Cannabis and Saskatchewan
The Province of Saskatchewan has taken action to create legislation around the Canada-wide legalization of non-medical cannabis. Those who wish to operate a non-medical cannabis business must adhere to these specific guidelines designed explicitly for recreational cannabis businesses in Saskatchewan.
In order to sell cannabis online, a retailer must run a storefront location. When it comes to delivering any cannabis that’s ordered online, retailers can deliver orders themselves, use a home delivery special use permittee or use a common delivery carrier that the retailer contracts out. Any online orders need to be paid before a delivery is made, and customers who are accepting deliveries will need to show proof of age upon receipt. As with direct, in-person sales, online purchases are limited to 30g per order.
Any cannabis suppliers in Saskatchewan are required to be authorized by the SLGA (Saskatchewan Liquor and Gaming Authority) and must meet specific requirements to be licenced. Permits for legal stores must be displayed and publicly visible, so customers are aware if a retailer has a legal permit.
Currently, 51 retail store permits have been issued throughout the Province. These retailers are required to be operational within 12 months of the legalization date. Any retail non-medical cannabis businesses are also required to be standalone businesses, solely selling cannabis and accessories. Each retailer must adhere to the local municipal zoning bylaws of the area they are situated.
Retailers also need to meet requirements for storage, security, tracking and reporting inventory and sales, as well as background checks before permits will be issued.
Application for licensing in Saskatchewan
The Province has already issued 51 licences for cannabis retailers. Applications are not currently being accepted for retail locations. However, the Province is still taking applications for wholesalers and producers. About 12-18 months after the initial licences have been issued; the Province will reevaluate the demand for cannabis and the effectiveness of current retailers to meet the demands of the population. Based on their findings, additional permits may then be issued. Updates can be found on SLGA.com as they become available.
For all non-medical cannabis licences, there is a two-step process for applying. Step one is to be screened for the financial ability to maintain the business, in addition to tracking and reporting inventory. Once applicants get past this step, they are placed in a pool of qualified applicants. Step two involves drawing from this pool to select those who will be able to complete the full application process. This selection is made based on a lottery system.
Fees involved in the application process include a non-refundable permit application fee of $2,000, as well as a $3,000 annual permit fee, which must be paid at the time the permit is issued.
Federal Government Licensing and Information
Under The Cannabis Act, each Province and Territory is responsible for making determinations and setting rules in their jurisdictions around how cannabis is sold, where stores can be located and how those stores are operated. See the SK cannabis act
Individual Requirements For Business Owners
For those looking to become a licenced non-medical cannabis retailer, wholesaler or producer in Saskatchewan, many requirements will need to be fulfilled before an application is considered, as outlined in the Cannabis Regulatory Policy Manual:
- Details about the ownership and financing of the business
- Any agreements that are related to the proposed business
- Information about the physical retail location
- Plans for inventory management and sales tracking
- Proposed business name – If the business is being registered as a numbered company, the business registration will need to be completed before the application
- Approval of the location and business licence from the Municipality
- Other information, as requested by the SLGA
- Renewals typically need to be completed every three years, but each licencee should refer to the expiry date on their permit to confirm when they need to renew
Incorporation Federal or Provincial
If you are looking to complete an incorporation for your non-medical cannabis business in Saskatchewan, you can choose between a Saskatchewan Incorporation or Federal Incorporation.
What is required to Incorporate in Saskatchewan
- A minimum of one person can incorporate in Saskatchewan
- 25% of the individual directors are required to be Canadian Citizens or Permanent Residents
- You can choose either a named or numbered company
- A physical address in Saskatchewan is required for the corporate address, records office and mailing address for the corporation
- A request for name availability search and reservation is mandatory for a Saskatchewan named corporation
- Each director is not required to have a physical address in Saskatchewan
- The business name can be English or French or a combination of both
- Cost on average range from less than $500 to $900
- Incorporation provides the highest amount of name protection, outside of a trademark, throughout Canada
- Unique business names are required in order to get name approval, as business names are reviewed and approved or declined by Federal examiners
- Any use of acronyms or general wording are refused for the most part
- Processing takes 1 to 2 business days
- Assets are kept separate from business risks and liabilities to maintain personal liability protection
- Cost on average range from $450.00 to $550.00
Our team would love to help you register your incorporation. If you have any questions, please feel free to reach out to our staff for additional information and assistance.
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Ontario Business Central Inc. is not a law firm and cannot provide a legal opinion or advice. This information is to assist you in understanding the requirements of registration within the chosen jurisdiction. It is always recommended, when you have legal or accounting questions that you speak to a qualified professional.