Transferring your sole proprietorship
Last updated: 19 February 2016.
A sole proprietorship cannot be transferred from one owner to another. It is because the owner is identified through his/her company and is financially liable for all the company’s liabilities.
It is possible for a sole proprietorship to change owner, when a surviving spouse is entitled to retain undivided possession of an estate.
The organization number follows the sole proprietorship and the owner until it is closed down.
As a main rule you cannot transfer your sole proprietorship to another owner, but you can transfer the activities that the company is doing.
The transfer is done by closing down the company, but at the same time you transfer the activities to another owner. The new owner has to register his own sole proprietorship and report that he/she is continuing the activties from the former owner.
A surviving spouse can be entitled to retain undivided possession of an estate, and can be entered as the new owner in a sole proprietorship.
The sole proprietorship will in these cases retain its’ organization number.
The name of the new owner is to be registered in the business name, when a surviving spouse is entitled to retain undivided possession of an estate. It is possible for the surviving spouse to keep the original name of the sole proprietorship. The name of the new owner will then be registered in addition.
Attachments at registration
- certificate of undivided possesion of the estate