All cannabis businesses in New Jersey, from growers to dispensaries, are required to hold a license from the Cannabis Regulatory Commission. As of April 21, 2022, cannabis dispensaries are now selling adult-use recreational cannabis.

With the growing marijuana market in New Jersey, there are also a lot of licenses being issued. Here’s your guide to getting a license and starting a cannabis business in New Jersey.

Understand Business License Types

The New Jersey Cannabis Regulatory Commission issues six license types, in addition to a conditional license:

  • Class 1 Cannabis Cultivator
  • Class 2 Cannabis Manufacturer
  • Class 3 Cannabis Wholesaler
  • Class 4 Cannabis Distributor
  • Class 5 Cannabis Retailer
  • Class 6 Cannabis Delivery
  • Conditional license

A conditional license allows you to “Begin building out operations for the cultivation, manufacture, dispensing, wholesale, distribution, or delivery of recreational use cannabis while working towards meeting the requirements.”

However, the CRC website states they are only “currently accepting applications for personal use (recreational) cannabis businesses in the following categories: Class 1 Cultivator Licenses, Class 2 Manufacturer Licenses, Class 5 Retailers.”

Know the Laws and Regulations

Every state with marijuana businesses have a slightly different application process. However, it is always recommended, no matter what state you are in, that you familiarize yourself with local laws first.

For New Jersey, the most important regulation is the CREAMM Act, also known as the Cannabis Regulatory Enforcement Assistant and Marketplace Modernization Act. This is what allows the Cannabis Regulatory Commission to “develop, regulate, and enforce the rules and activities associated with recreational cannabis for adults 21 years or older.”

While the state of New Jersey has its own regulations, every municipality has they own rules for recreational marijuana and medical marijuana. Be sure to look at the rules in your local county and city before deciding where your business will be located.  

Learn more about New Jersey legalization, laws and regulations by visiting https://www.nj.gov/cannabis/.

Create a Business

Marijuana licenses alone aren’t enough for entrepreneurs - you need a registered business for that license. Here’s what your business needs to do before applying for starting a license application:

  1. Write a business plan
  2. Choose a legal business structure
  3. Get Tax ID Numbers (both Federal and State)
  4. Register your business
  5. Open a business bank account
  6. Research business insurance

Apply for a Cannabis License

Once the business is established and you know what type of license you need, then you can begin the application process. All applications are done online. This is standard for the cannabis industry.

To being the application process, visit the Cannabis Regulatory Commission website: https://www.nj.gov/cannabis/businesses/.

The application will ask for information such as your business name, tax ID, and the number of licenses you are seeking. As part of New Jersey’s social equity efforts, the application process will ask for some self identifying information.

There is an application fee ranging from $200 to $400 due at the time of submission, depending on the type of application that is submitted. Then there are a series of fees, if approved, associated with the approval process, the actual licensing fee, and more depending on the type of license that is issued. For more information on fees, click here.

Use a Seed to Sale Software

Once your business obtains a licenses, you’re ready to start operations! It’s important that your business has a central platform to manage its performance and help with compliance reporting.

Canix's cannabis ERP software eliminates the frustrating busywork in compliance, inventory management and sales in your cannabis business. It’s highly recommended that you use a seed to sale platform to improve your bottom line.

Learn more about Canix by visiting www.canix.com today.

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