Opening a bank account in Cyprus is a simple and quick procedure. The Cyprus financial system has developed quite a lot in the last few years, making it fairly easy for individuals, foreign and locals and companies to open domestic accounts on the island. Most Cypriot banks provide a wide range of services. Here we provide an overview of the benefits and types of accounts you will encounter when venturing in this area.
Advantages of an account in Cyprus
The Cyprus banking system provides a wide variety of benefits to its clients. Here are some of them:
- A speedy and hassle-free opening process (usually the 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
Types of bank accounts
If you are moving to Cyprus, you can choose from a variety of accounts. You should see first the benefits of each one beforehand to make the best decision for you or your company.
1. Personal bank Account
A personal bank account is the most common account and 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.
There are also employment bank accounts, but these have to be set up by the employers with the purpose of benefitting from lower fees and commissions, as an understanding between the bank and the Cyprus company.
For a personal (or employer) bank account you will need:
- 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
2. Corporate bank account
A corporate bank account is obligatory for registering companies in Cyprus, as it is part of the incorporation procedure. The corporate bank account is mainly used for depositing the share capital of the future business, but is later used for all business transactions.
For a corporate account you will need basically the same as a personal account, but the bank requires a few more documents. These are:
- 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
- -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)
If you wish to establish a partnership account, the following documents must be submitted:
- The partnership agreement
- Certificate of Incorporation
- Proof of the registered office
- Certificate of the partners
- Certificate of good standing for foreign partnerships if they have been registered for over 2 years
- An application form issued by the bank
3. Merchant bank account
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. All internet companies establish these accounts, but traditional companies can also set them up.
The following steps are needed to open 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