Soap Business - Manufacturing vs Artisan / Craft

[user 12568]

Hi everyone,

I live in Kitchener, Ontario, Canada. I checked with my local by-law office and they stated that I cannot start a soap business in my home because they consider it to be manufacturing. I challenged them on this and they told me "making soap is manufacturing, making a quilt is a craft". Well, after some further investigation, I found a Government of Canada website that states quite the opposite:

http://www.cbo-eco.ca/en/index.cfm/...art-an-artisan-and-craft-business-in-ontario/

They state in the very first paragraph, on the very first page that:

"The artisanal and craft industries are comprised of many disciplines, and can include a number of professions, from sculptors or quilters, to jewellery-maker or a mechanic who custom-designs vehicles. Artisanal businesses and craft businesses produce a wide variety of products ranging from unique handmade artistic items to mass-produced collectibles or specialty items. In fact, any business creating and selling products made with a “personal touch" could be defined as an artisanal or craft business."

How does this statement NOT include small batch, handmade soaps??? I'm just curious to hear how other people (in Ontario / Canada specifically) managed to start their soap businesses in their homes. Are you classified as a manufacturing business or as an artisan / craft business?

Thanks!
Ken

 

[Relle]

Lindy, should be able to answer this question for you.

 

[Stinkydancer]

Interesting- I will be watching this thread. I'm curious about it.

 

[JessieD]

That's a very good question! Maybe bring some soap with you. They may have a hard time saying it doesn't fit those guidelines...Lol.

Also being in Canada, I'm very curious to see where this goes....

 

[Lindy]

In Canada each city/town/regional district can make their own rules. They may be concerned about the lye and I think if it were me I would approach them for a in person meeting to discuss this. Come prepared with information on your process as well as how many bars you expect to produce in a month.

We are actually manufacturing, however, we are also an artisanal craft. Can I ask what city/town you are in? What are they wanting you to do for space? Have they said? Perhaps you could create a space they would consider a shop....

ETA - I am listed as manufacturing as my business and licensed as a home business making (manufacturing) soaps, lotions and other personal care products.

 

[user 12568]

Update: It appears I am unable to works around the by-laws here. No matter what I do / say, I am not legally allowed to manufacture soap in my home for business purposes. The dream is dead... :cry:

 

[The Efficacious Gentleman]

Do you have an out-building or anything?

 

[user 12568]

Unfortunately, not... although I'm very tempted to build one! LOL!

 

[neeners]

there's a soaper in Waterloo. Hopefully they can chime in to help you with your question.

 

[user 12568]

I'd really appreciate if they could... I did already try contacting 1 soaper in Waterloo, but the response was eerily quiet. :shifty:

 

[My Mountain Soaps]

Update: It appears I am unable to works around the by-laws here. No matter what I do / say, I am not legally allowed to manufacture soap in my home for business purposes. The dream is dead... :cry:

Dont give up! God is bigger than your problems! keep pushing!

 

[Khanjari]

How about telling them, u have a sensitive skin and need to make soaps for personal use?

 

[The Efficacious Gentleman]

How about telling them, u have a sensitive skin and need to make soaps for personal use?

That's not the problem, that's the current situation.

But when selling them (what the OP wants to do) then it enters the realms of manufacturing and cannot be done at home - at the moment, hopefully we get some advice on the situation from another local

 

[user 12568]

Currently, the only way around the by-laws would be to either:

a) tell them I will be selling soaps, and omit the part about actually making them in my home (i.e., lie)

or

b) find a location where I can make soap off-site

Unfortunately, option b) is too expensive for my budget, and the whole point of jumping through all these hoops it to go "legit". Having to lie in order to do it seems contrary to the goal.

 

[The Efficacious Gentleman]

A rather bad situation, for certain.

What do they class as a home, out of interest? They should have that rather well defined. Also, what classes as making soap? Have they explained why you can't do it from home?

 

[user 12568]

Unfortunately, the by-law office was not clear on definitions. They were very clear, however, in stating that making soap was manufacturing and that manufacturing was not permitted in a residence. :evil:

 

[The Efficacious Gentleman]

A shed would not be a residence. Shouldn't be too expensive to get one, if you have space

 

[user 12568]

Update

So... just a little update...

I've been able to locate three other soapers in my city (all of whom sell their soaps professionally). After contacting each of them via email, only one responded - basically stating that registration and licensing were optional and that I really didn't need to do it to sell soap. Uhhh... WRONG!!! Obviously, she's got no idea what she's talking about, so I'll assume her business is not legit. My fear now is that the two unresponsive people have also not setup their business properly, so will be little help to me.

Oh well. at least it's good to know I'm not the only one in this city being screwed over by crappy by-laws. :evil:

 

[The Efficacious Gentleman]

That is not good news at all!

Out of interest, why is the registration required? Is it for setting up as a business? If so, can you go as a sole trader to start with, no business numbers etc? A lot of countries have options for that, as long as you pay your taxes properly. Then, when people are buying your products like crazy, you can lease a small place to do it.

Or am I dreaming for you?

 

[user 12568]

Registering the business with the province isn't a problem... it's dealing with the city in order to get a vendor's permit and business license that's the issue. Without a business license and vendor's permit, I can't "legally" sell my soaps within city limits. They also stated I need to complete a police clearance, and that my home has to pass a fire inspection by the local authorities. It just gets dumber and dumber...