Get Cannabis Licence to Cultivate, Produce & Sell in Canada

Cannabis cultivation has become a popular business in Canada with the legalization of recreational marijuana in 2018. However, to start a cannabis production business, you need to get a Health Canada cannabis license — that’s the federal department responsible for regulating and overseeing the cannabis industry. This post will discuss obtaining a cannabis production license in Canada and the requirements you must fulfill to become eligible for the license.

There are two types of federal production licences for cannabis sold on a commercial basis: cultivation licences and processing licences.

A cannabis cultivation license is an authorization granted by Health Canada that allows you to grow and cultivate cannabis for commercial purposes. It is a legal requirement for anyone who wants to start a cannabis cultivation business in Canada. Without a cannabis cultivation license, you cannot legally grow, harvest, or sell cannabis in the country commercially. A cannabis processing licence allows you to package cannabis into consumer packages and/or transform it into edibles, beverages, and extracts – such as concentrates, infused pre-rolls, hash, shatter, dabs, and kief.

Obtaining a cannabis license is a rigorous process that involves meeting the Cannabis Act quality control requirements set by Health Canada. This process aims to ensure that the cannabis industry in Canada is regulated and that the cannabis products being sold in the market are safe for consumption.

How to Apply for a Cannabis Production Licence

If you want to get a cannabis production license in Canada, you need to follow the following steps:

1. Determine your eligibility: The first step in obtaining a cannabis cultivation license is to determine if you are eligible to apply for a cannabis cultivation license. Health Canada has set specific criteria for eligibility for cannabis production licenses.

2. Obtain a security clearance: To obtain a cannabis cultivation license, you must get a security clearance from the Royal Canadian Mounted Police (RCMP). This clearance is necessary to ensure you have a clean criminal record and are not associated with any criminal activity. To obtain the security clearance, you must complete the required forms and pay the applicable fees. In some circumstances, you may be able to obtain a security clearance even if you have past charges or convictions, depending on the circumstances. If you are refused a security clearance, contact us today, as we have experience assisting clients.This clearance requirement applies to key individuals associated with the business. This includes directors, officers, major shareholders, and the designated Quality Assurance Person (QAP).
   
   The screening process aims to prevent individuals with past convictions or associations relevant to the control of cannabis from participating in the regulated industry. Each key person must submit a Security Clearance Application Form directly to Health Canada.
3. Prepare the application: Once you have determined that you are eligible to apply for a cannabis cultivation license and obtained the necessary security clearance, you can start preparing your application. The Cannabis cultivation license application process involves filling out several forms and providing supporting documentation, such as proof of identity, financial statements, and business plans.
4. Application submission: Once you have completed and gathered all the necessary documents, you can submit your application to Health Canada. The Cannabis cultivation license application process can be done online or by mail.The primary method for submission is through Health Canada’s online portal, the Cannabis Tracking and Licensing System (CTLS). This system is used for submitting applications, managing licence details, and all required reporting.
   
   All licence holders must submit monthly tracking reports to Health Canada via the CTLS. These reports detail cultivation activities, inventory levels, and sales data, allowing the department to track cannabis from seed to sale.
5. Wait for a decision: Health Canada will decide once you have submitted your application. The decision process can take several months and involves the department thoroughly reviewing your application.
6. Obtain the license: If your application is approved, you will receive a cannabis cultivation license from Health Canada. The license is valid for a set period, after which you need to renew it.

Canadian Cannabis Production Licence Requirements

To obtain a cannabis production license in Canada, you must meet specific Cannabis cultivation requirements in Canada. These requirements include:

• Secure facilities: To cultivate cannabis, you must have a secure facility equipped with the necessary infrastructure and equipment. The facility should be located in a safe location and should have measures in place to prevent unauthorized access.

• Quality assurance person: A team member responsible for ensuring your cannabis products meet required quality standards. This person should have the necessary knowledge and experience in cannabis cultivation and quality control.
• Maintaining Good Production Practices (GPP): You need to adhere to the Good Production Practices (GPP) guidelines set by Health Canada. These guidelines outline the requirements for producing, handling, and storing cannabis products.GPP requirements ensure that cannabis is produced and controlled consistently to meet established quality standards. This involves having written Standard Operating Procedures (SOPs) for all production activities, proper sanitation programs, and measures to prevent product contamination.
  
  Maintaining detailed records to demonstrate compliance is also necessary. Additionally, all personnel must receive appropriate qualifications and training for their roles.
• Cannabis Act Compliance: As a cannabis cultivation business, you must comply with the Cannabis Act and all other federal, provincial, and municipal regulations relating to the cannabis industry.
• Zoning. While not a major part of the federal application process, you still need to ensure that your business complies with your municipality’s zoning bylaws. Your city may only permit cannabis production in certain areas. Before you obtain a property and start building it out for a future cannabis operation, you must ensure you are zoned properly and have all appropriate approvals to commence construction, such as building permits.

Health Canada Ongoing Requirements

Once you have obtained a cannabis production license in Canada, you must follow Health Canada rules to ensure that your business complies with the Health Canada cannabis cultivation regulations. Some of these guidelines include:

• Record keeping: Keep detailed records of all cannabis cultivation activities, including production, handling, and storage. Keep these records for a minimum of five years.
• Reporting: Health Canada requires you to report any significant changes to your cannabis cultivation business. It includes changes to your facility, personnel, and activities.
• Testing: You are required to test your cannabis products to ensure that they meet the required quality standards. You need to submit the test results to Health Canada regularly.
• Labelling: Cannabis products must be labelled in accordance with the Cannabis Act and the Health Canada cannabis cultivation regulations. There is also information such as the strain, THC and CBD content, and the risks associated with consuming the product.

Types of Cannabis Production Licences

Microcultivation Licence

A Microcultivation Licence from Health Canada allows you to cultivate cannabis on a smaller scale for commercial purposes. This license is suitable for businesses that plan to grow and sell cannabis in smaller quantities to other licensed producers or the recreational market. You can grow a canopy that is up to 800m square.

Microprocessing Licence

To process cannabis commercially on a smaller scale, you need a Microprocessing Licence from Health Canada. Businesses with this license can manufacture and sell small cannabis products to other licensed producers or recreational customers. Obtaining a Microprocessing Licence also involves meeting specific regulatory requirements, including adhering to quality control standards and ensuring product safety. Once established, licensed microprocessors can explore various markets, including learning how to export cannabis from Canada to reach international consumers. This additional opportunity can significantly enhance business growth and expand their customer base beyond domestic borders.

Standard Cultivation Licence

A Standard Cultivation Licence from Health Canada allows you to cultivate cannabis on a larger scale for commercial purposes. This type of license is suitable for businesses that plan to grow and sell cannabis in bulk to other licensed producers or the recreational market. Unlike the microcultivation licence, there is no limit to the amount of cannabis you can grow and harvest.

Standard Processing Licence

With a Health Canada Standard Processing Licence, you can process cannabis commercially on a larger scale than a micro. There is no limit to the amount of cannabis you can process and package, and as a bonus, you can also synthesize cannabis, an authorization that microprocessing licence holders do not have.

Nursery Licence

A Nursery Licence from Health Canada authorizes the cultivation of cannabis plants specifically to produce seeds and seedlings, including clones. This licence is designed for businesses that intend to have experience in genetics and supply starting materials to other licensed cultivators.

Holders of a nursery licence can sell their genetic materials to other licensed producers, but are not authorized to sell finished cannabis products directly to provincial distributors. A nursery licence holder is also permitted to cultivate a maximum of 50 kg of dried cannabis flower annually, in addition to their inventory of plants, seeds, and seedlings.

Cannabis Drug Licence

A Cannabis Drug Licence is a distinct authorization issued by Health Canada under the Food and Drugs Act. This licence permits the manufacturing and sale of prescription drugs containing cannabis that have a Drug Identification Number (DIN).

Unlike licences under the Cannabis Act, this is for products prescribed by a healthcare practitioner. Applicants must meet the stringent requirements for clinical evidence, safety, and quality control mandated for all pharmaceutical drugs sold in Canada.

How to Get a Cannabis Production Licence in Canada: Tips and Tricks

To increase your chances of obtaining a cannabis cultivation license in Canada, you can follow these tips and tricks:

• Understand the requirements: Ensure you fully understand the Cannabis cultivation requirements in Canada for obtaining a cultivation license. It covers the eligibility criteria for a Cannabis cultivation license, the Cannabis cultivation license application process, and the requirements for operating a cannabis cultivation business.
• Documentation: Gather all the required documents before applying for a cannabis cultivation license. Among these are proof of identity, financial statements, and business plans.
• Obtain legal advice: Consider hiring a lawyer with experience in the cannabis industry to help you with the application process. A lawyer can help you navigate the legal requirements and increase your chances of obtaining a cannabis cultivation license.
• Follow the guidelines: Once you have obtained a cannabis cultivation license, make sure that you follow the Health Canada cannabis cultivation guidelines to ensure that your business complies with the law. Keep records, significant changes reported, and cannabis products tested.

Conclusion

Cannabis cultivation licensing in Canada is a hassle that involves fulfilling a set of Cannabis cultivation requirements in Canada and applying to Health Canada. To increase your chances of obtaining the license, you must fully understand the needs, gather all the necessary documentation, and adhere to Health Canada cannabis cultivation guidelines. Once you have obtained the license, you must ensure compliance with Health Canada cannabis cultivation regulations to avoid legal issues.