OPENING A BANK ACCOUNT IN CYPRUS
Resources Thursday, 27 August, 2020
Who can open a bank account in Cyprus?
The National Bank of Cyprus allows both Cypriot and foreign individuals and companies to set up bank accounts in Cyprus for various purposes. No matter the type of bank account one needs, certain documents need to be submitted with the chosen bank. It is also important to know that both individuals and companies have total liberty in choosing the bank they want to work with.
How to choose the bank for opening an account
Most banks in Cyprus offer similar services. You may want to consider online banking capabilities and number of branches. If you do not have a personal choice for a bank, we will provide all the information you need and make an appointment with one or more banks to choose from.
We will accompany you to the bank and help set up everything.
Open a personal bank account in Cyprus
When it comes to setting up a personal bank account, this can be created by an individual living in Cyprus or outside it personally, or it can be opened by a local company employing that person. This is usually created with the purpose of receiving the salary.
For an individual is quite simple and easy to set up a personal bank account in Cyprus. The documents one must submit for opening the bank account are:
copy of a valid passport, identity card (some banks will require notarized copies of identification documents);
an utility bill stating the residence address of the applicant (the bill cannot be older than 6 months)
an application form issued by the bank;
Foreign citizens interested in opening bank accounts in Cyprus will need their valid passports as identification papers and some other documents. More specifically,
- Passport Copy
- Recent Utility Bill of your overseas house (translated in English)
- Income Certificate (translated in English)
- Bank Statements (translated in English)
- Copy of a Clean Criminal Record
Open a corporate bank account in Cyprus
The opening of a corporate bank account is mandatory when registering a company in Cyprus, as it is part of the incorporation procedure. At first, the corporate bank account is used for depositing the share capital of the future business, later on being used for business transactions.
The process of opening a corporate bank account in Cyprus is as easy as setting up a personal bank account except companies are required to provide more documents. In order for a company to open a bank account in Cyprus the following documents must be submitted:
the Articles of Association, the Certificate of Incorporation and the Share Certificate of the company;
a certificate of good standing for foreign companies if they have been opened for over 2 years;
the Certificates of Directors and Secretary, the Certificate of the Registered Office;
a proof of the registered office issued by the Group Principal Trading Offices;
an application form released by the bank (each bank has its own model of application).
In order to open a bank account in Cyprus for a partnership the following documents must be submitted:
the partnership agreement;
the Certificate of Incorporation;
proof of the registered office;
a certificate of the partners;
a certificate of good standing for foreign partnerships if they have been registered for over 2 years;
an application form issued by the bank.
Our Cypriot lawyers can open various types of bank accounts based on a power of attorney.
When it comes to opening corporate bank accounts, our lawyers in Cyprus can help both local and foreign investors interested in doing business here.
Opening merchant and offshore bank accounts in Cyprus
The merchant bank account is currently one of the most employed types of accounts in Cyprus, as the number of e-commerce companies has grown consistently. It should be noted that a Cypriot online company is required to have a corporate account, as well as a merchant account. Traditional companies can also set up merchant accounts.
The following steps need to be completed when opening a merchant account in Cyprus:
the company must first select a provider which can install the equipment used for payments;
the company must file its Certificate of Incorporation in order to set up such an account;
online companies must also set up a website in order to be able to link the account to the business;
online businesses must have specific protocols which ensure the safe collection of personal information from clients, in accordance with the GDPR.
Our law firm in Cyprus can help online business owners with the procedure of opening both corporate and merchant bank accounts for their companies.
Offshore companies, whether registered in Cyprus or another country, can have offshore bank accounts opened in Cyprus. These offer multiple benefits, among which enhanced protection of personal information of the owners of the account, but also the possibility of having the account opened remotely. The opening of an offshore bank account in Cyprus takes around 10 days to complete.
Is it possible to open a Cyprus bank account online?
The Cyprus banking system has undergone various changes for the better in the last few years, and modernization was one of the National Bank’s most important goals which is why it is possible to start the procedure of opening a bank account online.
Foreign citizens and investors interested in setting up businesses in Cyprus can start the opening procedures before arriving to the country. This is an important advantage compared to other European countries in which the procedure is longer, and the foreign citizen needs to be in the country during the entire process.
The advantages of bank accounts in Cyprus
A Cypriot bank account offers great benefits to its holder. Whether he or she is a natural person or a company, the banking system provides a solution for all types of clients. Some of the major advantages of opening a bank account in Cyprus are:
a speedy and hassle-free opening process (takes up to 4 days)
one can submit the documents by fax or e-mail;
there is no minimum start-up deposit required;
bank fees are low;
online banking solution is provided.