The Central Bank of the country gives preference to those who intend to open a representative office, but not a branch in the territory of jurisdiction.
Banking license in Cyprus
Banking license in Cyprus
Issuance of certificates for conducting financial activities in the territory of Cyprus is carried out by the Central Bank of the island. Application can be submitted by the owners of existing corporations for the purpose of expansion.
When considering a package of documents, preference is given to those applicants whose banks are registered in jurisdictions with strict selection criteria.
The package of official documents should necessarily include a letter of recommendation or an attachment regarding registration with the original signature of the authorized person of the registrar country of the counterparty’s bank.
In order to obtain banking license in Cyprus, you need to apply for the services of the specialists of Law&Trust. The procedure for processing the certificate in Cyprus is characterized by the fact that it is not available to natural persons and does not require the establishment of the bank's head office in its territory.
It is possible to open business from scratch in Cyprus only through the repurchase of departments and branches of already existing financial institutions.
The issue of banking license in Cyprus implies the applicability of certain conditions and requirements to applicants. In addition to strict regulations of the country regarding foundation of the corporation, high standard of the authorized capital and extensive package of documentation are required.
Documents for obtaining banking license in Cyprus
In order to submit application to this offshore zone, it will be required to collect the following documentation package:
List:
List:
- Letter of recommendation from the leading bank of the constituent country.
- List of personal data on the management of the corporation.
- A number of documents confirming consistency, sustainability, financial status and reputation of the company's shareholders.
- Permission to disclose commercial secret to those authorized bodies that control the activities of the head office.
- Business plan or justification of the reasons why the jurisdiction of Cyprus should issue license to your company. It is necessary to focus on benefits and advantages of your company’s presence in the territory of the country for the country's economy.
- Data on the professional integrity of the directors and managers of the bank for each particular position.
- Physical location data of the head office with contact information.
- Authorization from the founder country to open new branches within the borders of Cyprus.
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Unchallenged reputation of the counterparty and all shareholders, the availability of evidence on the stability and planned development of the corporation and the ability to confirm the level of business income is the prerequisite to prompt obtaining of banking license in Cyprus.
Revocation of banking license in Cyprus
The bank that is bound by legal obligations with the jurisdiction of Cyprus is required to undergo an annual audit. Depending on the organizational form of the enterprise (branch, department or representative office), different requirements are imposed on it.
Failure to comply with the regulations may lead to temporary or permanent revocation of the license (decertification).
Our lawyers will provide information how to avoid problems during the verification process and maintain the reputation of an international bank while operating in Cyprus.
Cost of banking license in Cyprus
Cost of banking license in Cyprus
The amount of registration of the bank in Cyprus is slightly lower than in other offshore zones because of lack of necessity to establish new company.
From the moment of submitting the application to the expert commission of the bank, all document circulation should be conducted in English, and it can cause additional inconveniences for some corporations of CIS countries. Our specialists are ready to offer professional translation of all legal forms, which will simplify the transition to a new level.
However, the Central Bank requires a large package of documents, which takes more time during the preparation process for filing the application.
It is possible to clarify the cost of the whole set of services and detailed plan of tasks for processing of license by phone or on the website.
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Victoria Zhelezova
Branch Director, HR
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Dariia Grib
Legal secretaries & Receptionists
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