How to transfer a business name to a new owner

A registered business name can't be sold on its own the way you'd sell a van or a coffee machine. The name is a registration held by one person or entity, and moving it to someone else means a transfer through ASIC. That applies when a café changes hands. It applies just as much when a sole trader sets up a company and wants the company to trade under the name they've used for years.

A transfer has two sides. The current holder asks ASIC for a transfer key and passes it to the new owner privately, the way you'd pass on a password. The new owner then registers the name in their own right, using that key.

For that, the new owner needs two things: an ABN and the key. The name ends up registered to whichever entity holds the ABN, so if a company is taking over the name, it has to be the company's ABN, not a director's personal one. Once the holder starts the transfer, the name comes off their registration and ASIC holds it for the new owner until they apply.

There is a time limit on that. If the new owner doesn't apply in time, the name becomes available to anyone, which is a bad surprise in the week a sale is settling. Have the buyer's ABN sorted before the key is requested. If the buyer doesn't have one yet, we can apply for an ABN for a sole trader or a company.

Timing around the renewal date

Every business name has a renewal date. A name that's close to expiring, or already past it, can get caught mid-transfer, and in the worst case it lapses before it reaches the new owner. Once a lapsed name is cancelled, anyone can apply for it.

So start early. If settlement falls near the renewal date, ask the seller to renew first or get the transfer done well ahead of it.

What stays behind

A transfer moves the business name and nothing else. To customers, the name, the website and the Instagram account all look like one thing, so this catches buyers out.

The domain is its own registration, licensed to a particular holder, and it needs to be part of the deal, with the seller's help to change it over. We transfer .com.au, .au and .com domains, and once it's with us you manage the domain and its renewals from your Registry dashboard. Social media handles belong to whoever controls the login. The ABN stays with the seller, because an ABN belongs to an entity, which is why the buyer needs their own.

Before you sign, confirm who actually holds the name. It isn't always the person selling the business. It might sit with a former partner or a related company, and whoever holds it is the person who has to request the key. If you're not sure how to check, our team can help on 1300 070 000, Monday to Friday, 9am to 5pm Melbourne time.

Once you have the key and your ABN, the rest happens on our business name registration form. You enter the business name exactly as it appears on the register, the transfer key from the seller, and the new holder's details, including the ABN the name will sit under. You choose a one or three year term and pay, and we lodge the registration with ASIC.

From then on the name is registered to you. When it comes up for renewal you can renew it with us by searching the name in our renewal box and choosing one or three years, and the ASIC renewal fee is included in our price.