Overview
Canada
Canada was the second country in the world (after Uruguay) to formally legalize the possession, cultivation, acquisition, and consumption of recreational cannabis and its products. Recreational cannabis and cannabis products can only be sold at government-run or private retail establishments that have been approved by the provincial government Retail stores, are not permitted to sell cannabis for medical purposes.
Municipal governments can also decide whether or not to allow retail establishments to operate within their jurisdiction. In some cases, municipal governments have forbidden cannabis retail businesses and the provincial government has overridden the decision.
Saskatchewan
Recreational cannabis is sold through private retailers in Saskatchewan. A Retail Cannabis Permit from the Saskatchewan Liquor and Gaming Authority is required for businesses interested in selling legal recreational cannabis to consumers. Permitted cannabis retail establishments in Saskatchewan must have a physical location and can also sell cannabis online for pick-up and delivery. Stores are now allowed to sell cannabis wholesale to other licensed retailers in the province.
In this blog, we will walk through the cannabis laws in Saskatchewan, license types and how to acquire them, tax rates, and much more:
Can I Open a Dispensary in Saskatchewan Right Now?
Yes, you can open a dispensary in Saskatchewan. According to a report by Statista, Saskatchewan has around 73 cannabis stores.
How Much Can You Buy?
Qualifying patients or their caregivers can purchase up to 30 grams in a day.
Current Cannabis Laws in Saskatchewan
- Individuals below 19 years old cannot acquire, consume or purchase cannabis in Saskatchewan.
- No individual can consume cannabis in a public place.
- It is illegal to consume, acquire, or distribute cannabis on school property or child care property.
- Individuals can possess up to 30 grams of dried cannabis in a public place.
- It is not legal to consume cannabis in a vehicle.
How Much Cannabis Can an Adult in Saskatchewan Possess?
Almost every province in Canada follows similar guidelines when it comes to possession and how much you can buy at once.
When you’re out in public, you’re only allowed 30 grams or roughly one ounce.
It’s the same with cannabis: if you purchase it from a legal source, you won’t be able to buy more than this.
It doesn’t imply you can’t have more than an ounce at home just because you can only buy one ounce at a time. You can have as much as you want in your home.
Residents of Saskatchewan have the legal right to grow their own plants. Of course, there are limitations; you can only cultivate four plants for recreational purposes, and you must obtain a specific license from Health Canada if you wish to grow for medical purposes.
Tax Rates in Saskatchewan
Cannabis product sales at dispensaries are taxed at 11% GST/PST in Saskatchewan.
Current Cannabis Market in Saskatchewan
Cannabis sales in Saskatchewan have gradually increased since the federal legalization of the drug for both medical and recreational use on October 17, 2018. In July 2020, monthly sales totaled around 11.88 million Canadian dollars.
Cannabis Dispensary Start-Up Costs in Saskatchewan
The initial investment might be as low as $50,000 plus inventory, depending on the quality of the facility. In a good retail neighborhood, you could realistically invest roughly $200,000 in leasehold upgrades, security systems, and display cases, among other things.
Types of Cannabis Licenses in Saskatchewan
Following are the types of medical cannabis licenses processed in Saskatchewan:
Micro-Processing – Licensees are authorized to sell dried or fresh plants and seeds, extracts, edible and topical to authorized distributors and retailers. They cannot sell to patients.
Sale/Processing/Cultivation – Licensees are authorized to sell dried or fresh plants and seeds, extracts, edible and topical to distributors, retailers, and customers.
Micro-Processing/Micro-Cultivation/Processing – Licensees are authorized to sell plants, and seeds both dried and fresh to distributors, and retailers.
Sale/Nursery – Licensees are authorized to sell plants and seeds to distributors and retailers.
How to Get a License
Here’s what we know about how to open a dispensary in Saskatchewan so far:
- The SLGA website will have forms and updated info about permits.
- The permit will allow you to initially operate in a community with a population below 2500.
- Possess a good business plan.
Saskatchewan Dispensary Fees
| Type of Fee | Amount |
| Non-refundable Application Fee | $2,000 |
| Annual Permit Fee | $3,000 |
What Else Do You Need to Open a Dispensary in Saskatchewan?
Step 1
Understand Cannabis Laws In Saskatchewan
Each province in Canada has different cannabis regulations. So, when you apply for a cannabis license in Saskatchewan, be sure you understand the laws and regulations thoroughly. It will help you stay compliant and improve your chances of getting your license approved.
Step 2
Create A Solid and Scalable Business Plan
Writing a business plan is typically the first step in transforming an idea into a real business. As you write, your ideas start to coalesce into a strategy, and a road ahead emerges. However, business plans aren’t just for startups; established businesses can benefit from revisiting and reworking theirs as well.
In any case, written documentation can give the necessary clarity to motivate employees, entice investors, or guide future decisions. To assure funding and strategic growth, your business plan must incorporate the following factors:
Competitive analysis
It’s critical to present an in-depth analysis of your competitors in addition to explaining the elements that set you apart from the competition.
This analysis should focus on your direct and indirect competitors’ operations, financials, history, leadership, and distribution methods. It should study these competitors’ value propositions and describe how you might compete with or exploit their strengths and flaws.
Sales Strategy
Explain your sales strategy and, if possible, the sales procedure you will follow. Demonstrating your sales ability will allow investors to learn about your experience because sales are what makes you profit and keeps you going. If you’re on a business journey, sales are the fuel.
You should present a clear and comprehensive description of how you plan to sell your cannabis products, even if you don’t know exactly how your sales and marketing will work out or which channels will be the most successful.
Planning demonstrates that you are mindful of the future and confident in your abilities.
Marketing Plan
Your marketing plan must include the following analysis:
- What is your plan to reach your customers?
- How do you plan to retain them?
- What is your marketing budget?
A well-documented marketing plan is critical to any business’s success. And because your marketing strategies and tactics will change from year to year, it’s vital to review your marketing plan at least once a year.
Financial Plan
Consider this to be the most important section of the entire document. This section will describe your financial plan and projections, based on your existing financial situation and map where you will require funds.
Financial forecasts are based on either past data or research and analysis of the industry and top competitors.
Business Organization
This part demonstrates your company’s competence in your industry. It outlines who does what in your company and what their backgrounds are.
This part also has to include an organizational structure and an ownership structure to illustrate who is the company’s owner and the many stakeholders involved.
Show the background of your entire team, starting with top management, to showcase what your team will bring to the table in terms of experience.
Brand Positioning
The business plan aids in positioning your brand in the cannabis marketplace. This section will enable you to describe the company and its brand to consumers, investors, and partners in a concise manner. You can best identify how to position your brand using the industry, consumer, and competitor knowledge you acquire during the business planning phase.
Step 3
Choosing The Best Team For Your Dispensary in Saskatchewan
A great team is the core of any business’s success. It works best for both startups and multinational corporations. A good team exists to enable an enterprise to scale, grow, and prosper in ways that would be impossible for an individual to do it single-handedly.
Hiring the right people—those that embrace teamwork, are goal-oriented, and respect the hierarchical structure that most organizations require—is the first step in building a successful team.
Step 4
Choose Your Location With Care
Retailers understand that location is crucial to their success, and cannabis retailers are no exception. It is important to find the perfect location while still adhering to the various laws and regulations established by both the province and that specific municipality.
Some cannabis retail location requirements for Saskatchewan are:
- Must not be near schools.
- It can’t include an outdoor area.
Step 5
Tech Integration with Leading Technology Partner
A strong IT infrastructure and security system is the backbone of every successful cannabis business. Therefore, you must contact Cure8 IT professionals once your license has been approved and you are ready to start your store. We can develop and design your store from the ground up. We provide everything you need to complete your store’s IT infrastructure, from Wi-Fi to tablets, scanners, printers, security cameras, and more.
How Can Cure8 Help?
Cure8 is a one-stop tech solution provider that will transform your business for the better. We partner with your team to determine which IT services and solutions are best for your cannabis business. It includes IT consulting, managed IT services, and custom hardware and software solutions.
Check out more about our solutions here.
