Starting a cannabis processing business in Canada involves more than just having a great product idea it begins with selecting the right type of licence. Whether you’re planning to produce on a small scale or looking to build a large facility, understanding the difference between a Standard Processing Licence and a Micro Processing Licence is essential.
These two licence types come with different expectations around production limits, facility requirements, compliance demands, and long-term scalability. Choosing the wrong one can cost you time, money, and opportunity. In this article, we’ll walk through the practical differences, key decision factors, and common mistakes to avoid so you can make the right choice based on your goals and resources.
In Canada, a processing licence issued by Health Canada gives companies permission to manufacture cannabis products, including edibles, extracts, concentrates, and topicals. This licence also allows for packaging, labelling, storing, and distributing cannabis.
There are two types of processing licences available:
Both licence types require strict compliance with Good Production Practices (GPP), site security measures, quality assurance personnel, and operational controls.
Understanding the core differences will help narrow down which licence best suits your business model.
Making the correct decision depends on your business’s specific needs and future direction.
If you’re a small producer focusing on local craft products, the micro processing licence might offer exactly what you need. If you’re planning a large-scale extraction facility or want to serve multiple provinces or countries, a standard licence will better support your ambitions.
Upfront capital makes a difference. The infrastructure, personnel, and compliance systems for a standard licence are significantly more expensive. If you’re running a lean operation or testing the market, the micro licence offers a more affordable route.
Health Canada requires detailed site evidence during the application process. If you already have access to a compliant facility that’s modest in size, applying for a micro licence can reduce both cost and complexity.
Some businesses start with a micro licence and scale up later. Others plan for standard processing from the beginning to support high-volume operations. Either path is valid it just depends on where you see your business in the next 3 to 5 years.
Each licence offers distinct advantages depending on your capacity and target market.
Micro Processing Licence Advantages
Standard Processing Licence Advantages
Regardless of the licence type, all applicants must meet Good Production Practices (GPP) outlined by Health Canada. This includes:
For those considering international trade or pharmaceutical-grade cannabis products, GMP or EU-GMP certification becomes relevant. These standards are not required for licensing but are often pursued post-licensing by companies with global goals.
Picking the wrong licence can create bottlenecks in operations or require costly transitions. Here are common missteps to avoid:
At MFLRC, we understand that no two businesses are the same. That’s why our consultation process is focused on aligning your licence strategy with your real-world goals.
We support clients through:
Whether you’re just starting out or expanding an existing facility, we help simplify the application process and ensure your business stays compliant from day one.
Choosing between a Standard Processing Licence and a Micro Processing Licence isn’t just a regulatory formality it’s a strategic business decision. It affects how much you can produce, how much you’ll spend, and what kind of market you can serve.
Start by assessing your long-term goals, facility options, and available resources. Then, seek professional guidance to ensure your application is accurate, compliant, and aligned with your business plan.
MFLRC is here to help you every step of the way from licence selection and site planning to compliance documentation and QAP support.
| Disclaimer |
| The above blog post is provided for informational purposes only and has not been tailored to your specific circumstances. This blog post does not constitute legal advice or other professional advice and may not be relied upon as such. |
MFLRC is a one-stop shop for all of your Licensing, quality assurance and compliance needs. Our team has years of experience in the cannabis industry and are experts in all facets. We offer a variety of services that will save you time and money. Let us take the burden off your shoulders so you can focus on what’s important – growing your business.
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Mussarat Fatima, President, and owner of MF Cannabis License and Regulatory Consultants has more than twenty years of experience in Quality Assurance, Quality Control, and Regulatory Affairs within the pharmaceutical, Food and Cannabis industries. She has a Master’s Degree in Food Sciences and Biochemistry; in addition to this, she also has a diploma in pharmaceutical Quality Assurance, Regulatory Affairs, and Quality Control. Also, she has completed several certifications specifically in Cannabis Quality Assurance, Regulatory Affairs, and Facility management from recognized institutes in Canada.
Written By: Mussarat Fatima
President at MF License & Regulatory Consultants
Website: https://mflrc.com/
Contact: info@mflrc.com
