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SIC code for a personal investment company

Looking for SIC code for a Ltd. company that will invest my personal money in public equities

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I will of course consult an account, but I wanted to know what would the SIC code be for a Ltd. company of which I am the only shareholder, and will invest my personal money in long term public equity investments that will generate dividend income as the company's primary source of income. Looking at some other companies, I think it could be UK SIC Code 70229? Not sure though. It's not an investment fund because there are no external investors, and under FINRA and CIS it's not an investment company -- but a Passive-NFE Any help here would be appreciated. Thanks. P.S. I'd appreciate it if you stayed on topic and didn't question whether or not I should use a Ltd. company etcetera, just help with this SIC code would be great. Thanks.

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By Paul Crowley
28th Apr 2021 22:45

The only people who bother reading SIC codes on companies house are in the area of marketing.
No issues other than marketing if you pick an odd code. You can change it later.

Trying to keep schtum on other matters, as requested, but challenging for an accountant.
But suggest talking to the chosen accountant before the company invests.
Assumed you are higher rate and looking to delay tax until retired.

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Replying to Paul Crowley:
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By paul.benny
29th Apr 2021 09:20

Paul Crowley wrote:

The only people who bother reading SIC codes on companies house are in the area of marketing.

Off topic...I'm currently working with a water supplier (which is how I have come to know this). Customer SIC code determines whether water is subject to zero- or standard-rate VAT. It's standard rate for those with SIC codes beginning 1-5. Since they're all industries that will be able to recover input tax in full, it's not obvious to me why they should be treated differently.

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Replying to paul.benny:
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By Paul Crowley
29th Apr 2021 09:38

Interesting
Our sic code starts 6
Fairly certain when the supplier changed the VAT changed
I will try to go back and find the true position

Much appreciated

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By AJS82428484
02nd May 2021 02:20

Update: I believe for me, the SIC code for this is "Financial intermediation not elsewhere classified - 64999". Difficulty now is getting a bank account.

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Replying to AJS82428484:
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By tom123
03rd May 2021 08:55

Yes, you can see how banks would run a mile from that with money laundering flags waving.

Can you not just use a pension fund wrapper?

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Replying to tom123:
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By AJS82428484
03rd May 2021 11:17

I personally bank with Barclays Private Bank, and as the only shareholder, with all the money coming from me personally from my money in my Barclays Bank account - which is obviously 'clean', I don't see how any money laundering concerns could come up really. Might be a matter of having to go to a branch, and explain to whoever what the company is doing (long term investing in equities/bonds).

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By tom123
03rd May 2021 13:23

It's just that what you are doing is not the norm.

On a scale of basic trader like a plumber on the one end, to international short selling on the other, you are by definition at the riskier end.

Banks like things they can see and touch.

Moving money around - that's their thing, and many banks will not go near the amateur investor for this reason.

When you add in a limited company too, I can see why your normal day to day banks might not have the appetite.

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By AJS82428484
03rd May 2021 13:55

I have no intention if borrowing money, and actually I was considering to make the company unlimited to alleviate any concerns such as that. I don't really have any need for the limited liability, and that would also eliminate the need to file accounts.

I'm surprised that there aren't more such entities set up by people really.

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Replying to AJS82428484:
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By paul.benny
03rd May 2021 16:58

So you're the sole shareholder today. Doesn't mean you will be tomorrow and you don't have to tell your bank.

So all the funds currently come from your personal account. Also doesn't mean that won't change tomorrow.

From where I sit, your activities make you look like a risky client. Because it's appearances as much as facts. When I say risky, I mean that I have a risk to *my* reputation and livelihood if you indulge in questionable or unlawful activities. And so I would probably turn away your business. Nothing to do with your honesty and integrity; everything to do with self-protection. For that reason, I doubt a bank branch will have any authority to override corporate policies.

(My comments are reading across from dealing with anti-bribery obligations in a large corporate. I don't have clients and I don't generally have to contend with AML)

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Replying to paul.benny:
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By AJS82428484
03rd May 2021 17:07

I simply don't believe banks have a policy not to open bank accounts for basic personal investment companies. There are plenty of companies like this from what I know. I will update you once I have opened the bank account.

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Replying to AJS82428484:
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By tom123
03rd May 2021 17:34

The thing is (and I have no particular inside knowledge) making stock market investments, as an individual, via a limited company is not 'basic'.

Basic is hairdressing, decorating, plumbing.
Intermediate is building contracting or small manufacturing.

You are in a niche, so, unfortunately, likely to need to go a bit specialised.

HSBC, by the way, will not give a mortgage on a commercial property that you are letting out to an unconnected third party.

I know it's not your area, but shows that banks all have their own definitions of what is basic and what is not - regardless of what their prospective customers may assume they think.

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Replying to tom123:
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By AJS82428484
03rd May 2021 20:00

What is it that's not basic? It's a pretty normal thing actually for people.

And why is it that there's a heightened money laundering risk with this company than others? Other companies have bank accounts, and logically you would think they're more likely to launder money than others because they're thought to be a mundane company.

It's not a FI under any definition.

What does "need to go a bit specialised" mean as well?

If it isn't that the bank thinks that you as a person trustworthy, then what is it?

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Replying to AJS82428484:
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By Paul Crowley
03rd May 2021 20:34

But it is not you
It is a company with no track record trading as an investment vehicle.
Might take some time getting a mainstream bank account for your new company.

Admittedly I only deal with less than 200 companies, but never yet seen one used for the purpose you describe.
I have seen company accounts closed because the bank 200 page enquiry was filled out in a way the bank did not like. The banks do not help you fill out that enquiry form.

Agree Tom and Paul

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Replying to AJS82428484:
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By paul.benny
04th May 2021 10:23

AJS82428484 wrote:
If it isn't that the bank thinks that you as a person trustworthy, then what is it?

NatWest have recently been in the news over money laundering charges; HSBC last year as well as a number of banks based on other countries. The sector is becoming risk-averse in this area and you may well find that your proposed activity is caught in that.

paul.benny wrote:
Nothing to do with your honesty and integrity; everything to do with self-protection (by the banks).
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By tom123
03rd May 2021 08:54

SIC code seems to determine which statistic forms you get sent by the ONS.

We have 'other special purpose machinery' which makes us a bit niche, I think, so I get half a dozen ONS things each year.

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By Hugo Fair
03rd May 2021 20:31

You said in OP, which was nearly a week ago, that you "will of course consult an account(ant)" ... but presumably have not yet done so?

In the meantime, you've had several suggestions about the 'relevant' SIC - all with the caveat that the responders don't really know or indeed think that it matters much.

Now you've introduced a separate matter of the "Difficulty .. getting a bank account" ... but don't seem to like any of the explanations (which are clearly set out as logical opinions, not as facts).

The bank holiday has now been and gone, so there is nothing stopping you from carrying out your original intention of consulting an accountant preferably one with experience in the areas in which you propose to operate. You are likely to find that a more fulfilling use of your time.

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By AJS82428484
18th May 2021 00:38

Update 2: My company did get the bank account with both HSBC & Barclays. Turns out as a valued customer they did trust me - contrary to what all you people were saying. They had absolutely no problems and it was a pretty simple procedure. The SIC code used was "64999: Financial intermediation not elsewhere classified" as recommended by my accountant.

Not sure why people on here get so worked up about stuff in answers, you people should probably go on holiday or something and maybe relax a little :)

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Replying to AJS82428484:
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By Tax Dragon
18th May 2021 06:02

To be fair to the respondents you now criticise, it was you who said (or appeared to say) that it was difficult to open a bank account. They merely sought to explain why that might be.

Intermediation? Are you sure that's what your company will be doing? Doesn't fit with your description in the OP, that's all.

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Replying to AJS82428484:
A Putey FACA
By Arthur Putey
18th May 2021 11:39

It was you that contravened your own request not to go "off topic" by starting to talk about bank accounts when your question was about SIC codes.

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By thachvan
17th Feb 2022 21:54

Many thanks for creating this topic. I got the same issue when opening a limited business with the same purpose - directly trading stocks & forex (not brokerage). Because of the SIC codes related to financial activities many fintech services denied to open an account for me. I'm currently living outside of UK. I can't fly to UK to visit branches of the banks there because of restrictions due to Wuhan virus. I've changed the SIC code to 64999 (Financial intermediation not elsewhere classified) according to your experiences. I'll try to open a bank account again.

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