What you need to know about ownership changes under a liquor sales licence
All liquor sales licences are issued to individuals, business partnerships or corporations, for operation at a specific location. The owner – as licensed with the AGCO – is responsible for the ongoing operation of the licence.
Changes in ownership (more commonly referred to as licence transfers) must be approved by the AGCO. An application must be submitted for approval before the change is made.
Licence transfers fall into two general categories: A 100% change in ownership from that currently registered with the AGCO; or a partial change in ownership from that currently registered with the AGCO.
If the licensee is a corporation, partnership or sole proprietorship, its business trade (operating) name must be registered with the Companies and Personal Property Security Branch. Also note that corporations must file updated information with respect to officers and directors of a corporation with the Companies and Personal Property Security Branch on a regular basis. Please see the Ontario.ca, Central Forms Repository. Forms must be forwarded to Companies and Personal Property Security Branch for processing.
Important Notice: Floor plans are not required as part of an application for a transfer of a liquor sales licence.
Transfer with Authorization to Contract Out
An Authorization to Contract Out allows a transfer applicant to operate a licensed establishment until the licence is either transferred into the applicant´s name, the licence expires, or the AGCO refuses the transfer, whichever comes first.
During this period, both the current liquor sales licence-holder and the transfer applicant are responsible for the sale and service of beverage alcohol.
The Authorization to Contract Out must be submitted to the AGCO with the transfer application, and appropriate
alcohol licensing fee
.
Important Notice: A personal history report for the person who will be responsible for managing the premises must be submitted and approved by the AGCO, before the Authorization to Contract Out becomes effective and the transfer applicant is permitted to sell and serve beverage alcohol on the premises.
Check the expiry date of the licence, and have the licensee renew it (if necessary) to ensure it does not expire during the transfer period.
Corporate Rollover
You should apply for a transfer (corporate rollover) of a licence if:
- An individual or a partnership decides to incorporate and become a corporation. In this case the individual or the partners must be the only officers and directors of the new corporation and a corporate structure form must be completed.
- A corporation with a sole officer, director and shareholder decides to become a sole proprietor.
- A corporation with more than one officer, director or shareholder decides to become a partnership and the officers; directors and shareholders are the only partners.
Important Notice: Floor plans are not required as part of an application for a transfer of a liquor sales licence.
Temporary One Year Transfer of Licence
A premise with a valid liquor sales licence may be eligible for a one-year non-renewable transfer of liquor sales licence in order to dispose of the business in an orderly fashion, if the licensed premise is temporarily taken into possession by:
- A trustee in bankruptcy
- A court appointed receiver
- A mortgagee (on the property)
- A franchiser
- A landlord by default of lease
- An executor or administrator
An application for a Temporary Transfer must be completed by one of the eligible applicants listed above and forwarded to the AGCO along with the appropriate appropriate
alcohol licensing fee
.
Applicants may not sell, serve or permit consumption of beverage alcohol on the premises until the temporary liquor sales licence has been issued by the AGCO.
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