How to Open a Dispensary in Ontario

Opening a cannabis store in Ontario in 2026 means working within one of Canada’s largest and most structured retail markets. The province uses a private retail model overseen by the Alcohol and Gaming Commission of Ontario (AGCO), with the Ontario Cannabis Store (OCS) acting as the sole legal wholesaler. This guide walks through the licences you need, the fees involved, and the steps to get a store open and keep it compliant.

Understanding Ontario’s Cannabis Laws

Cannabis retail in Ontario is governed by the Cannabis Licence Act, 2018 and the federal Cannabis Act. The AGCO licenses operators, authorizes stores, sets operational standards, and handles compliance and enforcement. The minimum age to purchase or work in cannabis retail is 19.

The Three Licences You Need

Ontario requires three separate authorizations from the AGCO. The table below summarizes them along with current fees (always confirm against the AGCO’s official fee schedule, as amounts can change):

Step 1: Confirm Eligibility

Applicants (and the directors and officers of an applicant corporation) must be at least 19 years old and meet integrity requirements. Convictions or charges under the Cannabis Licence Act, 2018, the Cannabis Control Act, 2017, or the federal Cannabis Act can disqualify an applicant. The AGCO assesses each applicant’s ability to operate with honesty and integrity and in the public interest.

Step 2: Apply for the Retail Operator Licence

Submit your ROL application through the AGCO’s online licensing portal (iAGCO). A non-refundable application fee applies. The registrar may grant the licence, attach conditions, or propose refusal; applicants can appeal a refusal through the Licence Appeal Tribunal (LAT).

Step 3: Secure a Retail Store Authorization

Once you hold an ROL, apply for an RSA for each physical location. The store must comply with the AGCO’s physical store and security standards, and the municipality must permit cannabis retail—some Ontario municipalities have opted out, and stores on First Nations reserves follow a separate process.

Step 4: Obtain a Cannabis Retail Manager Licence

Anyone who manages a store or supervises staff must hold a CRML. This ensures day-to-day operations are overseen by someone accountable under the AGCO’s framework.

Step 5: Train Staff and Prepare the Store

All retail employees must complete the mandatory CannSell certification, which trains staff on the responsible sale of cannabis and their legal obligations (the standard course costs $64.99 plus HST). Prepare the store to meet AGCO security and layout requirements before opening.

Step 6: Stay Compliant After Opening

Ongoing compliance is where many stores stumble. Ontario requires retailers to report point-of-sale data, maintain accurate inventory, and follow strict operational rules. A purpose-built cannabis point-of-sale system that handles OCS reconciliation, real-time inventory tracking, and reporting makes this far more manageable and reduces audit risk.

An Honest Take

Ontario is an attractive market because of its size, but it is also competitive and tightly regulated—saturation in major cities means location and operational discipline matter enormously. The licensing process itself is fairly predictable if you stay organized: the real challenge begins after opening, when AGCO reporting, OCS reconciliation, and compliance become daily work. Budget realistically for the multi-licence fee stack, choose your municipality and location carefully, and invest early in systems that automate compliance. Fees and rules change, so treat the figures here as a starting point and verify the current details directly with the AGCO before you apply.