What It Is, Why It Matters, and How Singapore Companies Should Use It
When starting or operating a business in Singapore, founders are often focused on incorporation speed, banking, taxes, and growth. Yet one small but critical detail quietly underpins many of these processes — the Singapore Standard Industrial Classification (SSIC).
At first glance, the SSIC may appear to be nothing more than a technical requirement during company registration. In reality, it plays a significant role in how your business is classified, regulated, financed, and even assessed for government incentives.
This article provides a comprehensive guide to what the SSIC is, why it is important, and how Singapore companies should correctly select and manage their SSIC codes.
What Is the Singapore Standard Industrial Classification (SSIC)?
- 62011 – Software development services
- 70201 – Business and management consultancy services
- 46900 – General wholesale trade
When a company registers with Accounting and Corporate Regulatory Authority (ACRA), it must declare at least one SSIC code to describe its principal business activity.
Where and When Is the SSIC Used?
SSIC codes are embedded across Singapore’s regulatory and administrative ecosystem. Companies will encounter them at multiple stages of their lifecycle:
- Company Incorporation
During company registration on ACRA’s BizFile portal, declaring an SSIC code is mandatory. This code becomes part of the company’s official profile and public business record.
- Licensing and Regulatory Review
Some business activities are regulated and require additional approvals or licences. Government agencies often use SSIC codes as a first-level screening tool to determine whether a company’s activities fall within regulated sectors.
- Government Surveys and Economic Statistics
SingStat uses SSIC codes to compile national economic data, industry performance statistics, and workforce analytics. Accurate classification ensures reliable policymaking and economic planning.
- Grants, Incentives, and Support Schemes
Many government grants, tax incentives, and enterprise support programmes rely on SSIC codes to determine eligibility. Being misclassified may mean missing out on incentives designed for your sector.
- Banking and Financial Assessments
Banks and financial institutions often review a company’s SSIC code when assessing credit risk, loan eligibility, or industry exposure. A mismatch between actual operations and registered classification may raise red flags.
Why Is the SSIC Important for Singapore Companies?
Although selecting an SSIC code may feel administrative, it has practical and strategic implications.
- Regulatory Compliance
Your SSIC code helps authorities determine whether your business:
- requires specific licences or approvals,
- falls under a regulated industry, or
- needs additional disclosures.
Choosing an inaccurate code can lead to unnecessary scrutiny or compliance delays.
- Access to Grants and Tax Incentives
Singapore offers numerous schemes to encourage innovation, productivity, and international expansion. Many of these programmes are sector-specific. Your SSIC code can directly influence whether your company qualifies.
- Accurate Representation of Your Business
Your SSIC code shapes how regulators, banks, and partners perceive your company. A poorly chosen code may misrepresent your actual activities, affecting trust and credibility.
- Industry Benchmarking and Intelligence
SSIC codes allow businesses to:
- identify competitors within the same industry,
- analyse industry trends,
- benchmark performance against similar companies.
This is especially useful for strategic planning, investor presentations, and market research.
How to Choose the Correct SSIC Code
Selecting the right SSIC code requires more than picking the first keyword match. Below is a structured approach to ensure accuracy.
Step 1: Define Your Principal Business Activity
Your principal activity is the activity that contributes the most economic value to your business, not necessarily what you spend the most time on.
If your company has multiple activities, you may declare up to two SSIC codes, but one must be designated as the primary activity.
Ask yourself:
- What do customers primarily pay you for?
- Which activity generates the largest share of revenue?
Step 2: Use the Official SSIC Keyword Search
The most common starting point is the SSIC search function available on ACRA’s BizFile portal
- Enter keywords describing your business (e.g., “software development,” “tuition centre,” “freight forwarding”).
- Review the list of matching SSIC descriptions.
- Compare definitions carefully before selecting.
Tip: Try multiple keyword variations. Different phrasing can lead to different results.
Step 3: Cross-check with the Full SSIC List (Manual Browse)
Cross-check with the full SSIC list. Conduct a manual search on the latest Singapore Standard Industrial Classification. The SSIC framework groups codes by industry, which is extremely useful if you are browsing manually rather than relying solely on keywords.
Take your time reviewing sections that align with your sector, such as:
- Technology and software
- Retail and e-commerce
- Logistics and transportation
- Education and training
- Professional services
This approach helps uncover more precise or less obvious codes that keyword searches may miss. It is particularly helpful for:
- niche or emerging business models,
- companies operating across multiple disciplines,
- businesses whose activities don’t fit neatly into a single keyword.
Manual browsing often results in a classification that better reflects how regulators interpret your business.
Step 4: Choose the Closest Real Economic Activity
If no exact match exists, select the SSIC code that most closely represents your actual economic activity, not your branding or future plans.
You may provide a supporting business description, but the SSIC code must still align with the underlying activity, otherwise, registration may be delayed for review.
Step 5: Validate Against Licences and Future Plans
Before finalising your SSIC code:
- check whether the selected activity requires licences,
- ensure it does not unintentionally suggest a regulated activity,
- consider whether it remains appropriate if your business scales or expands.
If your business model changes over time, you can update your SSIC code with ACRA to stay compliant.
What Happens If You Choose the Wrong SSIC Code?
An incorrect SSIC classification can lead to:
- delays during company registration,
- additional regulatory checks,
- licensing issues,
- ineligibility for grants or incentives,
- confusion during banking or audit processes.
While SSIC codes can be updated later, correcting mistakes early saves time and administrative effort.
SSIC in the Bigger Picture
The SSIC system is more than a bureaucratic requirement. It underpins:
- Singapore’s national economic statistics,
- sector-specific policymaking,
- regulatory clarity across industries.
For businesses, it serves as a bridge between what you do commercially and how the government and institutions understand your activity.
Conclusion
The Singapore Standard Industrial Classification may appear to be a small checkbox during incorporation, but it carries long-term implications for compliance, financing, and growth.
By taking the time to:
✔ understand what the SSIC represents
✔ accurately define your principal activity
✔ cross-check keyword results with the full SSIC list
You ensure your company is correctly positioned within Singapore’s business ecosystem from day one.
In a highly regulated yet business-friendly environment like Singapore, the right SSIC code is not just administrative accuracy, it is strategic clarity.