Published 29 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
An Ontario driving school licence is valid only for the premises named on it (O. Reg. 473/07, s. 17), and a school needs the Ministry of Transportation’s prior approval for any new office or classroom (ss. 23 and 31(2)). To be licensed, the school must own or lease its office, show the office complies with zoning, and have a properly equipped classroom that also complies with zoning if it teaches in class. The Ministry requires $2 million of general liability insurance for the office and classroom. Student and instructor records must be kept at the office for three years. In Toronto, the zoning use for a training classroom is likely education use rather than office, so confirm before you sign; a classroom can also change the Building Code occupancy.
The licence is tied to the address
Section 17 of O. Reg. 473/07 says a driving school licence is valid only in respect of the premises specified in it. Section 23 requires the Ministry’s prior approval for the premises a school proposes to use for its office and classrooms, and section 31(2) repeats that any new office or classroom premises need prior approval. Moving is not just a change of address form.
For a buyer that has two consequences. If you buy an existing school and keep the premises, the premises must be approved in your licence application. If you plan to move the school at closing, you need the new premises approved first. Build either into your conditions. The rest of the deal is in my guide to buying a driving school.
What the Ministry needs from the space
Under section 18 of the regulation, an applicant must:
- own or lease premises for the office;
- satisfy the Minister that the office complies with all applicable zoning restrictions;
- for classroom instruction, have a properly equipped and maintained classroom that complies with zoning;
- for digital instruction, own or license the software and equipment;
- carry general liability insurance of at least $2,000,000 for any one incident in a classroom.
The Ministry’s page asks for proof that you lease, rent or own office and classroom space and for $2 million of general liability coverage for both. Your insurer will want the lease and a description of the classroom.
Zoning: office or education use?
A reception desk and a manager’s office look like an office use. A room where 20 students sit through a BDE lesson looks like training. Toronto Zoning By-law 569-2013 defines Education Use as premises for education or training other than a post-secondary school, a school regulated under the Education Act or religious education. A driving school classroom seems to me to fit that definition better than office, but the zoning examiner decides, and some zones permit office but not education use.
Outside Toronto, check the definitions in the local by-law; plazas and industrial units often have tight lists of permitted uses. Ask the landlord for the zoning of the unit, then confirm it with the municipality before you firm up. The Ministry wants the same answer.
Change of use and the classroom
Under section 10 of the Building Code Act, a change of use that increases hazard needs a permit even with no construction, and Toronto says any change of use needs a permit. The Ontario Association of Architects’ occupancy guide lists offices under business and personal services but lecture halls and schools under assembly. A small classroom inside an office unit may or may not change the occupancy; it depends on the room and the occupant load, and your architect or the building department makes that call. Ask before you fit it out.
Records, security and signs
- Records. The school keeps its original licence, student lists, classroom, digital and in-vehicle training record sheets, instructor details and contracts at its office, generally for three years (s. 32). You need secure, lockable storage and a filing system an auditor can use.
- Toronto signs and vehicle records. Toronto’s by-law requires driving school operators to register vehicles with the City and keep a permanent record of each student; its sign rules for driving school vehicles are in the same article.
- Advertising. No one may hold themselves out as a licensed driving school unless licensed (HTA s. 58.1(11)). Signage for a new location should wait until the premises are approved.
Parking and access
In-car lessons start and end at the office, so parking for training cars and student pick-up matters. I have not found a provincial rule on parking for driving schools; it is a zoning and lease question, much as it is for auto repair shop premises. Check the site plan, the number of spaces allocated to your unit, and whether the lease restricts overnight parking of branded vehicles.
Ontario’s accessibility standards apply to any business with at least one employee, and the public-spaces standard applies when you renovate public areas.
What to put in the lease
- A permitted use clause that names a driving school office and classroom.
- A condition allowing time for zoning confirmation and Ministry premises approval.
- A clause allowing assignment on a sale of the business, since a buyer needs the same premises approved.
- Parking spaces allocated in writing.
- Landlord consent to signage.
If you are thinking of buying a small office condo unit instead of leasing, the AI office space value estimator below gives you a quick range, and insurance brokerage office space covers similar office questions. For school-type zoning, see private school premises.
Where I fit
I help small business owners across Toronto and the GTA find and negotiate commercial space. For a driving school that means shortlisting units where the zoning works, getting it confirmed early, and writing a lease that survives a Ministry approval and a future sale. Book a call or phone 833-330-1925.
Free tool — AI office space value estimator
Frequently asked questions
Does a driving school need an office in Ontario?
Yes. O. Reg. 473/07 requires a licensed driving school to own or lease office premises that comply with zoning, and to keep its licence and student and instructor records at that office. Schools that teach in class also need a properly equipped, zoning-compliant classroom.
Can a driving school move to a new location?
Only with the Ministry of Transportation’s prior approval. The licence is valid only for the premises it names, and the regulation requires prior approval for any new office or classroom premises. In Toronto, a driving school operator must also report a change of address to the City within 48 hours.
What insurance does a driving school office need?
The regulation requires general liability insurance of at least $2,000,000 for any one incident in a classroom, and the Ministry asks for $2 million of general liability coverage for both the office and the classroom. That is separate from the $2 million automobile insurance each training car needs.
What zoning does a driving school need in Toronto?
The office and classroom must comply with zoning. Toronto’s by-law defines education use as education or training other than regulated schools and post-secondary, which may fit a classroom better than office use. Confirm with the city for the exact unit.
How long must a driving school keep records?
Student lists, training record sheets and similar records must be kept at the office for three years from when they are created; instructor lists for three years after they stop being current; and instructor contracts for three years after the instructor leaves.
Can I run a driving school from home in Ontario?
The regulation requires office premises that the school owns or leases and that comply with zoning. A home office would have to meet zoning for the use and be approved by the Ministry; check the home occupation rules in your local by-law first.
Sources
- O. Reg. 473/07, Licences for Driving Instructors and Driving Schools — e-Laws — requirements, premises, vehicles, records
- Highway Traffic Act — e-Laws — ss. 58 and 58.1, instructor and driving school licences
- Government of Ontario — Open and operate an approved driving school — insurance, premises, BDE hours
- City of Toronto — Zoning By-law 569-2013, Chapter 800 definitions — office consolidation, amendments to 30 April 2026
- Building Code Act, 1992 — e-Laws — s. 10, permit for a change of use
- City of Toronto — When do I need a building permit? — change of use needs a permit; zoning always applies
- Ontario Association of Architects — Guide to occupancy types — occupancy groups based on the Ontario Building Code
- City of Toronto Municipal Code, Chapter 545, Licensing — consolidated to 1 January 2025
- Government of Ontario — Accessibility rules for businesses and non-profits — reports due 31 December 2026 for 20+ employees
Related reading
- Buying a driving school in Ontario
- Private school premises in Ontario
- Insurance brokerage office space in Ontario
- Auto repair shop premises
- AI office space value estimator
- Cap rate calculator
- Book a call with Jatin
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.