How to open a restaurant in Ontario: permits, licences and the order to get them (2026)

Opening a restaurant in Ontario is not one application. It is a series of approvals from different bodies, each with its own timing, and the order you do them in decides whether you open on schedule. Owners who sign a lease first and ask questions later can lose months. This checklist shows the usual order. It is a summary, not legal advice, and requirements differ between municipalities, so confirm each step with the body that issues the approval.

Step 1: Can the site be a restaurant?

Before you sign a lease, ask the municipality's planning or zoning department whether the address is zoned for a restaurant, and for the kind of use you plan (for example, a licensed patio or late hours). Ask the building department whether the premises can lawfully be used as a restaurant, or whether a change of use triggers upgrades such as washrooms, ventilation, grease interceptors or accessibility. Put conditions in your lease that let you leave if approvals fail.

Step 2: Set up the business

Choose a business structure with your accountant or lawyer. Register the business name if you trade under a name that is not your own. Register with the Canada Revenue Agency for a business number, and for GST/HST if you are required to or choose to. Open a business bank account. Ask about insurance, including liability, property and, if you serve alcohol, liquor liability.

Step 3: Design and building approvals

Work with a designer or contractor who knows restaurant fit-outs. A building permit may be needed for construction, and the fire department will have requirements for exits, extinguishers, suppression over the cooking line and occupancy limits. Gas and electrical work need the proper licensed trades. Think about accessibility from the start, since it is cheaper to design in than to retrofit.

Step 4: Public health

In Ontario, the local public health unit regulates food premises. The Food Premises Regulation sets the standards for construction, equipment, handwashing, food storage and cleaning. Contact your public health unit before you build, and ask whether you need to submit plans. An inspector will visit before you open and may issue conditions. In Toronto, results are posted under the DineSafe program. Also check the rule on food handler certification, which requires a certified person on site while the premises is operating.

Step 5: Liquor licence

If you will serve alcohol, apply to the AGCO early, because the municipal clearances take time, and your premises will need to be close to finished for inspection. See the guide to the AGCO liquor licence and the guide to Smart Serve.

Step 6: Employer registrations

If you will hire staff, register with the WSIB, since restaurants and bars are among the businesses that generally need coverage. Set up payroll with the CRA, including source deductions for income tax, CPP and EI. Check whether the Employer Health Tax applies to your payroll. Read the Employment Standards Act basics: minimum wage, hours, breaks, tips and public holidays.

Step 7: Signs, music and other local licences

Check your municipality's sign bylaw before you order a sign. If you play recorded or live music, you may need licences from the music rights organizations. Patios on public property need a separate permit in many cities. If you plan to sell food from a window or a cart, ask about mobile or street vending rules.

Step 8: Website and accessibility

Ontario's accessibility rules for websites apply to some organizations. Even if you are not covered, a website that works for screen readers and keyboard users is good business. See the guide on AODA website rules.

Step 9: Staff training and procedures

Train staff in food safety, allergen handling, responsible service and emergency procedures. Write the procedures down, including temperature logs, cleaning schedules and incident reports. Public health inspectors look at records.

What is a realistic order and timeline?

Start with zoning and the lease, then design, then permits, then liquor and public health applications in parallel, then staff and training, then inspections. The slowest items are usually building permits, municipal liquor clearances and construction. Build slack into your opening date and your funding.

What are the common mistakes?

• Signing a lease before checking zoning and change of use.
• Underestimating ventilation and fire requirements.
• Ordering a sign before checking the bylaw.
• Hiring staff before registering with the WSIB and payroll.
• Opening before inspections are complete.

Who can help?

Your municipality's business or small business office, your local public health unit, the AGCO, your accountant and an industry association such as Restaurants Canada can all point you to the current requirements.

More guides for your business:

• AODA website rules for Ontario restaurants: who must meet WCAG 2.0 AA and what to fix first
• Dine and dash in Ontario: why you should not deduct it from a server's pay, and how to prevent it
• Ontario Employer Health Tax for restaurants: does it apply to you, and what to file

More in the Canadian guides for food businesses.