Do You Need a License to Sell CBD? How to Sell CBD Legal?
CBD or cannabidiol is a highly popular health supplement received from industrial hemp. People say it produces calming and relaxing effects as well as helps relieve pain and inflammation. The potential benefits of taking CBD products have become the reason for the growing rates of sales of these products. While some people buy CBD, others see this as a source of revenue. If you are one of the latter, then you are probably interested in getting answers to the questions like is it legal to sell CBD oil online? Do I need a license to sell CBD? Can anyone sell CBD oil without having their own production facilities? All the answers are here, in this article, so make yourself comfortable and let’s talk about difficult things in simple words!
Do you want a short answer to the question of do you need a license to sell CBD? Overall, yes, you need it. However, the legislation in different countries and states is not the same. You are required to get a license to sell CBD in Texas, while you may not need it in Arkansas. So it depends. The situation is no better in Europe. Some countries require CBD retailers to get a license, whereas others don’t. The legislation on CBD sales differs even in different regions of the same country. The only way to know whether you need a license to sell CBD or not is to consult your local authorities involved in CBD sales regulation.
However, any business owner is obliged to pay taxes so you have to register your brand. Besides, if you plan to become a CBD wholesale distributor, you’ll need to sign contracts with the manufacturing companies, which require your business to be registered and licensed. Entrepreneurs owning CBD retail stores will also need to get a reseller license to be able to buy CBD oil from wholesalers.
No matter if you are establishing an offline CBD shop or an online CBD business, you still require getting all the documents that make your operations legal.
Within the past years, the CBD market is booming due to the changes in the legal regulations on hemp-derived CBD oil. For many years, hemp and marijuana have been scheduled as controlled substances. For this reason, CBD was illegal regardless of whether it was derived from hemp or from marijuana. But is it legal to sell CBD oil online now?
The first step towards changing the status of hemp-derived CBD oils was taken in 2014. The Farm Bill issued that year allowed using hemp for scientific purposes. The 2018 Farm Bill strengthened the positions of hemp-derived CBD oil as a safe substance. This document gave way to legal CBD oil sales. Besides, due to the 2018 Farm Bill, farmers got the right to grow and process hemp with the possibility of selling it.
As for the European countries, CBD oil was classified as Novel Foods in 2019. This allowed CBD oil retailers to make their business legal. However, the European legislation only allows the sales of products received from hemp seeds (e.g. CBD oil, CBD-infused gummies). Those received using other parts of the hemp plant (like a tincture) still remain in the gray area and are not officially allowed for sale.
It’s important to mention that the US Farm Bill allows selling CBD products that contain no more than 0.3% of THC. It is a cannabinoid with intoxicating effects, which produce the feeling of euphoria or the so-called high. Different European countries set the borderline for THC concentrations in CBD products at levels ranging from 0.2% to 1%. To prove the amount of THC in CBD oil doesn’t exceed the set limits, you need to have a document issued by a third-party laboratory called the Certificate of Analysis, where the exact figure will be stated.
Selling or buying CBD oil that contains more than the mentioned amounts of THC is illegal and prosecuted by law.
Anyone older than 18 or 21 (depending on the age of majority in their state) can get involved in the CBD business. While it may seem easy and all clear, starting a legal CBD business is a task that requires you to make many difficult choices.
Can I sell CBD online, or should I establish an offline store? The benefits of online CBD business are numerous. Of course, you’ll need a retail license and other documents, just like it is with an offline shop, but you’ll get much more opportunities. Selling online, you’ll be able to get more customers and save a significant sum of money on rental fees and payments for products storage. Besides, no lockdown will ever be able to influence your business.
Should I become a retailer, or should I sell CBD in bulk? Both options are financially attractive. If you have enough experience and expertise in sales, then you should probably go in for bulk sales. Among the benefits you get, there is higher cost-effectiveness due to wholesale prices for the products and reduced shipment expenses. In case you lack experience in the sphere, starting a CBD retail store might be a better idea.
Should I establish my own CBD brand or partner with a white label CBD company? The decision regarding a private brand or rebranding of white label products should be made based on your financial ability. If you can invest in a private label, go for it! But if your budget is limited, you can still develop and promote your brand due to partnership with a white label CBD company, like HempWhiteLabel.eu.
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