To set up a coffee shop in Cyprus, start by forming a Private Limited Company (Ltd) for liability protection and banking, reserving a name with the Registrar of Companies, drafting Articles, appointing a director/secretary and registered office, obtaining a Tax Identification Number, VAT registration (mandatory once taxable turnover exceeds €15,600; early registration recommended to reclaim fit‑out VAT), and employer registration with Social Insurance. Secure a site with approved Food & Beverage “use”; if not, apply for town‑planning/building change‑of‑use. Apply to the local municipality for a café operating licence, obtain Fire Service clearance, register as a food business with Public Health Services, implement HACCP under Reg. (EC) 852/2004, install a grease trap, water points and washable surfaces, and arrange waste/oil collection; ensure all food handlers hold valid health booklets. For terrace tables, get a pavement permit and signage approval; if you play music, obtain performance and neighbouring‑rights licences. VAT on catering is 9% (standard rate 19% otherwise); corporate tax is 12.5%. Set up a POS/merchant account via a local bank/JCC, issue receipts, keep books, and file audited accounts; pay the €350 annual levy. Timelines: incorporation 5–10 days; fit‑out and licensing 4–8 weeks. Budget €40k–€120k capex plus 3–6 months’ working capital reserve.
