Do EU acquiring banks work together with a non-resident cyprus company?

[TrannyBob]

Hello,


do EU acquiring banks work together with a non-resident cyprus company?


If I for example use a Seychelles IBC as a director and shareholder of a cyprus company, to gain zero tax and zero VAT, will the big and reliable european acquiring banks accept this solution?


I already had a call with some acquiring banks I want to work together with. They couldn't give me a definitive answer, but they said that this would be probably become difficult.

 

[JohnLocke]

Well, no EU bank shall have any issues to work with a Cyprus company either resident or non resident. The problem that you may face is if a Seychelles corp. is director and shareholder in a Cyprus company. Most acquriing banks will either ask for more DD / KYC docs or simply refuse to proceed with the merchant account opening.


So I agree with the people you may have spoken to.

 

[TrannyBob]

Well, no EU bank shall have any issues to work with a Cyprus company either resident or non resident. The problem that you may face is if a Seychelles corp. is director and shareholder in a Cyprus company. Most acquriing banks will either ask for more DD / KYC docs or simply refuse to proceed with the merchant account opening.
So I agree with the people you may have spoken to.

How to avoid this problem and make sure that I will met the standards of the acquiring banks?


- Are foreign nominees more welcome than a Seychelles Company as a director and shareholder?


- Is a Hong Kong holding more accepted, as it is a more reliable jurisdiction?


- Or should I start with an EU company in my country to build a relationship with the particular acquiring bank and move to my suggested structure, after I am known to this bank?

 

[JohnLocke]

Well, you will need to appoint local nominees i.e. director and shareholder and make sure you can get their passport and utility bill to provide to the Acquiring bank. So you will have to pay the 12,5% tax in Cyprus but it may still be less than what you pay now. There are VISA and MC regulation that take place here and which makes it difficult to go around it tax free, since all entities may need to be within the EU. Best would be to get a clear answer from your Acquiring bank or the Payment Service provider of your choose, they shall be able to give you clear answers.


A Hong Kong company will not help you with a EU merchant account, this would be against the VISA / MC regulations.

 

[JohnLocke]

Do you found a solution for your Cyprus bank setup or did you found it in another jurisdiction?

 

[protain]

No issues found so far, I have approached several EU banks for banking in order to open accounts with them for my new Cyprus company, all have been happy to assist as long as I was able to show the purpose of the account and all documents required.

 

[Kaseyallan]

Legally they can't turn you down if you meet the criteria to be assisted, however saying that I have not spoken to every EU banks.

 

[quickfix]

You won't find any European Merchant account provider who is able to provide you their services for a non EU entity. for banking it's not a problem most will transfer your Money to whereever you want them to do so also offshore accounts.

 

[bothe]

You can get any EU Acquiring bank to accept your Seychelles, Belize, Panama or other offshore Company. There are regulations set by Visa and MC that prohibit that!