How do I find out what licences a business holds before buying it?

Start with a list, then test it. Ask the seller for a copy of every licence, permit and registration the business holds, with the body that issued each, its expiry date and any conditions. Then check the list against records the seller does not control, so the inventory does not rest on the seller’s word alone. This page is about finding out what exists and whether it is current. Whether each one moves to a buyer is a separate question.

Build the list from the seller

Ask for the documents themselves, not a summary, along with the latest renewal confirmation for each. Note whether each is held by the company or by an individual owner. The seller should describe every activity the business carries on, including side services and anything done at a second location. Ask whether each needs its own permit. The licence and permit transfer checklist has the full set of questions.

Cross-check with BizPaL

BizPaL is a service provided by the federal, provincial/territorial and municipal governments. It lets you search for the permits and licences you may need to start or grow a business, and Canada.ca presents it as a search covering federal, provincial, territorial and municipal permits and licences. Use it to test whether the seller’s list looks complete for what the business does. It shows what a business of that kind may need. It does not show what this business actually holds.

Look for a public register, then ask the issuing office

Some regulators publish a way to look up licence holders. The Canadian Food Inspection Agency’s food licences page, for one, links a “Find a food licence” tool, which it describes as a way to find out if a business is licensed under the Safe Food for Canadians Regulations. Check whether the regulator for each licence offers something similar. For municipal business licences, ask the issuing office. The City of Calgary’s licensing page, for example, covers applying, renewing and making changes to a registered business. Where no lookup exists, ask your lawyer how to get the issuing office to confirm a licence’s status.

Confirm each one is current

Compare each expiry date with today’s date and with the renewal paperwork. Take the AGCO, which handles renewals of liquor sales licences in Ontario. It says a holder must apply to renew and submit the right fee before the expiry date, and that if it gets the application and fee by the expiry date it sends confirmation of the renewal application. A missing confirmation, a lapsed date or a condition the business is not meeting belongs on your issues list. When the inventory is done, the question of what licences transfer comes next.