diff --git a/service-provider-setup/README.md b/service-provider-setup/README.md
index bd6be04..c3050a5 100644
--- a/service-provider-setup/README.md
+++ b/service-provider-setup/README.md
@@ -62,6 +62,7 @@ To get started, follow the [installation](../README.md#installation) guide to se
 - Execute the `setup-user.yml` Ansible playbook to create a user with passwordless sudo permissions:
 
   ```bash
+  cd ../
   ansible-playbook setup-user.yml -i hosts.ini --extra-vars='{ "target_host": "deployment_host" }'
   ```
 
@@ -102,6 +103,7 @@ To get started, follow the [installation](../README.md#installation) guide to se
   ```bash
   cd vars
   cp dns-vars.example.yml dns-vars.yml
+  cp gpg-vars.example.yml gpg-vars.yml
   cp k8s-vars.example.yml k8s-vars.yml
   cp container-vars.example.yml container-vars.yml
   cp webapp-vars.example.yml webapp-vars.yml
@@ -116,10 +118,13 @@ To get started, follow the [installation](../README.md#installation) guide to se
   cluster_control_ip: ""        # eg: 23.111.78.179
   do_api_token: ""              # eg: dop_v1...
 
+  # vars/gpg-vars.yml
+  gpg_user_name: ""         # Full name of the user for the GPG key
+  gpg_user_email: ""        # Email address associated with the GPG key
+  gpg_passphrase: ""        # Passphrase for securing the GPG key
+
   # vars/k8s-vars.yml
   target_host: "deployment_host"
-  gpg_key_id: ""                # The sequence obtained in the previous step, eg: 0AFB10B643944C22
-  vault_passphrase: ""          # passphrase for GPG key
   org_id: ""                    # eg: lcn
   location_id: ""               # eg: cad
   base_domain: ""               # eg: laconic
diff --git a/service-provider-setup/deploy-backend.yml b/service-provider-setup/deploy-backend.yml
index 679328a..dae513d 100644
--- a/service-provider-setup/deploy-backend.yml
+++ b/service-provider-setup/deploy-backend.yml
@@ -10,6 +10,10 @@
     - vars/container-vars.yml
     - vars/k8s-vars.yml
     - vars/dns-vars.yml
+    - vars/user-vars.yml
+
+  become: yes
+  become_user: "{{username}}"
 
   tasks:
     - name: Ensure gpg-keys directory exists
@@ -63,7 +67,7 @@
           -v /home/{{ ansible_user }}/config:/home/root/config \
           cerc/webapp-deployer-backend:local laconic-so publish-deployer-to-registry \
             --laconic-config /home/root/config/laconic.yml \
-            --api-url https://webapp-deployer-api.{{ full_domain }} \
+            --api-url https://webapp-deployer-api.pwa.{{ full_domain }} \
             --public-key-file /home/root/config/webapp-deployer-api.{{ full_domain }}.pgp.pub \
             --lrn lrn://{{ authority_name }}/deployers/webapp-deployer-api.{{ full_domain }} \
             --min-required-payment 100
diff --git a/service-provider-setup/deploy-frontend.yml b/service-provider-setup/deploy-frontend.yml
index 59a8318..e45fbf4 100644
--- a/service-provider-setup/deploy-frontend.yml
+++ b/service-provider-setup/deploy-frontend.yml
@@ -8,6 +8,10 @@
     - vars/webapp-vars.yml
     - vars/dns-vars.yml
     - vars/k8s-vars.yml
+    - vars/user-vars.yml
+
+  become: yes
+  become_user: "{{username}}"
 
   tasks:
     - name: Clone webapp-deployment-status-ui repository
diff --git a/service-provider-setup/run-laconic-console.yml b/service-provider-setup/run-laconic-console.yml
index 43655e7..d28e617 100644
--- a/service-provider-setup/run-laconic-console.yml
+++ b/service-provider-setup/run-laconic-console.yml
@@ -8,6 +8,10 @@
     - vars/webapp-vars.yml
     - vars/dns-vars.yml
     - vars/k8s-vars.yml
+    - vars/user-vars.yml
+
+  become: yes
+  become_user: "{{username}}"
 
   tasks:
     - name: Clone the stack repo
diff --git a/service-provider-setup/run-laconicd.yml b/service-provider-setup/run-laconicd.yml
index a148ca9..71ddf42 100644
--- a/service-provider-setup/run-laconicd.yml
+++ b/service-provider-setup/run-laconicd.yml
@@ -4,6 +4,12 @@
   environment:
     PATH: "{{ ansible_env.PATH }}:/home/{{ansible_user}}/bin"
 
+  vars_files:
+    - vars/user-vars.yml
+
+  become: yes
+  become_user: "{{username}}"
+
   tasks:
     - name: Clone the fixturenet-laconicd-stack repo
       command: laconic-so fetch-stack git.vdb.to/cerc-io/fixturenet-laconicd-stack --pull
diff --git a/service-provider-setup/service-provider-setup.yml b/service-provider-setup/service-provider-setup.yml
index a50564d..5af93ab 100644
--- a/service-provider-setup/service-provider-setup.yml
+++ b/service-provider-setup/service-provider-setup.yml
@@ -1,4 +1,6 @@
+- import_playbook: setup-user.yml
 - import_playbook: setup-dns.yml
+- import_playbook: setup-system.yml
 - import_playbook: setup-k8s.yml
 - import_playbook: setup-container-registry.yml
 - import_playbook: run-laconicd.yml
diff --git a/service-provider-setup/setup-container-registry.yml b/service-provider-setup/setup-container-registry.yml
index 7b227e3..3786e91 100644
--- a/service-provider-setup/setup-container-registry.yml
+++ b/service-provider-setup/setup-container-registry.yml
@@ -8,7 +8,11 @@
     - vars/k8s-vars.yml
     - vars/container-vars.yml
     - vars/dns-vars.yml
+    - vars/user-vars.yml
 
+  become: yes
+  become_user: "{{username}}"
+  
   tasks:
     - name: Generate spec file for the container-registry stack
       template:
diff --git a/service-provider-setup/setup-k8s.yml b/service-provider-setup/setup-k8s.yml
index ba15ed6..56a60ce 100644
--- a/service-provider-setup/setup-k8s.yml
+++ b/service-provider-setup/setup-k8s.yml
@@ -9,8 +9,13 @@
     VAULT_KEY: "{{ vault_passphrase }}"
 
   vars_files:
-    - vars/k8s-vars.yml
     - vars/dns-vars.yml
+    - vars/gpg-vars.yml
+    - vars/k8s-vars.yml
+    - vars/user-vars.yml
+
+  become: yes
+  become_user: "{{username}}"
 
   tasks:
     - name: Install Python and pip
diff --git a/service-provider-setup/setup-system.yml b/service-provider-setup/setup-system.yml
new file mode 100644
index 0000000..b45a8e7
--- /dev/null
+++ b/service-provider-setup/setup-system.yml
@@ -0,0 +1,138 @@
+- name: Setup system for the service provider setup
+  hosts: "{{ target_host }}"
+
+  environment:
+    GNUPGHOME: /home/{{ ansible_user }}/.gnupg
+
+  vars_files:
+    - vars/k8s-vars.yml
+    - vars/dns-vars.yml
+    - vars/gpg-vars.yml
+    - vars/user-vars.yml
+
+  become: yes
+  become_user: "{{username}}"
+
+  tasks:
+    - name: Install required packages
+      apt:
+        name:
+          - doas
+          - zsh
+          - tmux
+          - git
+          - jq
+          - acl
+          - curl
+          - wget
+          - netcat-traditional
+          - fping
+          - rsync
+          - htop
+          - iotop
+          - iftop
+          - tar
+          - less
+          - firewalld
+          - sshguard
+          - wireguard
+          - iproute2
+          - iperf3
+          - zfsutils-linux
+          - net-tools
+          - ca-certificates
+          - gnupg
+          - sshpass
+          - apache2-utils
+        state: latest
+        update_cache: true
+      become: yes
+
+    - name: Set unique hostname
+      hostname:
+        name: "{{ inventory_hostname }}"
+      when: ansible_hostname != inventory_hostname
+
+    - name: Verify status of firewalld and enable sshguard
+      systemd:
+        name: "{{ item }}"
+        enabled: yes
+        state: started
+      loop:
+        - firewalld
+        - sshguard
+      ignore_errors: yes
+
+    - name: Disable and remove snapd
+      block:
+        - name: Disable snapd services
+          systemd:
+            name: "{{ item }}"
+            enabled: no
+            state: stopped
+          loop:
+            - snapd.service
+            - snapd.socket
+            - snapd.seeded
+            - snapd.snap-repair.timer
+          ignore_errors: yes
+
+        - name: Purge snapd
+          apt:
+            name: snapd
+            state: absent
+
+        - name: Remove snap directories
+          file:
+            path: "{{ item }}"
+            state: absent
+          loop:
+            - "{{ ansible_env.HOME }}/snap"
+            - /snap
+            - /var/snap
+            - /var/lib/snapd
+          become: yes
+          ignore_errors: yes
+
+    - name: Ensure GPG directory exists
+      file:
+        path: "{{ ansible_env.HOME }}/.gnupg"
+        state: directory
+        mode: '0700'
+
+    - name: Create GPG key parameters file
+      copy:
+        dest: /tmp/gpg_key_params.txt
+        content: |
+          Key-Type: RSA
+          Key-Length: 4096
+          Subkey-Type: RSA
+          Name-Real: {{ gpg_user_name }}
+          Name-Email: {{ gpg_user_email }}
+          Expire-Date: 0
+          Passphrase: {{ gpg_passphrase }}
+          %no-protection
+          %commit
+        mode: '0600'
+
+    - name: Generate GPG key using the parameter file
+      command: gpg --batch --gen-key /tmp/gpg_key_params.txt
+      become_user: "{{ ansible_user }}"
+      register: gpg_keygen_output
+      ignore_errors: yes
+
+    - name: Show GPG key generation output
+      debug:
+        var: gpg_keygen_output.stdout
+
+    - name: Fetch the Key ID of the most recently created GPG key
+      shell: gpg --list-secret-keys --keyid-format=long | grep 'sec' | tail -n 1 | awk -F'/' '{print $2}' | awk '{print $1}'
+      register: gpg_key_output
+
+    - name: Set the GPG key ID to a variable
+      set_fact:
+        sec_key_id: "{{ gpg_key_output.stdout }}"
+
+    - name: Show GPG Key ID
+      debug:
+        msg: "GPG Key ID: {{ sec_key_id }}"
diff --git a/service-provider-setup/setup-user.yml b/service-provider-setup/setup-user.yml
index 7597c0c..52533ea 100644
--- a/service-provider-setup/setup-user.yml
+++ b/service-provider-setup/setup-user.yml
@@ -6,82 +6,6 @@
     - vars/user-vars.yml
 
   tasks:
-    - name: Set unique hostname
-      hostname:
-        name: "{{ inventory_hostname }}"
-      when: ansible_hostname != inventory_hostname
-
-    # TODO: Move installation to k8s playbook
-    - name: Install additional packages
-      apt:
-        name:
-          - doas
-          - zsh
-          - tmux
-          - git
-          - jq
-          - acl
-          - curl
-          - wget
-          - netcat-traditional
-          - fping
-          - rsync
-          - htop
-          - iotop
-          - iftop
-          - tar
-          - less
-          - firewalld
-          - sshguard
-          - wireguard
-          - iproute2
-          - iperf3
-          - zfsutils-linux
-          - net-tools
-          - ca-certificates
-          - gnupg
-          - sshpass
-        state: latest
-        update_cache: true
-
-    - name: Verify status of firewalld and enable sshguard
-      systemd:
-        name: "{{ item }}"
-        enabled: yes
-        state: started
-      loop:
-        - firewalld
-        - sshguard
-
-    - name: Disable and remove snapd
-      block:
-        - name: Disable snapd services
-          systemd:
-            name: "{{ item }}"
-            enabled: no
-            state: stopped
-          loop:
-            - snapd.service
-            - snapd.socket
-            - snapd.seeded
-            - snapd.snap-repair.timer
-
-        - name: Purge snapd
-          apt:
-            name: snapd
-            state: absent
-
-        - name: Remove snap directories
-          file:
-            path: "{{ item }}"
-            state: absent
-          loop:
-            - "{{ ansible_env.HOME }}/snap"
-            - /snap
-            - /var/snap
-            - /var/lib/snapd
-          become: yes
-
     - name: Create a user
       user:
         name: "{{ username }}"
@@ -97,7 +21,7 @@
 
     - name: Ensure .ssh directory exists for user
       file:
-        path: /home/"{{ username }}"/.ssh
+        path: /home/{{ username }}/.ssh
         state: directory
         owner: "{{ username }}"
         group: "{{ username }}"