QBCC licences cannot be transferred between entities. If your licence is in the wrong company, your options are: (1) keep all contracting in the licensed entity, (2) apply for a second licence in another entity, or (3) surrender and reapply in the correct entity. Planning structure before creating multiple entities is critical because fixing it afterwards is complex and costly.
Key Takeaways
- QBCC licences cannot be transferred between companies
- You cannot use another person’s licence for your entity
- Three options exist: restructure operations, apply for second licence, or surrender and reapply
- Licence placement affects finance access, insurance, and contract validity
Is Your QBCC Licence in the Wrong Entity? Here Is What You Need to Know
Your QBCC licence went into whichever company you had when you first applied. That made sense then. But what if your business has since changed?
Now you have three companies, a trust, equipment finance in one entity, contracts flowing through another, and a growing suspicion that your licence should be somewhere else.
You are not alone. Most construction businesses between $5M and $100M end up with their QBCC licence in a place that no longer makes operational sense.
Signs Your QBCC Licence Might Be in the Wrong Entity
- Your licence is in Company A but most of your contracts are through Company B
- You are constantly doing intercompany arrangements to make the numbers work
- Your bank keeps asking questions about why the licensed entity does not match the operating entity
- Your accountant has mentioned the structure is getting complicated
- You are not sure which entity should be quoting on new work
The Hard Truth: You Cannot Simply Move a QBCC Licence
Here is what most construction business owners do not realise until it is too late: QBCC licences cannot be transferred between entities.
If your licence is in Company A, you cannot move it to Company B. The QBCC does not allow licence transfers. Each entity that wants to contract for building work must apply for and hold its own licence.
This is why structure needs to be planned from the start. Once you have created multiple entities and your licence is locked into one of them, your options become limited.
According to the QBCC, a company licence is granted to the company itself as a legal entity. The licence belongs to that entity and cannot be assigned or transferred to another company, even if ownership or directors change.
You Cannot Use Someone Else’s Licence Either
Some business owners think they can have a licensed director or employee and use that person’s licence across multiple entities. The QBCC is clear that this is not permitted.
The QBCC explicitly states: “It is not sufficient to employ an individual or have a director who is licensed… and use their licence number on contracts.” Each contracting entity must hold its own licence.
What Are Your Actual Options?
If your licence is in the wrong entity, you have three realistic options:
Option 1: Keep all contracting in the licensed entity.
Restructure your operations so that all building contracts flow through the entity that holds the licence. Use your other entities for employment, asset holding, and other purposes that do not require a QBCC licence. This approach is often combined with proper asset protection structuring to keep valuable equipment separate from trading risk.
Learn how to protect your construction assets in a separate entity
Option 2: Apply for a second licence.
If your second entity meets the Minimum Financial Requirements and you have an eligible nominee director, you can apply for a licence in that entity as well. This gives you flexibility but adds compliance obligations. The MFR thresholds are set by the QBCC based on your annual turnover and must be maintained continuously.
Option 3: Surrender and reapply.
In some cases, it makes sense to surrender the licence in Entity A and apply fresh in Entity B. Be aware there will be a gap period where you cannot contract for building work, and you need to manage existing project obligations carefully. The QBCC application process typically takes 20-25 business days, but you should allow for longer.
Case Study: Civil Contractor with Licence in Wrong Entity
A civil contracting business came to us with a $35M turnover spread across three entities. Their QBCC licence sat in the original company from 2015, but 80% of their work now flowed through a newer entity created for a joint venture that had since ended. Their bank had flagged concerns about lending to the operating entity that did not hold the licence, and their accountant was spending hours each month on intercompany reconciliations.
We mapped their entire structure and identified that Option 1 was the cleanest solution. We restructured operations so all contracts flowed through the licensed entity, moved equipment into a separate asset-holding trust, and simplified their banking arrangements. The bank approved their facility increase within six weeks of the restructure completing, and monthly accounting time dropped by 60%.
Why Licence Placement Matters
QBCC requirements are not just administrative boxes to tick. They affect:
Finance access
Banks want to lend to the entity that holds the licence and does the work. The Australian Banking Association notes that construction lending requires clear alignment between the borrowing entity and operational capacity.
Insurance coverage
Your policies need to match your licensed entity. The Insurance Council of Australia emphasises that construction insurance must align with the entity performing the work.
Contract validity
Building contracts must be entered into by a licensed entity
Personal liability
Your nominee director obligations follow the licence
Frequently Asked Questions
1. Can I transfer my QBCC licence to a different company?
QBCC licences cannot be transferred between entities. The licence is granted to a specific legal entity and remains with that entity. If you need a licence in a different company, you must apply for a new licence in that entity, which requires meeting the Minimum Financial Requirements and having an eligible nominee director.
2. What happens if I contract through an unlicensed entity?
Contracting for building work through an unlicensed entity is a serious offence under the QBCC Act. Penalties can include fines up to $80,000 for individuals and prosecution. Additionally, contracts entered into by unlicensed entities may be unenforceable, and you may lose access to statutory protections like security of payment rights.
3. Can I hold QBCC licences in multiple companies?
Multiple entities can each hold their own QBCC licence, provided each entity independently meets the Minimum Financial Requirements and has an eligible nominee director. However, each licence carries its own compliance obligations, annual fees, and MFR reporting requirements, so this approach adds administrative burden.
4. How long does it take to get a new QBCC licence?
The QBCC states that complete applications are typically processed within 20-25 business days. However, if additional information is required or if there are issues with the Minimum Financial Requirements, the process can take longer. Planning for a 6-8 week timeline is prudent when restructuring.
5. What are the Minimum Financial Requirements for a QBCC licence?
The MFR thresholds are set by the QBCC based on your maximum revenue. Companies must maintain a current ratio of at least 1:1 and net tangible assets appropriate to their turnover category. These requirements must be met at application and maintained continuously, with annual reporting required.
Get Clarity on Your Licence Placement
Our Construction Business Structure Review includes a complete assessment of your QBCC licence placement. We look at your entire corporate group and tell you which of the three options makes most sense for your situation.
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