Becoming a CBD retailer: what are the legal and administrative requirements?

Since 2022, French law has authorized the sale of CBD products within the country, provided that several rules are followed: 

• they must come from the Cannabis sativa L. variety,
• they must contain a maximum of 0.3% THC,
• The sale of plants or flowers for smoking is prohibited to retailers, unless they are licensed producers.

Food products such as confectionery, herbal teas, flours, and CBD products for animals require marketing authorization issued by the EFSA (European Food Safety Authority).

The legal framework also requires caution regarding commercial communications about CBD: products must not be presented as therapeutic solutions and must not be confused with cannabis, for example.

Failure to comply with THC levels may result in criminal penalties, as products containing more than 0.3% THC are considered narcotics. Cosmetics or food products that do not comply with current French legislation may also be subject to confiscation and fines, which can quickly reach very high amounts. To stay informed about rapidly changing regulations, legal monitoring is essential.

> See also: CBD retailers: 7 mistakes to avoid

Choosing the legal status of the company

Becoming a CBD retailer and opening your own business does not require any qualifications. As a future retailer, however, you must register your business with the INPI's one-stop shop. INPI. There are several legal statuses available: sole proprietorship, SASU, LLC, etc. It is up to you to choose the one that best suits your level of investment and expected volume of business. To avoid any ambiguity, it is recommended that you formulate the corporate purpose of the company around the trade of hemp-based wellness products.

The formalities are the same as for a traditional company: you will need to file the articles of association, open a business bank account, and publish a notice in a legal gazette for companies. 

Specific obligations for CBD retailers

Reselling CBD means ensuring that your products are fully traceable. From an administrative standpoint, this means that you are required to provide your customers (and, in the event of an inspection) with certificates attesting to a THC content of less than 0.3% and the origin of the CBD. 

Food and cosmetic products are governed by European regulations in force concerning composition, preservation, resale, and communication relating to food and cosmetic products.

Budget and insurance: plan ahead as much as possible

This is not strictly speaking a legal or administrative obligation, but the budget you have available will enable you to take the first steps, such as drawing up a business plan, building up stock, or paying the entry fees, which amount to an average of €5,000 if you opt for a franchise structure.

Taking out professional liability insurance and comprehensive insurance is not mandatory, but it is strongly recommended. 

Banks and insurance companies can sometimes be reluctant to insure or finance a CBD business. Remember to plan ahead and compare offers before committing yourself. In addition, putting together a solid application that includes your business plan, market research, and short-, medium-, and long-term prospects will help reassure financial institutions.

> See also: What financing and assistance is available for CBD companies in France? 

While anyone can become a CBD retailer, numerous legal and administrative requirements can complicate the process of setting up a business. Thitan supports you in making your business a success by offering high-quality products that comply with French legislation. Need more information? Contact us!

Thitan, the benchmark for high-quality French CBD wholesalers

Whether you are a new online store or a regional brick-and-mortar retailer, Thitan is committed to providing reliable, clean, powerful, and above all, compliant CBD products. From transparency to quality control and customer support, everything is taken care of so that you can grow your business with peace of mind.

Our CBD products undergo strict quality controls and have consistent CBD levels, batch after batch. Discover our wide range of products and contact us for more information!