How to Get a Liquor Licence in Ontario

A liquor sales licence from the Alcohol and Gaming Commission of Ontario (AGCO) is what lets a restaurant or bar sell and serve alcohol for consumption on its premises. The business applies for it — as the owner (or a representative of the business) — and the whole process runs through the AGCO's iAGCO portal, according to AGCO, Apply for a liquor sales licence. This guide is about the licence for the business, not the certificate individual servers hold: the responsible alcohol service certificate is a separate credential for staff, covered in the related guide linked below. This guide is process information, not legal advice: where a figure or rule was not verified on an official page, this guide states a check instead of a figure.

1. First, check this is the licence you need

The liquor sales licence covers selling and serving liquor on the premises, and selling or serving food or liquor does not have to be the primary business, according to AGCO, Apply for a liquor sales licence. That matters for a restaurant where food is the main trade and for a bar where drinks are: either can hold the same licence. You can combine a liquor sales licence with one or more endorsements — add-ons that allow you to sell and serve liquor in different situations, in addition to what the licence itself allows — including add-ons for caterers, room service, brew and wine pubs, mini bars, and golf courses, on the same page. Most of those endorsements carry no fee; only the golf course endorsement is charged, at $400 for two years or $800 for four years, according to AGCO, Liquor licensing fees.

Do not confuse the sales licence with the other AGCO licences. A manufacturer's licence — brewery, winery, or distillery — is for making and selling what you produce, and a manufacturer generally cannot hold a direct or indirect financial ownership in a business holding a liquor sales licence, according to AGCO, Apply for a manufacturer's licence. The fees are different too: a brewery licence is $3,150 for two years or $6,300 for four years, a distillery licence is $2,520 or $5,040, and a winery licence is $1,260 or $2,520, according to AGCO, Liquor licensing fees. Grocery and convenience stores use their own licences — a grocery store licence is $3,250 a year and a convenience store licence is $500 a year, on the same page. A one-off event uses a Special Occasion Permit instead: a sale permit is $150 per day and a no-sale permit is $50 per day, on the same page. If you are opening a bar or restaurant that serves alcohol on site, the liquor sales licence is the one to apply for; if you are making the alcohol, running a grocery store, or holding a single event, you need a different licence or permit.

2. What the licence costs

A new liquor sales licence application with public notice costs $1,055 for a two-year term or $1,355 for a four-year term, according to AGCO, Liquor licensing fees. The same page lists a lower fee — $925 for two years or $1,225 for four years — for a new application exempt from public notice, on the same page. The AGCO pages do not state which applications are exempt from public notice, so do not budget on the lower fee: check with the AGCO whether your application needs public notice before you pay. The four-year term costs $300 more than the two-year term at application, and renewal is cheaper than a new application: $300 for two years or $600 for four years, on the same page.

Three payment facts govern the application. All liquor-related transactions with the AGCO, including fee payments, must be completed using the iAGCO web-based portal, according to AGCO, Liquor licensing fees. All payments in iAGCO must be made by Visa, MasterCard, Visa Debit, or MasterCard Debit, and cheques and cash are not accepted, on the same page. Fee payments must be received by the AGCO before a licence or permit can be processed, and if an application is withdrawn, or if the AGCO refuses to issue the licence for any reason, the fee is non-refundable, on the same page. The iAGCO support page adds the threshold for large payments: all payments under $30,000 must be made by Visa, MasterCard, Visa Debit, or MasterCard Debit, and payments of $30,000 or more must be made by money wire transfer or electronic funds transfer, according to AGCO, iAGCO support. A liquor sales licence fee is well under that threshold, so a card payment is what you will use.

Other one-time fees apply only if your situation changes. Transferring a liquor sales licence costs $1,000, a share transfer costs $1,000, a legal entity change or amalgamation costs $100, a temporary transfer costs $105, and a name change costs $80 — waived if the name change is requested on a renewal or transfer application — according to AGCO, Liquor licensing fees. Changing or adding licensed areas costs $815 with public notice or $685 if exempt, on the same page. A temporary extension of hours or of premises, a change of premises manager or operator, a corporate structure change, and the removal or addition of a condition on consent all carry no fee, on the same page.

3. Before you apply: zoning and tax compliance

Two checks come before the application itself. First, verify zoning: check with your local municipality to make sure that your location is zoned for the type of business you want to operate, according to AGCO, Apply for a liquor sales licence. Do this before signing a lease or starting a fit-out — a premises that is not zoned for a licensed establishment cannot be licensed at that location, and the AGCO lists zoning first in its preparation steps. Second, verify your tax compliance: use the Ontario Ministry of Finance's Tax Compliance Verification (TCV) portal to check whether your business is in good standing with its tax obligations, and the portal will generate your TCV number, which you will need for the application, on the same page. You will be required to attest to your tax verification status in the iAGCO application, according to AGCO, iAGCO support.

Your business name is part of the same preparation. The name of the business you will be operating under may need to be registered under the Business Names Act, and for information about registering your business name, the AGCO points to ServiceOntario at 1-800-361-3223, according to AGCO, Apply for a liquor sales licence. Register the business name before you apply, so the name on the licence matches the name the business trades under.

4. Gather the documents: disclosures, the signature form, and floor plans

The application asks for disclosures about the people and businesses behind the licence. For entity disclosure, provide the names of anyone or any business that has or will have an interest in the business, has or will have a key management or operational role, or holds 10% or more of the outstanding shares or a class of shares, according to AGCO, Apply for a liquor sales licence. For personal disclosure, provide personal disclosures from sole proprietors, all officers and directors, all partners, any shareholder holding 10% or more of the outstanding shares or a class of shares, and the on-site manager if applicable, on the same page. In iAGCO, the disclosure section works by email: add the relevant individuals or entities, click Save and send Disclosure requests, and a link is sent by email to the individuals for them to complete a disclosure request — sole proprietors do not have to complete this section, according to AGCO, iAGCO support.

Complete the signature form and have it signed by you, the applicant — or the person authorised to sign if the applicant is a corporation — plus partners for a partnership or limited partnership, and an agent authorised to sign if the application is submitted on behalf of the person applying, according to AGCO, Apply for a liquor sales licence. The iAGCO support page explains how the sample forms work: for some document types you must use the sample form provided, which opens as a fillable PDF that you can complete and sign electronically, or print, complete by hand, and upload as a scan or photo, according to AGCO, iAGCO support.

Floor plans are the document applicants most often get wrong. You need floor plans that are to scale and show dimensions (length and width), clearly outline the proposed licensed areas, show the layout of the whole location, and clearly outline secondary areas — also known as adjacent areas, which could include washrooms, hallways, and stairwells — in a different colour, according to AGCO, Apply for a liquor sales licence. Save them as a jpeg, Word document, or PDF, on the same page. Draw every area you want licensed, including a patio: the pre-licensing inspection checks that the areas match what is in your application and floor plans, on the same page.

You also need a separate capacity for each proposed licensed area. The maximum capacity must be determined by the Building Code Act, 1992; by the Fire Protection and Prevention Act, 1997, if the Building Code Act, 1992 does not apply; or by allowing 1.11 square metres per person if neither Act applies, according to AGCO, Apply for a liquor sales licence. Work the capacity out with your building and fire contacts before you submit, because the agency letters in the next section and the inspection both turn on the same numbers.

5. The Municipal Information Form and the agency letters

Two sets of documents are not needed when you submit the application, but the AGCO suggests submitting them as soon as possible so it can complete your application promptly, according to AGCO, Apply for a liquor sales licence. Start both early; they depend on other offices' schedules, not yours.

The Municipal Information Form is yours to start and the municipality's to finish. Fill out the form and take it to your local municipal clerk's office; they will need to sign it and date it, and the municipality will return the completed form to you, according to AGCO, Apply for a liquor sales licence. Upload the signed form to your application. Do not fill in the municipality's part yourself, and do not submit the application expecting the AGCO to chase the municipality for it.

Agency letters of approval — also known as compliance letters — come from three agencies: the building department, the fire marshal (or fire protection officer), and the public health department, according to AGCO, Apply for a liquor sales licence. Letters need to show that your location meets the current standards and by-laws each agency is responsible for, and need to be signed and dated by the correct person within each agency; upload the signed letters to your application, on the same page. You can use the AGCO's agency letter of approval form, although some agencies may want to use their own letterhead, on the same page.

A patio or other outdoor area adds conditions. If you are applying to licence an outdoor area, the agency letters must say that they inspected the outdoor area, according to AGCO, Apply for a liquor sales licence. If the outdoor area is on municipal property, you will need an outdoor café boulevard or encroachment agreement from your local municipality, and if it is on private property, you will need a letter from the landlord stating that the area is on private property and that they give permission for liquor sales licensing, on the same page. Sort the patio paperwork before you submit, not after: an outdoor area without its letters and permission cannot be licensed with the rest of the premises.

6. Apply on iAGCO

An iAGCO account is required for business transactions with the AGCO, including applying for and managing licences, according to AGCO, iAGCO support. To create one, go to iAGCO, select CREATE ACCOUNT, complete the information on the Register an Account page, check the "I'm not a robot" box, click Finish Registration, and then click the link in the iAGCO Registration Activation email to activate the account, on the same page. Check your junk folder if the activation email does not arrive in a timely manner, on the same page.

To apply for a new liquor licence: log in to your iAGCO account or create one, on the New Task page select Alcohol, under Select an Action click on Apply for a Licence, select the licence you are applying for, and complete the steps in the application, according to AGCO, iAGCO support. You will need to select a renewal option — a two- or four-year term — and you can also add a secondary licence or endorsement at this point, if applicable, on the same page. Choose whether to use your existing applicant information or enter new applicant details; complete the disclosure of associated individuals and entities; complete the information fields, including attesting to your tax verification status; under Proposed Licensed Areas, complete the information fields; review the list and upload documents, being sure to upload documents marked as Required; review and fix any errors; and on the FINISH page, check the box in the declaration section declaring that the information you have provided is correct and that you are aware the application fees are non-refundable, then click Pay & Submit (or add to your Shopping Cart to pay later), on the same page.

Two practical points about working in iAGCO. Drafts are not saved automatically: you can save a draft any time by clicking Save at the bottom of the application page, and your draft will appear in the Actions Required tab of your Dashboard, according to AGCO, iAGCO support. If you forgot to include something, you can provide it after submitting: the application appears under the Applications in Progress tab, click the File Number, then select the Provide Additional Information button, on the same page. Uploaded documents can be most common file types — including jpeg, pdf, doc, docx, xls, and xlsx — each up to 20 MB, and they must be complete and legible to minimize delays, on the same page.

7. What happens after you apply: background check, public notice, and inspection

The AGCO tries to process applications promptly, and there may be delays if there are complexities with the application or if it needs more information from you, according to AGCO, Apply for a liquor sales licence. It may also impose conditions on your licence that can help to reduce the risks, on the same page. If the AGCO asks for additional information or documentation while reviewing your application, you will receive an email detailing the request, and you provide it in iAGCO under the Applications in Progress tab, according to AGCO, iAGCO support.

You, your officers, directors, and managers of your business may have to go through a police and financial background check as part of the standard application process, according to AGCO, Apply for a liquor sales licence. This is why the personal disclosures in step 4 matter: the background check runs on the people named there.

Most applications for new liquor sales licences need a period of time where notice is posted at the location, so the public can submit their concerns about the proposal, according to AGCO, Apply for a liquor sales licence. If your application needs public notice, the AGCO will tell you: it will email you a poster to print, and you must print it and hang it up for a certain number of days at the location you want to licence, in a place where the public can easily read it from outside the proposed location, on the same page. The AGCO will also post notice of your proposed application on the iAGCO portal, through which members of the community can review the notice and raise any concerns or objections during the posting period, on the same page. The AGCO will let you know if it receives any objections; these may need to be resolved before you can continue with the application process, on the same page. This guide states no number of days for the poster, because the AGCO page states only "a certain number of days" — check the instructions that arrive with your poster. The lower application fee for applications exempt from public notice ($925 for two years, $1,225 for four years) is the only sign on the AGCO fee page that some applications skip this step, according to AGCO, Liquor licensing fees; which applications are exempt is not stated on the official pages.

Before issuing a licence, the AGCO inspects your location. The AGCO inspector will make sure that all proposed areas qualify for licensing, that the areas match what is in your application and floor plans, and will do a walk-through to see if there are any other concerns, according to AGCO, Apply for a liquor sales licence. Once the licence is approved, you can print it from iAGCO and manage it there, on the same page.

8. After you are licensed: hours, posting, inspections, and advertising

As a licensee, you are responsible for meeting all Registrar's Standards that apply to your licence or endorsement, all applicable laws and regulations (including the Liquor Licence and Control Act), and any Terms and Conditions that may be applied to your licence, according to AGCO, Apply for a liquor sales licence. When you receive your liquor sales licence, print it out and post it somewhere that customers, inspectors, and the police can see it, on the same page.

Hours are fixed by the AGCO: liquor can be served between 9 a.m. and 2 a.m. (3 a.m. on New Year's Eve), and you will need to clear all signs of liquor service and consumption 45 minutes after this time, including clearing all glasses and bottles from tables, according to AGCO, Apply for a liquor sales licence. Some licence holders may have conditions on their liquor sales licence that further limit their hours, on the same page — read your own licence conditions before setting your closing routine, because a condition on your licence overrides the general hours.

The AGCO may inspect your location from time to time, and if it finds anything of concern, an AGCO inspector will often try to work with you to help you solve the issue, according to AGCO, Apply for a liquor sales licence. On advertising, you may advertise the name of your business, that you have a liquor sales licence, and the general brands or types of liquor you sell, and the AGCO points licensees to the Registrar's interim standards and requirements for liquor for more information, on the same page.

9. Renewal, transfer, and changes

Renew on time. The licence shows up in the Actions Required section of your iAGCO dashboard 60 days before its expiry date, and to renew you select the file number, review the information, select the term for the renewal (two or four years), and complete the renewal steps, according to AGCO, iAGCO support. Be sure to renew your licence on time: if the AGCO does not receive your renewal application before your liquor licence's expiry date, your licence will expire, expired licences cannot be renewed, you will have to submit an application for a new liquor sales licence, and you cannot sell or serve alcohol under an expired licence, on the same page. Renewal costs $300 for two years or $600 for four years, according to AGCO, Liquor licensing fees.

A transfer is submitted by the licensee who wishes to take over the licence: log in to iAGCO, select Alcohol, select Start a Transfer, search for the licence being transferred, and select "Transfer — Liquor Sales Licence" on the transfer application types page, according to AGCO, iAGCO support. The transfer fee is $1,000, according to AGCO, Liquor licensing fees. Changes to an existing licence — including a change of premises manager or operator, a corporate structure change, or the removal or addition of a condition on consent — are submitted in iAGCO from the licence's file number under Activities, by choosing Submit a Change, according to AGCO, iAGCO support. Several of those changes carry no fee, according to AGCO, Liquor licensing fees. If you withdraw an application while it is still in the review stage, select Withdraw Application under Application Activities in iAGCO — but the fee is non-refundable, according to AGCO, iAGCO support.

Figures this guide does not state

This guide states no processing time in weeks or months. The AGCO says only that it tries to process applications promptly and that complexities or requests for more information can cause delays. A two-to-three-month figure appears on a competitor's page and is not stated here, because no AGCO page states it.

This guide states no number of days for the public-notice poster. The AGCO page says only that the poster must hang "for a certain number of days" — check the instructions that arrive with your poster.

This guide states no eligibility rule beyond the applicant being the owner or representative of the business. No AGCO page states an age, residency, or prior-experience requirement for a liquor sales licence applicant, so none is stated here.

This guide states no rule for which applications are exempt from public notice. The fee page charges $925 or $1,225 for exempt applications against $1,055 or $1,355 for applications with public notice, but no AGCO page states the exemption criteria — check with the AGCO before budgeting on the lower fee.

This guide states no responsible-service training requirement as a condition of the licence itself. No AGCO page states one; the server certificate is a separate credential, covered in the related guide linked below.

This guide states no requirement that food be available whenever alcohol is served. No AGCO page states a food-availability condition for a liquor sales licence, so none is stated here — check the conditions on your own licence once issued.

Related guides

• How to Start a Restaurant Business in Canada — the wider restaurant opening plan: format and kitchen, food premises and municipal rules, and where the liquor licence fits before the fit-out.
• How to Get a Responsible Alcohol Service Certificate in Canada — the certificate individual servers hold, distinct from the licence for the business covered in this guide.
• How to Register a Business in Ontario — the Ontario business registration that comes before the licence application, including the business name the licence will carry.
• How to Start a Brewery Business in Canada — the manufacturing route: a brewery needs a manufacturer's licence, not the liquor sales licence in this guide.

Sources

• AGCO, Apply for a liquor sales licence — the licence, its two- and four-year terms, endorsements, the $1,055 and $1,355 fees, zoning and tax compliance, disclosures, the signature form, floor plans and capacity, the Municipal Information Form, agency letters, the iAGCO application, background checks, public notice, pre-licensing inspection, licensee responsibilities, hours of service, and posting the licence
• AGCO, Liquor licensing fees — the full fee table: new and renewal fees with and without public notice, transfer and change fees, endorsement fees, mini bar and manufacturer's licence fees, grocery and convenience store licences, and Special Occasion Permit fees; payment methods and the non-refundable fee rule
• AGCO, iAGCO support — creating an iAGCO account, the step-by-step new liquor licence application, saving drafts and providing additional information, payment methods, renewal (including the 60-day notice and the expired-licence rule), transfer, and changes to an existing licence
• AGCO, Apply for a manufacturer's licence — the three manufacturer's licences (winery, brewery, distillery), the CRA excise licence needed to produce alcohol, and the restriction on manufacturer ownership in a liquor sales licence business
• AGCO, Municipal approval requirements for a liquor sales licence — the Municipal Information Form and the agency letter of approval form for a liquor sales licence.