Financial accounts in Cyprus offer many benefits and advantages to business owners. If you are looking for a business account that offers access to the European market, Cyprus is a great option for you.
Cyprus is one of the smallest yet most popular countries in the world for business accounts. The process of business account opening in Cyprus is not as complicated as one might think.
The country comes with multiple advantages to let business owners run successful businesses. As Cyprus is also a member of the European Union, entrepreneurs, freelancers and companies in Cyprus have many of the same benefits and protections as business accounts in other countries in the bloc.
In addition, business accounts in Cyprus are also subject to the same low corporate tax rates that are available in the country. Combined, these factors make business accounts in Cyprus an attractive proposition for business owners looking to reduce their overall tax burden.
However, like any other country, a business account opening in Cyprus has its requirements. Today, we will be discussing the requirements and process of opening a business account in Cyprus.
Why do companies need business accounts?
As we all know, a business account is an essential part of running a business. A business account can help a company with various financial tasks.
Some of the main reasons why companies need business accounts are:
To manage their finances: A business account is a great way for companies to keep track of their money. It also allows businesses to see where they are spending their money and where they can save.
To deposit money: A business account is necessary for companies to deposit money. This is important for businesses to have access to their funds when they need them.
To make and receive payments: This is a crucial part of running a business as it allows companies to pay their suppliers and employees.
To access loans and lines of credit: It’s often required in order to access loans and lines of credit. This can be a great way for businesses to finance their operations.
Further, with Cypriot institutions, businesses do not have to care about deposit size. If you have a local company or an international business, but you are unable to deposit large amounts of money into your business account, you have luck with Cypriot institutions.
Likewise, if you are facing challenges in opening a business account anywhere else in Europe, such as Germany, France etc., then a business account in Cyprus can be a good solution for you.
Why open a business account in Cyprus?
All things considered, you must be wondering, why open a business account in Cyprus? Well, as we mentioned before, business accounts in Cyprus offer many benefits and advantages to business owners.
Access to the European market: As Cyprus is a member of the European Union, businesses that open business accounts in Cyprus have direct access to the European market. This can be a great way for businesses to expand their operations and reach new customers.
Low corporate tax rates: Cyprus has some of the lowest corporate tax rates in the world. This can be a great way for businesses to reduce their overall tax burden.
Attractive business account terms: From low maintenance fees to international bank account numbers (IBAN), multi-currency accounts, and much more, there are numerous account terms to leverage.
Ease of business account opening: The process of business account opening in Cyprus is relatively simple and straightforward. The types of institutions that operate in Cyprus are private national banks, but foreign banks also operate through representatives.
Transactional Financial Services: Cypriot institutions run on transactional fees and profit through these fees. Thus, they don't expect high deposits and further don’t put any pressure on the businesses to earn these transaction fees.
Remote Opening: Unlike other countries, business account opening in Cyprus can be done remotely. This means that you do not have to be physically present in Cyprus in order to open a business account.
How to open a business account in Cyprus with traditional institutions?
You can open a business account in Cyprus before arriving. Any institution in Cyprus can open business accounts for international entrepreneurs, as well as for businesses registered outside of Cyprus.
The first step is to choose the provider that you want to open an account with. There are many providers in Cyprus, so it is important to do your research to find the best one for your needs. Some famous options are Bank of Beirut, Jordan Kuwait Bank, Eurobank.
Once you have chosen your financial services provider, the next step is to gather the required documents. The documents that you will need may vary depending on the platform that you choose. However, some of the common documents that are required for business account opening in Cyprus are listed below:
- A copy of your passport or ID
- A utility bill or bank statement to prove your address
- Proof of income (such as a payslip or tax return)
- A business plan or company registration documents
- A letter that states your good credit
After you have gathered all of the required documents, you need to submit them to the branch or platform. Once they have reviewed your documents, they will open your account and give you your account details.
It is important to note that some institutions may require additional documents or information. Therefore, it is always best to contact your provider directly to find out what they require. You can get acquainted with the financial regulations through Cyprus Securities and Exchange Commission and the Central Bank of Cyprus.
Easy way to open a business account for companies
While the process of business account opening in Cyprus is not complicated, it can still be time-consuming. There are certain stringent rules of traditional institutions that can often make the process more difficult.
In such cases, there are various options available for you that can make business account opening much easier. For instance, you can use the services of an offshore company to open a business account for your company.
An offshore company is a company that is registered in a jurisdiction outside of your home country. Offshore companies are often used by businesses to take advantage of the lower tax rates and financial benefits that they offer.
wamo offers an online business account opening service that is simple, fast, and easy. It has been offering businesses everything that they need in order to open business accounts and run a successful business in Cyprus and business owners and sole traders can have an account up and ready to go in a few hours.
If you are looking for a faster, friendlier yet equally secure solution to getting a business account in Cyrpus - try wamo!