If you’re looking to sell or serve alcoholic beverages at your business, you’ll need a liquor licence. That said, there is a fairly hands-on application process and depending on your unique circumstances, things can get complicated.
In this article, we’ll touch on everything you need to know about getting your liquor licence in Ontario.
Who Needs a Liquor Licence?
Whether you are opening a restaurant, bar, cafe, or event venue, if you’re looking to sell alcoholic beverages in any capacity, you’ll need a liquor licence.
Making things extra complicated, getting your liquor licence isn’t a one-and-done process. It’s something that requires renewals every few years and can change depending on how your business operates. With that in mind, as a business owner, you must understand how the licensing process works and what your obligations are.
Even if liquor sales won’t be a major part of your business, or you only plan on selling alcoholic drinks on occasion, you’re still required to have a licence. In Ontario, violating liquor laws can result in severe penalties for your business. Operating without a Liquor licence (or with an expired one can lead to fines, suspension, or revocation of your licence. It is crucial to stay informed of any changes to regulations and maintain compliance.
Adding Endorsements
As you apply for your Liquor Licence, you can also add on certain endorsements. These are essentially extra permissions that allow you to sell alcohol in special circumstances that may not be covered under the standard licence.
Interested in opening a microbrewery, brew pub, or winery? Check out these blogs for more tips!
AGCO Basics
In Ontario, alcohol sales are managed by the Alcohol and Gaming Commission of Ontario (AGCO). This is who you’ll be submitting your application to.
How Long Does it Take to Get a Liquor Licence?
The time it takes to apply for and receive your liquor licence can vary depending on the nature of your business and how busy the AGCO is. That said, for basic applications it’s usually not super long.
Keep in mind that AGCO is very diligent with how they review and manage applications and if complexities arise, it will mean waiting a little longer before your licence is approved. For instance, AGCO may conduct a police and financial background check on you, other owners or anyone else associated with your business. This can delay the verification process.
An AGCO inspector will also visit your business premises to verify the details you provided in your application, as well as general compliance with health, safety, and zoning regulations.
What Are the Costs of Liquor Licence?
Like most other types of business-related certifications, applying for your licence will come with a fee. Luckily, it’s not usually a major cost. As of 2024, a two-year term application costs just over a thousand dollars ($1,055) and a four-year term is only a few hundred more ($ 1,355).
You can view the up-to-date costs of applying for a liquor licence in Ontario here.
How Do You Apply for a Liquor Licence?
Have Your Documents Ready
As part of your application, the AGCO will want to verify a handful of details about you and your business. As a result, there will be a few documents you’ll need as part of your application. These include:
- Entity disclosure
- Personal disclosure
- Signature form
- The floor plan of your business
Submit Your Application
Once you have gathered all necessary documents, you can submit your application to the AGCO. Applications can be completed easily online through the iAGCO portal. During this process, you’ll upload all the required documents, provide other important information about your business, and pay the fee.
Notifying Your Community
In some cases, the AGCO may require you to notify the public of your application. If this happens, they’ll send you a printable poster that you will hang at your business location for a specified number of days. You’ll be notified of any public objections to your application, however, these occurrences are usually pretty rare.
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What if You Want to Make Your Own Alcohol?
Having a liquor licence is essential for any business owner looking to sell alcohol – but what about making it? Well, as you may expect, if you’re looking to make your own alcoholic beverages, you’ll need a specific licence for that too. This is called a manufacturer’s licence and it can take a few months to get.
Don’t forget, as a business owner, you are still required to apply for all the add-on permissions even if you have a manufacturer’s licence. Looking to stock your craft beer at the LCBO? You’ll need a retail store authorization. Want to open an on-site taproom? Then you’re also going to need a by-the-glass endorsement.
Looking to launch a bar or restaurant in Ontario? Carve Real Estate can help! You can reach us by email at ryan@carverealestate.com or by phone at 416-618-0054.
