Business transfer agreement: incorporation of a sole trader or partnership to a company

Comprehensive agreement similar to the other business sale agreements, however, this document provides specifically for matters which will arise when selling to your own company.
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About this document

These are agreements for the sale of any type of business by either a limited liability partnership, a company, a by one or more individuals. Net Lawman also host agreements for sale of a company, with or without a business.

First, we cover matters common to most or all of the agreements, then we look at each document in turn.

Who will use these documents?

An individual or company selling or buying a business or enterprise of any type. It is most common for the Buyer to provide the legal agreement. However, Sellers gain an advantage by obtaining the agreement first and making the first negotiation steps in their favour.

Application and features

  • Suits any type of trade or business
  • Extensive use of warranties to encourage full disclosure by the seller

Note: warranties have been used only so far as appropriate to the subject matter of the sale

  • Designed for the deal to be completed on the same day, not at some future time
  • Purchase price apportioned among the assets to simplify tax planning
  • Comprehensive list of matters to be done before completion and documents to be handed to the buyer
  • Full account taken (for Internet businesses) of intellectual property issues such as domain name transfers and web site hosting
  • Provisions to inhibit the seller setting up in competition
  • Terms to cover transfer of leasehold and freehold property (if applicable)
  • Choose from up to 90 individual warranties where required


  • Terms of the agreement for sale and list of subject matter of sale
  • Provision of purchase price, when and how it is to be paid
  • Practical steps required to complete the transaction
  • Dealing with counting and hand over of stocks
  • Responsibility for creditors and debtors
  • Seller’s warranties
  • Seller’s future activities
  • Mediation of a dispute before court action
  • Other legal issues to negotiate and account for

This document was written by an attorney for Net Lawman. It complies with current South African law.

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