Bank accounts in Cyprus offer many benefits and advantages to business owners. If you are looking for a bank 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 bank accounts. The process of bank 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 bank accounts in other countries in the bloc.
In addition, bank accounts in Cyprus are also subject to the same low corporate tax rates that are available in the country. Combined, these factors make bank accounts in Cyprus an attractive proposition for business owners looking to reduce their overall tax burden.
However, like any other country, a bank account opening in Cyprus has its requirements. Today, we will be discussing the requirements and process of opening a bank account in Cyprus for businesses.
İlayda Birol
Why do companies need bank accounts?
As we all know, a bank account is an essential part of running a business. A bank account can help a company with various financial tasks.
Some of the main reasons why companies need bank accounts are:
To manage their finances: A bank 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 bank 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 Cyprian banks, businesses do not have to care about deposit size. If you have a non-resident company or an international business, but you are unable to deposit large amounts of money into your bank account, you have luck with Cyprian banks.
Likewise, if you are facing challenges in opening a bank account anywhere else in Europe, such as Germany, France etc., then a bank 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 bank account in Cyprus? Well, as we mentioned before, bank accounts in Cyprus offer many benefits and advantages to business owners.
Sinan Elver
Access to the European market: As Cyprus is a member of the European Union, businesses that open bank 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 bank account terms: From low maintenance fees to international bank account numbers (IBAN), multi-currency accounts, and much more, there are numerous bank account terms to leverage.
Ease of bank account opening: The process of bank account opening in Cyprus is relatively simple and straightforward. The types of banks that operate in Cyprus are private national banks, but foreign banks also operate through representatives.
Transactional Banking: Cyprus banks 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 transactional Banking fees.
Remote Opening: Unlike other countries, bank 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 bank account.
How to open a bank account in Cyprus with traditional banks?
You can open a business bank account in Cyprus before arriving. Any bank in Cyprus can open bank accounts for non-residents, as well as for businesses registered outside of Cyprus.
The first step is to choose the bank that you want to open an account with. There are many banks in Cyprus, so it is important to do your research to find the best bank for your needs. Some famous options are Bank of Beirut, Jordan Kuwait Bank, Eurobank.
Once you have chosen a bank, the next step is to gather the required documents. The documents that you will need may vary depending on the bank that you choose. However, some of the common documents that are required for bank 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 bank. Once the bank has reviewed your documents, they will open your account and give you your bank details.
It is important to note that some banks may require additional documents or information. Therefore, it is always best to contact the bank directly to find out what they require. You can get acquainted with the banking regulations through Cyprus Securities and Exchange Commission and the Central Bank of Cyprus.
Easy way to open a bank account for companies
While the process of bank account opening in Cyprus is not complicated, it can still be time-consuming. There are certain stringent rules of traditional banks that can often make the process more difficult.
In such cases, there are various options available for you that can make bank account opening much easier. For instance, you can use the services of an offshore company to open a bank account for your business.
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 bank account opening service that is simple, fast, and easy. It has been offering businesses everything that they need in order to open bank 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!
