Opening a Café in Cyprus: Steps and Requirements

Cyprus attracts entrepreneurs with its mild climate, stable economy, and constant tourist flow. For foreigners looking to develop a gastronomic business, the island offers real opportunities. However, before opening a café in Cyprus, it is important to consider local requirements: company registration, obtaining permits, health and safety standards, and taxes. Legal support at this stage helps not only to speed up the process but also to avoid costly mistakes when dealing with government authorities.

Business Registration and Choosing the Legal Form

The first step is to register a company as a Private Limited Company (LTD), suitable for small and medium-sized businesses. The founder can be a citizen of any country, including Russia. A lawyer submits the documents to the Registrar of Companies, where the company name is reserved and the memorandum and articles of association are approved.

After registration, it is necessary to obtain a Tax Identification Code (TIC) and, if required, register for VAT. If annual turnover exceeds €15,600, VAT registration becomes mandatory.

Choosing the right location is also important. When leasing premises, ensure that the building is approved for production and retail activities. These details are recorded in the cadastral database and verified by a lawyer before signing the lease agreement.

Health and Licensing Requirements

A café falls under the category of food service establishments, and its operation requires licensing. To start, you must obtain a municipal permit and a sanitary-hygienic certificate.

Key documents required for licensing in Cyprus include:

• Floor plan indicating production and storage areas;
• Lease agreement or property ownership certificate;
• Fire department approval;
• Permit for installation of equipment and ventilation systems.

Inspections are carried out by municipal authorities and the Ministry of Health. Special attention is given to food safety standards: at every stage — from purchasing flour to packaging products — the business must comply with the HACCP system (Hazard Analysis and Critical Control Points).

Taxes and Business Operations

Taxation for cafés is the same as for other companies registered in Cyprus. Key rates include:

• Corporate tax — 12.5% of profits;
• VAT — 19% on the sale of prepared products;
• Social contributions — approximately 7.8% of employee salaries.

Small businesses benefit from simplified reporting regimes and can deduct expenses such as rent, raw materials, and electricity. Accounting must be maintained according to Cypriot standards (IFRS), and the annual report must be signed by a licensed auditor.

It is important to remember that hiring employees requires registration with the Social Insurance Department. Violations of labor laws can result in fines and revocation of permits.

Legal Assistance in Opening a Café

Opening a café involves multiple permit-related steps, from leasing premises to certifying equipment. Professional legal support helps minimize risks and allows entrepreneurs to focus on developing their product.

A lawyer can provide assistance with:

• Choosing the appropriate legal form for the business;
• Reviewing the lease agreement and verifying the purpose of the premises;
• Preparing documentation for licensing;
• Registering the company and obtaining a tax identification number;
• Registering employees and drafting employment contracts;
• Providing legal support during inspections.

For foreign entrepreneurs, this support is especially important, as Cypriot authorities require strict compliance with application forms and deadlines. As a result, the entrepreneur obtains a fully compliant business, ready to operate with clients and suppliers.