Setting up a Business Bank Account is a crucial milestone for any company operating in Cyprus, whether you’re launching a new venture or expanding your existing operations. A dedicated Business Account not only separates your personal and company finances but also streamlines transactions, enhances credibility with clients and partners and ensures compliance with local regulations.
This step-by-step guide is designed to simplify the journey, walking you through each stage of the account opening process. From preparing the right documents to choosing the best banking partner you’ll find practical advice and expert tips to help you open your business bank account in Cyprus with confidence and ease.
What is the definition of a Business Bank Account?
A Business Bank Account is established to assist companies with their financial management and it is an important part of the Business Banking. It is opened in the name of the company at a financial institution and the account holder is usually the company or someone they have chosen to act on their behalf. The types of Business Bank Accounts are mainly current accounts for day-to-day payments and savings accounts for when there is extra money. With these, a business can always view its account balance and make payments to others without difficulty.
A Business Bank Account offers features made for companies. This could involve sending money to other countries, utilising letters of credit, or obtaining loans that meet their needs. With extra safety and clear rules, these accounts help companies maintain smooth operations and protect them from scams.
What are the steps for opening a Business Bank Account in Cyprus?
1. Choose a Bank
Key considerations when choosing a bank include:
- Banking Services and Products: Evaluate whether the bank provides the account types and services your business requires.
- Reputation and Reliability: Consider the bank’s standing in the Cypriot market, its experience with international clients and its ability to support your industry or business model.
- Fee Structure: Compare monthly maintenance fees, transaction costs and minimum balance requirements, as these can vary significantly between banks.
- Digital and International Capabilities: Assess the quality of digital banking tools and the ease of making international payments, especially if your business deals across borders.
- Customer Support: Look for banks that offer responsive customer service and, if needed, professionals who understand business banking.
- Onboarding Process: Some banks may require in-person visits, while others offer remote or online account opening, which can be a deciding factor for international or non-resident business owners.
By thoroughly researching and comparing these factors, you can select a bank in Cyprus that will best support your business’s financial management, growth and compliance needs.
2. Prepare Required Documents
To prepare for opening a Business Bank Account in Cyprus, you must gather a comprehensive set of documents for both the company and all relevant individuals associated with it. Have in mind that requirements are strict due to EU and Cyprus anti-money laundering (AML) and Know Your Customer (KYC) regulations.
Company Details
- Certificate of Incorporation: Confirms the company’s legal formation in Cyprus.
- Memorandum and Articles of Association: Outlines the company’s structure, purpose and internal governance.
- Ultimate Beneficial Owners Registry (UBO) Report
- Certificate of Directors and Secretary: Lists the appointed directors and company secretary.
- Certificate of Shareholders: Identifies the company’s owners and their shareholdings.
- Certificate of Registered Office Address: Verifies the official address of the company in Cyprus.
- Organizational Chart/Group Structure: Shows ownership and control signed by the UBO Registry.
- Business Profile: Description of business activities, expected turnover, jurisdictions of operation and key partners or clients.
- Financial Documents: Recent audited financial statements and tax returns to verify the company’s financial health and source of funds.
- Proof of business address of the Company, such as a utility bill (dated within 6 months)
For Individuals (Directors, Shareholders, Secretary and Ultimate Beneficial Owners – UBOs)
- Valid Identification: Certified copies of passports or national ID cards showing photo, full name, date of birth, nationality and unique ID number.
- Proof of Residential Address: Recent utility bill (issued within the last 6 months) confirming the individual’s address.
- Professional Background: Documents that prove occupation, employer and years of employment.
- Source of Funds/Proof of income: Detailed declarations supported by documents such as tax returns, payslips, bank statements, or contracts explaining the origin of funds.
- Tax Identification Number (TIN): Where applicable, to comply with tax regulations.
Other Information
- Detailed business description: A clear and specific explanation of your company’s line of business.
- Purpose of the business relationship: The reason for opening the account, such as managing operational payments, receiving client funds or international trading.
- Economic profile: Information about the expected annual turnover, the volume and frequency of incoming and outgoing transactions and the main markets or jurisdictions where the business operates.
- Business partners and counterparties: Details of your main customers, suppliers and other business partners, including names, countries of operation and the nature of the relationships.
- Physical or economic presence in Cyprus: Many banks now require evidence of real economic activity in Cyprus, such as a local office lease agreement, employment of staff and registration with the Department of Social Security as an employer.
- Organizational structure: A diagram or written outline showing the company’s ownership and control, including ultimate beneficial owners (UBOs) and key decision-makers.
- Business plan or supporting documents: Some banks may request a business plan, sample contracts, invoices, or a company website further to demonstrate the legitimacy and scope of your business activities (if applicable).
Additional notes:
- All documents should be recent (usually not older than three to six months) and may need to be certified as true copies of the originals.
- Providing clear, specific and well-documented business information is essential for a successful application. Banks use this information to verify your company’s legitimacy, assess financial risk and comply with Cyprus and EU regulations.
- For partnerships or group structures, additional agreements and group structure charts may be required.
3. Submit Application
To submit the application for a Business Bank Account in Cyprus, follow these steps:
- Complete the Application Form: Obtain and fill out the bank’s official application form, providing accurate details about your company, its directors, shareholders and business activities.
- Attach Required Documentation: Submit all necessary documents, as mentioned above.
- Provide Additional Information if Requested: The bank may contact you for further clarification or to request extra documents, especially if your business structure is complex or international.
- Wait for Bank Review: After submission, the bank will review your application, verify your documents and conduct background checks. The duration of this process depends on the bank and the completeness of your submission.
4. Compliance and Verification
At this step, the bank conducts thorough due diligence to ensure the legitimacy of the company and all related individuals and assesses the risk profile of the business:
- Document Authentication: The bank reviews all submitted documents, including company incorporation papers, identification for directors and shareholders, proof of addresses, business plans and source of funds/wealth documentation, to verify their authenticity and accuracy.
- Background Checks: Detailed background checks are performed on company directors, shareholders and ultimate beneficial owners (UBOs). This includes reviewing CVs, professional backgrounds and any connections to high-risk jurisdictions or industries.
- Business Activity Assessment: Banks require a clear understanding of your company’s business model, main activities, expected transaction volumes and key partners or clients. This helps them assess the legitimacy of your operations and the purpose of the account.
- Compliance Interview: Many banks conduct an in-person or online interview with company representatives or UBOs as part of their internal KYC/AML process, to clarify information and assess risk.
- Ongoing Monitoring: KYC and AML compliance is not a one-time process. After account opening, banks will continue to monitor transactions and request updates if there are changes in ownership, business activity, or unusual transaction patterns.
Compliance and verification are a critical stage in opening a Business Bank Account in Cyprus, reflecting the country’s strict adherence to EU and international anti-money laundering (AML) and know-your-customer (KYC) standards. By ensuring all documents are accurate, up to date and clearly demonstrate the legitimacy of your business and its stakeholders, you can help the compliance and verification process proceed smoothly.
5. Approval and Account Activation
Once your Business Bank Account application in Cyprus has passed compliance and verification, the following steps are approval and activation of your account:
- Account Approval: You will receive formal notification that your business account has been approved.
- Initial Deposit Requirement: The bank will provide instructions for your initial deposit, which is required to activate the account. The minimum amount varies by institution, however, there are some banks that don’t require a minimum initial deposit.
- Receive Account Details and Access Credentials: Once activated, you will receive your online banking credentials as well as business debit or/and credit cards and chequebooks.
- Activate Your Card(s): You can activate your debit or credit cards through the bank’s mobile app, internet banking platform, at an ATM, or by making a first transaction at a POS terminal.
- Set-Up Online and Mobile Banking: Setting online or mobile banking services allows you to manage your business finances, monitor transactions, pay suppliers and access account statements 24/7.
What are the fees for opening a Business Bank Account?
General Fee Structure:
- Account opening fee: Most banks charge a one-off fee when you open a business account. This fee covers the administrative costs associated with establishing the account.
- Maintenance fees: Ongoing fees are usually charged quarterly or monthly for maintaining the account.
- Additional service fees: There may be extra charges for services such as issuing debit cards, processing transactions, or handling specific business banking needs.
Concerning Ancoria Bank:
- Account opening fee: Charged once-off when you open a business account.
- Maintenance fees: Charged every quarter.
- Additional fees: Fees may vary for accounts with complex corporate structures and for additional business services.
For more information, you can view Ancoria Bank’s Table of Commission and Charges here.
How do Business Bank Accounts differ from Personal Bank Accounts?
A Business Bank Account is different from a Personal Bank Account in several ways. Personal Bank Accounts are designed for individuals who want to manage their daily spending or save money. Business Accounts are made for companies. They assist with tasks such as handling transactions, paying salaries and managing funds from other countries. With Personal Bank Accounts, the focus is on being easy to use and simple to access when needed. Business Bank Accounts often offer additional features, such as specialised loans for companies and enhanced money management options.
What are the benefits of opening a Business Bank Account with Ancoria Bank?
Opening a Business Bank Account at Ancoria Bank offers a range of benefits tailored to support companies of all sizes in Cyprus’s dynamic business environment.
Here are the main advantages:
- Instant Access & Efficient Operations: With a Business Current Account, you get immediate access to your company’s funds, allowing you to manage daily operations, payments, payroll and transactions smoothly. The account is linked to a debit card and online/mobile banking, making it easy to deposit and withdraw money.
- Digital Banking with myAncoria: Ancoria Bank’s myAncoria business platform enables you to manage your finances anytime, anywhere. This digital-first approach provides real-time access to balances, transactions and financial data.
- Tailored Business Solutions: The bank offers specialized products and services, including Business Loan, Business Mortgage Loan, Full Cash Collateral Loan, New and Used Car Loan and Fixed Term Deposit Accounts.
- Personalized Support: Ancoria Bank emphasizes strong, trust-based relationships. Dedicated Business Relationship Officers provide personalized consultations, strategic advice and ongoing support to help you achieve your business goals. Ancoria Bank invests in the training of its business banking team, ensuring you receive knowledgeable, up-to-date guidance and support for every aspect of your business banking.
- Security & Deposit Protection: All deposits at Ancoria Bank are protected under the Deposit Guarantee and Resolution of Credit and Other Institutions Scheme, offering peace of mind and financial security for your business reserves.
- Transparent Fees: The bank maintains a clear and competitive fee structure so you know exactly what to expect in terms of account opening and maintenance costs.
What is the Ultimate Beneficial Owners Registry?
The Ultimate Beneficial Owners (UBO) Registry is essentially a database, maintained by the Registrar of Companies that records information about individuals who own or control a company or legal entity. The UBO Registry, introduced in compliance with the European Council’s Anti-Money Laundering Directive, aims to prevent the misuse of corporate structures for illicit activities, i.e. money laundering and terrorist financing. All companies and legal entities registered in Cyprus are required to submit details of the ultimate beneficiary owners that are natural persons who own or control more than 25% of the company’s shares or voting rights or exercise control over the company in any other way.
What is KYC (Know Your Customer)?
KYC, or Know Your Customer, is a mandatory process used by banks and financial institutions to identify and verify the identity of their clients when opening an account and on an ongoing basis. The main goal of KYC is to ensure that customers are who they claim to be, which helps protect financial institutions against fraud, money laundering, terrorist financing and other illegal activities. This process applies both to businesses and individuals.
What is Source of Funds?
Source of funds refers to the specific origin of the money being deposited or transacted through the account. For example, this could be proceeds from business operations, a property sale, a salary, or an investment return. Documentation must clearly show the trail of funds, not just the bank or institution they were transferred from. This is a critical component of the due diligence measures that apply when opening a Business Bank Account in Cyprus. Banks are required by law to verify where the money being deposited comes from (source of funds) to comply with anti-money laundering (AML) regulations and EU directives.
At Ancoria Bank we are committed to customer-centric service and digital convenience making us a strong financial partner for businesses looking to operate efficiently, securely and flexibly in Cyprus’s competitive market.
