Encyclopedia
Business licence
Permission from the city to run a business at a location. The use has to be allowed by zoning, and some uses need extra approvals.
For example: A fitness studio confirms it can get a business licence for a unit before the subject on the offer to lease comes off. (Illustration only, not a real deal.)
Official source: Business licences (City of Vancouver)
Example only, not a real client. Say you lease a unit for a fitness studio. Before signing, you confirm with the city that your use can get a business licence at that address. That avoids paying rent on a space you cannot legally operate from.
What I’d tell a friend
Check that you can get a business licence for your use at the address before you sign a lease.
Why it matters to you
You usually can't open without one, and it won't be issued if the use doesn't fit the zoning. Check before you sign a lease, not after you've built out the space.
How to use it in your deal
Tenants should check that their use is allowed by zoning and can get a business licence before signing a lease; ask the municipality directly and make the lease conditional on it if there's doubt. Licences may need building, fire and health inspections, which can take time. Some uses, like cannabis retail, liquor, short-term rentals or personal services, need extra approvals.
Businesses operating in several municipalities may use an inter-municipal licence in some regions. Landlords should make sure tenants' uses fit the zoning to avoid problems. Buyers of businesses should check the licence can transfer or be reissued. Renew licences on time; operating without one can lead to fines or closure.
Put the licence number and renewal date in your critical dates list, and display the licence where the municipality requires. If you change your use or add services, check whether the licence needs updating.
Mistakes I see
Signing a lease before checking zoning. Missing inspections. Letting the licence lapse.
In BC and Vancouver
Municipal business licence bylaws under the Community Charter and Local Government Act apply; the province's BizPaL tool lists permits.
Official sources: Business licences (City of Vancouver) · Local Government Act (BC Laws)
What it is
A business licence is a municipal permit to operate a business at a location. Cities check that the use fits zoning and may require inspections.
Requirements and fees vary by municipality and type of business.
Before you sign
Ask the city whether your use is allowed and what inspections apply, such as fire or health.
Make the lease conditional on getting the licence where you can, and allow time for any inspections or upgrades the city requires.
Questions to ask before you sign
- Does zoning allow my use?
- What inspections are needed?
- Are other permits needed?
- When does it renew?
Keep reading
Related terms: Zoning bylaw, Permitted use, Subject clause
- Commercial due diligence checklist for BC buyers
- Leasing out commercial space in BC: a landlord's guide
- Leasing commercial space in BC: a tenant's guide
- Zoning, permits and licences for commercial space in Vancouver
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General information for British Columbia only. It isn’t legal, tax, accounting or financial advice, laws and rates change, and reading it doesn’t make you my client. Any numbers or scenarios are hypothetical. Check the linked official source and talk to a lawyer, accountant or other qualified professional before you act or sign anything. See the terms and disclaimer.