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Processing Licences

Canadian Cannabis Processing Licences

The standard and micro processing licences allow you to process and manufacture cannabis and hemp products using harvested cannabis plant material. This is a federal licence that allows the licencee to sell cannabis products to retail licence holders in every Canadian province and territory. There are a variety of cannabis products that can be made by a cannabis processor, including:

  • Cannabis topicals: lotions, oils, and soaps for hair, skin, or nails.

  • Edible cannabis: chocolates, baked goods, and beverages.

  • Cannabis extracts: THC oil, isolates, and CBD oil capsules

     

Standard and micro processors can engage in a variety of activities from initial research and development, to the final packaging and labeling of a cannabis product. The extent of activities allowed by the standard and micro processing licences include:

  • Process cannabis into bulk, wholesale, packaged, and labeled products.

  • Perform analytical testing of cannabis.

  • Conduct research and development of new processing procedures. For example, R&D about formulation and extraction methods.

  • Produce, distribute, and sell reference standards, and manufacture or assemble test kits.
Cannabis wax on instrument

Post-harvesting activities done indoors:

  • Drying

  • Trimming

  • Milling

  • Packaging and labeling

     

Extracting THC and CBD:

  • Chemical processing. An example of this includes using ethanol or carbon dioxide solvents to make concentrates, isolates, resin, shatter, and wax.

  • Physical processes. For example,  sifting, beating, rubbing, or using other mechanical actions to separate trichomes from fresh or dried cannabis to make kief or hashish.

  • Heating or pressurized processes. Cooking to make rosin is an example of this.

Difference Between the Micro & Standard Processing Licences

With a micro processing licence, you cannot produce synthetic cannabis using chemical reactions or recombinant bacteria. You are limited to possessing up to 600 kg of dried cannabis per calendar year, or its equivalent. This limit does not apply if the cannabis is grown under your own micro-cultivation licence at the same location. For detailed information on possession limits, refer to the micro processing page.

With a standard processing licence, you can produce all types of cannabis with no restrictions on the amount you can possess. For more details, visit the standard processing page.

Guide to the Micro Processing Licence in Canada. Including authorized activities, restrictions, key personnel requirements, and more.

Guide to the Standard Processing 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.

  1. You are not in receivership for your debts.

  2. You have complied with tax and control laws for alcohol and tobacco for the past 5 years.

  3. You have not been convicted of fraud in the past 5 years.

  4. Everyone involved is at least 18 years old.

  5. You have a valid business address in Canada.

How to Apply for a Licence

The application process is very similar for all cultivation and processing licences, including the sale for medical purposes with possession of cannabis licence. There are a number of different tasks that need to be completed before, during, and after you apply for a federal cannabis licence.

Before you Apply

Before applying, determine which licence type you plan to apply for and review the Cannabis Act, all of the cannabis regulations, the Excise Act, the legislation in your province or territory, and all the local laws, by-laws, and policies tied to your municipality and local government. 

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.

Be Aware of Licensing Fees

You must pay all required fees at the appropriate time and stage of your application. The fees vary depending on the kind of licence being applied for. Micro licences have 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 $3,767 per 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 you submit an application, your site will need to be fully built, meeting all security and good production practice requirements. This must be displayed in your site evidence package which includes a comprehensive video of your facility. 

Refer to CannDelta’s Site Evidence Package page for more details.

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 the 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

  • Quality assurance person – QAP (required for both processing licences)

  • People with direct control

  • Associated individuals

  • People with consent to communicate

  • Reporter

  • Responsible for finance

  • Associated individuals requiring security clearance

  • Key investors

Creating 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.

Good Production Practices (GPP) Report

A Good Production Practices (GPP) report is essential for cannabis processors. It must detail storage conditions (temperature, humidity) for cannabis and ingredients, including storage procedures for in-process items, bulk storage, containers, samples, and materials awaiting destruction. The report should also describe the building’s surfaces, filtration and ventilation systems, air exchanges, water supply, lighting, sanitation, and maintenance. Visual evidence, such as video tours and photographs, must highlight GPP features. Lastly, a GPP attestation is required to complete the report.

Scaling up from a Micro to a Standard Licence

A micro-processing licence allows you to start with smaller scale operation 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

Enter the cannabis market with confidence. CannDelta provides comprehensive support for preparing, submitting, and monitoring your federal cannabis licence application to ensure compliance and competitiveness. Our team includes experts with past experience working at Health Canada, giving us unparalleled insight into the regulatory landscape.

Business Plan Development
Build a solid foundation for your cannabis venture. We create business plans that meet Health Canada’s regulatory requirements and foster long-term growth for your business.

Security Plan
Protect your assets and ensure compliance. Our specialists develop thorough security plans that comply with Canadian federal regulations and provide peace of mind.

Site Audits and Inspections
Stay proactive with detailed site audits. We identify potential issues and offer practical solutions to maintain compliance and efficiency, keeping your operations smooth and trouble-free.

Standard Operating Procedures (SOPs)
Enhance daily operations with tailored SOPs. We develop clear, compliant standard operating procedures to facilitate smooth business operations and boost efficiency.

Marketing Plan
Make your brand stand out! We help build your brand and create outreach strategies to establish your presence in Canada’s cannabis market.

Employee Staffing and Training Plan
Prepare your team for success. Our recruitment strategies and customized training programs ensure your team is well-equipped to excel in the cannabis industry.

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