What happens to a trades business's certifications and licences when the owner sells?

Trade licences and certifications generally attach to the individual tradesperson who holds them, not to the business as a whole, which surprises a lot of buyers who assume a licensed trades business simply "comes with" its licence. If the business's value depends heavily on the seller's own personal trade certification — a master electrician's licence, for example — the buyer typically needs their own qualified, licensed individual in place to keep operating in that trade, whether that's the buyer themselves, an existing employee, or a new hire.

What can transfer more directly is the business's operating registration or contractor licence, where one exists at the corporate or business level, though even these often depend on having a qualified person named on file. Whether the seller is willing (or required, by the terms of the deal) to stay on for a transition period to bridge this gap is a key negotiating point, since an abrupt departure of the only licensed tradesperson can leave a buyer unable to legally perform the work the business was built on.

Confirming exactly which licences are personal versus business-level, and planning for continuity of the personal ones, should happen before the purchase price is finalized, not after closing.