When a business doesn’t include the names of the owners or partners in the title, the business is considered as fictitious or a company with assumed name. It is really important and mandatory for the owners or partners to register the company with the trading department along with articles of corporation and their names with complete addresses. Later, if they decide to sale the company to someone else, they are again required to apply for the certificate of transfer of the business with fictitious or assumed name in order to change the names of owners in the official record in the trading department. The document that is issued by the trading department in order to make the ownership transfer official is known as the certificate of sale of business under fictitious or assumed name.
Brief Description of the Certificate of Sale of Business under an Assumed Name:
If a person or number of partners wants to start a new company in which they don’t use their own names in the title of the company, they are legally required and obligated to register the name of the company in the trading department with their own names and addresses for the record keeping purposes. This means if there is liability related to the company, the listed partners or owners will be held responsible for that liability. If these partners decide to sale the company to someone else under the same fictitious or assumed name, they are again required to file an application with the same trading department.
In this application, these partners state that they have decided to sale the company to someone else and want the department to authorize the sale by issuing a certificate so that the transfer is made. If the department allows the sale, they issue a formal certificate to the owners and allow them to sale the company and that document or authority letter is known as the certificate of sale of business under fictitious or assumed name. This also makes it official that the previously listed partners or owners no longer own the company and the business is being transferred to a new buyer whose name is also listed in the certificate and in the official record of the trading department.
Essential Elements to include in the Certificate of Sale of Business under an Assumed Name:
- Title of the company that is registered with assumed name in the trading department
- Registration or reference number of the company with trademark
- Date when the company was registered and started business
- Reference number of the certificate of the registration of the company
- Names of the partners or owners of the company
- Articles of corporation regarding the details of the company
- Date when the company is being sold to a new buyer
- Name and complete address of the new buyer
- Date when the transfer of the ownership will be implemented
- Names and signature of the witnesses
- Signature of both parties i.e. seller and buyer
- Signature of the trading clerk
Here is preview of a Free Fillable PDF of Business Sale Certificate (Under an Assumed Name),
Here is Download link for this Business Sale Certificate (Under an Assumed Name) PDF Template,