In the face of climate change and growing sustainability awareness, industrial companies are at a pivotal point in transforming from a linear to a circular economy (CE) model. Yet, aligning their business with the principles of the CE is a challenging task. Utilizing a systematic literature review (SLR) and thematic analysis a framework for the business transformation towards the CE has been developed. It considers the dimensions product, business strategy, corporate management, and value chain. The circular business transformation (CBT) framework includes incentives for entering the CE, fields of action, design options, and associated challenges. For researchers, it provides a comprehensive overview and serves as a basis for in-depth studies of each dimension of CBT. Furthermore, it acts as a practical guide that enables industrial companies to strategically navigate through the complexity of the CBT and to effectively design it.