Can you sell an RTO?

The answer is ‘No’ and ‘Yes’. You can sell the business and assets, but you cannot sell the registration. RTO and CRICOS registrations are not transferable from one legal entity to another. This means RTO Pty Ltd cannot be sold as a functioning registered training organisation to XYZ Pty Ltd who then continue to operate merrily without Regulator approval. XYZ Pty Ltd would have to go through the initial registration process.

It is possible to sell shares in an RTO. The person acquiring the shares will be required to demonstrate, either upon takeover or sometime thereafter, how they will continue to comply with all regulatory requirements.

In all instances, ASQA must be notified via ASQANet within 90 days of the change. Be aware that ASQA has access to the ASIC database where ownership changes are registered. Some State government departments that manage funding contracts also have an automatic feed from ASIC about change of ownership, so it is important to know the State’s contractual requirements around notification. Some States require that they be notified before the change of shareholding/ownership.

More on ASQA website: click here