your business, or if your primary business activities changed after the company was formed, you can clarify your new SIC code when you submit your next confirmation statement to Companies House. If you need to update your SIC code right away, you can submit a confirmation statement....

Transition to NAICS:

Although the SIC code system has been greatly adopted in the past, the modern and flexible nature of NAICS system has made it popular. Compared to SIC, NAICS offers greater flexibility in defining industry characteristics because it recognizes that industries can change through time....

Conclusion:

The Software Development SIC code continues to play an important role in categorizing and deciphering businesses that develop software programs in today’s changing technological environment. Nevertheless, in the midst of such changes sweeping around the industry the move towards the more flexible system like NAICS is driven by necessity to design a classification system that will correspond the pace of progress. The changes in the activities are highly likely since all forms of software’s are shaping and redefining different fields....