A merchant account in Cyprus represents a bank account through which online businesses and those effectuating their activities from physical locations are able to receive and process payments from partners or customers.
In this article, our company formation specialists in Cyprus outline the most important aspects of setting up a Cypriot merchant account.
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Requirements for opening a merchant account in Cyprus
In order to open a merchant account in Cyprus, the following requirements have to be met:
•A corporate bank account;
•Providing corporate documents like the Certificate of Incorporation, the Articles of Incorporation, by-laws and so on, with the purpose of proving that the business in question is legitimate;
•Having a website;
•Refund policy information;
•Present bank or trade references;
•Provide a photocopy of the recent tax returns. Our Cyprus company formation advisors can offer more details on this matter;
•Present a photocopy of the individual’s identity, like a passport, an ID card etc.
Why set up a merchant account in Cyprus?
Cyprus, as one of the member states of the European Union, is one of the few countries where an offshore merchant account can be set up.
An offshore merchant account in Cyprus is a bank account which is opened with a foreign bank. Our company registration professionals in Cyprus can offer more details on this type of merchant account in this country. We can also help you open a company in Cyprus.
With such a merchant account, businesses are not limited by trade regulations. Clients from more states can transact, effectuate payments and do business with the company.
Moreover, the business will be taxed at a low rate. If you decide to open an offshore merchant account in Cyprus, the corporate sales, for example, will be taxed at a low rate.
Why do I need a merchant account in Cyprus?
A merchant account in Cyprus is necessary to accept credit card payments online. Alternatively, you can use the services of an aggregator like PayPal, which is a business that processes transactions by using its own merchant account on behalf of other companies.