Ofsted registration belongs to the legal entity that provides the childcare. A new owner's organisation must be registered before it provides childcare, and the seller stays responsible until it resigns.
Ofsted's guidance on a childcare business's legal structure, published on 22 October 2026, says a new application is needed "If the legal entity that provides the childcare changes to a different legal entity". It adds: "You cannot provide childcare until your new organisation is registered with us. To do so would be an offence."
A nursery owner who moves from sole trader to limited company changes the legal entity, so the company registers in its own name before it provides childcare.
Childcare is exempt from VAT only when the provider is registered. VAT Notice 701/2 says a provider "is not state regulated whilst its application is under consideration".
We prepare the purchase figures from the nursery's accounts and funding income, set up the new company's books, and plan the completion date around registration. More on buying or selling a care business.
The seller, until it resigns its registration, under Ofsted's guidance.
Yes. Changes to directors and the nominated individual must be reported.
The buyer's and seller's CQC applications and the completion date.
The £500,000 lifetime limit from April 2027 and what it does to the tax on a sale.
National averages, the 97% pass-through and the supplements.
We look at your last accounts, your payroll hours and your fee rates, and tell you what we would change.