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The step-by-step path from selling at farmers markets to operating a licensed commercial food business, what it costs, how long it takes, and where most operators get stuck.
A lot of Ontario food businesses start the same way: baking on weekends, selling to friends, getting a table at the local farmers market. That works, up to a point. But the moment you want to sell wholesale, launch on delivery apps, supply a café, or just do real volume, you need a licensed commercial kitchen behind your name. Here is exactly how to get there.
Step 1: Know What Ontario Actually Lets You Do From Home
Where: Your home kitchen
Cost: $0 to get started
Timeline: Now
Ontario does not have the formal cottage food laws the way some U.S. states do, but it does allow certain low-risk foods to be sold to the public from a home-based business. The key exemptions are for foods that do not require temperature control to stay safe: baked goods, jams, jellies, candy, dried herbs, and similar shelf-stable products.
If you sell these products at a farmers market, community event, or direct to a consumer, you are operating under the home-based food business exemption and do not need to operate from a licensed commercial kitchen. However, many markets will still require a commercial kitchen certification even for a low risk product, so be sure you check the fine print before renting a table.
Low-risk home-based food businesses are also exempt from the commercial dishwasher requirement and the separate handwashing sink requirement.
What you cannot do from a personal home kitchen:
sell wholesale to a grocery store or café
supply a food service operation
sell anything requiring refrigeration (dairy, meat, eggs, prepared meals)
or ship across provincial borders.
The moment your product needs refrigeration or you are selling into retail, you need a licensed food premises.
Step 2: Get Your Food Handler Certificate
Where: Online, 4 - 8 hours
Cost: $25 to $60 depending on provider
Timeline: Complete in one- two days
This is the first document you need before you can legally operate from a licensed food premises in Ontario.
Every food premises must have at least one certified food handler present during every hour of operation.
The certificate covers safe food temperatures, cross-contamination prevention, personal hygiene, and cleaning protocols. Most providers offer an online course plus a short exam and the pass rate is high if you take the material seriously.
Syzl users get the cost credited back to their account when they book kitchen time, which makes this one of the few business expenses that pays for itself before your first production run. Community groups also offer education and certification for free, so be sure to call your local economic development office for details.
For Toronto operators: Toronto Public Health recognizes certificates from all ANSI-accredited providers. SafeCheck, Probe IT, and the Food Safety Market all offer valid Ontario-recognized certifications. Most cost between $25 and $50.
Step 3: Register Your Business
Where: Ontario Business Registry (ServiceOntario)
Timeline: Same-day to 5 business days
Before you approach a commercial kitchen or open a business bank account, you need a registered business name in Ontario. Go to the Ontario Business Registry at ontario.ca, register your business name, and get your Ontario Business Identification Number (BIN).
If you plan to invoice other businesses, you will also need a CRA business number and an HST account but, that's ONLY once your revenue exceeds $30,000 per year. Register both through the CRA business registration portal. If you are just starting out and staying below that threshold, the business number alone is sufficient for now.
Keep your business registration number ready because commercial kitchens and insurance providers will ask for it.
Step 4: Choose Your Kitchen Path
Where: GTA-wide
Cost: Varies significantly (see below)
Timeline: Days to months depending on the path
This is where most operators get stuck because they assume commercial space has to be expensive.
There are three practical paths:
Option 1: Convert a space in your home into a licensed kitchen. Ontario allows home-based food premises if the kitchen is completely separate from your personal home kitchen. This means a separate room with its own sink, commercial dishwasher, and proper ventilation. The structural requirements are real and the permit process takes time. Budget $10,000 to $30,000 for construction and expect two to four months for permitting and inspection. This path makes sense if you have the space and plan to operate at high volume from a fixed home address long-term.
Option 2: Rent a shared commercial kitchen. This is the fastest and most capital-efficient path for most operators. Shared kitchens are already licensed and inspected by Public Health or the relevant regional authority. You rent by the hour, bring your ingredients, and start producing. No permit process, no construction, no equipment purchases. In the GTA, hourly rates run from $22 to $50/hour depending on location and equipment. Most operators starting out spend $200 to $500/month on kitchen time during the first year. Once you find a space you work well in, you can book recurring weekly slots to lock in your production schedule. If you use a comissary space, be sure you negotiate your options before tying yourself into a set of credits or bulk packages. We recommend trying hourly or pay-as-you go first until you have your production in a reliable format.
Option 3: Lease a dedicated commercial space. When your revenue justifies it, a dedicated lease gives you full control: your schedule, your equipment, your setup. Expect to spend $2,000 to $5,000 per month minimum in the GTA, plus equipment, utilities, and leasehold improvements. Most operators hold off on this until they are consistently hitting $10,000 to $15,000 in monthly revenue.
Step 5: Get Commercial Liability Insurance
Where: Online brokers, including Zensurance (has a partnership with Syzl)
Cost: $50 to $150 per month, depending on your revenue
Timeline: Same-day coverage in most cases
Every licensed commercial kitchen in Ontario requires tenants to carry general liability insurance, typically $2 million minimum coverage. Beyond satisfying the kitchen requirement, this insurance protects you if a customer reports a food safety issue or injury related to your product.
For most small food businesses in the early stages, a commercial general liability policy runs $50 to $150 per month.
Shared kitchen insurance allows you to operate from any address, not just the one on our policy and is the easiest way to be flexible AND prevent yourself from being tied to one spot.
Frequently Asked Questions
Can I legally sell baked goods from my home kitchen in Ontario?
In theory for low-risk shelf-stable products like baked goods, jams, and candy sold directly to consumers . Your personal kitchen qualifies for the home-based food business exemption, but be sure where you sell is aware. Transparency is always critical to build trust with your vendors and points of sale. If you have dairy or refridgeration requirements, a commecial kitchen is mandatory.
Do I need a Food Handler Certificate to sell food in Ontario?
Yes, if you are operating a licensed food premises. Low-risk home-based food businesses have an exemption, but you will need the certificate before renting a commercial kitchen or operating in any licensed space.
What is the cheapest way to start selling food commercially in Ontario?
Rent a shared commercial kitchen by the hour. The GTA has licensed shared kitchens starting at $22/hour. Combined with a Food Handler Certificate ($25 to $60) and a business registration ($60), you can be legally operating for under $200 in total setup costs.
Do I need to register for HST?
Not right away. Ontario businesses must register for HST once annual revenue exceeds $30,000. Below that threshold, you are a small supplier and registration is optional. Most food entrepreneurs doing under $30,000/year focus on revenue growth first and register when they cross that line.
Can I rent a commercial kitchen without a business registration?
Yes. Some kitchens will work with you on proof of a pending registration or if you buy a daily insurance policy that doesn't require a business number to purchase. To save yourself time and reduce the risks, get both sorted before you search for kitchen time.
What is the difference between a shared kitchen and a commissary kitchen?
A commissary kitchen is a shared commercial kitchen specifically used by food trucks, caterers, or mobile food vendors as their licensed base of operations. A shared commercial kitchen is a broader term for any licensed kitchen rented by multiple food businesses. In Toronto, food trucks are legally required to operate from a licensed commissary.
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