Published 29 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
An Ontario liquor sales licence for a restaurant can be transferred to a buyer, but only with the AGCO Registrar’s approval. O. Reg. 746/21 lists a licence to operate a liquor consumption premises as transferable, and the AGCO fee for a transfer is $1,000, against $925 to $1,355 for a brand-new licence. You cannot run the licensed business until the Registrar issues an Authorization to Contract Out or the transfer; the seller stays liable during that period. Any conditions on the licence stay with it. The Registrar will not transfer if an AGCO monetary penalty is outstanding, and the AGCO says a transfer cannot proceed while Retail Sales Tax Act or Liquor Tax Act debts are unpaid. On a share purchase, acquiring 10 percent or more of the shares also triggers a transfer, with the same $1,000 fee.
Can a liquor licence be transferred to a new owner?
Yes. Under O. Reg. 746/21, section 155, a licence to operate a liquor consumption premises is one of the licence types the Registrar can transfer to a different person. The AGCO puts it simply: the licence “is eligible to be transferred to a different person, provided the regulatory requirements are met.”
The Registrar approves a transfer when the buyer complies with the Act and regulations, pays the fee, the application is approved, and the buyer consents to any conditions the Registrar attaches. The Registrar will not transfer if the buyer would not be eligible for a licence in the first place, so your own background, finances and conduct are part of the review. For the seller’s side of the same process, see liquor licence transfer when selling a restaurant.
Transfer or new licence: fees
| AGCO application | Fee |
|---|---|
| Transfer of a liquor sales licence | $1,000 |
| Share transfer | $1,000 |
| Temporary transfer | $105 |
| New licence, exempt from public notice | $925 (2 years) / $1,225 (4 years) |
| New licence, with public notice | $1,055 (2 years) / $1,355 (4 years) |
| Renewal | $300 (2 years) / $600 (4 years) |
| Changes or additions to licensed areas | $685 (exempt) / $815 (with public notice) |
| Change of premises manager | No fee |
Source: AGCO liquor licensing fees. The fee difference is small. The real value of a transfer is continuity: the licensed areas, capacity and approvals already exist, where a new licence needs fresh building, fire and public health letters.
When can you start serving alcohol?
Not on closing day by default. The AGCO says the applicant “may not operate until they have received the ‘Authorization To Contract Out’ from the Registrar.” Section 157 of the regulation lets the seller contract out the business to you while your transfer is processed, if:
- no proposal to suspend, revoke or refuse to renew the licence has been issued;
- no AGCO monetary penalty is outstanding against the seller;
- you have filed the transfer application and paid the fee; and
- the seller has signed an authorization for you to operate and filed it with the Registrar.
During that period the seller remains liable under the licence, which is why sellers want the transfer finished quickly. The authorization ends when the transfer is issued or when the Registrar issues a notice of proposal to refuse it. The AGCO does not publish a processing time for transfers, so build this step into your closing date and your offer conditions.
What stops a transfer
- An outstanding monetary penalty against the current licence holder (O. Reg. 746/21, s. 155(3)).
- Tax debts. The AGCO says a transfer application cannot proceed until any debt under the Retail Sales Tax Act or Liquor Tax Act is resolved.
- Your eligibility. If you would not qualify for a licence yourself, the Registrar will not transfer one to you.
- A proposal to suspend or revoke. It also rules out contracting out.
Put two things in the offer: the seller’s written confirmation that none of these applies, and a condition that the AGCO accepts your transfer application, or better, issues the Authorization to Contract Out before closing. This is also a big item in red flags when buying a restaurant.
The conditions come with the licence
Section 158 says a transferred licence is subject to the same conditions it had immediately before the transfer, including conditions the Registrar or the Tribunal attached. If the licence limits hours, entertainment, the patio or security staffing, those limits are now yours.
Get a copy of the licence and read the capacity figure too. The AGCO records the number of people allowed in the licensed premises on the licence, and you cannot exceed it. If your business plan depends on more seats or a bigger patio, you need a change to the licensed area, with its own fee and, for a new outdoor area, an inspection. Price that into your offer; the seller’s numbers were earned at the current capacity. You can look the premises up in the AGCO’s public licence search as a first check.
Buying shares instead of assets
If you buy the company that holds the licence, the licence holder does not change, but the regulation still requires a transfer. Section 154 lists the changes that need one, including an individual becoming an officer or director, and a person acquiring a beneficial interest that gives them 10 percent or more of the shares or of a class of shares. The AGCO fee for a share transfer is $1,000, the same as an asset transfer.
The difference is what else you inherit: the company’s history with the AGCO, any disciplinary record, and its tax position. Compare the two structures in asset purchase vs share purchase for buyers.
Staff training and the rest of the paperwork
The AGCO says anyone involved in the sale, service or delivery of liquor must have completed Smart Serve training. Check that the servers you keep are certified, and budget for training new hires. The transfer application itself asks for disclosure forms on you and on anyone holding 10 percent or more of your company, the seller’s signed consent, and proof you will have possession of the premises, usually the lease assignment.
Before you commit, test the asking price against the seller’s liquor and food sales separately; the tool below helps.
The AI restaurant valuation tool below gives you a price range from the numbers a seller should be able to show you, so you can test an asking price before you make an offer.
Where I fit
I help buyers across Toronto and the GTA check the licence, capacity and conditions before an offer, and set the closing around the AGCO steps. For the whole process see buying a restaurant in Ontario step by step. To talk through a licensed restaurant you are looking at, book a call or phone 833-330-1925.
Free tool — AI restaurant valuation
Restaurant valuation
What is your restaurant
actually worth?
Restaurants don’t sell on revenue — they sell on what the owner takes home, multiplied by how easy the business is to hand over. Your lease and your rent do more damage or more good than anything on the menu. This weighs all of it in about two minutes.
Reading comparable restaurant sales…
Indicative business value
—
$0$0
Most likely sale price $0 · Implied multiple 0×
Where I’d list it
$0
Comparable restaurants sell for about 85% of asking. Price to that, not to hope.
How the number is built
Your owner earnings, multiplied by what buyers pay for a business like yours — then adjusted line by line.
What the market pays
Benchmarks from completed restaurant sales.
What a buyer will ask for
- Three years of financials — statements and tax returns, not just POS reports.
- The lease, with the assignment clause and every option in writing.
- Proof of your add-backs. Lenders reject the ones you cannot document, and that is the single biggest reason deals reprice.
- Equipment list showing what is owned outright and what is leased or financed.
- Licences — AGCO, food premises, patio, and whether each one transfers.
- WSIB, HST and payroll accounts in good standing.
Want the number a buyer
would actually sign?
Send me three years of financials and your lease and I will price it properly — normalised earnings, real comparables, a defensible asking price and a confidential marketing plan that never tips off your staff or your landlord.
Frequently asked questions
Can you transfer a liquor licence when buying a restaurant in Ontario?
Yes. O. Reg. 746/21 lists a licence to operate a liquor consumption premises as transferable to a different person, with the AGCO Registrar’s approval. The buyer must be eligible for a licence, pay the $1,000 transfer fee and accept any conditions the Registrar attaches.
How much does it cost to transfer a liquor licence in Ontario?
The AGCO’s published fee for a liquor sales licence transfer is $1,000, and a share transfer is also $1,000. A temporary transfer, used in limited cases such as a landlord or receiver taking possession, is $105. A brand-new licence costs $925 to $1,355 depending on term and public notice.
Can I serve alcohol while the liquor licence transfer is pending?
Only if the Registrar has issued an Authorization to Contract Out. The seller must sign and file it, you must have filed and paid for the transfer, and there must be no outstanding monetary penalty or proposal to suspend or revoke. The seller remains liable under the licence until the transfer is issued.
Do I need a new liquor licence if I buy the shares of a restaurant company?
The licence stays with the company, but O. Reg. 746/21 still requires a transfer when someone acquires 10 percent or more of the shares or a new officer or director comes in. The AGCO charges $1,000 for a share transfer.
What can stop a liquor licence transfer in Ontario?
An unpaid AGCO monetary penalty against the seller, unpaid Retail Sales Tax Act or Liquor Tax Act debts, a proposal to suspend or revoke the licence, or the buyer not being eligible for a licence. Get the seller’s written confirmation and make the transfer a condition of your offer.
Do licence conditions carry over to the new owner?
Yes. Under section 158 of O. Reg. 746/21, a transferred licence keeps every condition it had immediately before the transfer, including those added by the Registrar or imposed by the Tribunal. Read the licence before you make an offer.
Sources
- O. Reg. 746/21 (Licensing) under the Liquor Licence and Control Act, 2019 — Part XI, ss. 154–158, licence transfers
- AGCO — Section 7: Transferring a liquor sales licence — transfer documents, Authorization to Contract Out, tax clearance
- AGCO — Liquor licensing fees — transfer $1,000; share transfer $1,000; new licence from $925
- AGCO — Section 1: Liquor sales licences — capacity on the licence, Smart Serve, municipal letters
- AGCO — Liquor sales licences: municipal approval — building, fire and health letters; occupant load
- iAGCO — Public licence search — look up a premises and its licence
Related reading
- Liquor licence transfer when selling a restaurant
- Buying a restaurant in Ontario step by step
- Asset purchase vs share purchase for buyers
- Restaurant due diligence checklist
- Red flags when buying a restaurant in Toronto
- Taking over restaurant staff
About the author — Jatin Dua, Toronto and GTA real estate broker
I am Jatin Dua, Broker of Record and co-founder of RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway, Toronto. I work with buyers and sellers across Toronto and the GTA and have helped more than 100 families sell. Four-plus years of active GTA transactions and over $100 million in sales volume. Every figure here comes from a published table, regulator or statute linked in the sources, so you can check all of it without asking me.
Reach me at connect@jatindua.com or 833-330-1925, or book a call.