Registering a company is easy. But is it legal to start trading? Understanding licences in Cyprus
Not always, and this is one of the most common reasons businesses in Cyprus face questions from regulators after launch
We often see a situation where the company has already been set up and the business has started operating, but nobody checked in advance which licences and permits were needed. Sometimes clients come to us only after the authorities have raised questions, and then the task is no longer “how to launch best” but “how to fix a problem that has already happened”.
Company registration is the first stage, but far from always the last one before opening a business.
Which activities are actually licensed in Cyprus
In Cyprus it is not only the obvious activities that are licensed, such as development, real estate agency, restaurants or bars. Quite a few types of business may require additional registration, a permit, accreditation or special premises requirements, and this is not always obvious in advance.
We were recently asked about opening a jewellery business. At first glance, ordinary trading. In practice, if you make gold or silver items yourself, you need to separately check the requirements for manufacturer registration, an individual hallmark, assay testing and hallmarking of items, and for the workshop itself. And if you also sell the items yourself, additional requirements apply.
In Cyprus this is the responsibility of the Cyprus Assay Office, the body that controls and marks items made of precious metals. Anyone who wants to manufacture jewellery (manufacturer) or sell it (jeweller) must be entered in the relevant register, and the law expressly prohibits selling self-made items without registration in the Manufacturer’s Registry. For the “I make and sell it myself” model, both registrations need to be considered.
Then come details that usually do not occur to anyone at the start: gold and silver items must undergo mandatory assay testing and official hallmarking (there are weight exceptions: state hallmarking is not required for gold items under 1 g and silver items under 3 g, but this does not exempt you from registering the business); the workshop itself needs a premises use permit from the municipality; and if metals or finished items are imported from abroad, customs questions and possibly an EORI number come into play.
And a separate nuance: in 2025 the functions of the Cyprus Assay Office were transferred to the Ministry of Energy, Commerce and Industry, so when applying in 2026 it is important to look not only at the old forms but at the current procedure after this reform.
This is not the most obvious example, and that is the point. If it were a restaurant or a real estate agency, the licence question would arise by itself. But a business that looks like “ordinary trading” in Cyprus may well turn out to be a regulated activity with its own register, hallmark and competent authority.
How common this is
To gauge the scale, we went through 100 common types of activity in Cyprus, from construction and financial services to beauty, food and tourism, and checked for each whether a separate licence or registration is required.
In other words, for the vast majority of common types of business in Cyprus, the licensing question will either definitely arise or require a separate check for the specific model. “My activity is surely not regulated in any way” is an assumption that rarely holds up in practice.
Checklist: does your business need a licence in Cyprus?
We have put all 100 types of activity into one document, noting which group yours falls into: licence almost certainly required, depends on the business model, or no separate licence identified. This is a guide for a first self-check, not a legal opinion, but it is a convenient place to start.
Get the PDF checklistWhat to check before a full launch
First you need to understand the requirements for your particular type of business, collect the necessary documents and obtain the permits, and only then launch fully. In practice this usually comes down to four questions:
- Which activity is regulated in your specific model. What matters is not general wording like “trade” or “services” but precise details: what exactly you do, and to whom and how you sell.
- Who holds the permit. Sometimes the licence is needed by the company, sometimes by a specific professional (a director or technical manager), and sometimes both registrations are required at once.
- What about the premises. Separately from the sector licence, requirements for the site itself are almost always checked, from the municipality permit to fire and sanitary standards.
- How often the permit must be renewed. Many licences have an annual renewal. Put it in your calendar right away so you do not lose your status over a formality.
Important: company registration (LTD) does not replace a sector licence, a director’s or specialist’s professional right to practise, or a premises use permit. These are different, non-interchangeable steps.
Frequently asked questions
Not sure whether your business needs a licence?
We will review your business model and tell you exactly which permits are needed before launch.
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