Things to know beforeapplying
Prior to submitting an application for a Distillery Licence to theAGCO, applicants should contact theLCBOto obtain relevant information about product testing. Please refer tothe Key Liquor Industry Contacts page.
EligibilityCriteria
To be eligible for a Distillery Licence, applicants mustbe:
- 19 years of age orolder
- financiallyresponsible
- conduct the business in accordance with the law and with integrity and honesty (please note that this may include, among other activities, police records checks on the applicant and some or all interested persons)
Applicants are generally not permitted any direct or indirect financial ownership in a business holding a Licence Sales Licence (e.g. licensed restaurants and bars). Please refer to section 20 of Regulation 746/21 under the Liquor Licence and Control Act, 2019 (LLCA)for furtherinformation.
Distribution and Warehousing
Manufacturers that hold a Distillery Licence may distribute their own spirits, or the wine or spirits of another manufacturer to persons who have purchased the liquor from the LCBO or another person authorized to sell liquor. To “distribute” means to transport liquor, other than transporting it to customers for consumption, and includes the warehousing of liquor during its transportation.
Distilleries may also enter into an agreement or arrangement with another person to distribute their products. In this case, the person could be another AGCO-licensed manufacturer or a person who is not licensed by the AGCO. The manufacturer remains responsible for compliance with the LLCA, its regulations, and standards and requirements established by the Registrar as they relate to distribution of their products.
In limited circ*mstances, as set out in Regulation 746/21 under the LLCA, holders of a Distillery Licence may also distribute the beer of another manufacturer.
A party that is distributing liquor that it did not produce may provide transportation and warehousing services, but cannot buy or sell that liquor.
Distilleries are permitted to use facilities in Ontario and that are located away from their production site as additional storage for their product and/or to support distribution of their product. Distilleries cannot promote, take orders for or sell liquor from an off-site warehouse, or use an off-site warehouse to service deliveries to end use consumers.
Distilleries must maintain records of the location of any offsite storage facilities where their liquor is stored, and provide that information to the AGCO on request.
Supportingdocuments
What supporting documents/information are needed toapply?
When applying for your Distillery Licence (Manufacturer’s Licence – Distillery) online via the iAGCO portal, you will be asked to provide the following as part of your application. These items can be provided to theAGCOat any time during the applicationprocess:
- Tax Compliance Verification Number and Attestation
- You must:
- Complete the tax compliance verification process and obtain your tax compliance verification number through the Ministry of Finance’s Tax Compliance Verification portal
- Attest to your tax compliance status
- For details, see Information Bulletin: New Tax Compliance Verification requirements for liquor licensees come into effect July 1, 2023.
- You must:
- Summary of your Business Plan, which sets out:
- afull description of the products to be manufactured on site
- floor plans showing the complete layout of the manufacturing facility, including equipment and proposed location of any retail store to be located at the production site (ifapplicable)
- the channel(s) through which you plan to sell your product(s) (e.g.LCBO, under a Distillery Retail Store Endorsem*nt, export)
- If your product(s) will be manufactured at a facility other than your own, please providedetails.
- Copy of Federal Excise Licence (Distillery)
TheExcise Actand theExcise Act, 2001(administered by the Canada Revenue Agency) requires that a person obtain a licence under these federal statutes prior to producing or packaging wine, beer and/or spirits in Canada. - Written proof ofLCBOProduct Testing
Please contact theLCBO for further information, including laboratorytestingfees. Contact information can be found in the Key Liquor Industry Contacts page. - Copy of Business Name Registration
The business name under which you intend to operate may have to be registered under theBusiness NamesAct. - Entity Disclosure (if applicable)
All questionsmustbeanswered. - Personal Disclosure, to be completed by all of the following individuals:
- owner (if the applicant is a soleproprietor)
- officers and directors including: signing officer, president, secretary,treasurer
- all persons holding 10% or more of the outstanding shares, or of a class of shares
- allpartners
Compliance— maintaining yourlicence
Once a Distillery Licence has been issued, the licensee is responsible for operating their business responsibly and in accordance with applicable laws, regulations, and the standards and requirements established by the Registrar. Among other requirements, licensees will be subject to thefollowing:
- The LLCAits regulations, and the standards and requirements established by the Registrar.
- Regular renewalofthe licence: Licensees may select a two or four year term duration, with fees payable to match the length of the term. As a courtesy, licensees will be sent a renewal notice approximately 60 days prior to the expiry date shown on the licence. However, it remains the licensee’s responsibility to ensure the licence is renewed ontime.
- PeriodicinspectionsbyAGCO Inspectors:All premises used by the licensee in relation to the licence may be inspected byAGCOInspectors for compliance with the LLCA, its regulations, and the standards and requirements established by the Registrar. You must allowAGCOInspectors unobstructed access to your business and you must facilitate theirinspections.
- Audit:Audits include inspection and implementation of production controls and compliance with the LLCA. The AGCO may also request different types of business records for audit purposes.
- Any conditions attached to thelicence.
- MandatoryStaff/ServerTraining:As required by the standards and requirements established by the Registrar, persons involved in the sale, service, delivery or sampling of liquor, or who are involved in taking orders for liquor from customers must successfully completed a server training course approved by the Board of the Alcohol and Gaming Commission of Ontario (the “Board”) and hold a valid certificate. The Board has approved the Smart Serve® Training Program. Please visitwww.smartserve.cafor more information.
Changes requiring a transfer of a licence
All Distillery Licences are issued to individuals, business partnerships or corporations, for operation at a specific location. The licensee is responsible for the ongoing operation of thelicence.
A transfer of the licence is required if there is a prescribed change of ownership of a business carried on under a licence or if the licensee changes, or if a different person wishes to acquire the licence.
Prescribed Changes in ownership requiring a transfer:
- An individual becomes or ceases to be an officer or director of,
- a licensee that is a corporation, or
- a corporation that effectively controls the activities authorized under the licence.
- A person becomes or ceases to be a partner of a licensee that is a partnership.
- A person or partnership acquires a beneficial interest in the licensed business, including acquiring shares of a licensee that is a corporation or of a corporation that effectively controls the business, that results in the person or partnership holding or controlling 10 per cent or more of the outstanding shares, or of a class of shares, of the corporation.
- A person or partnership other than the licensee becomes entitled to any of the profits from the sale of liquor or liable for any obligations incurred from the activities authorized under the licence.
In cases where an individual ceases to be an officer or director of a corporate licensee or a partner ceases to be a partner in a partnership that is a licensee, if the licensee gives the Registrar notice of the change within 30 days after the change occurs, the licensee may continue to engage in activities authorized under the licence without requiring a licence transfer.
Transfer to a Different Person
A manufacturer’s licence is eligible to be transferred to a different person, provided the regulatory requirements are met.
The Registrar may also transfer manufacturer’s licence for a period of not more than one year,when:
- A trustee in bankruptcy or court-appointed receiver acquires the business of thelicensee
- A mortgagee, franchisor, landlord, or executor or administrator of the estate of a deceased licensee takes possession of the licensed premises.
The Registrar may develop a simplified application process for the transfer of a manufacturer’s licence in the following circ*mstances if the principal individuals involved in the licensed business remain the same after the change occurs:
- The licence transfers between a sole proprietorship and a corporation.
- The licence transfers between a partnership and a corporation.
- The licence transfers from a partnership to a sole proprietorship.
- The licence transfers from one corporation to another corporation.
- Two or more corporations amalgamate into a single corporation and a licence from one of those corporations transfers to the amalgamated corporation.
A transfer will not be approved, in most instances, if the current licensee has an outstanding monetary penalty or if the recipient of the transfer would not be eligible to be issued a licence.
The business trade (operating) name may have to be registered under theBusiness Names Act. Also note that corporations must file updated information with respect to officers and directors of a corporation with the Companies and Personal Property Security Branch on a regular basis. Please see theOntario.caCentral Forms Repository. Forms must be forwarded to the Companies and Personal Property Security Branch forprocessing.
How to transfer a Licence?
Applications to transfer your Licence can be completed online via theiAGCO portal.
Pleasenote:
- The entity to whom the licence is being transferredTOis responsible for submitting the application to transfer thelicence.
- The application must include a signed Consent to Transfer, signed by the current licenceholder(s). This form can be found via the iAGCO portal .
SupportingDocuments
What supporting documents/information are needed to transfer alicence?
When applying to transfer a Manufacturer’s Licence – Distillery, you must provide the same documents and information as when applying for a new licence.
In addition, the following must be provided:
- Confirmation of Sale:Transfer applicants must submit written confirmation signed by the vendor, a lawyer or an accountant, that the sale of the business or shares has beencompleted.
Other Notes for TransferApplicants
Should the transfer application be approved, a licence shall be issued to the new owners with the expiry date of the originallicence.
Transfer applicants mustcheckthe expirydateoftheexistinglicenceto ensure that the licence will not expire during the time it takes to process the transferapplication.
Renewing a DistilleryLicence
Distillery Licences are valid for a period of twoor fouryears. As a courtesy, licensees will be sent a renewal notice approximately 60 days prior to the expiry date shown on the licence. However, it remains the licensee’s responsibility to ensure the licence is renewed ontime.
You can apply to renew your Distillery Licence online, through theiAGCO portal.
Your renewal application will not be accepted if there has been a change of ownership that has not been previously reported to theAGCO. If there has been a change of ownership, you must complete an application to transfer your licence and submit it to theAGCO(please see Changes Requiring Transfer of a Licence).
Your renewal application must be received by theAGCOon or before the expiry date on your Distillery Licence.
If your renewal application is not received by the expiry date on your licence, your licence will expire and you can no longer sell or serveliquor.
