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Set Up a HORECA Company in Cyprus

Set Up a HORECA Company in Cyprus

With a great climate and access to the sea, Cyprus is the perfect location for starting a business in the hotel, restaurant, and café sector, shortly known as HORECA. Foreign enterprisers have the same rights as local ones when it comes to operating in this industry which is why HORECA companies are usually established by other European investors.

Our company formation agents in Cyprus can offer detailed information about the most important requirements for starting a HORECA company.

Registering the HORECA company with the Cyprus Trade Register

There are several types of businesses which can operate in the hospitality sector. These are companies mentioned above: hotels, restaurants, and cafes, however, investors also have the options or setting up one business which encompasses all the hospitality services.

The first step in opening a HORECA business is to register a company with the Cyprus Companies Registrar and then apply for the necessary licenses and pass several inspections before starting the operations.

Our Cyprus company formation consultants can help with the registration of the HORECA business with the Companies Register.

Licensing requirements for HORECA companies

There are several licensing criteria applicable to HORECA companies operating in Cyprus.

The following requisites apply to restaurants and cafes:

  • – the company must apply for a catering and entertainment establishment license;
  • – both natural persons and companies can apply for such a license, as long as they belong to an EU state;
  • – a planning and a business permit are required when opening a HORECA company;
  • – the manager of the restaurant and/or café must obtain an approval from the Cyprus Tourism Organization.

In the case of Cypriot hotels, the following requirements apply:

  • – the business owner must obtain a hotel or tourist establishment license with the Tourism Organization;
  • – the hotel establishment must undergo classification – hotels in Cyprus can have between one and five stars;
  • – depending on the hotel classification, the manager must have specific qualifications and experience;
  • – all hotels in Cyprus must comply with several laws applicable to touristic establishments.

For assistance in starting a HORECA company in this jurisdiction, please contact our company formation advisors in Cyprus who can explain all the special requirements applicable to such establishments.