Retail & Shops · 6 min read · Last updated
Toronto splits salvage businesses by where the material sits: indoor storage of scrap metal, vehicles and tires for sale makes you a Second Hand Salvage Shop; move that storage outdoors and you are a Second Hand Salvage Yard with stricter rules. This guide covers the shop — the indoor category — and exactly where the line to a yard licence runs.
The City of Toronto lists this under its “Business” category: “Businesses that have indoor storage of scrap metal, vehicles and tires for sale.”
Who needs this licence?
The Second Hand Salvage Shop licence covers businesses with indoor storage of scrap metal, vehicles and tires for sale. Auto recyclers and parts dealers, scrap metal buyers and tire resellers operating inside a building are the typical holders.
The indoor/outdoor line decides everything. Keep every stored item — the scrap, the vehicles, the tires — inside the building and the shop licence fits. The moment inventory is stored outside, even in a fenced rear lot, the operation is a salvage yard: a different licence with a stricter zoning profile. An operation that stores material both ways should plan around the yard requirements, since outdoor storage is what the City regulates hardest.
What documents do you need?
- Two pieces of government-issued identification, at least one with a photo
- Corporate documents or business name registration for the operating entity
- Proof of the premises — the signed lease or the deed
- Items on the City's supporting-documents checklist for the category
Zoning and premises requirements
The premises must be zoned for the use — salvage-type uses generally point to industrial and employment areas rather than retail strips, so confirm the address early. Because the licence depends on storage staying indoors, the building itself is part of compliance: capacity, loading and how material moves in and out are worth planning so that overflow never ends up in the parking lot.
Inspections and approvals
Municipal Licensing & Standards inspects for licensing compliance, and the indoor-storage condition is the obvious first check — material stored outside a licensed shop is the fastest route to enforcement. As a second-hand-goods category, salvage shops also carry record-keeping expectations: what came in, from whom, and where it went.
How much does it cost?
Expect an application fee and an annual renewal fee, set in the City's licensing fee schedule and confirmed during the application. Both are paid to the City directly.
How to apply
Apply to Municipal Licensing & Standards through the City's online Business Licence & Permit portal — live since January 2026 — or in person at the licence office. Confirm the zoning and the indoor-storage plan first, since they determine whether shop or yard is the right application, then file with identification, corporate documents, proof of premises and the checklist items.
Permits2Go builds the package alongside you so the file opens complete.
Renewals and staying compliant
Renew annually. Between renewals, hold the indoor line: seasonal overflow into outdoor space is a category problem, not just a housekeeping one. Report changes of ownership or premises to the City as they occur.
Quick quiz: test what you learned
Three questions, all answered in this guide. Click an answer to check it.
1. What distinguishes a Second Hand Salvage Shop from a Second Hand Salvage Yard in Toronto?
The two categories cover the same materials — storage location is the entire distinction, and outdoor storage brings the stricter yard rules.
2. A licensed salvage shop starts stacking tires in its fenced rear lot. What is the licensing consequence?
Fencing does not change the category — any outdoor storage of the salvage materials is what defines a yard.
3. Which materials does the salvage shop category name?
Scrap metal, vehicles and tires are the salvage materials; precious metals and general used goods belong to other second-hand categories.
Skip the paperwork
Tell Permits2Go about your business and it assembles the licence application for you — document checklists, e-signatures and a guided workspace for Toronto, with more cities on the way.
This guide is general information, not legal or professional advice. Licensing requirements, by-laws and fees change and vary by municipality — always confirm the current rules with the City before you apply.