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colorado commercial marijuana growing laws

Colorado commercial marijuana growing laws

Cannabis Grower/Cultivator: this license is for entities that wish to grow medical marijuana plants from seed or clone, to flower and finish. Growers wishing to provide clones, but who do not intend to flower or finish plants, may apply for a specialty nursery license.

How to start cannabis growing legally in Colorado
  1. Determine your potential location and the way of cultivation: outdoor, indoor or greenhouses, and also premises sizes.
  2. Develop financial model or a business plan to estimate the start-up expenses and potential profitability.
  3. Establish the company according to the law requirements before licensing process.
  4. Site design and equipping according with the regulations.
  5. Acquire the necessary licenses to be completely legal.
  6. Recruiting process is very important for the growing business.
  7. Contract to provide your own cannabis product line to dispensaries and cannabis products manufacturers.

Cannabis Processor: this license allows business entities to process raw medical marijuana plant matter into a variety of medicinal products.

How to start cannabis extraction business legally in Colorado
  1. Determine your potential location and main product lines.
  2. Develop financial model or a business plan to estimate the start-up expenses and potential profitability.
  3. Choose the equipment or the processing line.
  4. Premises preparation and equipping according with the regulations.
  5. Acquire the necessary licenses to be completely legal.
  6. Contract to provide your own cannabis product lines to dispensaries.

Cannabis Dispensary: businesses that intend to retail medical cannabis to qualifying patients will require a dispensing license

How to open medical cannabis or recreational dispensary legally in Colorado
  1. Determine your potential location and premises sizes.
  2. Develop financial model or a business plan to estimate the start-up expenses and potential profitability.
  3. Acquire the necessary licenses to be completely legal.
  4. Renovation, design and equipping according with the regulations.
  5. PR company and promotion.
  6. Contract with cultivators and cannabis products manufacturers.

Additional license types currently in the law include:

Cannabis Tester: laboratories intending to test medical marijuana products for quality and potency will be required to apply for a tester license

Cannabis Distributor: It is required that – while business agreements can be made directly between any licensed entities—a third-party distributor be responsible for overseeing and officially conducting any business transaction that occurs. Distributors are required track all products received, and to have them tested for quality.

From the legislative perspective, the inclusion of the “distributor” model was a necessary compromise to address the trust deficit with people who do not believe the cannabis industry is effectively and consistently self-regulating.

Cannabis Transporter: business intending to transport medical marijuana from one licensed facility to another.

We create medical and recreational cannabis business plans for different types of cannabis business:

Please do not hesitate to contact us to make an order for a cannabis business plan or a cannabis industry research. We will create complete and professional business plans, including pro forma financials and projections to help you know how much money it’ll cost to start your business and how much money you can make by starting and operating your 100% legally compliant medical and recreational marijuana business.

Currently there are two sides of Colorado cannabis businesses: medical and retail. Colorado saw $996.2 million in legal sales of medical and recreational

Colorado Cultivation License and Marijuana Laws

Home » Compliance » Colorado Cultivation License and Marijuana Laws

The marijuana market in Colorado is one of the most mature legal cannabis markets in the United States. Colorado’s market is generally separated between “Medical Marijuana Businesses” and “Recreational Marijuana Establishments.”

Getting involved in a mature market will help your business mature more rapidly and give more strict guidance into what a true cannabis business should look like.

Below, we’ve provided a general outline of what it takes to obtain your Colorado grower license and maintain a compliant business. We will continue to update this page as new information becomes available.

Table of Contents

Colorado Marijuana Laws for Growers

Colorado set the bar and best practices in other states, making it much easier with set regulations and minor changes ensure compliance:

  • A separate license is required for each specific business or business entity and geographical location. Two marijuana centers/facilities may share a single licensed premise under some circumstances.
  • There are a total of 9 license types for medical businesses and 12 license types for recreational businesses, making Colorado’s market just as advanced as California’s.
  • Clear tracking of the plants from planting to harvest and transfer must be adequately documented in a system of record as well as submitted to the state through Metrc.

Types of Colorado Grow Licenses

A Colorado Medical Marijuana Cultivation Facility can be licensed in three different classes:

  • Class 1 (1-500 plants)
  • Class 2 (501-1500 plants)
  • Class 3 (1501-3000 plants)

This type of facility will require an application cost and license cost. A medical cultivation facility application cost is $300, and the Classes range from $1,500 to $3,500 with an additional $800 charge for any plant expansion beyond the 3000 plant limit.

A Colorado Recreational Marijuana Cultivation Facility has five Tiers of licensure:

  • Tier 1 (1-1,800 plants)
  • Tier 2 (1,801-3,600 plants)
  • Tier 3 (3,601-6,000 plants)
  • Tier 4 (6,001-10,200 plants)
  • Tier 5 (10,201-13,800 plants)

This type of facility will also require an application cost and license cost. A recreational cultivation facility application cost is $300, and the Classes range from $1,500 to $6,500 with an additional $800 charge for any plant expansion beyond the 3000 plant limit.

For a full list of licensing fees, check out the MED fee schedule.

Colorado Commercial Grow License Cost

The license application fee for growers, processors, and dispensaries is $2,500. This cost is per facility AND per license type. Renewal occurs every year and is $2,500 each.

Colorado Commercial Grow License Application Requirements

To obtain a license to open any business related to marijuana in Colorado, you must fill out a Marijuana License Application.

This application will include information about the owners and the legal business requirements and forms, such as tax and background checks. All processes and organizational structures should be documented for review by the state.

The application will also require you to mark off your desired business licensure, such as recreational or medical and related information, such as license type, business name and address, contacts, and stakeholders.

It’s best if you are fully prepared to start a marijuana business before even applying so that the application gets approved right away. Check out your local city regulations for a full application checklist.

Marijuana Compliance in Colorado

Colorado is contracted with Metrc, a statewide, mandatory tracking system that serves as the state system of record. All licenses in Colorado are required to keep adequate records to ensure that all inventory of plants and products are tracked to provide a clear line of origin.

Cultivators should keep records of harvest dates and follow all instructions set by Metrc to successfully tag and manage inventory. Transfers should also be managed with shipping manifests so that all transfers and taxes can be easily proven.

Metrc is a great tool and can be widely advantageous for any license in the state attempting to track their cultivation operation effectively. Still, it is not the only system of record that a licensee should use. A robust tool as 365 Cannabis can optimize your business operations, give you visibility into all processes occurring and inventory, and is a great system of record both financially and for cultivation.

How does 365 Cannabis fulfill this?

365 Cannabis is a true ERP that delivers a complete business management solution, facilitates compliance, and ensures timely and accurate reporting. With a centralized system, you’ll be able to reduce manual and double entry, nearly eliminating human error.

With a true cannabis ERP software that goes above and beyond seed to sale, you’ll be able to increase efficiency, improve productivity, and grow your cannabis cultivation business.

This article is meant to be a guideline for your reference and is not legal advice. Read more about Colorado marijuana regulations and prepare your application with a cannabis business consultant and/or law firm.

Colorado’s market is one of the most mature legal cannabis markets in the US. Join the market and learn how to acquire a Colorado cultivation license.