Municipal business licence

Depending on the local by-law, a shop, salon or trades firm can need a municipal licence on top of any provincial licence. Do not assume the seller’s licence follows the business: each municipality writes its own rules, and the City of Abbotsford, for one, says that if business ownership has changed, a new business application must be made and the previous one cancelled.

Where the power comes from

Section 151(1) of Ontario’s Municipal Act, 2001 says a municipality may provide for a system of licences for a business and may prohibit carrying on the business without a licence, refuse to grant one or revoke or suspend one, and impose conditions, subject to limits elsewhere in the Act: section 152, for example, bars a licensing by-law that makes it illegal for the businesses it lists to operate without a licence. In Alberta, section 7 of the Municipal Government Act, subject to section 7.1, lets a council pass bylaws for municipal purposes respecting businesses, business activities and persons engaged in business. The City of Abbotsford, B.C., says every business there providing professional, personal or other service for gain or profit needs a valid business licence, which ensures locations meet zoning requirements.

What to check or ask

• Which municipality licenses the premises, and what its by-law says about a change of owner.
• Whether the buyer must file a new application or only update an existing one.
• Whether zoning or other approvals sit behind the licence.

The licence and permit transfer checklist and licence re-application show how this fits.