Buying a Restaurant, Pub or Liquor Store in BC: Transferring the Liquor Licence

The licence does not move on its own

A BC liquor licence, whether food primary for a restaurant, liquor primary for a pub or bar, or a licensee retail store licence for a private liquor store, belongs to the licensee. When the business is sold, the current licensee must start the transfer in the province's liquor and cannabis licensing portal by submitting the proposed new licensee's business name and email. The buyer needs a nine-digit Canada Revenue Agency business number registered to the new entity and a Business BCeID to take part. The application fee is $330.

The establishment can stay open during the transfer. Once the branch deems the application administratively complete, the purchaser becomes the deemed licensee and may operate and make changes while the full review proceeds. Practitioners who handle these transfers describe the final licence in the buyer's name taking several months after that point; the branch does not publish a fixed timeline.

Asset sale versus share sale

In a share sale the licensee corporation does not change, but the branch still needs to know who now controls it; ask the branch about its change-of-ownership notification for share transactions before you choose that structure. In an asset sale the transfer application is unavoidable. Either way, make the purchase conditional on the licence transfer and keep the seller's cooperation as an obligation in the agreement.

What else the licence depends on

• Local government: the licence is tied to the premises and its approved floor plan, hours and capacity; check for any municipal conditions.
• Health: a food premises permit from the regional health authority, inspected and transferable only through the authority's process.
• Serving It Right and other certifications for staff and managers.
• Compliance history: ask the seller for any contravention notices or penalties in the last few years; a licence with enforcement history carries risk.
• Lease: a liquor primary licence is worthless without the room; secure the lease assignment before you remove conditions.

The numbers that matter in a restaurant deal

Reconcile sales to point-of-sale reports and GST filings. Separate food, liquor and delivery-app revenue and margins. Confirm rent as a share of sales, the hood and fire suppression inspection dates, the age of refrigeration and cooking equipment, and staff costs including tips policy. Delivery platforms take a percentage that can turn a busy kitchen into a thin one; look at net, not gross.

Types of licence and what they allow

A food primary licence is for establishments whose main business is serving food, with liquor as an accompaniment; hours, patio areas and any entertainment endorsements are set on the licence. A liquor primary licence is for pubs, bars, lounges and nightclubs where liquor service is the main business, with capacity and hours set by the branch and the local government. A licensee retail store licence is for a private liquor store. Each has its own rules on where it can be located, how it can be changed, and what the local government must be consulted on. The province has for many years issued no new licensee retail store licences, which is why existing private liquor stores are bought and sold as licensed businesses and why the licence's terms, including any relocation restrictions, are central to the price.

Diligence checklist for a licensed business

• The licence itself: class, capacity, hours, endorsements, and any conditions or recent contraventions.
• Floor plan approved by the branch, and whether the current layout matches it.
• Health authority food premises permit and the last inspections.
• Lease with assignment consent, and whether the landlord restricts hours or patio use.
• Sales by category (food, liquor, delivery) reconciled to point-of-sale and GST filings.
• Equipment list with ages, hood and fire suppression inspection dates, and any leases or liens.
• Staff certifications (Serving It Right, FoodSafe) and the tip and gratuity policy.

Taxes and closing

Kitchen equipment, furniture, point-of-sale hardware and software are taxable assets for PST; inventory of food and liquor is generally for resale. Obtain the PST clearance certificate, confirm no liens on the equipment, and time the closing with the licence transfer milestones so you are never operating without authority.

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Frequently asked questions

Sources

• Province of BC: Transfer a liquor licence
• Province of BC: Liquor and cannabis licensing portal
• Province of BC: Buying and selling a business (PST)

This guide is general information for British Columbia, not legal, tax or financial advice. Rules change; confirm current requirements with the regulator linked above and with your own lawyer and accountant before you buy.