Banking License in Cyprus
Issuance of a license to carry out financial activities in the territory of Cyprus is made by the Central Bank of Cyprus. Applications for licenses are possible by the owners of existing banks in order to expand the geography of their presence.
In reviewing the documentation package, preference is given to applicants whose banks are registered in jurisdictions with strict selection criteria – EU countries, North America and the United Kingdom.
The package of official documents must include a letter of recommendation or an annex on registration with the original signature of the authorized person of the registrar of the counterparty bank.
The procedure of registration of a bank in Cyprus differs in that it is not accessible to individuals and does not require the establishment of the bank’s head office in Cyprus. It is possible to open a bank from scratch here only through the repurchase of branches and branches of existing financial institutions.
The issuance of a bank license in Cyprus implies certain conditions and requirements for applicants. Also, in addition to the strict rules of the founding country of the corporation requires a high level of authorized capital and an extensive documentation package.
Documents for obtaining a bank license in Cyprus
Application for a license will require the following:
- a recommendation letter from the parent bank of the parent country
- a list of personal data of the management of the company
- a set of documents confirming the solvency and reputation of the shareholders of the enterprise
- permission to disclose trade secrets
- authorized bodies that control the activities of the bank’s head office
- business plan or justification of the reasons why the jurisdiction of Cyprus should issue a banking license to your company (here the most important role will be the benefit of the company’s activities in Cyprus)
- the professional suitability of the bank’s directors and managers for each specific management position
- physical data on the location of the head office with contact information
- permission from the founding country to open new branches of the bank
- the impeccable reputation of the counterparty and all shareholders
- evidence of the stability and planned development of the corporation and the ability to confirm the level of business income
The Central Bank of the country gives preference to those who intend to open a representative office in the territory of jurisdiction, not a branch.
Cost of bank license in Cyprus
The cost of bank registration in Cyprus is somewhat lower than in other EU countries due to the absence of the need to create a new company, but the Central Bank of Cyprus requires a voluminous package of documents, which takes a lot of time to prepare for the application for the license.
From the moment of submission of the application to the expert committee of the regulator, all document circulation should be conducted in English or Greek. Lawyers and translators of our company are ready to offer professional translation of all legal forms, which will simplify the application process.
The Bank, which is bound by legal obligations in the jurisdiction of Cyprus, is required to undergo an annual audit. Depending on the organizational form of the enterprise (branch, branch or representative office), it has different reporting requirements.