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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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.
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.
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
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?
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.
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)
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.
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
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.
Nothing to do with your honesty and integrity; everything to do with self-protection (by the banks).
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.
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.
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.
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.
Hi @AJS82428484 I am doing the same but facing issues opening a bank account. I will try 64999. Any chance we can talk?
thanks,
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.
@thachvan did you manage to open a bank account for the same purpose with SIC code 64999 ? I have used a wrong one and facing same issue, no bank wants to open an account.
Just want to know if 64999 worked for you?
thanks,
Jack