How to Get a Cannabis License in Virginia

Research and Prepare

Start with detailed research. Good research starts from within, so look at what you want to do, your goals, and how a cannabis business in Virginia helps you achieve them.

Let’s understand the four cannabis licenses that may become available in Virginia in the future:

1. Cannabis Cultivation License: It’s suitable for those who want to grow and sell marijuana in Virginia. Cultivators may only sell cannabis, not products manufactured from it.
2. Cannabis Product Manufacturing License: This license allows individuals or companies to process and manufacture cannabis products.
3. Cannabis Wholesale License: This license allows the licensee to sell hemp seeds, immature hemp plants, retail cannabis, and retail items containing cannabis.
4. Cannabis Retail License: It permits a business or establishment to sell retail marijuana and related products directly to consumers legally.

Another area that you should look into is compliance rules. This includes exploring local restrictions in your jurisdiction, such as advertising laws, zoning laws, packaging laws, and much more.

Several counties/jurisdictions may have local ordinances that must be researched properly. For example, in Newton, New Jersey, a cannabis business should be at least 500 feet away from a school or daycare facility as per Ordinance No 2021-12.

Note: As of January 1, 2024, all statutory and regulatory oversight of the medical cannabis program has transitioned from the Board of Pharmacy to the Virginia Cannabis Control Authority (CCA). The complete list of all licensed cannabis dispensaries in Virginia can be found on the CCA website.

By the end of an effective research and preparation period, you’ll have decided the business you want to establish, its potential and market size, and its local laws.

Develop a Solid Business Plan

Knowing what interests you is the most crucial step of the licensing process. However, once you’ve decided, ensure developing a solid business plan that shows promise to the Cannabis Control Authority.

Below are some of the things that your cannabis business plan should include:

1. Executive Summary: Keep an overview of your cannabis business, including its mission, vision, and goals, in your mind.
2. Company Description: Think about your company’s legal structure, where you want to build a business unit, and how you’ll manage the team.
3. Market Analysis: Conduct thorough market research to understand the industry, trends, target market, and competition.
4. Find Customers: Identify your target customers, what they want from you, and how you can win their trust.
5. Products and Services: Consider the cannabis products you plan to offer, their best selling points, quality, and competitive advantages.
6. Marketing and Sales Strategy: Develop a comprehensive marketing plan, including advertising, promotions, and customer retention strategies.
7. Risk Analysis: Identify potential risks and challenges your cannabis business may face and develop strategies to cope with the issues.

Expert Tip: The cannabis industry is full of risks. Look for a credible insurance provider while developing your business plan to position you as a well-prepared entrepreneur in front of CCA, financial institutions/solutions, and future customers.

Assemble the Necessary Documentation

Next, you want to prepare for documentation. Remember that submitting an incomplete application will either result in delay or allow CCA to reject your application.

So, always adhere to the documentation requirements for your specific cannabis license. Documents required by licensing authorities generally are:

• ID and residency proof of the state (Virginia)
• Financial resources for your business
• Security plans like insurance in case of theft or loss
• List of all owners or shareholders
• Property lease agreement
• Approval from the municipality’s city planning department
• Your information regarding experience in this domain
• Labor peace agreement
• Completed application

Submit the Application

Once you’ve filled out the application, be sure to double-check it. Proofread the application to see that it demonstrates compliance and responsibility. If you’re new, you may also consider a professional attorney to help you with the final review.

You must also pay the corresponding application fee required for processing your application. For example, in Ohio, the application fee for a 10(B) dispensary license is $5,000 while the Certificate of Operation fee is $70,000.