Choosing An SSIC Code For Your Singapore Company

Choosing an SSIC Code for Your Singapore Company is essential when starting a new business. Singapore Standard Industry Classification, or SSIC, is a national standard for categorizing all potential commercial activities Singapore organizations may engage in. The International Standard Industrial Classification (ISIC) system, based on the SSIC, is incorporated into the SSIC in terms of its fundamental structure and ideas.

Singapore’s Department of Statistics routinely reviews and updates SSIC to reflect changes in the global economy, new developing commercial activities, and new developments in Singapore’s economy. The SSIC codes for a firm must accurately reflect the actual nature of the business operations, which may change after incorporation.

An SSIC is only intended for administrative and statistical use. Reports, surveys, censuses, administrative databases, and other forecasting and planning documents employ data reported under the SSIC code. It aids the Singaporean government in determining the main categories of economic activity and how well they perform.

If a company’s commercial activity is regulated and consequently necessitates a business license, it can be determined using the SSIC code. It also determines if the business qualifies for grants, tax breaks, and other government assistance schemes. During the pandemic, authorization to continue operations was given using SSIC codes. 

The Accounting and Corporate Regulatory Authority (ACRA) may use the SSIC code to refer the business owner’s application to the appropriate licensing department for approval if their SSIC code demands for one; the Inland Revenue Authority of Singapore (IRAS) uses the SSIC code to determine whether a company is eligible for a tax incentive.

Business owners should select the relevant SSIC code corresponding to the business activity eligible for the license or grant if they intend to apply for a business license or a grant under one of the incentive programs.

When necessary, the codes are reviewed and modified. This is done to confirm that the codes are:

• Keep updated with the changes in international standards.
• Represent essential modifications to the economic structure.
• Keep up with the most recent events.

DETERMINING THE RIGHT SSIC CODE

After registering the firm’s name, the SSIC code for its commercial activity must be submitted to ACRA. Refer to Singapore company registration for more information about incorporating a new company. 

To characterise a company’s commercial activities, the applicant must submit at least one SSIC code; an additional SSIC code is permitted. They can develop a unique justification if their economic activity is exceptional and no SSIC code applies.

The SSIC code ought to represent the “economic activities” of the company. Economic activity is creating commodities and activities using resources, including labour, money, goods, and activities.

Three Categories Can Be Used To Classify A Firm’s Economic Activities

The Principal Activity

The primary activity, or the operation that adds the most value to the firm’s services and products, makes up the majority of the firm’s overall activities.

The Secondary Activity 

Although not the company’s principal business, the company engages in secondary activity.

An Ancillary Activity

An ancillary activity provides goods or services only for internal use to support the primary production activities (e.g., bookkeeping, sales promotion, purchasing, human resources functions, and storage).

According to the overall SSIC concept, a company is given a code based on its core activity or the one that contributes the most value to the services and products it generates. The two principal business operations that comprise most of a company’s revenue should be reported to ACRA.

Suppose a company chooses an SSIC code that requires additional approval and review during the title booking stage. In that case, the request will be forwarded to the relevant commission officials in Singapore (such as the Ministry of Law, the Monetary Authority of Singapore, the Council for Estate Agencies, Enterprise Singapore, etc.). It could take between 14 and 60 days to complete.

Following Are Some Suggestions For Finding SSIC Codes

• Do a search using the keywords that best define the operational procedures at the company.
• Try various variations of the keywords related to the business of the corporation for a favourable outcome. Depending on the keywords chosen, the search feature should return a list of SSIC codes.
• Choose the code that most closely resembles how the company operates.
• Verify that the keywords are used frequently in the industry and are not misspelled.

STEPS TO FIND THE SSIC CODES IN SINGAPORE

The ACRA’s one-stop online portal for businesses in Singapore, Bizfile, makes it easy and quick to find the correct SSIC Code. Use their free SSIC search tool and carry out the following steps to get started:

• Step 1: Enter a keyword or search term into the box on the HeySara website.
• Step 2: The system will then produce all SSIC categories that include the phrase entered. Choose the option that best describes the main line of work.
• Step 3: If the term is not recognized or the search query is irrelevant, the applicant should slightly modify your terms.

Letters “n.e.c.”, which stand for “not elsewhere classified,” can be found in particular codes that conclude in “9”. This n.e.c. codes apply to business operations not covered by the 5-digit SSIC codes for the same business category. These types of codes can only be chosen if there are no alternative codes that accurately represent the primary business activity.

LIST OF SSIC CODES IN SINGAPORE

Holding companies

Consulting

Technology

Retail

B2B and Finance

Wholesale

Health and Beauty

General services

Health and Beauty

Educational Support Services

Food and Beverage

Construction/ Real Estate

Shipping and Logistics

Miscellaneous

LIMITATION OF SSIC CODE FOR SINGAPOREAN COMPANIES

A company must have at least one SSIC code. Yet, if they choose, they may also choose a different one. Thus, a company can only have a maximum of two SSIC codes.

The applicant may obtain the whole list of SSIC codes on the website of the Department of Statistics. ACRA’s website also lists a few SSIC codes, although it’s not an extensive or in-depth list.

The ACRA website does, however, provide a thorough list of Singaporean registered firms where additional information about each business may be found.

CHANGING THE SSIC CODE

It is relatively simple to change an SSIC code. The company secretary only needs to apply to ACRA to modify the SSIC code.

Any issue may be fixed with only one call to the ACRA helpline due to their great customer care. An SSIC code update cannot be started until the firm has finished the incorporation process. There are no restrictions on how often the codes can be changed.

CONCLUSION

To make it easier to classify Singaporean businesses according to the economic activities they are involved in, ACRA developed a system known as the Singapore Standard Industrial Classification (SSIC).

Each business is assigned an SSIC code, which serves several purposes. The rules ACRA has established for the assignment of SSIC codes must be followed by any company that has received a code.

Reach out to us at Relin Consultants for more information.