551 - Management of Companies and Enterprises
Navigating the landscape of government contracting and business classification can be complex, but understanding key NAICS codes is essential for companies aiming to align with industry standards and gain a competitive edge. One critical code in this arena is NAICS code 551, which covers the Management of Companies and Enterprises sector. Whether you’re a corporate executive, a small business owner eyeing government contracts, or a researcher seeking clarity on industry classifications, this guide unpacks everything you need to know about NAICS 551.
What is NAICS Code 551?
NAICS Code 551 represents the sector designated as Management of Companies and Enterprises. Essentially, this code classifies establishments primarily engaged in:
- Holding the securities of companies and enterprises to own a controlling interest or
- Influencing management decisions of these companies.
This sector serves as the backbone for strategic oversight, governance, and control for multi-entity companies, providing critical administrative and management functions.
Sector Overview: Management of Companies and Enterprises
What Does This Sector Include?
The Management of Companies and Enterprises sector is diverse, encompassing several key business activities, including:
- Corporate headquarters: The central hub for a corporation’s strategic planning and leadership.
- Holding companies: Companies that own enough voting stock in other firms to control their policies and management.
- Management offices: Offices that provide general or administrative management services to one or more affiliated companies.
These entities typically do not produce goods or directly provide services but instead focus on controlling, managing, and overseeing subsidiaries or affiliated companies.
Size Standards for NAICS Code 551 Eligibility
To qualify under NAICS 551 for government contracting and small business programs, understanding the size standards is crucial. According to the U.S. Small Business Administration (SBA):
- The size standard for this sector aligns with the number of employees.
- Generally, establishments categorized under NAICS 551 must have 1,500 employees or fewer to qualify as a small business.
- This standard applies to the combined affiliated group and reflects the aggregate number of employees.
Always verify the latest SBA guidelines as size standards may be updated periodically.
Examples of Businesses Under NAICS Code 551
Businesses that fall under NAICS 551 typically include:
- Corporate Headquarters: Centralized management of a large firm’s global operations.
- Holding Companies: Firms like Berkshire Hathaway that control several subsidiaries without active manufacturing or direct service delivery.
- Management Offices: Organizations providing overarching administrative functions and strategic management for subsidiaries or affiliated businesses.
These examples highlight the sector’s role in governance and corporate control rather than direct production or service provision.
NAICS Code 551 Details Table
| Attribute | Details |
|---|---|
| NAICS Code | 551 |
| Title | Management of Companies and Enterprises |
| Sector | Management of Companies and Enterprises |
| Description | Establishments holding securities or managing companies to own controlling interest or influence management decisions |
| Typical Business Types | Corporate Headquarters, Holding Companies, Management Offices |
| Size Standard | 1,500 employees or fewer (small business classification) |
| Primary Activities | Administering and overseeing other companies’ operations and activities |
Frequently Asked Questions (FAQ)
What exactly does NAICS code 551 cover?
It covers establishments that hold controlling interests or provide management oversight over other companies, including corporate headquarters, holding companies, and management offices.
Can a small business qualify under NAICS 551?
Yes. To be classified as a small business in this sector, the company generally must have 1,500 or fewer employees.
Does NAICS 551 include companies that produce goods or services?
No, this sector primarily focuses on management and administrative functions rather than direct production or service provision.
Are holding companies always classified under NAICS 551?
Typically, yes. Holding companies that control or influence other businesses by owning securities fall under this NAICS code.
Why is NAICS code 551 important for government contracting?
Understanding NAICS 551 helps businesses accurately classify themselves for contracting opportunities, ensuring compliance with size standards and eligibility for relevant small business programs.
Conclusion
NAICS code 551 plays a pivotal role in the classification of companies involved in the management and control of other enterprises. By understanding the scope, size standards, and typical business activities related to this sector, businesses can better position themselves for growth, compliance, and government contracting success. Whether you’re operating a corporate headquarters or a holding company, knowing the ins and outs of NAICS 551 empowers you to navigate regulatory frameworks and maximize your strategic potential.
Keywords: NAICS code 551, Management of Companies and Enterprises, corporate headquarters, holding companies, management offices, NAICS size standards, government contracting, small business eligibility, business classification
