When a nursery business is sold to a new provider, several Ofsted requirements must be followed to ensure legal compliance and continuity of care. These key obligations are summarised below.

When a nursery business is sold to a new provider, several Ofsted requirements must be followed to ensure legal compliance and continuity of care. These key obligations are summarised below.

Registration– Ofsted registration cannot be transferred between two legal entities, a buyer must apply for a new registration before they can legally operate the nursery.
Ofsted confirms that each daycare setting must be individually approved, and providers must register when taking over new premises.

The registration process can take up to 26 weeks, as Ofsted conducts DBS, local authority, health, and premises checks. If concerns arise during these checks, registration may be refused. It will be important to understand your buyer’s credentials, to ensure that the business will continue to operate. Transitional arrangements (including an indemnity for sellers and a long-stop date) should be carefully considered.

Continuity of Operations- the seller must not cancel their registration until the buyer’s new registration is granted. It is illegal to operate a nursery without an active Ofsted registration, and doing so constitutes providing unregistered childcare.

Repeat Acquirers Still Require Registration– even where the buyer is an experienced operator with existing Ofsted‑registered nurseries, a new setting still requires its own registration, unless the new premises qualify as an extension of an existing setting.
Ofsted only allows new premises to be added to an existing registration where both sites operate as one combined setting under the same management, are close together, and meet strict criteria. Otherwise, a separate registration is mandatory.

Timing of the Application– Ofsted does not require ownership of the business to have legally transferred before an application is submitted.
This means the buyer could apply at the start of the transaction, so that the Ofsted registration process runs concurrently with the legal sale process.

The application can be submitted on behalf of the intended new provider company, provided all directors, managers, and nominated individuals are identified and complete the required forms and DBS checks.

Seller Notification Obligations– the seller must notify Ofsted of any changes to individuals responsible for the organisation, such as changes in directors or nominated persons. This is an ongoing requirement under Ofsted regulations.

Ongoing Compliance After Registration– once the new registration is granted and the buyer becomes the registered provider, they must ensure that all policies and operational requirements remain fully compliant.
This includes maintaining:

• Safeguarding policies
• Accident and incident logs
• Risk assessments
• Staff training and suitability records

These documents form part of Ofsted’s assessment of whether the provider continues to meet the Early Years Foundation Stage (EYFS) standards.