Buying an RTO
Setting up a RTO can take a mountain of hard work, time and money. Many clients mistakenly believe it would be easier to buy an existing RTO with qualifications on scope to bypass the strict requirements set by ASQA. The problem with this approach is that an RTO’s registration cannot be transferred to another person or corporation. The only reason to buy an existing RTO is for its brand recognition and customer base, as it doesn't help with scope or compliance.
There is a lot of outdated information out there on the subject. The following is current and taken directly from ASQA:
An RTO’s registration is not transferable. If an RTO sells or otherwise transfers its business to another person or corporation, its registration cannot be transferred to that person or corporation.
If the person or corporation to whom the RTO is sold or transferred is an RTO prior to the sale or transfer:
- the person or corporation must gain approval from ASQA to extend its scope of registration to cover any additional accredited qualifications it wishes to deliver after the sale or transfer.
If the person or corporation to whom the RTO is sold or transferred is not an RTO prior to the sale or transfer:
- the person or corporation must apply for initial registration, and ASQA must approve the application, before the new owner can operate as an RTO.
If you are looking to start an RTO, you will need to get your RTO registered the standard way. I have written a detailed article on how to do this here: How to become an RTO in 2019
If you'd like more information on the subject or have any other questions, feel free to contact us for a free initial consultation.