When you open a company in Cyprus, depending on the type of activity which will be effectuated, there are a set of business permits and licenses that have to be issued by the relevant local authorities.
Some types of companies, though, like those which activate in the financial sector, must comply with stricter regulations and have to obtain special licenses prior to starting to do business.
Our company formation consultants in Cyprus can offer all the necessary information related to the business permits and licenses required in Cyprus for each type of business. You can also rely on us if you want to open a company in Cyprus and need assistance in applying for any business permit or license, in accordance with the activities of your company.
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What are the most important industries in Cyprus?
Foreign investors are attracted to Cyprus because of many reasons, however, one of the most important refers to the possibility of setting up businesses in certain industries without any restrictions. These are also the economic sectors in which special licenses and permits are required. Amon these industries we mention the following:
- the retail license which is one of the most important industries for the Cypriot economy;
- the trading license – thanks to its geographical location, Cyprus is one of the most important trading hubs in Europe;
- the hospitality sector which attracts impressive numbers of tourists in cities like Larnaca, Paphos and Limassol;
- the food industry, which is made of restaurants and bars, but also of food processing companies;
- agriculture which is one of the main contributors to the Cyprus economy and which is expanding at a very fast pace;
- the financial industry, which is one of the most innovative sectors in Cyprus and which now allows for the creation of cryptocurrency companies;
- the gaming/gambling industry which provides for very advantageous conditions on the island.
Those interested in setting up companies in any of these industries will require to obtain specific licenses when registering a business can rely on the support of our Cyprus company formation advisors.
Legislation on obtaining business permits and licenses in Cyprus
When seeking to apply for a special license or permit, a Cypriot company must respect various laws. The Company Law is one of the most important, however, there are also specific laws which provide for each industry and authorities which coordinate the procedure of applying for such licenses.
Our local consultants can offer tailored information and assistance when it comes to opening a company in Cyprus and obtaining the necessary licenses for starting the operations.
Examples of business licenses which must be obtained in Cyprus
Some examples of the business permits and licenses in Cyprus which have to be obtained from the relevant authorities include:
- A sales permit, which is issued by the municipal authority of the area where the company is located;
- An alcohol and tobacco permit which is necessary in various industries, such as retail and tourism;
- An import or export license, which is obtained from the Department of Customs and Excise;
- A banking and insurance license, overseen by the Central Bank of Cyprus;
- A general business permit which is issued by the Companies Registrar in Cyprus;
- A professional driving license, issued by the Department of Road Transport;
- A food service permit which must be obtained when opening a catering business or a restaurant;
- A child care license which is needed when starting a daycare or completing other activities in the education sector.
A person or a business entity which intends to work in the construction sector has to be issued a permit from the local authority in the area where the building will take place. Our company formationadvisors in Cyprus can offer more details on this type of permit on the island.
The license for the use of professional premises in Cyprus
To utilize any building or another kind of premises for effectuating business activities, such as industrial, commercial or professional activities, in Cyprus, a license for the use of professional premises must be obtained.
This license is issued by the Municipal or Community Council, in the circumstances in which the activity will be undertaken.
This type of license can be obtained by all private or legal entities, if the Municipal or Community Council is proven that certain criteria are met. Our Cyprus company formation agents can offer further details on what these criteria consist of.
Obtaining a trading license in Cyprus
As mentioned earlier, trading is one of the most important economic sectors in Cyprus. Moreover, the trading license is the more important the number of related activities to it is greater. It is worth mentioning that not only companies involved in import-export activities need to obtain it, but also Cyprus companies in retail and other commercial activities. Restaurants and other HORECA companies also need a trading license if the products they use in preparing food and/or beverages are imported.
In order to obtain a trading license in Cyprus, a company must also register with the Customs Authorities apart from the Trade Register. Also, for certain activities an EORI number is required.
The documentation for obtaining a trading license is more complex, which is why it is advisable to ask for assistance. Our company registration agents in Cyprus can help with the opening of a trading company or obtaining a license in this sense.
The sales permit in Cyprus
Cyprus is a country in which small businesses thrive and traders engage in sale activities for which they need a special license called a sales permit which needs to be obtained with the municipality in the city the economic operator activates.
Those who want to apply for sales permits which for large companies imply obtaining retail licenses must complete the following procedure:
- – they need to apply for a Health Certificate;
- – they also need to obtain a Certificate of Appropriateness from the Department of Electrical and Mechanical Services if they serve cooked food;
- – they are also subject to several requirements imposed by the Department of Road Transport.
Also, a public health services inspection must be undergone in order to be able to sell the goods in the selected premises.
For those who operate food establishments, the tobacco and liquor licenses can also be useful if they want to increase their sales. However, these enter the category of special permits that need to be obtained separately. Also, specific requirements must be met by those handling such products.
Obtaining a sales permit is not difficult, however, one must pay attention to all the steps and documents they need to prepare. Our company formation agents in Cyprus can assist with information on the legislation to be respected, as well as with the requirements related to the incorporation of the selected business form.
Import and export activities in Cyprus
Trading comprises both import and export activities, however, there are also cases in which companies engage in import or export operations for which these licenses must be obtained separately. What should be noted in this case is that the permit must be obtained each time such an operation is completed.
For certain goods shipped or transported to other EU countries, such licenses are not required, however, there are special categories of goods that require authorization and that must be accompanied by specific documents, such as Certificates of Origin and approvals from various organizations. Also, the ingredients must be listed on the package.
Such companies are required to register for VAT in Cyprus followed by obtaining the EORI numbers. This last number will ease their import or export operations with EU countries.
Import and export rely on complex operations and specific requirements in certain cases. This is why, if you need guidance in setting up such a company and obtaining special licenses for some goods, our Cypriot company formation officers can be your guide through the legal requirements.
Fintech licenses in Cyprus
Just like other countries around the world, Cyprus could not miss the opportunity of regulating certain fintech activities. Among these, cryptocurrency trading is one of the most popular at the moment.
Foreign investors who want to operate in this sector can set up various types of operations, among which Initial Coin Offerings (ICOs) and investment funds which required the approval of theSecurities and Exchange Commission.
If you are interested in setting up a business in this sector, you can rely on us if you want to create it as a startup. Do not hesitate to reach out to our local agents no matter the type of company you want to open a company Cyprus.
Steps for obtaining a special license in Cyprus
Before reaching the phase of obtaining any license or permit for a company in Cyprus, any local or foreign businessperson must register a legal entity here. Once the company is registered and has obtained its certificate of registration, it can start the licensing procedure.
It is important to note that a business permit is required no matter the type of structure chosen for a company, including for a Cypriot sole proprietorship. In this case, professional licenses could also be required, considering medical and accounting professions require specific qualifications.
The application for any special license or permit must be filed with the authority representing the industry the Cypriot company will operate in. For information on how to obtain specific licenses and permits for your business, we recommend you address our company formation agents in Cyprus.
Tailored assistance in applying for special permits and licenses in Cyprus
Licensing is one of the mandatory steps when opening a company in Cyprus and our specialists are at your service with dedicated support in preparing the necessary documents when applying for special permits and licenses.
Apart from these, you must also be aware of the general business license issued upon company registration in Cyprus. However, if you decide to let our advisors set up the business on your behalf, this step will be completed by them. We will also handle VAT registration.
We can also provide consulting services related to obtained certain licenses under special conditions. If you decide to work with us, you can count on us for updated information on the legislation that targets your line of business.
Economic forecast for Cyprus
After the pandemic, when Cyprus suffered just as much as other all European countries, its economic situation is getting better. According to a report of the European Commission:
- – in 2021, the country Gross Domestic Product (GDP) is expected to grow to 3.1% from -5.1% in 2020;
- – in 2022, the economy is expected to register further growth of up to 3.8%;
- – the unemployment levels are also predicted to decrease to 7.5% in 2021, respectively 7.2% in the next year.
If you need to know more about the business permits and licenses in Cyprus, or for help to open a Cypriot company, please get in touch with our friendly staff. If you want toopen a company in Cyprus, our agents are at your service.