Establishment and Licensing of Travel Agencies in Cyprus
Cyprus is a thriving hub for tourism, making it an attractive location for the establishment of travel agencies. The establishment and operation of travel agencies in Cyprus is strictly regulated by the Tourist and Travel Agencies and Tourist Guides Law of 1995–2013, overseen by the Deputy Ministry of Tourism. For individuals or companies looking to enter the travel industry in Cyprus, compliance with these regulations is essential.
Key Steps for Establishing and Licensing a Travel Agency in Cyprus
- Regulatory Framework The operation of travel agencies in Cyprus is governed by the Tourist and Travel Agencies and Tourist Guides Law. This law outlines the necessary steps for obtaining the appropriate license to operate as a travel agency in Cyprus.
- Application Submission To obtain a travel agency license, interested parties must submit a duly completed Application Form to the Deputy Ministry of Tourism for examination and evaluation. The application process involves submitting detailed information about the agency’s operations, management, and compliance with local laws.
- Manager Requirements A key requirement for obtaining a travel agency license is the appointment of a qualified Manager. The proposed manager must meet specific criteria set out by the law, which ensures that the individual has the necessary education and experience to manage a travel agency. The manager must meet one of the following qualifications:
- (a) A graduate of a recognized higher school of tourist studies or hold a university degree in tourism, with at least one year of working experience in a travel agency.
- (b) A holder of a university degree in any field, with at least three years of working experience in a travel agency.
- (c) A graduate of a sixth-grade secondary education school with at least seven years of working experience in a travel agency, airline, or shipping company, specifically in departments dealing directly with tourism and travel activities.
- (d) The manager must also have a good command of at least one foreign language commonly used in the tourism industry.
- Approval of the Travel Agency Name When establishing a travel agency, it is important to select a name that complies with the relevant regulations. The Deputy Ministry of Tourism has specific guidelines on how names for travel agencies should be chosen, including:
- The name should ideally reflect elements of Cypriot culture, history, or the special characteristics of Cyprus.
- Greek names should be transliterated into Latin characters rather than translated literally.
- The name should be brief, meaningful, and avoid the use of initials or combinations of initials and words.
- Names of cities, villages, or locations in Cyprus should not be included in the name of the travel agency.
It is important to note that even if a name has been approved by the Registrar of Companies, the Deputy Ministry of Tourism retains the right to reject the name if it does not meet their criteria. Therefore, it is recommended to consult with the Ministry first before finalizing the company registration.
- Office Requirements A licensed travel agency in Cyprus must meet specific physical requirements, which include:
- Having a suitably furnished, independent office space with a minimum floor area of 20 square meters, equipped with its own toilet and wash basin.
- The office must be staffed with at least two employees, including the Manager.
- Financial Guarantees and License Fees Once the application has been approved, the travel agency must fulfill the following financial obligations:
- Security Guarantee: A financial guarantee of €15,000, which can be provided in cash or as a bank letter of guarantee from a bank, cooperative credit institution, or insurance company.
- License Fee: A fee of €400 must be paid for the license, which is valid for the first two years or part thereof.
- Restrictions on Non-EU Companies Foreign companies from non-EU countries are not permitted to operate as independent travel agencies in Cyprus. However, they can enter the market by partnering with a licensed local agency. Both the local and foreign agencies must notify the Ministry of the commencement and termination of their partnership, and provide any required information regarding tourist arrivals, transfers, and accommodation.
- Licensing for EU-Based Travel Agencies Travel agencies established in other European Union countries that wish to operate in Cyprus on a permanent basis must also apply for a Cyprus travel agency license. These agencies must notify the Deputy Ministry of Tourism of their operational start date and provide relevant details regarding tourist arrivals, transfers, and accommodation.
- Prohibition of Unlicensed Operations It is illegal to operate, advertise, or use terms like “tourist” or “travel agency” without first obtaining the proper licensing from the Deputy Ministry of Tourism. Non-compliance with this law can result in legal action and fines.
Fiduciara’s Support for Travel Agency Licensing in Cyprus
At Fiduciara, we have extensive experience in guiding clients through the travel agency licensing process in Cyprus. From preparing and submitting the application to fulfilling all legal requirements, our team offers end-to-end support for businesses entering the Cyprus tourism market.
We assist with:
- Application preparation and submission.
- Ensuring compliance with the Ministry’s guidelines for manager qualifications and office requirements.
- Consultation on naming approvals to avoid delays.
- Legal guidance on financial guarantees and ongoing compliance.
If you are looking to establish a travel agency in Cyprus or require more information about the licensing process, contact Fiduciara and our team of legal experts is here to help you successfully navigate the complexities of travel agency licensing in Cyprus.
