Standard Industrial Classification (SIC) Code: Meaning, Uses, Structures, Importance, and Steps to Find It

Explore what an SIC code is, its uses, structure, format, examples, SIC vs NAICS codes, and how to find SIC codes.
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24 June 2025

Knowing how businesses are classified is important for following rules, doing market research, and planning strategies. The Standard Industrial Classification (SIC) code system helps with this. It was first created by the US government and gives businesses a four-digit code based on their main economic activity. This guide explains what SIC codes are, how they work, why they are important, and how to find or understand them. Whether you are a business owner, analyst, or researcher, learning about SIC codes can make it easier to understand different industries clearly and confidently.

What is an SIC code?

A Standard Industrial Classification (SIC) code is a numerical system used to classify businesses and industries. Developed by the US government in the 1930s, SIC codes categorise businesses into distinct sectors based on their primary activities. Each SIC code is a four-digit number that provides a way to identify the industry sector of a business. For instance, SIC codes help in statistical analysis, regulatory compliance, and economic research by grouping similar business activities together. Though the system has been largely replaced by the North American Industry Classification System (NAICS) in many countries, SIC codes are still in use and relevant for certain administrative purposes.

How are SIC codes used?

  • Industry classification: SIC codes categorise businesses into specific sectors, aiding in understanding industry trends.
  • Data collection: Governments and organisations use SIC codes to collect and analyse economic data.
  • Regulatory compliance: Businesses use SIC codes to comply with industry-specific regulations.
  • Market research: Companies use SIC codes to identify and target industry-specific markets.
  • Business listings: SIC codes are often used in business directories and databases to organise listings by industry.

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Structure of the SIC Code

The SIC code is a four-digit system used for the standard industrial classification of businesses. It begins with general business characteristics and becomes more specific with each digit. The first two digits represent the main industry group, while the third and fourth digits provide more detailed industry information. The system divides the economy into 11 broad divisions, which break down into 83 two-digit groups, 416 three-digit industry groups, and finally 1005 four-digit industry sectors. The four-digit code gives the most precise classification of a business. While some organisations add extra levels to the SIC code, these are not part of the official classification. Understanding this system can help businesses, including those seeking start-up business loans, to classify themselves correctly for regulatory and financial purposes.

Changing from SIC code to NAICS

The transition from SIC to the North American Industry Classification System (NAICS) reflects an evolution in industry classification. NAICS, introduced in 1997, offers a more detailed and updated framework than SIC codes. This change aims to accommodate the modern economic landscape, incorporating new industries and technological advancements. Businesses and researchers shifting to NAICS will find that it provides a more precise classification, enhancing data accuracy and industry analysis. The shift requires updating databases and systems to align with NAICS, ensuring consistency and relevancy in industry classification.

How to find your SIC code?

  • Check business documents: Look at your company’s registration documents or annual reports.
  • Consult industry associations: Industry groups often provide SIC code directories.
  • Online databases: Use online SIC code lookup tools available through government or industry websites.
  • Company directory services: Business directories often list SIC codes alongside company information.
  • Contact industry regulators: Regulatory bodies can assist in identifying the correct SIC code for your company.

How to read SIC codes?

  • First digit: Represents the broad industry sector (e.g., manufacturing, retail).
  • Second digit: Narrows down to a major industry group within the sector.
  • Third digit: Specifies an industry sub-group.
  • Fourth digit: Details the specific industry or business activity.
  • Example: SIC code 4512 refers to 'Air Transportation, Scheduled', with each digit refining the category.

How to find my company's SIC code?

  • Company records: Review your company's official documents for SIC codes.
  • Industry associations: Contact industry associations for SIC code information.
  • Online lookup tools: Use SIC code search tools on government or industry websites.
  • Business directories: Check directories that list SIC codes for companies.
  • Regulatory bodies: Reach out to regulatory agencies for assistance in finding the SIC code.

Why is a SIC code important?

A Standard Industrial Classification (SIC) code is crucial for several reasons. It standardises the classification of businesses, allowing for consistent economic analysis and comparison. SIC codes help businesses comply with regulatory requirements, streamline market research, and facilitate economic data collection. They also assist in identifying industry trends and benchmarking performance against industry peers. Despite the rise of NAICS, SIC codes remain important for historical data and specific regulatory contexts.

SIC code format

SIC codes follow a four-digit numerical format. Each digit provides specific information about the industry classification:

  • First Digit: Major industry group (e.g., 2 for manufacturing).
  • Second Digit: Industry sub-group within the major group.
  • Third Digit: Specific industry segment.
  • Fourth Digit: Detailed industry activity.

SIC codes range and division

Division SIC Code Range Description
A 01-09 Agriculture, Forestry, Fishing
B 10-14 Mining
C 15-17 Construction
D 20-39 Manufacturing
E 40-49 Transportation and Public Utilities
F 50-51 Wholesale Trade
G 52-59 Retail Trade
H 60-67 Finance, Insurance, Real Estate
I 70-89 Services
J 91-97  

 

Difference between SIC codes and NAICS codes

In India, the Standard Industrial Classification (SIC) system is still commonly used for categorising businesses based on their main activities. While in countries like the United States, the SIC system was meant to be replaced in 1997 by a six-digit system called the North American Industry Classification System (NAICS), this change was specific to North America and not applicable in the Indian context.

In India, SIC codes continue to be used by various government departments and regulatory bodies for tracking and categorising businesses. The system remains popular due to its long history and ease of use. Even though more detailed classifications are available, many Indian companies, especially small and medium enterprises, continue using the traditional SIC codes for documentation, registration, and applying for things like start-up business loans or government schemes.

Conclusion

Understanding Standard Industrial Classification (SIC) codes is essential for businesses to navigate industry classifications, regulatory compliance, and market research. While SIC codes offer a historical perspective and remain in use for specific purposes, transitioning to NAICS codes can provide a more contemporary classification system. Companies should ensure their systems reflect the appropriate codes to maintain accurate industry data. For businesses seeking financial support or expansion, considering Bajaj Finserv Business Loan might be a viable option to facilitate growth and adapt to industry changes.

Frequently asked questions

What does SIC code stand for?
SIC code stands for Standard Industrial Classification code. It is a numerical system used to categorise businesses based on their primary activities. Developed in the 1930s, SIC codes are four-digit numbers that group businesses into specific industry sectors. Although largely replaced by the NAICS system, SIC codes remain relevant for certain regulatory and statistical purposes, providing a consistent way to classify and analyse industry data.

Who needs a SIC code?
Businesses, regulatory bodies, and researchers need SIC codes for various purposes. Companies use SIC codes for compliance with industry regulations and for identifying their sector in business directories. Regulatory agencies and economic researchers use SIC codes to collect and analyse industry-specific data. This classification system helps in market research, economic analysis, and maintaining consistency across industry reporting and compliance standards.

What is 4-digit standard industrial classification?
The 4-digit Standard Industrial Classification (SIC) code is a numerical system used to categorise industries based on their primary business activities. Each digit in the code provides specific information about the industry sector: the first digit indicates the broad sector, the second narrows it down to a major group, the third specifies an industry sub-group, and the fourth details the exact business activity. This system helps in organising and analysing industry data.

What is an example of an SIC code?

SIC code 6500 covers the whole real estate industry. SIC code 6510 refers to people managing real estate. SIC code 6512 is more specific, focusing on non-residential buildings. SIC code 6513 is even more specific, pointing to those who manage apartment buildings.

What does SIC code stand for?

SIC code means Standard Industrial Classification code. This four-digit number quickly shows what type of business a company does.

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