Liquor License in Ontario: Requirements, Fees, and Rules

A liquor licence in Ontario is issued by the Alcohol and Gaming Commission of Ontario (AGCO) under the Liquor Licence and Control Act, 2019, and every application goes through the AGCO’s iAGCO online portal.¹ Which licence you need, what it costs, and how long it takes depend on your business: a bar or restaurant follows a different path than a convenience store, and a one-time event uses a separate permit stream altogether. The core steps overlap, so once you know your category the process becomes predictable.

Which Licence You Actually Need

Pick the right track before you start the application, because the fee, documentation, and timeline change with it.

A liquor sales licence is the standard licence for bars, restaurants, nightclubs, theatres, and other venues where customers consume alcohol on site. It lets you store, sell, and serve liquor on your licensed premises. This is the most involved application, with municipal approvals, public notice, and a site inspection.

A convenience store licence applies to stores of 4,000 square feet or less where at least half the retail floor space is dedicated to food across at least five food categories. The fee is $500. A grocery store licence applies to stores larger than 4,000 square feet that dedicate at least 10,000 square feet (or half the floor space) to food across all ten defined categories, and the fee is $3,250. Both fees are adjusted annually for inflation each April 1. If you already hold an active AGCO licence or registration, processing can take just days; otherwise, expect three to six weeks for the eligibility review.²

A Special Occasion Permit covers a one-time event rather than an ongoing business. Private permits cover events like weddings and birthdays with invited guests only. Public permits cover charity fundraisers, community festivals, and promotional events where alcohol is sold to the general public.³ Private event permits are typically issued within one day, but the AGCO recommends applying at least ten days before the event.⁴

Who Qualifies for a Liquor Sales Licence

The AGCO looks past paperwork to decide whether you and everyone connected to the business are fit to hold a licence. The Act sets out specific grounds on which the Registrar must refuse.

Integrity and Financial Standing

The Registrar reviews the past and present conduct of every person with a stake in the business: the applicant, officers, directors, partners, anyone with management responsibility, and anyone with a financial interest. If that review turns up reasonable grounds to believe the applicant will not carry on business with integrity and honesty, the application is refused. A financial position suggesting you cannot reasonably operate responsibly is itself grounds for refusal.⁵

Other disqualifying factors include false statements in the application, carrying on activities that would violate the Act if you were licensed, and operating premises that don’t comply with regulations or the Registrar’s standards. The Registrar must also refuse a licence if issuing it would not be in the public interest, considering the needs and wishes of local residents.⁵ If a licence has been refused or revoked, you cannot reapply for two years.

Tax Compliance

Before the Registrar issues or renews a licence, you must verify your tax compliance with the Ontario Ministry of Finance and attest that you are not in default on provincial tax returns or assessed amounts. If you hold a CRA business number, you must also confirm compliance with federal obligations under the Income Tax Act, Excise Tax Act, and Taxation Act, 2007.⁶ A false attestation can result in refusal of the application or regulatory action against an existing licence.

Documents to Gather Before You Apply

Collecting your documentation before opening iAGCO is the single best way to avoid delays.

Personal and Entity Disclosure

Every person with significant control over the business must complete a Personal Disclosure form. That includes sole proprietors, all officers and directors, all partners, any shareholder holding 10% or more of the outstanding shares, trustees and beneficiaries of trusts that hold shares in the applicant, and principal employees.⁷ If the applicant is a corporation, an Entity Disclosure form is required from the applicant company and from every corporation holding 10% or more of its shares, directly or indirectly.⁸

Floor Plan

You need a detailed floor plan showing the exact dimensions of the service area, proposed occupancy, and the boundaries of the licensed space, including storage areas and washrooms. The AGCO uses it to define where alcohol may be served and to verify the premises during inspection.

Municipal Clearance Letters

Three signed municipal letters are required: clearance from the local Building Department under the Building Code Act, from the Fire Protection Officer or Fire Marshal under the Fire Protection and Prevention Act, and from the Public Health Department under the Health Protection and Promotion Act.⁹ Start chasing these early. Scheduling three separate inspections takes time, and a missing letter holds up the entire file.

Applying and Paying the Fee

You submit everything through iAGCO and pay the fee at the time of application. For a new liquor sales licence that requires public notice, the fee is $1,055 for a two-year term or $1,355 for a four-year term. Applications exempt from public notice cost $925 for two years or $1,225 for four years. Renewals are $300 for two years or $600 for four years.¹⁰

Public Notice

After you submit a new application, the AGCO issues a Public Notice placard that you must display prominently at the proposed premises. The AGCO sets the dates for the posting period and the deadline for public submissions.¹¹ During that window, local residents can file objections, which may trigger a public meeting or hearing before the application can proceed.

Site Inspection and Timing

An AGCO inspector will visit to confirm the physical space matches your submitted floor plan and meets applicable safety standards. The AGCO does not publish a fixed processing timeline, and wait times vary with the complexity of the file, whether objections are filed, and how quickly you respond to requests for more information. Set your opening date conservatively.

Buying a Business That Already Holds a Licence

A liquor sales licence does not automatically transfer with a sale. A transfer application is required whenever there is a change of ownership, a new person acquires 10% or more of the shares, or someone other than the current licensee becomes entitled to profits from liquor sales.⁸

The transfer checklist mirrors much of a new application: Entity and Personal Disclosure forms for all relevant parties, documents showing how and when you obtained possession of the premises, and the current licence holder’s consent to the transfer. If you want to operate the business while the transfer is pending, you must apply for an Authorization to Contract Out at the same time you file the transfer. You cannot serve alcohol at the premises until the Registrar grants that authorization.⁸

Two issues will block a transfer. The AGCO will not approve a transfer if the current licence holder has an outstanding monetary penalty. And if either party owes money to the Ministry of Finance under the Retail Sales Tax Act or the Liquor Tax Act, the application cannot proceed until the debt is cleared.⁸ Verify both before signing a purchase agreement.

Rules You Must Follow Once Licensed

Smart Serve Certification

Every person who sells, serves, samples, or delivers liquor, takes orders for liquor, or works security at a licensed venue must hold a valid Smart Serve certificate. Smart Serve is Ontario’s only approved liquor training program.¹² Certificates are valid for five years. Holders who recertify before expiry qualify for a discounted rate of $29.95.¹³ An expired certificate means that employee cannot legally handle alcohol until they retrain.

Hours of Service

Licensed establishments may sell and serve alcohol Monday through Sunday from 9:00 a.m. to 2:00 a.m. The exception is New Year’s Eve, when service extends to 3:00 a.m. on January 1.¹⁴ Serving outside these hours is a compliance violation whether or not customers are still on the premises.

Required Signage

Ontario’s Sandy’s Law requires every premises where liquor is sold and served to display a sign warning that consuming alcohol during pregnancy causes Fetal Alcohol Spectrum Disorder. The sign must be at least 8 by 10 inches, written in English (and optionally in French), and visible to patrons wherever alcohol is sold and served, including patios.¹⁵ Failure to display the sign carries a monetary penalty of up to $2,000.¹⁶ Your liquor licence itself must also be posted where customers and inspectors can see it.

Record Keeping

A liquor sales licensee must retain records of all liquor purchases and sales for at least one year.¹⁷ A wine pub or brew pub endorsement extends the retention period to two years for daily manufacturing and sales records. Inspectors can demand to see these records, and failing to make them available for audit carries penalties of up to $6,000.¹⁶

Penalties for Getting It Wrong

The AGCO publishes a schedule of monetary penalties under the Act, and the top numbers are large enough to close a business. The penalties that catch operators off guard most often involve minors and intoxicated patrons:

Selling or supplying alcohol to someone known to be under 19: up to $100,000
Selling or supplying alcohol to someone who appears to be under 19: up to $100,000
Knowingly allowing a person under 19 to consume alcohol on licensed premises: up to $100,000
Selling or supplying alcohol to an intoxicated person: up to $50,000
Failing to comply with licence conditions: up to $15,000
Hindering or obstructing an inspector: up to $15,000
Failing to facilitate an inspection: up to $15,000

Operating under a licence while carrying on business without completing a required transfer after a change of ownership also carries a penalty of up to $15,000. These are monetary penalties the Registrar can impose administratively, and they sit on top of the Registrar’s power to suspend or revoke the licence entirely.¹⁶

1
Alcohol and Gaming Commission of Ontario. The AGCO Guide to the New Liquor Licence and Control Act, 2019 (LLCA) Framework
2
Alcohol and Gaming Commission of Ontario. Apply for a Convenience Store or Grocery Store Licence
3
Alcohol and Gaming Commission of Ontario. Special Occasion Permits
4
Alcohol and Gaming Commission of Ontario. Apply to Sell or Serve Alcohol at a Private Event
5
Ontario.ca. Liquor Licence and Control Act, 2019
6
Alcohol and Gaming Commission of Ontario. Tax Compliance Verification Attestation – Liquor
7
Alcohol and Gaming Commission of Ontario. Personal Disclosure
8
Alcohol and Gaming Commission of Ontario. Section 7 – Transferring a Liquor Sales Licence
9
Alcohol and Gaming Commission of Ontario. Municipal Approval Requirements for a Liquor Sales Licence Including Manufacturers Tied House
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Alcohol and Gaming Commission of Ontario. Liquor Licensing Fees
11
Alcohol and Gaming Commission of Ontario. Public Notice Process – A Guide for Objecting to a Liquor Sales Licence Application in Your Municipality
12
Alcohol and Gaming Commission of Ontario. Information Bulletin – Mandatory Smart Server Recertification Will Begin July 1, 2022
13
Alcohol and Gaming Commission of Ontario. Smart Serve Recertification Requirements Reminder
14
Alcohol and Gaming Commission of Ontario. Hours for Liquor Sale, Service and Delivery
15
Alcohol and Gaming Commission of Ontario. Signage Requirement – Warning Sign for Consumption of Liquor During Pregnancy (Sandys Law)
16
Alcohol and Gaming Commission of Ontario. Schedule of Monetary Penalties Relating to the Liquor Licence and Control Act, 2019
17
Alcohol and Gaming Commission of Ontario. 7. Record Keeping and Provision of Information