TOP-LEGAL | Business Transfer Agreement Sole-Trader to Ltd Template

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A Business Transfer Agreement from a sole trader to a limited company (Ltd) is a legal contract used to transfer the assets, contracts, and liabilities of a business operated by an individual into a newly formed limited company. This agreement ensures continuity of the business while establishing the company as a separate legal entity. It often includes provisions for the transfer of goodwill, stock, equipment, and any employee contracts, helping to formalise the change in business structure.

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A Business Transfer Agreement legally documents the transfer of assets, liabilities, and contracts from you as an individual to your new limited company, protecting both parties and ensuring compliance with tax and legal obligations.

Typically, assets such as business equipment, stock, goodwill, intellectual property, and contracts (including client and employee agreements) can be transferred — subject to any required third-party consents.

Once the transfer is complete and properly documented, the limited company becomes a separate legal entity responsible for its own liabilities — but you may still have personal obligations if you’ve provided personal guarantees or if the transfer terms specify them.

Keyword :

Liability Goods

Area Of Law :

Corporate/Company Law

Sector :

Corporate & Business Law

Category :

Private Law

Region :

Europe