Main steps in short:

• Understand regulatory and legal requirements. Do market research.
• Decide the type of cannabis business. Choose a location. Check local zoning regulations.
  • Cannabis Delivery
• Develop a solid business plan. Secure financing.
• Prepare the required documents. Pay application fee. Submit application.
• Register your business as an employer and a tax payer.
• Keep track of your ongoing compliance requirements.
  • Cannabis Taxes
  • Cannabis Advertising Regulations
• License renewal.

1. Understand regulatory and legal requirements. Do market research.

Cannabis Legalization

Following federal legalization of cannabis on October 17, 2018, through the Cannabis Act, British Columbia (BC) introduced legislature to regulate the market in their province – the Cannabis Control and Licensing Act, the Cannabis Distribution Act, the Cannabis Control Regulation and the Cannabis Licensing Regulation. In BC, the province has determined it will allow personal cultivation, some public consumption of vaped and smoked cannabis, and outlined a model for retail sale. Like most other provinces and territories, BC has raised the minimum age to possess, purchase, and consume cannabis to 19 years old.

BC has a government-run wholesale distribution model. The BC Liquor Distribution Branch (LDB) is the wholesale distributor of non-medical cannabis in BC. However, the retail model is a combination of both public and private retail. British Columbians from across the province can also purchase non-medical cannabis from the LDB’s online BC Cannabis Store.

British Columbia Cannabis Market

From November 30, 2022, the Producer Retail Store licence came into effect which allows federally licensed producers to sell non-medical cannabis products in stores located at their cultivation site.

Municipalities have the ability to ban private retail operations or further limit the nature and scope of these operations depending on their municipal bylaws and regulations.

The federal government is responsible for licensing and regulating cannabis producers and processors. Information on the licensing process can be found on Health Canada. All retail and marketing licences are issued by the Liquor and Cannabis Regulation Branch (LCRB).

2. Decide the type of cannabis business. Choose a location. Check local zoning regulations.

Cannabis License Types Available in British Columbia

A person or group of related persons may hold or have control or influence over a maximum of 8 cannabis retail store licences.

3. Develop a solid cannabis business plan. Secure financing.

4. Prepare the required documents. Submit applications. Pay fees. Obtain the required licenses.

Eligibility requirements:

• Be at least 19 years old.
• Be a standalone business.

For retail licences:

Application information includes the following:

• Business number.
• For a Producer Retail Licence, their federal cultivation licence number issued by Health Canada.
• BCeID log-in information.
• Store name.
• Store location.
• Parcel Identifier of the applicant’s property.
• Information about the applicant and associates including, but not limited to – directors, shareholders, partners.
• Information about other licenses applicant has or is applying for.
• Information about other licenses applicant’s associates have or are applying for.
• Consent for security screening and financial integrity checks.
• A declaration of financial, business or family connections to other federally licensed cannabis producers and cannabis store licence holders or applicants.

Licensing process:

1. Check local government or Indigenous Nation’s requirements.
2. Review store location requirements.
3. Complete the Business Financial Integrity form.
4. Gather physical store details.
5. Gather required documents and business information.
6. Review and prepare required documents for associates.
7. Upload documents online to the Liquor and Cannabis Licensing Portal and pay fees.
8. If approval is received, applicant must pass a final inspection and if successful, will receive the license.

For more details on documents to submit, refer to guidance from British Columbia.

Once the license has been obtained, it is mandatory that all employees who will sell or supervise the sale of cannabis must complete the training course Selling It Right. Licensees must also register with the LDB to be able to order cannabis products.

Licensees must also submit monthly reports to the LCRB.

For marketing licence:

Application information includes the following:

• Selling It Right certification information.
• BCeID log-in information.
• Information about the applicant and associates including, but not limited to – directors, shareholders and partners.
• Consent for security screening checks.

Licensing process:

1. Gather required business information and documents.
2. Review and preview required documents for associates.
3. Upload documents online to the Liquor and Cannabis Licensing Portal and pay fees.

For more details on documents to submit, refer to guidance from British Columbia.

5. Register your business as an employer and tax payer.

6. Keep track of your ongoing compliance requirements.

7. License renewal.

To renew a cannabis license issued by the LCRB, you must log into the Liquor and Cannabis Licensing Portal, complete the renewal form and submit the license renewal fee.

Cannabis Delivery in British Columbia

Licensed retail stores can deliver cannabis to customers either themselves or through a common carrier.

British Columbia Cannabis Taxes

There is a federal excise duty charged on cannabis. For more information on how to calculate it, please see our article on:

Cannabis Legalization in Canada

A federal sales tax of 5% and a provincial sales tax of 7% is charged on retail sales of both medical and recreational cannabis products. A 20% provincial sales tax must be charged on retail sales of vapour products which include vaping devices, cartridges and vaping substances.

Cannabis Advertising Regulations in British Columbia

Licensees must follow the prohibitions and permissions outlined in the Cannabis Act.

Health Canada guidance mentions the following prohibitions:

• communicating information about its price or distribution
• promoting in a manner that there are reasonable grounds to believe could be appealing to young persons
• using a testimonial or endorsement, however displayed or communicated
• using the depiction of a person, character or animal, whether real or fictional
• presenting it or any of its brand elements in a manner that associates it or the brand element with, or evokes a positive or negative emotion about or image of, a way of life such as one that includes glamour, recreation, excitement, vitality, risk or daring

A more detailed review of advertising regulations can be found on Health Canada’s website or in Subdivision A, Division 2 of the Cannabis Act.