How to Start a Brewery in Quebec
Start a brewery in Quebec: the federal CRA brewer's licence first, then the RACJ manufacturer permit, then QST registration with Revenu Québec before the first sale.
How to Start a Brewery Business in Canada
Start a brewery in Canada: get the federal excise licence and provincial manufacturer licence first, then fit out the brewhouse and plan sales through licensed channels.
Applies in: across Canada
The short answer
A brewery is a licensed manufacturing business that happens to sell beer. The licences come before the beer: a federal brewer's licence from the Canada Revenue Agency, a provincial manufacturer licence from your provincial liquor regulator, and zoning and municipal permission for the exact site. The brewhouse, the taproom, and the sales channels come after. A brewery that starts brewing before the licences arrive, or that signs a lease before the licences are in hand, is spending money it cannot earn back. Get the federal licence, the provincial licence, and the site permission in that order, then brew.
Step 1: Get the federal excise licence before you brew for sale
This section is administrative process, not legal advice: the Canada Revenue Agency's regional excise office is the source for your application.
The Canada Revenue Agency states that a brewer's licence is required to manufacture beer, malt liquor, wort, or yeast, and that a licence is required for each physical business location where any manufacturing process takes place, brewing equipment is kept or used, or brewing or fermentation products are kept or stored. Under the Excise Duty Program memorandum, a brewer's licence is mandatory, security is required, an annual fee of $51.10 is payable, and the licence must be renewed annually. Licensees must file returns for each reporting period, calculate any excise duties payable, and pay any amount owing.
Start this application early. It asks for premises details, vessels and utensils, and security, and it sets the record-keeping routine for the whole business: production records, inventory records, and returns from the first batch. A brewery that treats excise records as an afterthought will struggle at the first audit, and the audit examines ledgers, invoices, production records, and inventory records.
Step 2: Get the provincial manufacturer licence to sell
The provincial licence authorizes keeping and selling the product under provincial liquor law. In Ontario, it comes from the Alcohol and Gaming Commission of Ontario. The Commission states that you cannot make alcohol with a manufacturer's licence, and that you need an excise licence from the Canada Revenue Agency to produce or package alcohol in Canada. To be eligible in Ontario, you must be 19 years of age or older, financially responsible, and conduct the business within the law and with integrity and honesty, which may include police records checks.
The Ontario application asks for tax compliance verification, a business plan with a full product description and floor plans showing the manufacturing facility and any proposed retail store, a copy of the federal excise licence, a copy of the business name registration, and entity and personal disclosure, including anyone holding 10% or more of the shares. The brewery licence fee in Ontario is $3,150 for two years and $6,300 for four years. Other provinces use their own liquor regulators with their own classes, fees, and conditions, so get your regulator's current requirements in writing.
Step 3: Clear zoning and municipal rules for the exact site
A brewery is an industrial use, a storage use, and, with a taproom, a retail and hospitality use, all on one site. Check zoning for manufacturing and for retail sales, building and fire permits for the brewhouse and storage, and municipal licence rules for the taproom. Ask about deliveries, truck access, wastewater, odour, noise, and hours, because brewing produces steam, grain waste, and truck traffic, and neighbours notice all three. A site that allows manufacturing but not retail sales cannot host a taproom, and a site that allows retail but not manufacturing cannot host a brewhouse. Get the zoning and municipal answers in writing for the exact address before you sign a lease or order a brewhouse.
Step 4: Register the business and set up tax accounts
Register the business name in the province where the brewery sits: $60 for five years in Ontario, $40 plus a $30 name request in British Columbia, with other provinces in the same range. Get a Canada Revenue Agency business number, which is free, and register for GST/HST when you pass the $30,000 threshold, or voluntarily before it. Keep the GST/HST account separate from the excise duty account: excise duty and sales tax are different taxes on different returns. If you operate in Quebec, you also deal with QST.
Insurance is not optional in practice. Liability coverage for the premises and taproom, property coverage for the brewhouse and stock, product liability coverage for beer sold to customers and trade buyers, and liquor liability coverage where you serve on site are the baseline, and a leased site will usually require the landlord to be named on the policy.
Step 5: Fit out the brewhouse and set up excise records
Size the brewhouse to the sales channels, not to ambition. A brewhouse that produces more than the taproom and trade buyers can sell ties up cash in stock, and a brewhouse too small for a provincial liquor board listing cannot fill the order. Fit out brewing, fermentation, packaging, cold storage, and grain and waste handling, with drainage and ventilation built for wet, steamy work. Set up the excise record routine from the first batch: production volumes, inventory, sales, and returns, with the records kept where an auditor can follow them. Cleanliness is production, not housekeeping: a contaminated fermenter costs a batch and, if it ships, a reputation.
Step 6: Plan sales through licensed channels
Sales run through the channels your provincial regulator allows. In Ontario, manufacturers can generally distribute their own beer to people who have bought it from the Liquor Control Board of Ontario or someone else allowed to sell liquor, and a taproom or retail store at the production site carries its own endorsement and conditions. Off-site warehouses cannot be used to promote, take orders, or sell liquor, or to service deliveries to consumers. Other provinces set their own rules for liquor board listings, private retail, bars and restaurants, online sales, and export.
Plan at least two channels from the start: a taproom or own retail store for margin and direct customer contact, and trade sales through licensed bars, restaurants, or the provincial board for volume. Each channel has its own ordering, pricing, labelling, and record rules, so price each channel from its own costs, not from a single average.
Related guides: How to Start a Catering Business in Canada, How to Register a Business in Ontario, How to Register a Business in British Columbia, and How to Register for GST/HST in Canada.
Starting a brewery in Canada, in six steps
- Get the federal excise licence before you brew for saleA brewer's licence under the Excise Act is mandatory, requires security, carries an annual fee of $51.10, and must be renewed annually. A licence is required for each physical location where manufacturing takes place or brewing equipment is kept.
- Get the provincial manufacturer licence to sellIn Ontario, a manufacturer's brewery licence comes from the Alcohol and Gaming Commission of Ontario, and an AGCO licence alone does not allow you to make alcohol: you also need the federal excise licence. Other provinces use their own liquor regulators.
- Clear zoning and municipal rules for the exact siteA brewery is an industrial and retail use at once, with brewing, storage, a taproom if you have one, and deliveries. Check zoning, building, fire, and municipal licence rules for the exact address before you sign a lease.
- Register the business and set up tax accountsRegister the business name provincially, get a Canada Revenue Agency business number, and register for GST/HST once taxable supplies pass $30,000 over four consecutive calendar quarters, or in a single calendar quarter.
- Fit out the brewhouse and set up excise recordsBrewhouse, fermenters, packaging, and cold storage come before the first commercial batch. Excise returns, production records, and inventory records run from the first batch, not from the first sale.
- Plan sales through licensed channelsSales run through the channels your provincial regulator allows: your own retail store or taproom where endorsed, the provincial liquor board, licensed bars and restaurants, and export where allowed. Each channel has its own ordering, pricing, and record rules.
What a brewery costs to enter, in verified figures
| Federal brewer's licence, annual fee | $51.10 per year |
|---|---|
| Ontario AGCO brewery licence, 2 years | $3,150 |
| Ontario AGCO brewery licence, 4 years | $6,300 |
| Ontario business name registration | $60 for 5 years |
| British Columbia business name registration | $40 plus a $30 name request |
| Canada Revenue Agency business number | $0 — free |
Provincial manufacturer licence fees vary by province, so the AGCO figures are Ontario's published fees, not a national price list. Brewhouse, fermenters, packaging, and the lease dwarf every fee on this table; price those from quotes for your brewery.
Questions people ask
Do I need a federal licence to brew beer for sale in Canada?
Yes. The Canada Revenue Agency states that a brewer's licence is required to manufacture beer, malt liquor, wort, or yeast, and that a licence is required for each physical business location where any manufacturing process takes place, any manufacturing apparatus or equipment suitable for producing beer is kept or used, or any products of brewing or fermentation are kept or stored. Under the Excise Duty Program memorandum, a brewer's licence is mandatory, security is required, an annual fee of $51.10 is payable, and the licence must be renewed annually. Licensees must file returns for each reporting period, calculate any excise duties payable on those returns, and pay any amount owing. This is the licensing-heavy core of the brewery business, and it is not legal advice: your regional excise office is the source for your application.
Is the provincial manufacturer licence the same as the federal excise licence?
No, and you need both to make and sell beer. The federal excise licence from the Canada Revenue Agency authorizes manufacturing and covers excise duty. The provincial manufacturer licence authorizes keeping and selling the product under provincial liquor law. In Ontario, the Alcohol and Gaming Commission of Ontario states plainly that you cannot make alcohol with a manufacturer's licence, and that you need an excise licence from the Canada Revenue Agency to produce or package alcohol in Canada. The Ontario manufacturer's application also asks for a copy of the federal excise licence, a business plan with floor plans, tax compliance verification, and entity and personal disclosure. Apply for the federal licence early, because the provincial application expects it.
How much does an Ontario brewery licence cost?
The Alcohol and Gaming Commission of Ontario lists a brewery licence at $3,150 for two years and $6,300 for four years, for a new application. The federal brewer's licence carries a separate annual fee of $51.10, with security required. Those are the licence fees only: they do not include the brewhouse, fermenters, packaging line, cold storage, lease, or the provincial liquor board listing and testing costs that may apply to your sales channels. Other provinces set their own manufacturer licence fees, so do not budget Ontario's figures for a brewery in another province. Get your provincial regulator's current fee schedule in writing before you budget.
Can a brewery sell beer directly to customers?
Through the channels your provincial regulator allows, and the rules differ by province. In Ontario, a manufacturer's brewery licence allows the manufacturer to keep beer with the intent to sell, or sell beer according to the regulations, and manufacturers can generally distribute their own beer to people who have bought it from the Liquor Control Board of Ontario or someone else allowed to sell liquor. A taproom or retail store at the production site is a separate endorsement with its own conditions, and off-site warehouses cannot be used to promote, take orders, or sell liquor, or to service deliveries to consumers. Check your provincial regulator's rules for taprooms, retail stores, online sales, and delivery before you promise customers a channel the licence does not cover.
Do I need GST/HST registration for a brewery?
Once your taxable supplies pass $30,000 over four consecutive calendar quarters, or $30,000 in a single calendar quarter, you must register for GST/HST and charge it on your taxable sales. Registration is free through the Canada Revenue Agency, and you have 29 days from the day you pass the threshold to register. A brewery will pass the threshold quickly, so plan on registering from the start, and keep the GST/HST account separate from the excise duty account: excise duty and sales tax are different taxes, filed on different returns, and mixing them is a bookkeeping error that grows with every batch. If you operate in Quebec, you also deal with QST.
What are the biggest risks in a brewery?
Licensing time first: the federal excise licence, the provincial manufacturer licence, zoning, and building permits all run on their own timelines, and a lease signed before the licences arrive is a cost with no revenue. Cash flow second: a brewery pays for ingredients, packaging, and labour weeks before the beer sells, and provincial liquor board payment terms add more delay, so the first year needs working capital, not just equipment money. Quality and consistency third: a batch that varies, or a contamination problem in the brewhouse, costs the batch, the reputation, and the taproom trade. And channel risk fourth: a brewery that depends on one buyer, one board listing, or one taproom weekend is exposed when that channel slows. Plan at least two sales channels from the start, and keep excise and production records clean enough to survive an audit.
Sources
- Canada Revenue Agency, EDM1-1-1 The Excise Duty Program — brewer's licence mandatory, security required, annual fee $51.10, renewal annually, returns and audits —
- Canada Revenue Agency, ED200-1 Licensing requirements for manufacturers of beer or malt liquor, wort, yeast, or malt products — licence per physical location —
- Alcohol and Gaming Commission of Ontario, Apply for a manufacturer's licence — brewery licence $3,150 for two years, $6,300 for four years, eligibility, excise licence requirement —
- Canada Revenue Agency, Business Registration Online — business number and GST/HST account registration, free —