A sole trader to limited company business transfer agreement is an agreement by a sole trader to sell his business to a company he has set up (either on his own or with others).
The agreement will (amongst other things):
- set-out the rights and obligations of the company and sole trader,
- identify what assets are being transferred,
- provide for the assumption of the business’ liabilities by the company,
- set-out how the price for the assets is to be calculated and paid, and
- consider and provide for perfection of the transfer regarding certain assets such as debts or intellectual property.