Cyprus is constantly coming up with various company formations, thanks to its low taxes and advantages of corporate law regimes. The destination is quickly becoming popular for bringing entrepreneurs closer to successful businesses with lots of financial opportunities to thrive.
Amidst this, if you are wondering whether it is necessary to open a business account in Cyprus if you want to form a company, the simple answer to this is yes. If you wish to form a company in Cyprus as an entrepreneur, freelancer or corporate owner, you will need to open a business account for e-residency.
The company formation process is relatively simple and can be done online. Cypriot institutions are well capitalised, and offer businesses a wide range of effective services which include, online financial services, business debit cards, merchant services and multi-currency accounts that enable easy money transfers and payments.
In fact, if you opt for offshore companies, you can expedite your process of opening a business account in Cyrpus with additional services that can ease your process. These companies also offer official maintenance of your financial transactions at very reasonable costs. In this article we'll cover opening a business account in Cyprus too for your company in Cyrpus.
How to open a company in Cyprus?
1. Choose your company name and register it with the Registrar of Companies: Before registering your company, the first step is to determine the type of company that you want to run. It can be a public company, limited liability company, private company or variable capital investment company.
2. Accumulate your required documents: After you have decided on the type of company you want to register, it's time to gather all the required documents that enable you to open a company.
3. Draft your company's Memorandum and Articles of Association and submit them to the Registrar of Companies: Once you have all your required documents in place, it's time to draft your company's Memorandum and Articles of Association. The Memorandum is a document that outlines the company's primary purpose, while the Articles of Association contains provisions related to the company's management and operation.
4. Pay the required fees and deposit your share capital: After your company has been registered, you will need to pay the prescribed fees and deposit your share capital with a local branch. The amount of share capital required will depend on the type of company you are registering.
5. Certificate of Incorporation and Business Account: Once you have your Certificate of Incorporation, you can open a business account in Cyprus.
What documents are needed to open a company in Cyprus?
Proper documentation is an important step to open a business in Cyprus. In order to ensure smooth company registration, you need to have the following documents in place:
- Passport or National ID of all shareholders and directors
- Proof of Address. This could be electricity, water or telephone bill, no older than three months
- CV or Resume of all shareholders and directors
- Detailed business plan
- Certificate of Incorporation
- Articles of Association
- Memorandum of Association
- Bank reference letter from your current bank
- Utility bill of your current residential address (not older than three months)
- Professional reference letter, if you are a freelancer or self-employed individual
How to open a business account in Cyprus
Cyprus allows international entrepreneurs to open a business account for e-residency in multiple ways. In fact, you can also open a business account in Cyprus remotely, i.e. you can get access to your account before even arriving in Cyprus.
There are multiple banks that enable you to open a business account in Cyprus. It is important to understand the requirements of each bank to make the right choice. Some of the better known banks that you can look up are the Bank of Beirut, Jordan Kuwait Bank, and Eurobank.
Each bank has different eligibility criteria, processing time and documentation. Also note that most of these banks demand a similar set of documents and might also want you to make a minimum deposit, which could range from €1,000 to €10,000. Before you choose a bank, make sure to compare the interest rates, service charges, annual fees and other terms and conditions to make an accurate decision.
Easier alternatives to open a business account for e-residency
Cyprus allows many easier and faster ways for opening a business account in Cyprus. The e-residency program offered by the Cyprus government is one of the best ways to open a company account. For this, you don't have to be physically present in Cyprus. Instead, you just need your computer and internet connection to start with the registration process.
Another effective and faster alternative is offshore companies. These companies are registered in a jurisdiction outside of your home country and allow you to run your business with lower tax rates and multiple financial benefits.
Some of the best companies are Wise, Revolut and wamo. They are much faster, friendlier and cheaper options to run a business in Cyprus.
wamo further offers a full-suite business account in just 10 minutes. All you need is basic personal details, business details and an ID to get started. Additionally, you get multiple benefits like limitless cards and accounts, EU and GB IBANs and an effortless overview of your financial blueprints.