Costs
Ontario Liquor Licence Application: Fees and Timelines Explained
Ontario liquor licence application costs and timelines: AGCO classes, a two-year term, municipal endorsement steps, and where the budget leaks.
What to take away
- The Ontario liquor licence application goes to the Alcohol and Gaming Commission of Ontario and is filed through its iAGCO portal. A liquor sales licence runs on a two-year term.
- Fees and timelinesthe AGCO liquor sales licence application fee is about $3,000, and a complete application typically gets a decision in 30 to 60 days.
- Municipal endorsement, Smart Serve certification and liquor liability insurance each add cost and weeks. Toronto, Ottawa and Hamilton publish their own municipal schedules.
- A small establishment should plan for $3,000 to $15,000 in set-up licensing costs, then $3,000 to $7,000 a year.
The AGCO fee schedule is the only part of this budget you can pin down before signing a lease. Fees sit in the regulator's published schedule under the Liquor Licence and Control Act, 2019. Municipal charges, insurance and professional help vary by city and by premises. Confirm current amounts with the AGCO and your municipal clerk before you file.
The two-year term, the annual fee and the renewal date
A liquor sales licence in Ontario is issued for a two-year term, and an annual licence fee sits inside that term. The fee runs about $1,500 a year, so the term carries roughly $3,000 in licence fees on top of the application.
If the fee goes unpaid, or the conditions no longer match how the premises operate, sales stop until the file is fixed. Renewal is the applicant's job, and the AGCO does not chase the date for you.
Keep the licence, the municipal endorsement, the floor plan and the renewal date together. A city and county licensing policy is a sensible home for that file and for whoever checks it each year.
Licence classes and the fees attached
Ontario does not have one liquor licence. It has classes, and the fee follows the class.
Liquor licence classes and fees
Liquor Sales Licence
- Who it's for
- Restaurants, bars, hotels
- Fee basis
- Class-based
- Term
- Two-year term
- Endorsements
- Patio, caterer, extra area
Special Occasion Permit
- Who it's for
- One event
- Fee basis
- Lower for private functions
- Term
- Per event
- Endorsements
- Not applicable
Manufacturer's licence
- Who it's for
- Breweries, wineries, distilleries
- Fee basis
- Priced by class
- Term
- Class-based
- Endorsements
- Not applicable
- Liquor Sales Licence, for restaurants, bars and hotels that serve on site. Application fee about $3,000, annual fee about $1,500.
- Special Occasion Permit, for one event. The private-function rate is the lower of the two, and most events budget $150 to $300.
- Manufacturer's licence, for breweries, wineries and distilleries, priced by class and by production volume.
- Endorsements, such as a patio, a caterer's endorsement or an extra licensed area, each with its own fee and notice step.
Classes and fees are set jurisdiction by jurisdiction. California's licensing pages carry a different set of classes and renewal rules, which is a fair reminder to read the AGCO schedule rather than a generic guide.
| Cost line | Illustrative CAD | One-off or recurring |
|---|---|---|
| Liquor Sales Licence application fee | about $3,000 | One-off |
| Annual licence fee across the two-year term | about $1,500 a year | Recurring |
| Special Occasion Permit | $150 to $300 per event | One-off |
| Municipal endorsement or business licence | $0 to $1,500 | Both |
| Liquor liability insurance | $1,500 to $5,000 a year | Recurring |
| Smart Serve certification, per person | $35 to $60 | One-off, repeats with turnover |
| Consultant, paralegal or agent | $1,000 to $5,000 | One-off |
| Public notice signage and posting | $50 to $300 | One-off |
| Ownership transfer approval | typically $1,000 to $3,000 with legal work | One-off |
A first year lands near $3,000 to $15,000 for a small room, with $3,000 to $7,000 returning every year after that.
Municipal endorsement: forms, fees and weeks
The AGCO does not act alone. Under the Liquor Licence and Control Act, 2019, the municipality must be notified, and in most cases it has to endorse the application before a licence is issued. Toronto's Municipal Licensing and Standards division, the City of Ottawa and the City of Hamilton each run their own form and fee.
The sequence runs like this:
Municipal endorsement sequence
- Confirm address is zoned for licensed establishment
- Ask municipal clerk which form and fee
- File AGCO application and municipal form together
- Notify local police and post public notice
- Keep proof of posting and clerk's response
Municipal endorsement usually waits on a committee or council meeting, so allow four to eight weeks for that step alone.
An objection from the municipality, the police or a neighbour can send the file to a hearing before the Registrar of Alcohol, Gaming and Racing. A hearing adds months.
Permits also arrive in layers: the federal permits and licences page covers one, and your city covers another.
How long the AGCO takes, and which fees are fixed
The AGCO publishes service standards for licence applications, and the clock on them starts only when your file is complete. A liquor sales licence application with no objections typically gets a decision in 30 to 60 days.
Add the municipal stage and the realistic run from first form to licence is eight to 12 weeks. Special Occasion Permits move faster, typically five to 10 business days, and they skip the municipal endorsement. Manufacturer's licences take longer, often 60 days or more.
Some lines are fixed: the AGCO application fee, the annual licence fee and the insurance premium.
Other lines move. Consultant hours grow with the questions the AGCO asks. Municipal charges differ from city to city, and one objection can add legal work nobody planned for.
What the fee schedule does not cover
A license to sell is not a fit-out. It excludes leasehold improvements, kitchen equipment, rent, wages, and point-of-sale systems. It also excludes security and revenue lost while the file sits open. Those items usually dwarf licensing fees.
Before you commit, work out which of the nine business law areas touch the premises. The lease, insurance policy, and employment rules carry their own obligations.
Where budgets leak
- Ownership changes, which usually need a transfer approval and a new fee, typically $1,000 to $3,000 with legal work.
- Floor plan changes after issue, such as moving a bar or adding a room.
- Endorsements added later, each with a fee and a notice step.
- Staff turnover, which repeats certification costs of $35 to $60 a head.
- Renewal dates that slip, which stop sales until the licence is reinstated.
Most leaks of this kind are calendar problems rather than fee problems. Building a compliance calendar around the renewal date, the insurance renewal and the endorsement reviews keeps the recurring lines visible.
Example: a 60-seat restaurant in a mid-sized Ontario city
Take a leased space with a working kitchen. Illustrative first-year licensing lines: AGCO application, about $3,000; municipal business licence, about $400; notice signage, about $100; consultant time, about $2,000; liquor liability insurance, about $2,200. That lands near $7,700 before any renovation, and the annual licence fee begins the following year.
The municipal stage runs first, so a room like this typically reaches opening eight to 12 weeks after the file goes in.
