What does a cannabis processing license allow you to do?

Cannabis Processing License
Kalpna Mistry

Kalpna Mistry

What does a cannabis processing license allow you to do?

Interested in entering the Canadian cannabis market to manufacture cannabis products? Before you can do so, you’ll need to secure the necessary licensing from the regulator, Health Canada. If you specifically want to manufacture and package cannabis products for sale (e.g., package dried flower/pre-rolls, edibles, extracts, topicals) then you must hold one of the following licenses under the Cannabis Act & Regulations:

  • Standard Cannabis Processing License
  • Micro-Cannabis Processing License

What activities can my business conduct with a cannabis processing license?

A cannabis processing license is a great choice for any person/business that wants to work with cannabis and its derivatives, such as oil, wax, hash, butter, and other extracts. Businesses or individuals that are interested in producing cannabis products by any means other than propagating, cultivating, or harvesting should obtain a cannabis processing license.

The Cannabis Act and Regulations have allowed businesses in other markets – such as food and beverage, wellness, and personal care – to expand into the legal cannabis market, and offer products such as cannabis-infused edibles, beverages, topical creams, bath bombs, tea bags, and more! There are so many opportunities to be seized by holding a cannabis processing license.

Standard Processing License vs. Micro-Processing License?

The micro-processing license is best for smaller craft manufacturers, as it only permits up to 600 kg of dried flower (or the equivalent) to be processed each year. Micro-processors who also have a micro-cultivation license are permitted to process more than the 600 kg cap, given that they are processing the cannabis cultivated from their own site.

The standard cannabis processing license comes with no limit on the amount of cannabis that can be processed each year. Businesses or individuals that hold a standard processing license are allowed to manufacture, sell, and distribute an unlimited amount of cannabis each year.

Both the standard and micro cannabis processing licenses allow for the sale and distribution of cannabis products to other license holders or to provincial and territorial retailers.

Need help applying for a cannabis processing license?
Contact CLE today!

How do I decide which cannabis processing license is best for my business?

When deciding between standard processing and micro-processing, you should consider the future of your cannabis business. It’s hard to plan, but if you’re able to do so, it can save your business a lot of time and money down the road. For example, if you intend to start small and grow your business in a short amount of time, it may be best to secure a standard cannabis processing license outright and proceed with operations in a phased approach. This would save you time (and money) later because you wouldn’t need to upgrade from a micro to a standard cannabis processing license.

How we can help

At Cannabis License Experts, we provide you with the guidance to plan your cannabis processing business, acquire funding, navigate the legal requirements, and acquire the appropriate cannabis processing license for your operations. As the Canadian cannabis industry develops, more and more licensed producers will be needed to meet the demands of consumers.

Cannabis License Experts offers support from day one of starting your cannabis business, including strategic planning, floor plan preparation, site audits, SOPs, Preventive Control Plants (PCCs), and more.

Our Edibles Compliance division can provide you with a solid plan for your edibles business to help get your products on store shelves.

Contact us today to discover how we can license and legalize your cannabis business to meet federal or provincial regulations.