Business Licensing in Cyprus: What Foreigners Need to Know

Cyprus remains one of the most transparent and stable European jurisdictions, where business can be conducted across almost all sectors — from trade and IT to services. However, many types of activities require mandatory licensing. For foreign entrepreneurs, especially citizens of Russia and the CIS, it is important to understand which businesses need permits and how the licensing process works. Obtaining a business license correctly in Cyprus is not just an administrative formality, but a guarantee of legality and reliability in the eyes of clients and partners.

When a License Is Required

Most companies in Cyprus can operate without a special permit, but certain sectors require licensing. These include:

• Financial and payment services;
• Insurance, auditing, and accounting;
• Tourism and transport services;
• Education, healthcare, and pharmaceuticals;
• Food services and production (cafes, restaurants, bakeries);
• Construction and real estate agency activities.

For Russian citizens, the procedure is identical to that for other foreigners: it is necessary to register a company, have a legal address, and verify qualifications or employ specialists in accordance with the business profile.

Licensing Process in Cyprus

The procedure for obtaining a license depends on the industry and the regulatory authority. For example:

• Financial companies — Cyprus Securities and Exchange Commission (CySEC);
• Travel agencies — Deputy Ministry of Tourism;
• Medical institutions — Ministry of Health;
• Food service businesses — municipalities and sanitary authorities.

The general process includes several steps:

1. Company Registration
   A license cannot be issued without a registered company. A lawyer prepares the Memorandum and Articles of Association and obtains the Certificates of Incorporation.
2. Tax and VAT Registration
   After incorporation, the company must obtain a Tax Identification Number (TIN) and, if necessary, a VAT number. These registrations are mandatory for starting operations and submitting reports. The cost typically starts from €400, including preparation and submission of documents to the Tax Department.
3. Document Collection
   Required documents include details of shareholders and directors, a business plan, proof of financial capacity, and office address.
4. Application Submission to the Regulatory Authority
   The regulator evaluates the company’s compliance with legislation and the qualifications of its management.
5. Review and License Issuance
   Depending on the industry, the process can take 1 to 6 months.

Some licenses are perpetual, while others require annual renewal and reporting. A lawyer assists throughout the process to prevent delays due to inaccuracies in the documents.

Legal Assistance and Considerations for Foreigners

For foreign entrepreneurs, it is important to understand that Cypriot authorities strictly verify the source of capital and the applicant’s reputation. Non-compliance with regulations can lead to refusal. Professional legal assistance helps foreigners prepare a correct and complete set of documents tailored to the requirements of the specific regulator.

A lawyer can assist with:

• Determining whether a license is required for a particular type of business;
• Preparing the application and coordinating it with the relevant authority;
• Conducting compliance checks for shareholders;
• Obtaining clarifications from regulators and providing support after the license is issued.

The licensing system in Cyprus is aligned with European standards and aims to increase market transparency. For foreigners, obtaining a license is possible if procedures are followed precisely and accurate information is provided. With the support of an experienced lawyer, the process becomes predictable and secure, allowing the company to operate legally and grow its business in a stable EU legal environment.