How to Get a Liquor License in Ontario: Costs, Requirements & Application Steps
How to Get a Liquor License in Ontario
If you're planning to serve or sell alcohol at your business in Ontario, you'll need a liquor licence issued by the Alcohol and Gaming Commission of Ontario (AGCO). Getting a liquor licence in Ontario can take 2–3 months and involves AGCO approval, municipal clearance, inspections, and mandatory staff certification. Costs typically range from several hundred to several thousand dollars depending on licence type and business model.
Whether you're opening a restaurant, bar, café, or brewery, or running an event business that needs a temporary permit, the process follows the same core steps. This guide walks you through everything you need to know in 2026, from eligibility and application to costs, timelines, and keeping your licence once you have it.
Ontario Liquor Licence Process at a Glance
Before we get into the detail, here's a quick overview of the full process from start to finish:
- Register your business. You'll need a valid Ontario business licence before you can apply for anything alcohol-related, so obtain that first.
- Confirm zoning eligibility. Check with your local municipality that the premises you'll be applying for is zoned appropriately for the sale or service of alcohol (it's advisable to check this before signing a lease or making the purchase on a property).
- Contact your local health department. Since a liquor sales licence requires you to serve food, you'll need to ensure your premises meets food safety requirements.
- Submit your AGCO application. Once the first three steps are complete, you can actually apply for your liquor sales licence through the Alcohol and Gaming Commission of Ontario, paying the relevant fees.
- Post public notice. Display the AGCO-issued placard on your premises to allow the community an opportunity to raise any objections they may have, if there are any.
- Submit municipal and safety approvals. Provide the Municipal Information Form and Agency Letter of Approval from your fire, building, and health departments.
- Pass your AGCO inspection. A compliance official will visit your premises to ensure everything meets the required standards.
- Complete Smart Serve training. All staff who serve or sell alcohol must be certified before they begin work.
- Receive licence approval. Once everything checks out, your licence will be issued to be displayed prominently on the premises before you start serving!
Types of Liquor Licences in Ontario
Not every business needs the same type of licence. Here's a breakdown of the main options available through the AGCO:
- Restaurant liquor licence. The most common licence for food-serving establishments. Allows alcohol to be sold and consumed on-site, but requires your business to have food available whenever alcohol is being served, which shouldn't be too hard for any restaurant or cafe.
- Bar/nightclub licence. Similar to a restaurant licence in that alcohol is sold for on-site consumption, but geared toward venues where entertainment and drink service are the primary offering rather than food.
- Brewery licence. Required if you're manufacturing beer on-site. This licence covers production as well and can also permit on-site sales and tastings, with separate fees applying for any retail store operating on brewery grounds.
- Special Occasion Permit (SOP). A temporary permit for one-off events such as weddings, fundraisers, or private parties where alcohol will be served. It's not a permanent licence, making it a practical option for event organisers rather than ongoing businesses.
- Retail liquor licence. Covers the sale of alcohol for off-site consumption, like in a bottle shop or a retail store attached to a winery, brewery, or distillery. Separate fees apply for these retail operations.
- Catering endorsement. An add-on to an existing liquor sales licence that allows a licenced caterer to serve alcohol at events held off their primary premises.
Who Can Apply for a Liquor Licence in Ontario?
Before diving into the process, it's worth checking whether you meet the eligibility requirements, of which there are many. To obtain a liquor licence in Ontario, you'll need to tick each of these boxes:
- You're at least 19 years of age or a registered business entity such as a corporation or partnership. Individual applicants and business owners alike must demonstrate that they operate, or intend to operate, a physical premises where alcohol will be sold or served.
- Your premises needs to comply with local municipal zoning laws, so it's worth confirming with your local authority that your location is permitted for alcohol sales you go any further.
- You pass the Alcohol and Gaming Commission of Ontario (AGCO) assessment of your overall suitability as a licence holder, which includes a review of your background. Applicants with a disqualifying criminal history or certain prior business conduct issues may be refused, so honesty and transparency throughout the process is essential.
Obtain an Ontario Business License
As we mentioned earlier, getting a business license is the first step if you're planning on selling alcohol. The structure you choose matters: sole proprietors register through the Ontario government's business name registration service, while corporations must be incorporated provincially or federally. If your business expects to earn over $30,000 annually, which is likely if you're serving alcohol, you'll also need to register for an HST number with the CRA. You cannot apply for most liquor licences as an unregistered business.
Beyond provincial registration, check whether your municipality requires a separate local business permit, as many do. When you submit your AGCO application, you'll be required to provide documentation proving your business's legal status, whether that's your business registration certificate, articles of incorporation, or equivalent. The AGCO needs this to confirm who is legally responsible for the licence, so having everything in order before you apply will save you time down the line.
Next, you’ll need to contact your local health department.
Contact the Local Health Department
Before you submit your application for a liquor license, you’ll want to contact your local public health department. This is because, in Ontario, a liquor sales license commits you to serve both food and alcohol, not just alcohol.
For this reason, you’ll need to be in touch with your local health department to determine what changes, if any, you’ll need to make to your business to safely handle food and beverages before you apply for a liquor license.
Businesses with multiple locations may need to contact more than one health department.
If you decide you’re not prepared to also serve food, it might be a good idea to postpone your liquor license application. If, however, you’re already serving food, or are excited about expanding your current business model to add food service, then your next step is to submit the license application.
Submit a Liquor License Application
Once your business is registered, you can apply for your liquor sales licence through the AGCO's online portal. Your application will be reviewed with an eye toward public safety, including the location of the business. If the AGCO feels that awarding a liquor licence to your business would not be in the best interests of the public, your application can be denied.
Before you start, make sure you have the following documents ready:
- Business registration certificate
- Signed lease agreement or proof of ownership
- Detailed floorplan of the premises
- Municipal zoning approvals
- Capacity limits for the space
- Valid identification documents
Your floorplan should clearly outline all areas where alcohol will be served, including any outdoor patio space. If you intend to serve alcohol on a patio, you'll need separate approval for that area as part of your application, so factor this in early to avoid delays. AGCO application will also prompt a formal review of whether your premises is appropriately zoned for alcohol service, so even if you already checked, check again!
Standard processing takes around 8–12 weeks, though this is certain to extend if objections are raised by the community or municipality, or if any documents are missing or incomplete. While it may be tempting to serve alcohol while you're waiting, you can't legally do so until you've received your licence. So while you may get your license inside two months, it's worth applying far earlier because you can't start selling until this is complete. Plan for the worst and hope for the best!
Naturally, along with your application, you'll need to pay the appropriate fees.
Total Estimated Cost of a Liquor Licence in Ontario
One of the most common questions from prospective licence holders is how much is a liquor license in Ontario, and the honest answer is that it depends on several factors. The AGCO application fee is just one piece of a larger financial picture. Here's a realistic breakdown of what to budget for:
Application fees (AGCO). This is a fixed cost, determined by licence type and term length
- Licence fees range from $500 to $6,300 depending on whether you're applying for a standard liquor sales licence, a brewery, distillery, winery, or another licence type. Choosing a four-year term over two years increases the fee but reduces the frequency of renewal costs, which can make life easier in the long-term.
Business setup costs. Partially fixed, partially variable
- Business registration: $60–$100, depending on your structure
- Lease and security deposit: varies widely based on location and premises size
- Renovation and compliance upgrades: $5,000–$50,000+, depending on how much work is needed to meet health, fire, and building safety requirements
Operational readiness costs. Ongoing and variable
- Smart Serve training: $40–$60 per staff member, and a mandatory cost for every employee who serves or sells alcohol
- Insurance: $2,000–$10,000 annually, depending on your venue type, capacity, and coverage level
- POS and systems setup: not a legal requirement, but absolutely necessary if you want to compete with the best and trade efficiently
Taken together, first-year costs for a new licence holder can range from a few thousand dollars for a straightforward operation to well over $50,000 for a venue requiring significant renovation or compliance work.
Liquor License Costs
Your license fee will depend on the type of application and whether you choose the two- or four-year term for the license. Because there are multiple fees for each type of license, we’ve broken them down in the chart below.
|
License Type |
Two-Year Term |
Four-Year Term |
|
Liquor Sale (public notice) |
$1,055 |
$1,355 |
|
Liquor Sale (no public notice) |
$925 |
$1,225 |
|
Brewery |
$3,150 |
$6,300 |
|
Distillery |
$2,520 |
$5,040 |
|
Winery |
$1,260 |
$2,520 |
|
Ferment on Premises |
$1,000 |
$1,300 |
|
Liquor Delivery Services |
$500 |
$700 |
Note that “by the glass” licensing fees will be different than those listed above, and are available on the AGCO website. There are also separate fees for retail stores operating on winery, brewery, and distillery grounds.
There are many “specialty” licenses, as well, including:
- Mini-bar licenses
- Golf-course endorsements
- Caterer endorsements
- Special occasion permits
A complete list of specialized permits and licenses is available on the AGCO website.
After you’ve paid all the fees and submitted your application, you’ll need to put up a public notice that you intend to sell and/or serve alcohol at your place of business.
Post Notice of Application
Once your application is submitted, the AGCO will issue a placard that you must display on your premises. This allows anyone that visits your establishment know that you intend to serve alcohol, and that you're planning to obtain license to do so.
The length of time the placard must remain posted varies depending on your business type and will be specified in your AGCO documentation, but it must be clearly visible throughout that period.
Objections raised during this time are taken seriously. Public objections are typically related to noise, safety, parking, or neighbourhood concerns, and any unresolved objection can prevent your licence from being issued. If objections do arise, you'll need to work with the AGCO to address them before the process can move forward.
Submit Additional Required Forms
While not required when you submit your application, there are two other forms you’ll need to obtain as part of the application process before a liquor license will be issued to you.
Municipal Information Form
You’ll need to submit a Municipal Information Form, which must be completed by a municipal clerk. Failure to submit this form could delay the issuance of your liquor license.
Municipal officials may still object to your business selling alcohol up to 30 days after they’ve completed the Municipal Information Form on your behalf.
Agency Letter of Approval
All new applicants for a liquor license will also be required to submit the Agency Letter of Approval, which is completed by the local fire, building, and health departments stating that your business meets all current safety codes in each of these areas. Your liquor license will not be issued until this form is submitted to AGCO.
You’ll also need to submit capacity limits and provide a copy of your business license.
Once you’ve sent in the additional required documentation, you’ll have a pre-license inspection.
Pre-License Inspection
Once all required documentation has been received by the AGCO, a compliance official will carry out an in-person inspection of your premises. During the inspection, you'll have the opportunity to ask any questions about your responsibilities as a licence holder, so have them ready ahead of time.
Inspectors will typically assess:
- Exits and fire safety, ensuring emergency routes are clearly marked and unobstructed
- Occupancy compliance, confirming the premises meets the capacity limits stated in your application
- Washrooms, checking facilities are adequate for the intended capacity
- Food preparation areas, verifying that food handling meets the required safety standards
- Signage, ensuring mandatory notices are correctly displayed
- Alcohol storage and service areas, confirming these are clearly defined and compliant with AGCO requirements
If the inspector identifies any issues, you'll be given the opportunity to correct them, but repeated or serious failures can result in your application being denied. Businesses that prepare their documentation and premises in advance typically avoid costly delays or re-inspections.
Certify Employees
Employees serving or handling alcohol in Ontario generally require Smart Serve certification before beginning work. Smart Serve is Ontario's mandatory responsible alcohol service training programme, administered by Smart Serve Ontario, and is a legal requirement for anyone who serves, sells, or handles alcohol in a licenced establishment.
This applies to all relevant staff, whether they're behind the bar, waiting tables, or working the door. If you're adding alcohol service to an existing business, all applicable employees must be certified before you begin serving. It's good practice for staff to carry their certification cards while on shift.
Non-compliance is taken seriously. Licenced establishments that employ uncertified staff risk fines, licence suspension, or revocation. The cost of certification is modest, $40–$60 per person, making it a fairly manageable steps in the process.
Common Reasons Liquor Licence Applications Get Delayed
The most common cause of delays is incomplete paperwork, which is something you can control, or missing municipal approvals, which aren't entirely in your control. Beyond that, here are the issues that most frequently hold applications up:
- Incomplete documentation. If you're missing even one required document, such as your lease agreement or identification, this will pause the process until it's supplied. Solution? Check the full list carefully before submitting.
- Zoning conflicts. As we mentioned earlier, if your premises isn't appropriately zoned for the sale or service of alcohol, your application will stall while any issues are resolved, or else be refused outright.
- Missing floorplans. Floorplans must clearly show all areas where alcohol will be served, including patios and outside areas. Vague, incomplete, or incorrectly scaled plans are a frequent cause of back-and-forth with the AGCO.
- Municipal objections. Local authorities have up to 30 days after completing the Municipal Information Form to raise objections. If they do, the process stops while those concerns are addressed.
- Failed inspections. If the AGCO compliance official identifies issues during the pre-licence inspection that aren't corrected promptly, your application will be delayed or denied.
- Public objections. Community members can object during the public notice period. Any objection that can't be resolved between you and the AGCO will hold up the issuing of your licence.
- Incorrect occupancy details. Submitting inaccurate capacity figures is a surprisingly common oversight that triggers additional scrutiny and delays. When you choose your occupancy figures, do so after proper research and consideration.
Renewing and Maintaining a Liquor Licence in Ontario
Your Ontario liquor license will need to be renewed at the end of the term, either two or four years depending on what you select when you apply. The AGCO will notify you ahead of your renewal date, which helps ensure you don't forget. But once after that, it's your responsibility to ensure the process is completed on time. Letting your licence lapse means you cannot legally serve or sell alcohol until it's reinstated, so the consequences of any mistakes are big.
Holding a licence comes with ongoing obligations. AGCO compliance inspections can occur at any point after your licence is issued, not just at the application stage, so your premises must remain compliant at all times. You're also required to keep accurate records relating to alcohol purchases, sales, and staff certifications. Failure to meet these obligations can result in fines, conditions being added to your licence, suspension, or in serious cases, the license being revoked.
A Robust POS System
Most business owners rarely, if ever, put much thought into their point of sale system. But, a bad payment experience can keep existing customers from coming back, and push new customers away if they have issues trying to use your payment processing system.
Epos Now can handle all forms of payment, including mobile point of sale using both Android and Apple phones and tablets. Of course, it’s compatible with all major credit cards, and works with Google Pay and Apple Pay, too. Plus, it comes with integration options like Epos Now Order & Pay, which makes it easier for your customers to place alcohol orders with you!
No matter what your business needs are, a nimble system, one that’s highly secure, or one that offers multiple options, and no matter your industry, whether retail or hospitality, restaurant or brewery, Epos Now has you covered.
Frequently asked questions
- How long does it take to get a liquor licence in Ontario?
-
Standard processing takes around 8–12 weeks from the point of a complete application submission. However, this can extend considerably if documents are missing, public objections are raised, or municipal approvals are delayed. Starting the process well ahead of your intended opening date is strongly advisable.
- How much does a liquor licence cost in Ontario?
-
How much is a liquor license in Ontario depends on the licence type and term length. AGCO fees range from $500 to $6,300, but total first-year costs, including registration, compliance upgrades, training, and insurance, can reach well beyond $50,000 for larger or more complex operations.
- Do I need Smart Serve certification?
-
Yes. Anyone serving, selling, or handling alcohol in a licenced Ontario establishment must hold a valid Smart Serve certification before they begin work. It's a legal requirement, not optional. Certification is completed online through Smart Serve Ontario and costs between $40 and $60 per person.
- Can I sell alcohol before approval?
-
No. Selling or serving alcohol without a valid liquor licence is illegal in Ontario, regardless of where you are in the application process. Even if your application is progressing smoothly, you must wait until your licence has been formally issued before serving a single drink.
- Can neighbours object to a liquor licence?
-
Yes. During the public notice period, community members can formally object to your application. Objections are typically related to noise, parking, safety, or neighbourhood concerns. Any unresolved objection can prevent your licence from being issued until the matter is addressed to the AGCO's satisfaction.
- What happens during an AGCO inspection?
-
A compliance official visits your premises to assess fire safety, occupancy compliance, washrooms, food prep areas, signage, and alcohol storage and service areas. You'll have the chance to ask questions and, if minor issues are found, correct them, though serious or unresolved failures can delay or deny your application.
- Do I need a liquor licence for a patio?
-
Yes. Any outdoor area where alcohol is served must be included in your licence. Patio areas need to be clearly shown on your floorplan and require separate approval as part of the application process. Adding a patio after your licence is issued will require you to apply for an amendment.
- How often do liquor licences need renewal?
-
Liquor licences in Ontario are issued on either a two- or four-year term, chosen at the time of application. The AGCO will notify you before your renewal date, but timely renewal is your responsibility. Allowing your licence to lapse means you cannot legally serve alcohol until it is reinstated.
