diff --git a/app/service/rest.py b/app/service/rest.py
index efb7044a3..c4d0e2bb9 100644
--- a/app/service/rest.py
+++ b/app/service/rest.py
@@ -178,7 +178,11 @@ def update_service(service_id):
     service_going_live = fetched_service.restricted and not req_json.get('restricted', True)
     current_data = dict(service_schema.dump(fetched_service).data.items())
     current_data.update(request.get_json())
+
     update_dict = service_schema.load(current_data).data
+    org_type = req_json.get('organisation_type', None)
+    if org_type:
+        update_dict.crown = org_type == 'central'
     dao_update_service(update_dict)
 
     # bridging code between frontend is deployed and data has not been migrated yet. Can only update current year
diff --git a/migrations/versions/0149_add_crown_to_services.py b/migrations/versions/0149_add_crown_to_services.py
index 1b34f9e2a..bfbbf976c 100644
--- a/migrations/versions/0149_add_crown_to_services.py
+++ b/migrations/versions/0149_add_crown_to_services.py
@@ -19,6 +19,10 @@ def upgrade():
         update services set crown = True
         where organisation_type = 'central'
     """)
+    op.execute("""
+        update services set crown = True
+        where organisation_type is null
+    """)
     op.execute("""
         update services set crown = False
         where crown is null
@@ -30,6 +34,10 @@ def upgrade():
         update services_history set crown = True
         where organisation_type = 'central'
     """)
+    op.execute("""
+        update services_history set crown = True
+        where organisation_type is null
+    """)
     op.execute("""
         update services_history set crown = False
         where crown is null
diff --git a/tests/app/dao/test_services_dao.py b/tests/app/dao/test_services_dao.py
index 21a88eecf..2caf092fe 100644
--- a/tests/app/dao/test_services_dao.py
+++ b/tests/app/dao/test_services_dao.py
@@ -97,10 +97,13 @@ def test_create_service(sample_user):
     assert service_db.id == service.id
     assert service_db.branding == BRANDING_GOVUK
     assert service_db.dvla_organisation_id == DVLA_ORG_HM_GOVERNMENT
+    assert service_db.email_from == 'email_from'
     assert service_db.research_mode is False
     assert service_db.prefix_sms is True
     assert service.active is True
     assert sample_user in service_db.users
+    assert service_db.free_sms_fragment_limit == 250000
+    assert service_db.organisation_type == 'central'
     assert service_db.crown is True
 
 
diff --git a/tests/app/service/test_rest.py b/tests/app/service/test_rest.py
index 73679001f..553742a26 100644
--- a/tests/app/service/test_rest.py
+++ b/tests/app/service/test_rest.py
@@ -536,6 +536,26 @@ def test_update_service_flags(client, sample_service):
     assert set(result['data']['permissions']) == set([LETTER_TYPE, INTERNATIONAL_SMS_TYPE])
 
 
+@pytest.mark.parametrize("org_type, expected",
+                         [("central", True),
+                          ('local', False),
+                          ("nhs", False)])
+def test_update_service_sets_crown(client, sample_service, org_type, expected):
+    data = {
+        'organisation_type': org_type,
+    }
+    auth_header = create_authorization_header()
+
+    resp = client.post(
+        '/service/{}'.format(sample_service.id),
+        data=json.dumps(data),
+        headers=[('Content-Type', 'application/json'), auth_header]
+    )
+    result = json.loads(resp.get_data(as_text=True))
+    assert resp.status_code == 200
+    assert result['data']['crown'] is expected
+
+
 @pytest.fixture(scope='function')
 def service_with_no_permissions(notify_db, notify_db_session):
     return create_service(service_permissions=[])