Cultivation Licences
There are three different federal licences that authorize the cultivation of cannabis in Canada. The standard cultivation licence permits the production of cannabis plants, seeds, and both fresh and dried cannabis, without any restrictions to canopy size (growing area). The micro cultivation licence authorizes the same activities, but the plant canopy can not be larger than 200 meters squared, including vertically arranged surfaces. Canada also has a federal nursery licence. Nurseries produce cannabis plants and seeds to be used as starting material.
The intent of both cultivation licences and the nursery licence is to create cannabis that will later be processed into cannabis products and sold in a retail dispensary.
Growing Cannabis with a Standard or Micro-Cultivation Licence
With a cultivation licence, you can grow cannabis outdoors and perform harvesting activities outdoors during harvest periods. However, all other processing activities, including drying, milling, trimming, storing, and testing cannabis, must be done inside a licenced building at your site.
Micro cultivators can only have a grow area that is a maximum of 200 meters squared, while a standard cultivator does not have to limit the size of their grow area.
These licences also allow you to:
- Possess cannabis.
- Cultivate, propagate, and harvest.
- Perform limited indoor processing activities such as drying, trimming, and milling (for micro and standard cultivation) and drying (for nursery operations).
- Conduct analytical testing of cannabis.
- Engage in research and development within authorized activities, including developing new growing procedures like tissue culture, cloning techniques, and experimenting with different nutrients.
Growing Cannabis with a Nursery Licence
A nursery licence permits you to produce cannabis plants and seeds for starting material. You can possess up to 5 kg of harvested flowering heads at any time, excluding seeds. All flowering heads (excluding seeds), leaves, and branches must be destroyed within 30 days of harvest.
You can use up to 50 m² of grow surface area for flowering and budding cannabis plants. This includes:
- All horizontally and vertically arranged surfaces.
- All indoor and outdoor cultivation areas in use at any given time.
This size limit applies only to areas where flowering and budding cannabis plants are grown. There are no size limits for:
- Areas used for growing cannabis plants in the vegetative stage (mother plants, plant cuttings, or clones that are not budding or flowering).
- Areas used for non-cultivation activities and storage
Guide to the Micro Cultivation Licence in Canada. Including authorized activities, restrictions, key personnel requirements, and more.
Guide to the Standard Cultivation Licence in Canada. Including authorized activities, restrictions, key personnel requirements, and more.
Eligibility Requirements
Individuals and entities must meet the following eligibility requirements to apply for a cannabis licence from Health Canada.
- You are not in receivership for your debts.
- You have complied with tax and control laws for alcohol and tobacco for the past 5 years.
- You have not been convicted of fraud in the past 5 years.
- Everyone involved is at least 18 years old.
- You have a valid business address in Canada.
How to Apply
The application process for all cultivation licences, and the “sale for medical purposes with possession of cannabis” licence, is very similar. There are numerous tasks that must be completed before, during, and after applying for a federal cannabis licence.
Before you Apply
Before applying, determine which licence type you will be applying for and review the Cannabis Act, cannabis regulations, the Excise Act, provincial or territorial legislation, and all relevant local laws, by-laws, and municipal policies.
If you are an Indigenous or Indigenous-affiliated applicant, contact the Indigenous Navigator Service at navigator-navigateur@hc-sc.gc.ca for additional application guidance.
Licensing Fees
You must pay all required fees at the appropriate times while applying for a federal cannabis licence. These fees vary based on the type of licence being applied for. with micro licences having lower fees than standard licences. Obtaining a federal cannabis licence involves the following fees:
Micro/Nursery Application-Screening Fee: $1,886 per Application
Standard/Sale for Medical Purpose Application-Screening Fee: $3,767per application
Each Security Clearance Application Fees: $1,903
Annual regulatory fee: Federally licenced cannabis businesses must pay this fee once a year. The total cost of the fee is calculated for each site by Health Canada. View the Health Canada page for more details.
Notify Local Authorities
The following authorities must be notified of your proposed cannabis business. Do so before submitting an application to Health Canada.
- Local police force or the Royal Canadian Mounted Police detachment (RCMP).
- Local fire authority.
- Local government (municipal government such as city, municipality).
Site Preparation
Before submitting your application, ensure your site is fully built and meets all security and good production practice requirements. This must be demonstrated in your site evidence package, which includes a comprehensive video of your facility.
For more details, refer to CannDelta’s Site Evidence Package page.
Identify Key Personnel
Determine the roles that each person plays in the business and ensure they are qualified to meet all regulatory responsibilities. All key personnel must create an account in CTLS and apply for security clearance.
Depending on the licence being applied for, the key personnel that must be identified could include:
- Responsible person
- Head of security
- Master grower (required for all cultivation licences)
- People with direct control
- Associated individuals
- People with consent to communicate
- Reporter
- Responsible for finance
- Associated individuals requiring security clearance
- Key investors
One person can take on multiple roles, depending on the roles. QAPs cannot take on multiple roles.
How to Create a Corporate Profile in CTLS
Corporations must ensure they create a profile for the organization in the CTLS. To create a corporate profile, Directors and Officers of the corporation must create user accounts with Account IDs linked to the corporate profile.
Creating a corporate profile has additional requirements:
- The full legal name(s) of the organization.
- Its incorporation number with the certificate of incorporation.
- The business address of the corporation and contact details
- Controlling organizations (i.e., the “Parent Corporation”), if applicable.
- An organization chart and personnel. Names and titles of senior management positions and any controlling entities or individuals, as well as relationships between these roles must be indicated.
Note that any controlling organization will be required to create a corporate profile. The Corporation ID of each controlling organization is also required. Once the appropriate Access IDs to the CTLS and corporate profile are completed, the main part of the application must be submitted.
Scaling up from a Micro to a Standard Licence
Micro-cultivation and nursery licences allow you to start with smaller scale operations and later scale up to a standard cultivation or processing licence. Upgrading to a standard licence removes the grow area or possession limits of the micro licence.
Why Work with CannDelta?
Step into the cannabis market with confidence. CannDelta offers comprehensive support for preparing, submitting, and monitoring your federal cannabis licence application, ensuring compliance and competitiveness. Our team includes former Health Canada experts, providing unparalleled insight into the regulatory landscape.
Business Plan Development
Lay a solid foundation for your cannabis venture. We craft business plans that meet Health Canada’s regulatory requirements and support long-term growth.
Security Plan
Safeguard your assets and maintain compliance. Our specialists create thorough security plans that adhere to Canadian federal regulations, ensuring peace of mind.
Site Audits and Inspections
Stay ahead with detailed site audits. We identify potential issues and offer practical solutions to ensure compliance and efficiency, keeping your operations smooth and trouble-free.
Standard Operating Procedures (SOPs)
Streamline daily operations with tailored SOPs. We develop clear, compliant standard operating procedures to enhance efficiency and facilitate smooth business operations.
Marketing Plan
Distinguish your brand! We help build your brand and develop outreach strategies to establish your presence in Canada’s cannabis market.
Employee Staffing and Training Plan
Equip your team for success. Our recruitment strategies and customized training programs ensure your staff is well-prepared to excel in the cannabis industry.