Which SIC Code to Use for CIPC Company Registration in South Africa
Complete guide to selecting the right SIC code when registering a company with CIPC. Covers Pty Ltd, NPC, co-operatives, and external companies.
When you register a new company with the Companies and Intellectual Property Commission (CIPC) in South Africa, one of the required fields on the registration form is the Standard Industrial Classification (SIC) code. This code tells CIPC - and every other government agency - what type of business you operate. Choosing the wrong code can lead to complications with SARS, your SETA allocation, and even your B-BBEE scorecard.
Where SIC Codes Appear in CIPC Registration
Whether you are registering online through the CIPC e-Services portal (www.cipc.co.za) or through BizPortal (www.bizportal.gov.za), you will encounter the SIC code field during the registration process. CIPC allows you to register up to four SIC codes: one primary code and up to three secondary codes.
Your primary SIC code should represent your main business activity - the activity that generates (or will generate) the most revenue. Secondary codes can cover additional activities your business performs.
SIC Codes for Common Company Types
Private Company (Pty) Ltd: This is the most common company type in South Africa. Your SIC code depends entirely on what your business does. A Pty Ltd that operates a restaurant uses 56101, while a Pty Ltd that develops software uses 62010. The company type does not determine the SIC code - the business activity does.
Non-Profit Company (NPC): NPCs still need SIC codes based on their activities. A welfare-focused NPC might use 88900 (Other social work activities), while an educational NPC might use 85490 (Other education n.e.c.).
External Company: Foreign companies registering to do business in South Africa must also provide a SIC code that matches their South African operations, not their home country activities.
Step-by-Step: Choosing Your CIPC SIC Code
1. Define your primary activity. Write a one-sentence description of what your business does to earn money. For example: "We install electrical wiring in new buildings."
2. Find the matching section. Browse our SIC Code Index to find the section that matches. For electrical installation, that would be Section F (Construction).
3. Drill down to the division. Within Section F, Division 43 covers "Specialised construction activities."
4. Select the 5-digit code. Under Division 43, the code 43210 means "Electrical installation." This is your primary SIC code.
5. Add secondary codes if needed. If your electrical company also does plumbing work, add 43220 (Plumbing, heat and air-conditioning installation) as a secondary code.
Important Considerations
SETA implications: Your primary SIC code determines your SETA. Division 43 falls under CETA (Construction Education and Training Authority). This means you will pay your Skills Development Levy to CETA and can claim training grants from them.
ETI eligibility: Most SIC codes qualify for the Employment Tax Incentive. The exceptions are codes in Division 84 (Public administration and defence). Check the ETI status on each code's page on our site.
Changing your SIC code: If your business activity changes, you can update your SIC code through the CIPC annual return process or by filing a CM29 form. It is advisable to also update SARS to keep your records consistent.