Do you Need a License to Sell CBD Products in Colorado

When you start a business then you are subjected to various permits, registrations, and licenses requirements. These requirements are placed for the general safety of the public, tax revenue, and various other matters reasons. Especially when talking about cannabis business in the CBD market then it is a complicated scenario in terms of business license and registration. The requirements of cannabis selling depend from state to state and vary as per business like cultivation, distribution, retail, and production. To work legally you must meet the business license requirement.

There is some basic requirement which a person must know when starting up a business of cannabis market in Colorado.

Requirements for Applying for a License

  • You must not be an employee of any state department

  • You should be free from any conviction of control substance

  • Your age should be 21 years or more

  • Your residency at Colorado should be of at least 2 years

Cannabis Law

In Colorado, Cannabis law has three sections which are

  • Medical marijuana

  • Retail

  • Industrial hemp

When you opt for the cannabis business in any of these you must meet the requirements for applying for its license. Colorado state licensing authority is the division that deals with licensing applications. There are various categories of marijuana licenses depending on your business nature.

Application Fee

The first step to get the licenses to sell CBD products in Colorado is to get the relevant documents for the type of business you want to start. Once the application is submitted then the relevant fee is paid for which the applicant needs to have an appointment with the Marijuana Enforcement Division. On appointment, you will need to have all the documentation of potential business, your identification, and any business part owners. These are necessary for the application. Once your application is approved then your fingerprints will be taken then you need to pay the application fee along with the local authority application fee.

Different Licenses of Retail

The classes of this license include various categories if you want to sell CBD products in Colorado.

  • Selling at stores:  This license is for selling the CBD products at the store to people age 21 years or older.

  • Cultivation: This license is for the territory and facility for the harvesting of marijuana and products for selling.

  • Product Manufacturer: This license is for the facility to manufacture CBD-infused products like concentrates edibles etc.

  • Testing facility: This license is for the facility that tests the content, potency, and contaminants in the CBD products. 

  • Transportation: This license is for transportation and temporary storage of CBD products.

  • Operator: This license is for providing operational services to the marijuana business.

Industrial Hemp

For the industrial hemp, the license is issued by the Colorado Department of Agriculture and not the Marijuana Enforcement Division. The Colorado Department of Agriculture sets rules for the inspection and registration of industrial hemp. According to the Colorado constitution, industrial hemp is a plant of cannabis containing THC not more than 0.3%, and any plant containing more than 0.3% THC is marijuana. This difference is for regulatory purposes. 

How to be Successful in Getting a CBD License

The state licensing authority of Colorado is very keen on the good quality of cannabis business in Colorado. For people who want to sell CBD products in Colorado needs to have a very thoughtful business plan for their application to be accepted. You must be aware of your resources and important traits. To have an increased chance of application acceptance you can follow the following tips 

  • You must know how to stay compliant with the rules and regulations of the state.

  • Your business must also compliant with the local jurisdictions

  • To enter the Cannabis industry you must have sufficient finances to support your business plan. The reason is the state does not want the financially down or struggling business to get the licenses for selling CBD products.

  • You should be aware of all the regulations regarding CBD and licensing and keep yourself up to date with all current laws.

  • The location of your business is also very important. Follow the territory rules for the business.

Author - Noah Nicholls

Noah Nicholls is a full-time Writer, Traveler, and Marketing Expert who is Currently Working for CBD-Boxes. Noah Nicholls writing relates to a range of subjects such as CBD and health.


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