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Vehicle Sales and Rentals - New Business Guide

If a business stores, displays or sells motor vehicles, a municipal business licence is required. If more than one business is on the same lot, each business requires its own licence.

Examples of business activities that do require municipal licensing:

  • Passenger vehicle sales
  • Used vehicle sales
  • Large vehicle sales
  • Recreational vehicle sales
  • Non-motorized towable sales (e.g. trailers, campers)
  • Motorcycle sales

Examples of business activities that do not require municipal licensing:

  • Car rental/leasing companies
  • Auction sales, where vehicles are sold on consignment
  • Equipment rentals (e.g. heavy equipment, moving trucks, utility trailers)

If your business does not require a licence, you still require a Business ID and land use approval, visit businesses not requiring a municipal licence​ for more information.

Consider your required approvals

Once you apply for your business licence, outstanding approvals must be completed before the business licence is issued.

A business licence will often have multiple licence types associated with it. Below is a chart of all the related licence types that fall under this business activity. Hover over a licence type for a definition. If your business requires multiple licence types, approval processes are only generated once per licence. For example, only one fire inspection is required even if multiple licence types require that inspection.

Required approvals chart​

Land use approval

All businesses in Calgary require land use approval. Each space in a building has its own specified, approved use that cannot be changed without an approval, permit or both. Visit home based business or commercial based businesses for more information, or contact our Planning Services Centre to investigate land use approval for your business.

Calgary Police Services approval

This licence type requires recommendation by the Police Information Check Unit. You are required to provide your full name, address, birth date and proof of identification (government-issued photo identification and one other form of identification). You must show ID at the Planning Services Centre. This approval generally takes about two weeks to complete.

When a business licence requiring a police check is applied for, this approval is automatically initiated and is completed by the Calgary Police Service internally. A police check from the past or from another police agency cannot be used instead of the police check required when applying for a business licence.

Fire Prevention Bureau approval

Businesses that operate from commercial premises require an inspection from the Fire Prevention Bureau before the licence can be issued. You will need your Business Identification (BID) number when you call to book the inspection. You must contact the Fire Prevention Bureau five business days prior to your ready-to-open date to arrange for the inspection. The Fire Prevention Bureau will notify the Licence Division with the results of the inspection.

This inspection must be performed by the Fire Prevention Bureau inspectors. This approval cannot be completed with an inspection done by the firefighting division, such as the occupancy inspection completed on your building permit.

Contact 311 to book your inspection. See the Fire Department Business Licence Checklist to see what is required for your inspection.

Building Regulations, HVAC Inspection

Based on the business activity, you may require a ventilation inspection to ensure that it meets code requirements. This may require you to install a ventilation system. Please be aware that your business must not be operating until all approvals are in place, including heating, ventilation and air conditioning (HVAC).

To book your HVAC inspection, call 403-268-2738, select option 2 and quote your business bame or Business Identification (BID) number.

Provincial licensing approval

Certain business activities require provincial licensing. Contact Service Alberta at 1-780-427-4088 (or toll free in Alberta only at 1-877-427-4088) for details on obtaining provincial licensing, if you are a prepaid contractor or a direct Seller.

A prepaid contracting business:

  • Solicits, negotiates or concludes prepaid contracts in person at any place other than the sellers’ place of business, and
  • Accepts money before all the work is done and/or the services are provided

A direct seller:

  • Solicits, negotiates, or concludes sales contracts in person, at any place other than the seller’s place of business.

You can present your provincial licence in person at the Planning Services Centre, fax it to the Business Licence Division at 403-537-3034 or email it to licencedivisionteam@calgary.ca.

Fees

For business licence fees, see the Business Licence Fee Schedule. The business licence fee schedule is broken down by licence type. If your business requires multiple licence types, the highest category fee will be charged.

These fees do not include the costs related to required permits to meet land use approval, or any third-party approvals or inspections that may be required to obtain your licence.

Apply for your business

Visit How to apply to determine the ways in which you can make an application for your business.

Receive your business licence

Upon completion of all outstanding approvals, the business licence will be issued. It will be sent in the mail to the applicant or, if requested, can be held at our permit pick-up counter. For commercial businesses, the physical copy of your business licence should be posted in plain sight of the public.

If you are intending to make any changes to your business after you’ve received your licence, please visit changes to your business for more information.

How long is my licence good for?

Business licences expire one year from the issuance date. Forty-five days before the licence expires, a notice is mailed out advising the licensee of the expiry date. Any outstanding fines must be paid prior to renewal.

Additional in​formation

Business ownership changes

A business licence or business ID is not transferable from one person to another or from one person's business premises to another.

Multiple premises

A business operating from more than one location requires a separate business licence for each premises.

Licence type combinations

To ensure the proper approvals are generated for a business, multiple licence types may be attached to a single business licence. For example, a cabinet maker would require a manufacturer licence type; if the business is also installing the cabinets, a contractor licence type is required. Both licence types will appear on the same business licence document and only one renewal will be required.

Charitable organization

All charitable organizations must be associated with another licenced business activity. Approval must be granted by the province before applying for a municipal licence.

Businesses not eligible for a charity status:

  • Alcohol beverage sales
  • Tobacco retailer

All fundraising activity is governed by the charitable fundraising act. Charitable organizations that are only fundraising should contact Alberta Municipal Affairs, Housing and Consumer Affairs Division at 1-780-427-8044 or 1-877-427-4088.

All applicants for this licence type should first consult with the province about eligibility for this designation and register their business, prior to applying for a municipal business licence. Contact Service Alberta at 1-780-427-4088 (or toll free in Alberta only at 1-877-427-4088) for more information.

Rules and regulations

Home-based vehicle sales

Vehicle sales businesses, which have an office within a home may not store or sell vehicles at the residential location. Vehicles being sold must not be stored, advertised or displayed at premises within Calgary limits. Auction to auction sales are permitted under this licence type.

Motor vehicle dealer: premises versus no premises

Commercial dealerships are permitted to sell to the public as motor vehicle dealer – premises and approval is determined by the number and size of vehicles that are displayed at a time.

Motor vehicle dealer – no premises businesses are not permitted to store, advertise or display any motor vehicle at a premises within Calgary. To store, advertise or display vehicles within the city, the applicant/licensee must obtain a motor vehicle dealer - premises licence for the commercial location where the vehicles are being stored/displayed to the public.

Recreational vehicle sales

Selling motorized recreational vehicles such as RVs and motor homes requires a motor vehicle dealer licence.

The sale of towables, such as fifth wheelers or camper trailers, requires a retail dealer licence type and will also require approval from the Alberta Motor Vehicle Industry Council.

Motorcycle sales

The Alberta Motor Vehicle Industry Council does not require a licence for the sale of motorcycles; however, a municipal motor vehicle dealer business licence is still required.

Disclaimer: This information has no legal status and cannot be used as an official interpretation of the various bylaws, codes and regulations currently in effect. The City of Calgary accepts no responsibility to persons relying solely on this information. Web pages are updated periodically.​​​​​

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