Brewery licensing: the steps most countries share

The common chain

Almost everywhere the route runs in the same order: register a company, secure premises, get the premises approved, get a production licence, get a sales licence if you sell on site, register for excise or duty, then get labels approved. Some countries merge steps. Some add food, fire or planning approvals.

Treat the list as a checklist of questions, not a promise of how your country works.

One practical tip: draw the chain as a flow chart on one page, with the authority, the document and the likely wait for each step. Many founders only discover the sequence by hitting a refusal. A chart shows which approvals depend on others.

Company and premises first

Regulators want to know who owns the business and who controls it. Expect checks on directors, sometimes on funding sources. Then the premises: a lease and zoning that permits brewing. Add fire, building and health approvals. Sign the lease only after you know the site can be licensed. A lease signed first and a licence refused later is the classic costly mistake. See choosing a brewery site.

Ask the landlord whether the lease can include a clause that ends it if the licence is refused. Some landlords will agree if asked before signing. Few will after.

Production and sales licences

A production licence lets you make beer. A sales licence lets you sell it and may be split by on-premises, off-premises, wholesale or export. Some places grant them together. Some limit the volume you may brew in a year. Ask which licence covers a taproom, which covers selling kegs to bars and which covers selling online.

Ask the regulator about transfer and renewal. A licence can often be lost by missing a renewal date, changing a director without notice or moving a tank to a new room. Treat the conditions on the paper as operating rules.

Excise, duty and records

Governments tax beer, usually by volume or strength. The tax is collected from the producer. In the United States the TTB regulates this at federal level. In the United Kingdom HMRC does. Elsewhere, another body does. Expect to file returns and to keep records of brews, volumes packaged, stock and losses.

Good records make audits easy. See logging brewery data you will use for what to capture.

Some countries tax beer at the point it leaves a bonded store. Others tax it as it is produced. The difference affects cash flow, because you may pay duty before you sell. Ask which applies and whether a bond, a bank guarantee or a deposit is needed. Our guide to start-up costs founders forget shows where to put that line.

Labels and product approval

Many markets require labels to be approved before sale, or at least to follow set rules on alcohol content, volume, producer details and warnings. Check the rules before you print a run of cans. See what a beer label must show.

If you sell abroad, the importing country's rules apply on top of yours. Labels, strength limits and approvals differ again. Check them before you ship a pallet.

Who to ask and what to ask

Start with the national or regional alcohol regulator, then ask a licensing adviser who has handled a brewery in your country. Prepare a one-page description of your plan: the product, the premises, the likely annual volume, who owns and runs the business and whether you will sell on site, to trade or online.

Ask four things. Which licences do I need? In what order? What does each cost and how long does it take? What conditions will attach? Write the answers down and date them.

How long it takes

Plan on months, not weeks. Do not order equipment you cannot yet legally use. Keep a single file of every application, reference number and date. Ask each office what they need next, in writing. Keep their answers.

Where alcohol is banned or restricted, local law comes first. A non-alcoholic product may be the only legal route.

Never describe your progress to a supplier or investor as licensed until it is. A pending application is not a licence. Our guide on opening a brewpub in a new country covers how this fits in the wider plan.

Common questions

Can I start brewing before my licences arrive?

Generally not for sale. Test brews may be restricted too. Check with your regulator before you brew anything.

Do I need a separate licence for a taproom?

Often yes. Many countries separate production from on-premises sales. Ask your regulator which licence covers each activity.

Where do I find the current rules?

Ask your national or regional alcohol regulator and a licensing adviser. Rules differ by country and change, so rely on current official sources.