Retail & Shops · 5 min read · Last updated
Toronto's Second Hand Shop licence reaches further than most people expect: it covers stores that sell or exchange used goods, and it also covers people who go door to door collecting or buying them. If used goods are your inventory, this is the licence that legitimizes the business. Here's who needs it and how to get it.
The City of Toronto lists this under its “Business” category: “Businesses that sell or exchange second-hand goods from a shop or store or a person who goes from house to house to collect or purchase second-hand goods.”
Who needs this licence?
The category covers businesses that sell or exchange second-hand goods from a shop or store — and, less obviously, a person who goes from house to house to collect or purchase second-hand goods. Vintage and thrift stores, used-electronics dealers and used-goods exchanges sit squarely inside it.
The neighbouring categories matter: lending against goods is pawnbroking, dealing in old gold and precious metals for smelting is the jewellery buyers category, and scrap metal, vehicles and tires for sale push a business into the salvage shop or salvage yard classes. Selling only new goods generally needs no municipal operating licence at all — second-hand inventory is the trigger.
What documents do you need?
- Two pieces of government-issued identification for the applicant, one with a photo
- Corporate documents or business name registration for the entity
- Proof of the premises — signed lease or deed — where there is a storefront
- Items on the City's supporting-documents checklist for the category
House-to-house buyers without a storefront should still expect the identification and registration requirements; the premises proof applies where there is a shop.
Zoning and premises requirements
A storefront must be in a zone permitting retail use — usually straightforward on commercial strips, but verify the exact address before leasing. If the business includes any outdoor storage or handling of scrap-type materials, stop and re-check the category: outdoor storage belongs to the salvage yard licence and a much stricter zoning conversation.
Inspections and approvals
Second-hand dealing comes with the record-keeping expectations that run across Toronto's used-goods categories: know what you took in, and from whom, and be able to show it. Municipal Licensing & Standards inspects premises and records for licensing compliance, and traceability of goods is the recurring theme.
How much does it cost?
Application and annual renewal fees are set in the City's licensing fee schedule and confirmed when you apply; they vary by category and are paid to the City directly.
How to apply
Apply through Municipal Licensing & Standards — the City's online Business Licence & Permit portal has accepted applications since January 2026, and in-person filing remains available. Bring the identification, registration, premises documents and checklist items together.
Permits2Go assembles that package in one workspace so nothing arrives incomplete.
Renewals and staying compliant
Renew annually, before expiry. Keep records continuous and current between renewals, and update the City on ownership or address changes — a new address is a new application, not a transfer.
Quick quiz: test what you learned
Three questions, all answered in this guide. Click an answer to check it.
1. Besides stores, who else does Toronto's Second Hand Shop licence cover?
The City's definition includes itinerant house-to-house collectors and purchasers of used goods, not just storefronts.
2. What generally triggers the need for this licence?
New-goods retail generally needs no municipal operating licence — it is the second-hand inventory that brings a business into the category.
3. Which situation pushes a used-goods business out of the Second Hand Shop category?
Scrap-type materials move a business into the salvage classes — indoor storage means the salvage shop licence, outdoor storage the salvage yard licence.
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.