Main steps in short:

• • Understand regulatory and legal requirements. Do market research.
  • Decide on the type of cannabis business. Choose a location. Check local zoning regulations.
  • Develop a solid cannabis business plan. Secure financing.
  • Submit the initial application. Pay application fees.
  • Receive conditional approval. Pay permit fees.
  • Obtain the required permit. Comply with all state and local laws.
  • Obtain a dispensing facility or cultivation facility permit, if required.
  • Register your business as an employer and a tax payer.
  • Keep track of your ongoing compliance requirements.
    • Cannabis Taxes
    • Cannabis Advertising Regulations

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1. Understand regulatory and legal requirements. Do market research.

Research the laws and regulations governing adult-use and medical-use cannabis for more information about the regulatory requirements for licensure where you want to start your business.

Virginia Cannabis Legalization

In 2019, Virginia became the 33rd state to launch a medical cannabis program with five vertically integrated licenses (pharmaceutical processors). Virginia’s first medical cannabis dispensary began operations in October 2020.

On July 1, 2021, Virginia legalized the possession of up to an ounce of cannabis for personal use, home cultivation of up to four plants, and private transfer of up to an ounce of cannabis between people aged 21 and over without exchanging anything else of value. However, the state has not yet signed into law any regulations that would establish a regulated recreational cannabis market.

Virginia Cannabis Market

At their meeting on December 2, 2025, the Joint Commission on the Future of Cannabis Sales unveiled a plan with a timeline proposing to launch the adult-use retail cannabis market by November 1, 2026. The proposal includes limiting retail cannabis licenses to a maximum of 350, removing the “opt-out provision” for localities, and imposing a sales tax of up to 3.5% on cannabis products. The licensing process would start in Summer 2026 if the proposal is approved, overseen by the Virginia Cannabis Control Authority (VCCA).

The following license types would be available: nursery, cultivation (tiered by size), manufacturing/processing, transporter, retail, microbusiness, delivery, and testing facility. It is proposed that license limits are established to allow no more than 350 retail establishments and no more than 10 Tier V cultivation facilities. With regard to the other license types, it would be up to the Board of Directors of the VCCA to decide whether to set limits on them.

2. Decide on the type of cannabis business. Choose a location. Check local zoning regulations.

Medical Cannabis Licenses Types Available in Virginia

In order to operate a medical cannabis business in Virginia, a pharmaceutical processor permit must first be obtained. Only a business possessing the pharmaceutical processor permit can then apply for a dispensing facility or a cultivation facility permit. All permits are issued by the Virginia Cannabis Control Authority (VCCA).

In Virginia, the number of pharmaceutical processor permits is limited to one per each health service area (there are five health service areas in total). The VCCA publishes on its website a notice of open applications where there is an available pharmaceutical processor permit. Dispensing facility permits and cultivation facility permits are limited to five and one per health service area, respectively. Both facility types must be located in the same health service area as the pharmaceutical processor by which they were established.

Cannabis Delivery in Virginia

Medical cannabis delivery services became legal under the provisions of HB 933 for patient and caregivers registered with the state and with a valid written medical cannabis certification. From July 1, 2025, a medical cannabis facility that wishes to deliver or transport cannabis must first obtain written approval from the VCCA.

Cannabis Delivery Service by State

3. Develop a solid cannabis business plan. Secure financing.

Initial application requirements include business and marketing plans relating to the operations of the pharmaceutical processor or the sale of cannabis products. A typical cannabis business plan outline includes sections such as Executive Summary, Market Overview, Sales Strategy, Operating Plan, Organizational Structure (+ Diversity Plan) and Financial Plan.

4. Submit the initial application. Pay application fees.

The application process for permits occurs in four stages: submission of initial application, reviewing and scoring of the application, award of conditional approval, and granting of a pharmaceutical processor permit. An applicant shall submit the required application fee along with the following:

• The name and address of the applicant and the applicant’s owners.
• The location within the health service area established by the State Board of Health that is to be operated under such permit.
• Detailed information regarding the applicant’s financial position to demonstrate the financial capacity of the applicant to build and operate a facility to cultivate cannabis plants.

The VCCA shall then review the initial application and notify the applicant of denial or conditional approval. If there is more than one qualified applicant, a lottery or a similar process may be conducted to select the applicant to whom the conditional approval will be awarded.

• Details regarding the applicant’s plans for security to maintain adequate control against the diversion, theft, or loss of the cannabis plants and the cannabis products.
• Documents sufficient to establish that the applicant is authorized to conduct business in Virginia and that all applicable state and local building, fire, and zoning requirements and local ordinances are met or will be met prior to issuance of a permit.
• Any business and marketing plans related to the operation of the pharmaceutical processor or the sale of cannabis products.
• Text and graphic materials showing the exterior appearance of the proposed pharmaceutical processor.
• A blueprint of the proposed pharmaceutical processor that shall show and identify (i) the square footage of each area of the facility; (ii) the location of all safes or vaults used to store the cannabis plants and products; (iii) the location of all areas that may contain cannabis plants or cannabis products; (iv) the placement of walls, partitions, and counters; and (v) all areas of ingress and egress.
• Information necessary for the board to conduct a criminal background check on the facility owners with 5.0% or greater ownership.

5. Receive conditional approval. Pay permit fees.

If granted conditional approval, an applicant shall have one year from date of notification to complete all requirements for issuance of a permit, including employment of a pharmacist-in-charge (PIC), responsible party, and other personnel necessary for operation of a pharmaceutical processor, construction or remodeling of a facility, installation of equipment, and securing local zoning approval.

The applicant shall also submit information necessary for the VCCA to conduct a criminal background check on the applicant’s material owners.

6. Obtain the required permits. Comply with all state and local laws.

The board may issue a permit when all requirements of the board have been met, which includes:

• Designation of a PIC and responsible party;
• Evidence of criminal background checks for all employees and delivery agents of the pharmaceutical processor to ensure compliance with § 4.1-1602 of the Code of Virginia;
• Evidence of utilization of an electronic tracking system; and
• A satisfactory inspection of the facility conducted by agents of the board.

Before the board issues any permit, the applicant shall attest to compliance with all state and local laws and ordinances.

An applicant who has been awarded a pharmaceutical processor permit must commence operations within 180 days of being notified of the issuance of the permit. Commencement of operations is considered to occur when the processor has started to cultivate cannabis plants or has received cannabis products from another pharmaceutical processor. If not, the board may rescind the permit, unless the delay was caused by circumstances beyond the control of the permit holder.

After commencing operations, the processor must inform the VCCA of its normal hours of operation.

7. Obtain a dispensing facility or cultivation facility permit, if required.

To operate a cannabis dispensary or an additional cultivation facility, a separate application and fee must be submitted, along with the following information:

• For a dispensing facility:
  • Name and address of the facility, which shall not be within 1,000 feet of a school or daycare.
  • Name and address of the facility’s material owners.
  • Name and signature of PIC practicing at the facility.
  • Details regarding the applicant’s plans for security to maintain adequate control against the diversion, theft, or loss of cannabis products.
  • Information necessary for the board to conduct a criminal background check on the facility material owners.
• For a cultivation facility:
  • Name and address of the facility, which shall not be within 1,000 feet of a school or daycare.
  • Details regarding the applicant’s plans for security to maintain adequate control against the diversion, theft, or loss of cannabis.
  • Distance of the proposed additional cannabis cultivation location from the pharmaceutical processor.
  • Details regarding access to a secure transportation network between the proposed additional cannabis cultivation location and the pharmaceutical processor.
  • Economic viability of the additional cannabis cultivation at the proposed location.
  • Any demonstrated demand for additional cannabis cultivation.

Prior to issuing the permit, the facility shall be inspected. The dispensing facility or cultivation facility must commence operations within 90 days or 180 days, respectively, from the date the permit is issued.

8. Register your business as an employer and tax payer.
9. Keep track of your ongoing compliance requirements.

All records relating to inventory, laboratory results, and dispensing must be maintained for a period of 3 years.

Virginia Cannabis Taxes

Virginia consumers are required to pay a 5.30% sales tax on every purchase. There is no additional excise tax on medical marijuana in Virginia.

In spring 2023, Virginia enacted legislation decoupling from federal IRC Section 280E – enabling state-licensed cannabis businesses to deduct their ordinary business expenses for state income tax purposes.

Cannabis Advertising Regulations in Virginia

According to Virginia’s cannabis laws:

• Advertising must accurately and legibly identify the medical cannabis facility responsible for its content and include a statement that cannabis products are for use by patients only.
• Medical cannabis facilities may provide communication and engagement for educational purposes with healthcare practitioners, patients, parents, legal guardians, registered agents, and the general, including the dissemination of information permitted by 3VAC10-40-160 and educational materials.
• Any advertisement for cannabis products that is related to the benefits, safety, or efficacy, including therapeutic or medical claims, shall:
  • Be supported by substantial, current clinical evidence or data; and
  • Include information on side effects or risks associated with the use of cannabis.
• Any website or social media site owned, managed, or operated by a medical cannabis facility shall employ a neutral age-screening mechanism that verified that the user is at least 18 years of age, including by using an age-gate, age-screen, or age verification mechanism.
• All outdoor signage must comply with local or state requirements.
• A medical cannabis facility cannot advertise
  • through any means unless at least 85% of the audience is reasonably expected to be 18 years of age or older, as determined by reliable, up-to-date audience composition data, or
  • on television or radio at any time outside of regular school hours for elementary and secondary schools.
• Advertising at sporting events and billboard advertisements are prohibited.
• Advertising on a public transit vehicle, public transit shelter, bus stop, tax stand, transportation waiting area, train station, airport, or any similar transit-related location is prohibited.
• Marketing of free promotional items, including gifts and “free” or “donated” cannabis is prohibited.

(Chapter 40. Regulated Operations. Part IV. Advertising.)

How Can Cannabusinessplans Templates Help Start or Grow Your Cannabis Business?

The majority of cannabis licensing programs require the submission of a business plan as part of the application for a cannabis license. Even if it is not mandated by law, a business plan is essential for securing funding and assisting an applicant in understanding how much money it will take to start a cannabis business and how much profit it could make.

A well-structured business plan can make all the difference in helping you demonstrate your proposed cannabis business’ compliance with regulations and its operational viability.

Our complete cannabis business plan template package is everything you need to create a professional business plan for a cannabis business with expert financials and projections. A complete cannabis business plan template package includes:

• Excel Financial Model: change variables and immediately see the impact, break down operational and capital costs, know how much it will take to get into the business and the potential profits.
• Word Business Plan: value proposition, market analysis, marketing strategy, operating plan, organizational structure, financial plan and more.
• PowerPoint Pitch Deck: provide a quick overview of your cannabis business plan.

Cannabis Micro Cultivation Business Plan Sample, Virginia

Hemp/CBD business plan templates are available at hempcbdbusinessplans.com.