Open a Recruitment Company in Cyprus

There are numerous recruitment companies in Cyprus, which is a small island. This certainly has had a great impact on attracting the right skilled employees. At the same time, there are a lot of employment opportunities here and the workforce is qualified and talented. In this article, our lawyers in Cyprus present a few aspects related to opening a recruitment company in Cyprus.

Steps to open a recruitment agency in Cyprus

The procedure related to creating a staffing company in Cyprus starts with the incorporation of a legal entity with the Companies Register. The private limited company is usually used to carry out such activities. In order to register, it implies:

choosing an appropriate business name;
preparing the Articles of Association which must state as an activity recruitment;
registering for taxation;
filing for the recruitment license.

Please note that the NACE code for recruitment companies in Cyprus is 78.10 – Activities of employment placement agencies and it covers the following activities:

job placement;
matching employers with potential workers;
temporary staff placement.

You can also set up such an operation by buying a shelf company in Cyprus, as all you will need to do is obtain the recruitment license.

License for a recruitment company in Cyprus

To open a recruitment company in Cyprus, it is necessary to obtain an operation license from the Director of the Department of Labor of the Ministry of Labor, Welfare, and Social Insurance.

To obtain this type of license, our Cypriot lawyers point out that the following criteria have to be met:

if the human resources agency is managed by a private person, he or she has to be a citizen of Cyprus or a citizen of a European Union member state. He or she should not be bankrupt or have any other legal issues;
if the company is managed by a legal person, he or she has to be incorporated under the relevant legislation of Cyprus, should have registered offices in the country, and should not have been subject to compulsory liquidation or winding-up order.

The individual who operates the human resources agency in Cyprus, the directors, if it is a company, or the partners if it is a partnership, have to:

not been sentenced for a severe offense;
not have been employed in some governmental departments in the country in the last two years;
not engage in certain parallel activities;
the person who operates the agency has to, among others, hold a recognized diploma, degree, or university title in a related field;

Our attorneys in Cyprus can offer more details on what these other requirements are.

Qualifications for persons applying for recruitment licenses in Cyprus

There are two ways of setting up a private employment agency in Cyprus:

by creating a sole proprietorship;
by registering a company, the private limited liability company being the preferred option of many investors.

There is also the option of buying a shelf company in Cyprus for those seeking to skip the incorporation procedure. No matter the business form selected, only one person can be designated to apply for the Cypriot recruitment license. According to the 2012 Private Employment Agency Laws, he or she must have one of the following:

a diploma or degree in accordance with Article 8 of the Law;
a diploma, degree, or master’s degree other than those provided for in Article 8 of the Private Employment Agency Act;
a diploma or degree, as well as a trainee program in the field of employment or labor law;
a certificate indicating the applicant has successfully completed a training program related to employment or labor legislation. In this last case, the applicant must pass an exam, and the certificate obtained will have a 2-year validity period.

With respect to the diplomas and degrees stipulated by Article 8 in the Private Employment Agency Law, they must have been obtained in one of the following fields:

Human Resources;
Business Administration;
Economics;
Sociology;
Law;
Public Relations;
Political Sciences.

In the case of Cypriot staffing agencies engaging in the recruitment of highly skilled, professional employees and/or managers, the license holder must have a university diploma and 3 years in the field of placement of specialized personnel.

Feel free to discuss the requirement of obtaining a recruitment license with our lawyers in Cyprus.

Documents required to obtain a recruitment license in Cyprus

Here are the documents to file with the Department of Labor when applying for recruitment authorization in Cyprus:

the ID/passport of the person applying for the license;
information about the directors;
the documents attesting to the qualifications of the license applicant;
a declaration of the applicant that he/she does not engage in activities prohibited by the Private Employment Agency Law;
copy of the employment certificate (if applicable);
proof of registration with the Social Insurance Services.

Our law firm in Cyprus can help you gather and file the necessary papers with the Department.

Payable fees for a recruitment company in Cyprus

Under the Private Employment Agencies Regulations from 2012, recruitment companies in Cyprus must pay the following fees:

the first issue of a license application: EUR 100;
the first issue of the license: EUR 300;
the license renewal: EUR 300;
other licenses: our Cypriot lawyers can offer more information on this matter.

In order to register a recruitment company in Cyprus, a company name has to be chosen first. Then, the Memorandum of Association has to be prepared and signed by a lawyer.

Afterwards, all the required documents have to be submitted to the Department of Registrar of Companies and Intellectual Property in Cyprus.

Eventually, the tax registration number and VAT have to be received, and the company has to be registered with the Social Insurance Services.

Amendment and renewal of Cypriot recruitment licenses

In case of changes, the staffing agency has the obligation to report them to the Labor Department. Alterations such as the address and the manager must be notified within a maximum period of one month.

With respect to the validity of the license, it is for 3 years and is renewed automatically after the payment of a fee. You can rely on our Cypriot law firm for guidance in making alterations in the business license, as these must be reported to various authorities.

Premises requirements for recruitment agencies in Cyprus

One of the main requirements to fulfil after setting up a recruitment agency in Cyprus is ensuring an appropriate office space for carrying out its activities. The law states that the premises must be ready to use within 6 months after the license is issued. The minimum space required for such an undertaking is 30 square meters. Also, it must be equipped with technical devices (computers, phones, printers, scanners) that allow an easy workflow. Also, the operating license must be set out in a visible place inside the location.

On the outside of the building, the agency must place a visible sign with its name and business registration number.

Our lawyers in Cyprus can offer more information about the requirements imposed by the Private Employment Agency Law with respect to office premises.

Duties of employment agencies in Cyprus

Here are the obligations of Cypriot recruitment companies in relation to the clients they represent:

to assess the competences and abilities of potential employees;
to evaluate the job requirements before matching an employee with an employer;
to inform potential workers about the terms of employment before accepting a job;
to inform a potential employer about the qualifications and abilities of an employee.

Recent labor statistics in Cyprus

According to the labour force survey, in the second quarter of 2026:

Cyprus’ labor force was made up of 65.6% of the population, accounting for 540,130 people;
out of these 520,763 persons were actively employed;
the number of unemployed persons was 19,367 or 3.6% of the labor force.

In case you need to know more about how to open a human resources company in Cyprus, or for any legal advice in the country, we kindly invite you to contact our Cypriot law firm.