Capitola New Businesses

Business Licenses

The City of Capitola requires all organizations conducting business within city limits to have a business license. Each business license is valid for one calendar year (January-December). Business Licenses are issued by the Finance Department and annual fees vary depending on the type of business being conducted. 

If you are proposing a home-based business, a Home Occupation Permit will also be required. 

Business Licenses Webpage

Home Occupation Permits

New Business Welcome Guide

Zoning Clearance and Land Use Permits

Each property in the City has a zoning designation that pre-determines the types of uses and activities that can be conducted at the location. Prior to signing a lease or entering into a purchase contract, contact the Planning Department to ensure that the location is zoned for the proposed business activity and whether permits are required before opening the business.  The Planning Department can investigate property permits and occupancy history. Parking requirements, change of use, and intensification of use are other questions that can be answered during this inquiry. 

Outdoor display is allowed in some commercial areas of Capitola with a Conditional Use Permit. Outdoor display is prohibited within the Capitola Village. 

Conditional Use Permits Guidance Document

Vacation Rental Use Permit

Sidewalk Vending Guide (English)

Sidewalk Vending Guide (Spanish)  

Outdoor Dining Webpage

Sign Permits    

Most signs require a permit.  The majority of signs are approved over the counter by planning and building staff to ensure the sign complies with the sign regulations and the installation is in compliance with the building code for electrical connections, structural design, and anchoring of new signs.

Temporary signs, such as banners, are permitted in specific locations or for limited durations with a sign permit.   Sidewalk signs are only allowed in the Capitola Village and are limited to a specific design that was authorized by the Planning Commission.   All other sidewalk signs, including A-frame signs, are prohibited throughout Capitola. 

Tenant Improvements

New businesses often have a need to modify the interior or exterior of a new tenant space when moving in. Building Permits are typically required to ensure that zoning requirements, ADA, fire, structural safety standards and other building code standards are met. Please contact the Building Department to discuss permit requirements for any tenant improvement or building modifications being considered.

Most exterior alterations to commercial structures require a Design permit.   

Tenant Improvements Guidance Document

Design Permit Guidance Document