Establishment-Level vs Company-Level NAICS Codes: How NAICS Is Assigned
The most common NAICS mistake is applying one code to an entire company when NAICS is intended to classify an establishment. An establishment is a single physical location where business is conducted, and multi-location companies may legitimately have different NAICS codes across locations when primary activities differ.
For foundational NAICS orientation, see What Is a NAICS Code?.
Establishment vs company (plain-language definitions)
Establishment (NAICS unit)
A single physical location where business is conducted or services are performed. NAICS is assigned based on the establishment’s primary activity.
- One location can have multiple activities, but one primary NAICS assignment is typical.
- Secondary activities may be tracked for analysis, but they do not replace the primary code.
Company / enterprise (not the NAICS unit)
A parent organization that may operate multiple establishments. Enterprise-level descriptions often blend activities and can mislead classification if used as the sole basis for a single NAICS assignment.
- Different locations can have different primary activities.
- Corporate branding language is not a reliable proxy for establishment operations.
Why this matters for accuracy
Applying a single enterprise-wide NAICS code can create systematic errors in business lists, risk segmentation, compliance screening, and analytics. Establishment-level classification reduces category drift and improves comparability across vendors and reporting periods.
Rule of thumb: If a company operates multiple locations with different primary activities, treat NAICS as a location-level decision. A corporate HQ NAICS label should not overwrite establishment operations.
Practical examples (typical multi-location patterns)
- Manufacturing + distribution: a factory location and a separate warehouse/distribution location may have different primary activities.
- Corporate HQ + operations: the HQ location may be administrative, while operating locations produce goods or deliver services.
- Multi-service providers: locations may specialize by service line even under a single brand.
How SICCODE.com applies establishment-level logic
SICCODE.com applies governed interpretation standards designed to keep classifications stable and explainable, especially when public descriptions are broad or marketing-forward. For the consistency framework behind establishment-level decisions, see the Industry Classification & Verification Framework.
Next step
If you’re selecting a code for a specific location, use: How Do I Find My NAICS Code?. For broader NAICS reference guidance, use the NAICS Classification & Reference Center.
Questions & answers
- Can a company have more than one NAICS code?
Yes. Multi-establishment companies may have different NAICS codes for different locations if primary activities differ by establishment. - Should I use the corporate HQ NAICS code for all locations?
No. NAICS is intended to classify what an establishment primarily does. Using an HQ label for operating sites is a common source of misclassification. - What if a single location performs multiple activities?
Classify based on the activity generating the largest share of output/revenue, and document secondary activities to reduce future drift.