- The establishment can stay open while a liquor licence transfer application is under way.
- The seller stays responsible for the licence until the LCRB tells both parties the application is administratively complete, and then the buyer becomes the deemed licensee.
- An expired liquor licence cannot be transferred, so renewals need to be current before closing.
You are buying or selling a restaurant, pub or other licensed business, and the closing date is close. The worry is simple: if the licence is still in the seller's name on closing day, can the new owner pour a drink without breaking the rules?
The short answer is that British Columbia has a specific process for this, and it is built around keeping the doors open. What matters is knowing who is responsible at each stage, and lining up your closing steps with the licence steps.
This article covers the law of British Columbia.
The short answer: the business can stay open
The establishment can stay open while the transfer application is being processed. You do not have to shut the bar down between closing and approval.
The key point is who answers for the licence during that time. The seller remains responsible for the licence until the LCRB tells both parties that the application is administratively complete. At that point the buyer becomes the deemed licensee and may operate the licence and make changes to it.
How the transfer starts and who does what
The transfer is run through the liquor and cannabis licensing portal, and each side has a role.
- The seller, as the current licensee, starts the transfer in the portal by submitting the buyer's business name and email address, and the buyer is then notified to proceed.
- The buyer needs a 9-digit CRA Business Number registered to the new licence applicant and a Business BCeID to access the portal.
- The buyer does not need to be a BC or Canadian citizen or resident.
- The buyer submits the Personal History Summary form (LCRB004), a sample sign, any other documents required for the business type, and the $330 application fee.
- Other documents can include a Canadian criminal record check, a statutory declaration or a driver's abstract, depending on the business type.
Because the seller must start the process, the buyer cannot move first. Agree early on who will do what, and by when.
Who is responsible between closing and approval
Think of the period in three stages. Before you apply, the seller holds the licence. After the application is in, the establishment can stay open, but the seller is still the one responsible. Once the LCRB says the application is administratively complete, responsibility moves to the buyer as the deemed licensee.
This is why a seller may want protections in the sale agreement for the gap, such as how the buyer will run the premises and who bears the risk if something goes wrong. How to word that depends on your deal, and a lawyer can help you draft it.
How long does a liquor licence transfer take?
Processing times vary, and a reliable number is not something to assume. Timing depends on how complete your application is, the type of business and what additional documents are needed, so confirm the current expectations with the LCRB before you set a closing date.
One timing point is firm: an expired liquor licence cannot be transferred. If renewal falls close to closing, deal with it first, because an expired licence would stop the transfer altogether.
The steps described on this page are those for transferring a licence from the current licensee to the buyer. How your deal is structured can affect how this applies to you, so it is worth confirming with a lawyer. Ask a lawyer how your structure affects the licence before you commit to a timeline.
What to do next
- Confirm the licence is current and not expired.
- Have the seller, as the current licensee, start the transfer in the portal by submitting the buyer's business name and email address.
- Have the buyer obtain the CRA Business Number and Business BCeID.
- Prepare Form LCRB004, the sample sign, any extra documents and the $330 fee.
- Write into the sale agreement how the gap between closing and administrative completeness will be handled.
- Ask the LCRB for current processing expectations and confirm any extra requirements for your type of business.
A short conversation with a lawyer before you sign can help you fit the closing date, the licence steps and the risk allocation together.
Frequently asked questions
Can the restaurant stay open on closing day while the licence transfer is pending?
The establishment can stay open during the application. Until the LCRB says the application is administratively complete, the seller remains responsible for the licence. Agree in writing how the premises will be run in that period, and confirm with the LCRB or a lawyer how it applies to your situation before closing.
Who becomes responsible for the licence, and when?
The buyer becomes the deemed licensee once the LCRB tells both parties the application is administratively complete. From then the buyer may operate the licence and make changes to it.
Does the buyer have to live in British Columbia?
No. The buyer does not need to be a BC or Canadian citizen or resident, but does need a 9-digit CRA Business Number and a Business BCeID.
What if the licence has expired?
An expired licence cannot be transferred. Renew it before closing and check with the LCRB on how to proceed.
Sources
- Province of British Columbia – Transfer a liquor licence — www2.gov.bc.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
This is a buying & selling a business question
Buying or selling a business with us is from $3,358.88, tax included. Third-party fees are extra.