Difference between pages "Incorporating a Company" and "Possession of Marijuana"

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m (Elena Renderos moved page Incorporating a Company (No. 267) to Incorporating a Company: Removing recording numbers from page names)
 
m (Elena Renderos moved page Possession of Marijuana (No. 201) to Possession of Marijuana: Removing recording numbers from page names)
 
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{{REVIEWEDPLS | reviewer = [http://severidelawgroup.com/oliver-b-hamilton/ Oliver Hamilton], Severide Law Group|date= July 2018}} {{Dial-A-Law TOC|expanded = business}}
{{REVIEWEDPLS | reviewer = [https://www.paulbriggslawyer.com/blank-3 Paul Briggs], Paul Briggs Law|date= October 2018}} {{Dial-A-Law TOC|expanded = crime}}
If you’re forming a company with a small group of shareholders, a private company can be a good option. Learn the legal issues and steps involved in '''incorporating a private company'''.
It is '''legal''' in British Columbia for adults to '''possess marijuana''' (up to certain quantities). There are restrictions on where you can use it and how you can buy it.  


==Understand the legal issues==
==Understand your legal rights==


===You have options on how to structure a new business===
===It is legal to possess marijuana (up to certain quantities)===
You have options on how to structure a new business. You could use a sole proprietorship, form a partnership, or incorporate a company. For an explanation of the pros and cons of each approach, see our information on [[Starting a Small Business (No. 265)|starting a small business (no. 265)]].  
In October 2018, new marijuana laws came into effect. The combined effect of the federal ''[http://canlii.ca/t/944x Cannabis Act]'' and the BC ''[http://canlii.ca/t/91rl Cannabis Control and Licensing Act]'' is that in British Columbia, it is legal for adults (age 19 or over) to carry up to '''30 grams of cannabis''' in a '''public place'''.


Before incorporating, you may also want to get advice from a lawyer and an accountant. They can help you decide the best way to set up the company’s authorized share structure (called the capital structure, and explained below), and how to structure the company for optimal tax planning.
Adults can possess up to '''1,000 grams''' of cannabis in a '''non-public place''', such as at their home. This limit is per household and is based on the expected yield from four cannabis plants. (Under the marijuana laws, adults can grow up to four cannabis plants per household.)


===There are two types of companies===
These maximum amounts apply only to '''dried cannabis'''. The amounts are different for cannabis in other forms, like fresh cannabis or cannabis oil. They’re also different for medical marijuana (as we explain shortly).  
Under BC’s ''[http://canlii.ca/t/84ld Business Corporations Act]'', there are public companies and private companies.


A '''public company''' has its shares listed and traded on a stock exchange and must follow securities laws.  
===Using marijuana in public===
Adults (age 19 or over) can generally smoke or vape cannabis in public spaces where tobacco smoking is allowed.  


A '''private company''' is typically a small company with very few shareholders (sometimes called a '''closed corporation'''). Its shares aren’t offered for sale to the public.
Under [http://www.bclaws.ca/civix/document/id/complete/statreg/18029#section63 BC law], using cannabis is '''not allowed''' in the following '''public places''':
*Playgrounds, sports fields, skate parks, swimming pools, or any deck, seating or viewing areas associated with these places.
*Public buildings, workplaces, or common areas of apartments or condos, and within six metres of doorways, windows and air intakes attached to these places.
*Within six metres of bus stops, transit shelters, train stations, ferry docks and similar places.
*Regional, provincial and municipal parks, except for designated areas.
*Public patios. (There are some liquor establishments in BC with a tobacco smoking area on their patio. Cannabis '''cannot''' be smoked or vaped there.)


This information deals with private companies in BC.
Using cannabis is '''not allowed on school properties''', as well as any adjacent sidewalks or boulevards.


===All private BC companies are incorporated online===
Local governments can also put restrictions on the use of cannabis in public spaces.
You can use the BC Registry Services’ [http://www.corporateonline.gov.bc.ca/ Corporate Online] to incorporate a company. You can pay the fees by credit card.


Consider consulting a lawyer and accountant before incorporating a new BC company, as the standard '''articles''' (the set of rules that govern the company) and the authorized share structure provided through a basic online incorporation are simplistic and may not properly meet your needs.
{| class="wikitable"
|align="left"|'''Tip'''
Smoking or vaping cannabis is not allowed inside bars or restaurants in BC. This is because no one can smoke or vape cannabis in a substantially or fully enclosed workplace.
|}


===Incorporating a federal company===
===Using marijuana in a vehicle===
You can incorporate a '''federal company''' under the ''[http://canlii.ca/t/7vf1 Canada Business Corporations Act]''. A federally incorporated company has the right to carry on business anywhere in the country and will have its name protected across Canada. But a federal incorporation usually takes more time, and the corporation is often more expensive to operate than a BC company.
Under [http://www.bclaws.ca/civix/document/id/complete/statreg/18029#section65 BC law], you can’t use cannabis in a '''vehicle'''. That is so whether you are driving or a passenger. And you can’t operate a vehicle if another person is smoking or vaping cannabis in the vehicle.


===BC companies can carry on business in other provinces===
There is an [https://www.canlii.org/en/bc/laws/regu/bc-reg-204-2018/latest/bc-reg-204-2018.html#sec15_smooth exception] to this rule. You can use cannabis in a vehicle being used as a private residence and parked in an area where camping is allowed (a camper or trailer, for example).
A private BC company can carry on business in other provinces if it registers itself extra-provincially in those provinces. But unlike a federally incorporated company, an extra-provincially registered BC company may have its application to register its name in another province refused by the Registrar of that other province.


==Form the company==
===Using marijuana for medical purposes===
If you are authorized by a health care provider to use marijuana for medical purposes, you can possess higher quantities of marijuana in public places. You can legally have up to '''150 grams''' of dried cannabis, or a 30-day supply, whichever is lower.


===Step 1. Decide on a name for the company===
You need to:
The name must end in “Limited”, “Ltd.”, “Inc.”, “Incorporated”, “Corp.” or “Corporation”, or the French equivalent to these words. Your new company name needs to be distinctive and have a descriptive element, or you can choose (or be assigned) a numbered BC company name. The [http://www.bcregistryservices.gov.bc.ca/ Corporate Registry] has more information on choosing a name.  
#Have a [https://www.canada.ca/en/health-canada/services/drugs-medication/cannabis/licensed-producers/sample-medical-document-marihuana-medical-purposes-regulations.html medical document from a health care provider] recommending cannabis to treat your symptoms (similar to a prescription).
#[https://www.canada.ca/en/health-canada/services/registering-produce-cannabis-own-medical-purposes.html?_ga=2.5047220.662103097.1538403727-1930675482.1531945284 Register with Health Canada] to produce cannabis for your own medical purposes, or [https://www.canada.ca/en/health-canada/services/drugs-medication/cannabis/industry-licensees-applicants/licensed-cultivators-processors-sellers.html register with a licensed producer] who you buy your marijuana from.  


If you decide to carry on business under a trade name (called a DBA or a doing-business-as name), you must still display the full legal name of your company on certain documents like contracts and invoices.
Under [https://www.canlii.org/en/bc/laws/regu/bc-reg-204-2018/latest/bc-reg-204-2018.html#sec20_smooth BC law], there are exemptions for use of medical marijuana on school property, and on inter-city buses, trains and boats. You must meet specific requirements, such as carrying proof you can possess medical marijuana.


===Step 2. Reserve the company name===  
===Buying marijuana===
The easiest way to reserve the company name with the Corporate Registry is using [http://www.corporateonline.gov.bc.ca/ Corporate Online]. If the name you want is available, it will be reserved for 56 days.
Cannabis is legally sold at licensed retailers and the [https://www.bccannabisstores.com/ BC government’s online store]. Licensed retailers are required to display a valid licence where it is visible to the public.


===Step 3. Decide who will be involved in the company===
All legal non-medical cannabis has an '''excise stamp''' attached to its packaging. Federally-licensed producers apply the excise tax stamp for British Columbia. [https://www.canada.ca/en/revenue-agency/campaigns/cannabis-taxation.html#wdtmfc Each province has a different coloured cannabis excise stamp] for products sold in their jurisdiction. If the product does not have a British Columbia stamp it is not legal for sale in BC.  
The '''shareholders''' own the company and vote to appoint the directors. The '''directors''' control and govern the company and oversee how it is run. They may appoint '''officers''', such as a president, secretary and senior management. Typically, the officers handle the daily operations of the company and are overseen by the directors.  


====One-person company====
{| class="wikitable"
You can have a one-person company and be the sole shareholder, director and officer. In BC, unlike in other provinces, there is no requirement to have a BC resident director. There are [https://www.canlii.org/en/bc/laws/stat/sbc-2002-c-57/latest/sbc-2002-c-57.html#sec124_smooth other restrictions under the law] on who can be a director of a BC company.
|align="left"|'''Tip'''
Cannabis edibles, extracts and topicals are not currently legal for sale in Canada. The federal government intends to legalize the sale of these cannabis products by October 2019. A draft set of rules were released as part of a [https://www.canada.ca/en/health-canada/programs/consultation-strict-regulation-edible-cannabis-extracts-topicals.html public consultation].
|}


====Shareholders====
===If you possess more than the legal limit===  
Consider carefully who the shareholders of your company should be. Even minority shareholders have considerable rights that can affect how a company is run. Shareholder disputes can be destructive. Removing an unhappy shareholder from a company can be very expensive, time-consuming and hard.
Under [http://www.bclaws.ca/civix/document/id/complete/statreg/18029#section52 BC law], it is illegal to possess '''more than 30 grams''' of dried cannabis in a public place. Breaking this law is not a criminal offence. Instead, it’s like breaking the ''Liquor Control and Licensing Act''. The police can give you a '''ticket''', which can result in a fine and possible jail time. But you don’t get a criminal record. For a first offence, the fine can be up to $5,000 and up to three months in jail.


Sometimes, it is best if investors in a new company are just creditors who lend the company money, and not also owners. Or, you can see how a person works as an independent consultant before hiring them as an employee or making them a shareholder. You can see how they get along with the existing shareholders and how they will fit in the company in the long term.
(There is an exemption for medical marijuana. You can legally possess in a public place up to 150 grams of dried cannabis or a 30-day supply, whichever is lower. You must show proof you can possess medical marijuana.)


There is no requirement for shareholders of BC companies to be BC or Canadian residents.
If you have '''more than 50 grams''' of dried cannabis in your possession, you can be charged under the ''[http://canlii.ca/t/7vtc Controlled Drugs and Substances Act]''. This ''is'' a criminal offence. It ''can'' result in a criminal record.


====Directors====
===If you are charged with possession over the legal limit===  
[https://www.canlii.org/en/bc/laws/stat/sbc-2002-c-57/latest/sbc-2002-c-57.html#sec120_smooth Part 5] of the ''Business Corporations Act'' deals with directors.
In responding to a charge of possessing cannabis over the legal limit, you must decide how to '''plead'''. [[Pleading Guilty to a Criminal Charge (No. 212)|Pleading guilty]] means you accept responsibility for the offence. Pleading “not guilty” means the court will set a '''trial'''.
*A private company must have at least one director.
*A director doesn’t have to live in BC or Canada, but they do have to consent in writing to act as a director.
*A director must provide the Corporate Registry with an address where they can receive documents during standard business hours. If there’s no such office, then the Registry requires the director’s home address.
*A director must be at least 18 years old and cannot have certain criminal convictions, be a bankrupt person (who hasn’t yet been granted formal discharge from bankruptcy) or have been found by a court to be incapable of managing their own affairs.


===Step 4. Pick a registered and records office===
At the trial, the '''prosecutor''' (also called Crown counsel), must prove three things beyond a reasonable doubt: '''knowledge''', '''consent''' and '''control'''. The prosecutor does this by proving that:
A company must have a '''registered and records office'''. The registered office is where legal documents can be delivered to the company. The records office is the address where all records for the company are kept. The registered and records offices must be in British Columbia and may be at the same address.
*you had '''control''' of the marijuana — for example, the police found it on you or in an area you controlled, such as your car, suitcase or bedroom, and
*you '''knew''' the marijuana was there, and
*you '''consented''' to having the marijuana in that place.


Every company must also have both a mailing address and a delivery address for its registered and records offices. The registered office mailing address is where the company will receive its mail. The registered office delivery address is where the company is given any notices like legal documents. The registered office mailing address may be a post office box, but the registered office delivery address must be a street address accessible to the public during business hours.
If the prosecutor proves all these things, the judge will convict you.  


===Step 5. Decide on an authorized share structure===
To prove these things, the prosecutor will have witnesses tell the court ('''testify''') about the situation when they found the marijuana on you. You can question ('''cross-examine''') each witness the prosecutor uses.
The number of shares a company is authorized to issue to its shareholders is called the '''authorized share structure'''. This number can be limited or unlimited. You have to decide the type and number.


There are two main kinds of shares: par value shares and shares without par value. '''Par value shares''' have a minimum price they can be sold for. '''Shares without par value''' don’t have a minimum price. You can also have different classes of shares with different attributes and rights, such as common shares and preferred shares, voting rights, the right to receive dividends, plus different series of shares within a class of shares. The specifics can be complicated, so consider getting advice from a lawyer or accountant.
After the prosecutor finishes, you have the opportunity to tell the court what happened. To do this, you might testify (give evidence) yourself. You don’t have to. If you do, you take an oath promising to tell the truth. If you have any witnesses who saw what happened and can support your story, you can call them to testify. The prosecutor can cross-examine them.


===Step 6. Prepare the incorporation documents===
You and the prosecutor then summarize your positions by making '''submissions''' to the court.
The documents needed to incorporate a company are:
*the incorporation agreement
*the incorporation application
*the articles
*the notice of articles


====Incorporation agreement====
For more on the process, see our information on [[Defending Yourself Against a Criminal Charge (No. 211)|defending yourself against a criminal charge (no. 211)]].
This is an agreement between the incorporator (or incorporators) and the company. It describes the number, kind and class of shares each incorporator agrees to take once the company is incorporated. The incorporator must agree to take at least one share of the company and therefore become the company’s first shareholder. The incorporation agreement must be signed by the incorporator before submitting the incorporation application to the Corporate Registry. You don’t submit the incorporation agreement itself to the Corporate Registry, but a signed original should be placed in the company’s records book.  


====Incorporation application====
===If you are convicted of possession over the legal limit===  
The incorporation application is available from [http://www.corporateonline.gov.bc.ca/ Corporate Online]. The person who completes it is called the “completing party”. They must ensure the incorporation agreement and articles are properly prepared and signed by the incorporator.  
Penalties for possession of marijuana over the legal limit depend on the amount of marijuana involved. The court typically gives fines for smaller quantities and up to five years in jail for larger quantities.


====Articles====
Penalties also depend on how the Crown proceeds in the case. Possession over the legal limit is a '''hybrid''' offence, meaning the prosecutor can treat it as a less serious ('''summary''') offence or a more serious ('''indictable''') offence. If the prosecutor treats it as an indictable offence, the penalties are higher: up to five years in jail.
The articles are the rules and regulations for your company. You can use the sample set in the [https://www.canlii.org/en/bc/laws/regu/bc-reg-65-2004/latest/bc-reg-65-2004.html regulation] under the ''Business Corporations Act'', or have articles specially drafted to suit your needs. The incorporator must sign the articles. You don’t need to submit them to the Corporate Registry, but you should file a copy in the company’s records book.


====Notice of articles====
{| class="wikitable"
This document has the following information:
|align="left"|'''Tip'''
*the company’s name
If it is your first offence, you can ask the prosecutor to be considered for '''diversion'''. This program diverts you out of the court system to complete a probation period that may include community service work or counselling (for example). Or, if you go before a judge for sentencing, you can ask for a '''discharge'''. Like diversion, a discharge allows you to avoid getting a '''[[Criminal Records and Record Suspensions (No. 205)|criminal record]]''', which can prevent you from traveling to other countries, getting certain jobs, and applying for citizenship.
*the authorized share structure
|}
*whether there are special rights and restrictions attached to the shares
*the addresses of the registered and records offices
*the names and residential or business addresses of the directors


===Step 7. Submit the incorporation documents to the Corporate Registry===
==Common questions==
You must e-file or electronically submit your incorporation application and attached notice of articles to the Corporate Registry, along with the prescribed fee, through [http://www.corporateonline.gov.bc.ca/ Corporate Online]. Your company will then be incorporated almost instantly. 


After you e-file, the Corporate Registry will issue a certificate of incorporation and send you certified or true copies of the incorporation application and notice of articles.
===What is the legal limit for other forms of cannabis?===
In the ''[http://canlii.ca/t/944x Cannabis Act]'', “cannabis” is defined as a cannabis plant or any substance that contains a cannabis plant. The legal limit of '''30 grams is for dried cannabis'''. One (1) gram of dried cannabis is equal to:
*5 grams of fresh cannabis
*15 grams of edible product
*70 grams of liquid product
*0.25 grams of concentrates (solid or liquid)
*1 cannabis plant seed


==Next steps==
This means, for example, that an adult can legally possess '''150 grams of fresh cannabis'''.


===Organizing your company===
===If I’m charged with possession over the legal limit, is the amount of marijuana important?===
This includes preparing the company’s records book, preparing director and shareholder resolutions, issuing shares, and preparing a directors’ register plus a “central securities register” or share register. You may wish to talk to a lawyer about this. Keeping a well-organized corporate record book and set of financial statements will help when you sell your company and if the Canada Revenue Agency (CRA) decides to audit your company.
Yes — a small amount is less serious. The more you have, the greater the chance you may be charged with '''possession for the purpose of trafficking''', a more serious offence with more serious penalties. The way the marijuana is packaged is also important.


===Maintaining your company===
===Can I bring marijuana across the border?===
To keep your company alive, it must file an annual report with the Corporate Registry each year within two months of its anniversary date of incorporation. Failure to file an annual report for two consecutive years will result in the company being struck off the registry and dissolved. You can restore a company but it’s costly to do so.
No. It’s illegal to transport cannabis across the Canadian border. It doesn’t matter whether you’re leaving or entering Canada, or what the laws of your destination are. This prohibition applies even if you are authorized to use cannabis for medical purposes, and no matter how much cannabis you have with you.


If the company changes its registered or records office, or if the directors resign or change their address, the company must e-file other forms with the Corporate Registry. There are fees for most of these filings. As well, each year, every BC company must choose to either appoint an auditor or waive the appointing of an auditor.
===What are the rules for young people?===
If you are under age 19, it is not legal in BC to possess or use cannabis. (There is an [https://www.canlii.org/en/bc/laws/regu/bc-reg-204-2018/latest/bc-reg-204-2018.html#sec27_smooth exemption] for medical marijuana, with proof you can possess medical marijuana.)


===Protecting your company’s brand===
If you are under 19 and you possess '''more than five grams of cannabis''', the police can give you a ticket. The penalty is a $200 fine. If you pay the fine in full, you won’t get a criminal record.  
Registration and use of a trademark is the best protection for your company’s name and brand. See our information on [[Trademarks, Copyright and Other Intellectual Property (No. 231)|trademarks, copyright and other intellectual property (no. 231)]].
 
It is an offence to sell or supply cannabis to someone under age 19.


==Get help==
==Get help==


===With more information===
===Finding a lawyer===
Check the [http://www.bcregistryservices.gov.bc.ca/bcreg/corppg/index.page Corporate Registry website].
The legal issues for possession of marijuana over the legal limit can be complex and a conviction can seriously harm you. You can call the '''Lawyer Referral Service''' to get the name of a lawyer. For $25 plus taxes, you can speak to the lawyer for 30 minutes about your case, to help decide whether you would want to hire them.
:Toll-free: 1-800-663-1919
:Web: [http://www.cbabc.org/For-the-Public/Lawyer-Referral-Service cbabc.org]
 
You can contact '''Legal Services Society''' to find out if you qualify for a free lawyer under legal aid.
Telephone: 604-408-2172 in Greater Vancouver
:Toll-free: 1-866-577-2525
:Web: [https://lss.bc.ca/legal_aid/criminalLaw.php legalaid.bc.ca]
 
If you can’t afford to hire a lawyer and you don’t qualify for legal aid, try to talk with a lawyer before deciding how to respond to any charge against you. On your first appearance in court or when you enter your plea, you can talk to '''duty counsel''' at the courthouse.  These are lawyers who give free legal advice to people who have a case in the courthouse on that day.
:Web: [https://lss.bc.ca/legal_aid/criminalAndImmigrationDutyCounsel.php legalaid.bc.ca]
 
===More information===
The BC government’s '''Get Cannabis Clarity''' website explains cannabis laws, including where you can buy, use or grow marijuana.
:Web: [https://cannabis.gov.bc.ca/ cannabis.gov.bc.ca]


[http://www.smallbusinessbc.ca/ Small Business BC] has information on incorporating a company and free guides. Call 604-775-5525 in Vancouver or 1-800-667-2272 elsewhere in BC.
The federal government’s '''Cannabis in Canada''' website summarizes cannabis laws.
:Web: [http://canada.ca/cannabis canada.ca/cannabis]


Check your local library, bookstore and Chamber of Commerce for other books and resources on incorporating a company.
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Revision as of 00:46, 12 September 2020

This information applies to British Columbia, Canada. Last reviewed for legal accuracy by Paul Briggs, Paul Briggs Law in October 2018.

It is legal in British Columbia for adults to possess marijuana (up to certain quantities). There are restrictions on where you can use it and how you can buy it.

Understand your legal rights

It is legal to possess marijuana (up to certain quantities)

In October 2018, new marijuana laws came into effect. The combined effect of the federal Cannabis Act and the BC Cannabis Control and Licensing Act is that in British Columbia, it is legal for adults (age 19 or over) to carry up to 30 grams of cannabis in a public place.

Adults can possess up to 1,000 grams of cannabis in a non-public place, such as at their home. This limit is per household and is based on the expected yield from four cannabis plants. (Under the marijuana laws, adults can grow up to four cannabis plants per household.)

These maximum amounts apply only to dried cannabis. The amounts are different for cannabis in other forms, like fresh cannabis or cannabis oil. They’re also different for medical marijuana (as we explain shortly).

Using marijuana in public

Adults (age 19 or over) can generally smoke or vape cannabis in public spaces where tobacco smoking is allowed.

Under BC law, using cannabis is not allowed in the following public places:

  • Playgrounds, sports fields, skate parks, swimming pools, or any deck, seating or viewing areas associated with these places.
  • Public buildings, workplaces, or common areas of apartments or condos, and within six metres of doorways, windows and air intakes attached to these places.
  • Within six metres of bus stops, transit shelters, train stations, ferry docks and similar places.
  • Regional, provincial and municipal parks, except for designated areas.
  • Public patios. (There are some liquor establishments in BC with a tobacco smoking area on their patio. Cannabis cannot be smoked or vaped there.)

Using cannabis is not allowed on school properties, as well as any adjacent sidewalks or boulevards.

Local governments can also put restrictions on the use of cannabis in public spaces.

Tip

Smoking or vaping cannabis is not allowed inside bars or restaurants in BC. This is because no one can smoke or vape cannabis in a substantially or fully enclosed workplace.

Using marijuana in a vehicle

Under BC law, you can’t use cannabis in a vehicle. That is so whether you are driving or a passenger. And you can’t operate a vehicle if another person is smoking or vaping cannabis in the vehicle.

There is an exception to this rule. You can use cannabis in a vehicle being used as a private residence and parked in an area where camping is allowed (a camper or trailer, for example).

Using marijuana for medical purposes

If you are authorized by a health care provider to use marijuana for medical purposes, you can possess higher quantities of marijuana in public places. You can legally have up to 150 grams of dried cannabis, or a 30-day supply, whichever is lower.

You need to:

  1. Have a medical document from a health care provider recommending cannabis to treat your symptoms (similar to a prescription).
  2. Register with Health Canada to produce cannabis for your own medical purposes, or register with a licensed producer who you buy your marijuana from.

Under BC law, there are exemptions for use of medical marijuana on school property, and on inter-city buses, trains and boats. You must meet specific requirements, such as carrying proof you can possess medical marijuana.

Buying marijuana

Cannabis is legally sold at licensed retailers and the BC government’s online store. Licensed retailers are required to display a valid licence where it is visible to the public.

All legal non-medical cannabis has an excise stamp attached to its packaging. Federally-licensed producers apply the excise tax stamp for British Columbia. Each province has a different coloured cannabis excise stamp for products sold in their jurisdiction. If the product does not have a British Columbia stamp it is not legal for sale in BC.

Tip

Cannabis edibles, extracts and topicals are not currently legal for sale in Canada. The federal government intends to legalize the sale of these cannabis products by October 2019. A draft set of rules were released as part of a public consultation.

If you possess more than the legal limit

Under BC law, it is illegal to possess more than 30 grams of dried cannabis in a public place. Breaking this law is not a criminal offence. Instead, it’s like breaking the Liquor Control and Licensing Act. The police can give you a ticket, which can result in a fine and possible jail time. But you don’t get a criminal record. For a first offence, the fine can be up to $5,000 and up to three months in jail.

(There is an exemption for medical marijuana. You can legally possess in a public place up to 150 grams of dried cannabis or a 30-day supply, whichever is lower. You must show proof you can possess medical marijuana.)

If you have more than 50 grams of dried cannabis in your possession, you can be charged under the Controlled Drugs and Substances Act. This is a criminal offence. It can result in a criminal record.

If you are charged with possession over the legal limit

In responding to a charge of possessing cannabis over the legal limit, you must decide how to plead. Pleading guilty means you accept responsibility for the offence. Pleading “not guilty” means the court will set a trial.

At the trial, the prosecutor (also called Crown counsel), must prove three things beyond a reasonable doubt: knowledge, consent and control. The prosecutor does this by proving that:

  • you had control of the marijuana — for example, the police found it on you or in an area you controlled, such as your car, suitcase or bedroom, and
  • you knew the marijuana was there, and
  • you consented to having the marijuana in that place.

If the prosecutor proves all these things, the judge will convict you.

To prove these things, the prosecutor will have witnesses tell the court (testify) about the situation when they found the marijuana on you. You can question (cross-examine) each witness the prosecutor uses.

After the prosecutor finishes, you have the opportunity to tell the court what happened. To do this, you might testify (give evidence) yourself. You don’t have to. If you do, you take an oath promising to tell the truth. If you have any witnesses who saw what happened and can support your story, you can call them to testify. The prosecutor can cross-examine them.

You and the prosecutor then summarize your positions by making submissions to the court.

For more on the process, see our information on defending yourself against a criminal charge (no. 211).

If you are convicted of possession over the legal limit

Penalties for possession of marijuana over the legal limit depend on the amount of marijuana involved. The court typically gives fines for smaller quantities and up to five years in jail for larger quantities.

Penalties also depend on how the Crown proceeds in the case. Possession over the legal limit is a hybrid offence, meaning the prosecutor can treat it as a less serious (summary) offence or a more serious (indictable) offence. If the prosecutor treats it as an indictable offence, the penalties are higher: up to five years in jail.

Tip

If it is your first offence, you can ask the prosecutor to be considered for diversion. This program diverts you out of the court system to complete a probation period that may include community service work or counselling (for example). Or, if you go before a judge for sentencing, you can ask for a discharge. Like diversion, a discharge allows you to avoid getting a criminal record, which can prevent you from traveling to other countries, getting certain jobs, and applying for citizenship.

Common questions

What is the legal limit for other forms of cannabis?

In the Cannabis Act, “cannabis” is defined as a cannabis plant or any substance that contains a cannabis plant. The legal limit of 30 grams is for dried cannabis. One (1) gram of dried cannabis is equal to:

  • 5 grams of fresh cannabis
  • 15 grams of edible product
  • 70 grams of liquid product
  • 0.25 grams of concentrates (solid or liquid)
  • 1 cannabis plant seed

This means, for example, that an adult can legally possess 150 grams of fresh cannabis.

If I’m charged with possession over the legal limit, is the amount of marijuana important?

Yes — a small amount is less serious. The more you have, the greater the chance you may be charged with possession for the purpose of trafficking, a more serious offence with more serious penalties. The way the marijuana is packaged is also important.

Can I bring marijuana across the border?

No. It’s illegal to transport cannabis across the Canadian border. It doesn’t matter whether you’re leaving or entering Canada, or what the laws of your destination are. This prohibition applies even if you are authorized to use cannabis for medical purposes, and no matter how much cannabis you have with you.

What are the rules for young people?

If you are under age 19, it is not legal in BC to possess or use cannabis. (There is an exemption for medical marijuana, with proof you can possess medical marijuana.)

If you are under 19 and you possess more than five grams of cannabis, the police can give you a ticket. The penalty is a $200 fine. If you pay the fine in full, you won’t get a criminal record.

It is an offence to sell or supply cannabis to someone under age 19.

Get help

Finding a lawyer

The legal issues for possession of marijuana over the legal limit can be complex and a conviction can seriously harm you. You can call the Lawyer Referral Service to get the name of a lawyer. For $25 plus taxes, you can speak to the lawyer for 30 minutes about your case, to help decide whether you would want to hire them.

Toll-free: 1-800-663-1919
Web: cbabc.org

You can contact Legal Services Society to find out if you qualify for a free lawyer under legal aid. Telephone: 604-408-2172 in Greater Vancouver

Toll-free: 1-866-577-2525
Web: legalaid.bc.ca

If you can’t afford to hire a lawyer and you don’t qualify for legal aid, try to talk with a lawyer before deciding how to respond to any charge against you. On your first appearance in court or when you enter your plea, you can talk to duty counsel at the courthouse. These are lawyers who give free legal advice to people who have a case in the courthouse on that day.

Web: legalaid.bc.ca

More information

The BC government’s Get Cannabis Clarity website explains cannabis laws, including where you can buy, use or grow marijuana.

Web: cannabis.gov.bc.ca

The federal government’s Cannabis in Canada website summarizes cannabis laws.

Web: canada.ca/cannabis
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