How to Open a Business Bank Account in UAE?
The banking industry in the United Arab Emirates is well-known for its prominence, and clients value the high level of privacy provided by the country’s institutions. The economy of the United Arab Emirates (UAE) has been significantly affected by the extraordinary rise of private businesses, clear official policies, and a 0% corporate tax rate.
The UAE banking industry is trustworthy and secure for your money, and this secrecy is one of the most essential factors in its success. If you are an investor and this information is taken into account, you can be certain that your privacy will be treated with the greatest care.
Dubai Islamic Bank, Abu Dhabi Islamic Bank, and Mashreq Bank are some of the top banks in the country. Even though the Central Bank of the United Arab Emirates controls all banks, each financial institution has its own compliance department and set of rules.
Learn all you need to know about opening a business bank account in UAE, including the documentation you’ll need, the obstacles you’ll meet, and a simpler solution to all of the problems you’ll encounter, right here.
How to Open a Corporate or Business Bank Account in UAE?
When opening a corporate bank account in any of the seven emirates that comprise the United Arab Emirates, the following steps must be taken.
Step 1: Getting Your Business License
The acquisition of a business license is a condition for the opening of a bank account. Without the license, the bank will not recognize your firm as a valid business, and you will be unable to establish a business bank account in the United Arab Emirates.
Step 2: Get All Your Legal Documents in One Place
Before proceeding to the following level, it is essential to ensure that all required legal and commercial paperwork has been accurately completed. For example, a fully-completed application form, a copy of the Emirates ID, and the name of a shareholder representative are all essential pieces of information required to open an account.
Step 3: Check Your Specific Visa Requirements
After ensuring that all required documents are in place, you must determine if your stockholders need a UAE Residency Visa. Certain financial institutions will need this from at least one shareholder as proof of residency, while others may not.
Step 4: Choose Your Bank
When you have all of the relevant documentation in hand, you may begin looking for a bank that meets your criteria. When it comes to national and international banks, there are several alternatives accessible. When choosing a bank, it is essential to consider the eligibility criteria as well as the income requirements.
Step 5: Start Your Application Process
After selecting a financial institution, the next step is to submit all required papers and a completed application form to a bank consultant for review. The bank will next examine your application carefully to ensure that everything is accurate before determining whether to approve it or reject it. The bank will begin collecting background information on the company’s management team, shareholders, and directors once approval has been granted.
That’s it. This is how easy it is to open a corporate bank account in the UAE.
Benefits of Opening a Business Bank Account in the UAE
You may be certain that your company’s finances are always in secure hands since UAE banks take due diligence very seriously. Because of this, having a business bank account in the United Arab Emirates is the quickest, most convenient, and safest method to transfer and receive money in Dubai.
Here are some of the benefits of opening a business bank account in the UAE:
- Foreign business owners and investors who are interested in establishing a business bank account in the UAE are guaranteed complete confidentiality by the UAE.
- The United Arab Emirates allows businesses to create bank accounts in almost any currency, which makes currency conversion simple and hassle-free.
- Through the use of a business checking account, company owners may easily keep track of their cash flows and activities.
- Investor is better able to access their potential tax obligations when they have a business account. It contributes to the maintenance of a transparent system for tax payments.
- When running a company, entrepreneurs should make use of their business accounts to keep track of their expenditures in order to more efficiently control their expenses.
- When it comes to financing their firm, business owners often find it simple to get credit cards or loans for their organizations.
- Free from any and all forms of unfair treatment within the parameters of online and telephone banking.
- The provision of help to financial institutions all around the globe and the management of their operations is also made simple.
Things to Consider While Opening a Corporate Bank Account in the UAE?
Following are some facts to consider before opening a business bank account in the UAE.
1. Level of Secrecy
The high level of privacy provided by UAE banks is one of the key reasons for their immense popularity. This secrecy is one of the fundamental factors that contribute to the success of the banking industry in the UAE, making it efficient and secure for your money and contributing to its success.
If you are an investor considering this, you can rest certain that your privacy will be protected in every manner imaginable. You should be aware that in recent years, the UAE and other nations have established a number of agreements to combat tax evasion and make it more difficult for individuals to avoid paying taxes.
These agreements suggest that there are circumstances in which banks are obligated to cooperate with authorities in other nations, notwithstanding their rigorous protection of clients’ right to privacy.
2. Local bank
You may always apply to local banks in the United Arab Emirates to open a corporate account if you have a UAE Firm of any kind (LLC, Free Zone, or Offshore) as well as a registered branch or subsidiary firm in the UAE. You may also submit an application to international banks such as HSBC, Standard Chartered Bank, or Citibank, but, when it comes to flexibility for small and medium-sized companies (SMEs) and startup organizations, a local bank account is preferable.
3. Proper Documentation
If you are to give the required documentation, you must analyze the company’s activities, the number of shareholders, the business history of the management, and the business plan for the new organization in the UAE.
4. Verification Signatures
If you are a startup or a small to medium-sized company, you will be required to spend a few hours at the bank acting as a bank signatory in order to have your application and passport verified.
5. Role of Your License
Your prospects of obtaining a business bank account will be considerably impacted by the manner in which your company license is set up as well as the activities it engages in.
Documents Required for Business Bank Account Opening in UAE
The minimum required paperwork to open an account is outlined below. This list might change based on the scope of your firm, the bank’s requirements for opening a corporate account, and other factors.
1. Mainland Bank Account
To open a mainland bank account you need the following Documents.
Basic Documents
- Trade license
- Memorandum of Association (MoA)
- Passport, Visa & Emirates ID of all partners (if applicable)
- Office tenancy or Ejari contract (physical office)
Supporting Documents
- 6 months bank statement (personal/company from UAE/home country)
- Utility bills as an address proof (for certain nationalities)
- VAT certificate (if applicable)
- Business model/company profile/website/plan
- Applicant profile (CV) of the signatory
- Name of existing or prospective clients (suppliers/buyers)
- Debit & credit invoices
2. Freezone Bank Account
To open a free zone bank account you need the following Documents.
Basic Documents
- Trade license
- Share certificate
- Memorandum of Association (MoA)/Article of Association (AOA)
- Passport, Visa & Emirates ID of all partners (if applicable)
- Office tenancy (physical office)
Supporting Documents
- 6 months bank statement
- Utility bills as address proof
- Business model/company profile/website
- Applicant profile (CV)
- Name of existing or prospective clients (suppliers/buyers)
- Invoices/bill of shipment/shipping documents/agreements/custom clearance, etc.
For a detailed guide visit how to open a Free zone company bank Account
3. Offshore Bank Account
To open an offshore bank account in UAE you need the following Documents.
Basic Documents
- Trade license/Certificate of Incorporation
- Share certificate
- Passport
Supporting Documents
- Parent company’s legal documents
- Office tenancy of parent company as address proof
- Last 6 months company bank statement from home country
- Certificate of Good Standing (if applicable)
- Certificate of Incumbency (if applicable)
- Visa & Emirates ID (if available)
- Applicant profile (CV)
- Business model company profile
- Website if available
FAQs About Opening a Bank Account in UAE
What is a Corporate or Business Bank Account in the UAE?
A corporate bank account, also known as a business bank account, is a kind of bank account that a corporation uses to hold its cash. Corporate accounts are used by corporations and organizations to invest and save money in addition to their day-to-day banking needs.
It makes no difference how big or small your company is. All business owners must maintain a separate bank account for their firm. They are used for the following purposes:
- Savings
- Banking
- Investing
Any kind of business organization or legal body, like a sole proprietorship, partnership, or private limited company, can open a corporate bank account with a financial institution. To open a corporate bank account, a corporation must get formal approval from its board of directors in the form of a corporate resolution.
Can Non-residents Open a Bank Account in UAE Online?
In order to apply, the prospective customer must physically appear at the financial institution. To open a non-resident bank account, they can’t do it online. There is a required minimum balance that must be kept in certain non-resident accounts. Before deciding to open an account, a customer should double-check this.
How Long Does It Take to Open a Business Bank Account In UAE?
Each financial institution has its own account opening procedure and timetable. Establishing a financial presence for a limited liability company (LLC) or a Free Zone business in the UAE might take anywhere from two to four weeks.
How Much Does It Cost to Open a Bank Account In the UAE?
The good news is that, unlike in most other countries, opening a bank account in the United Arab Emirates is free. Each local bank has its own set of minimum monthly average balance categories, and they all need a certain minimum amount each month.
The minimum starting deposit in local UAE banks may vary from 50,000 to 500,000 AED. The minimum amount for Emirates NBD, for example, is 50,000 AED. Any account that does not maintain the requisite monthly average balance will be charged a fine of 250 AED.
Conclusion
Opening a business bank account in UAE is easy, but can be a tedious process for inexperienced individuals. It takes tremendous work and time to get the application process started, and then additional patience and time for the application to be really effective. In this sense, time is of the biggest significance for entrepreneurs throughout the first stages of the business formation process.
This is where Airzone comes in. Our trusted business formation partners can process your corporate bank opening application promptly and efficiently. Airzone’s knowledge of UAE rules and regulations will also help you prevent mistakes, avoid rejection, and expedite the process.
In case you’ve already opened a bank account and need help setting up a business in the country, we have a detailed guide on how to set up a business in Dubai. With a thorough understanding of the UAE’s business scene, you should be well prepared to establish a company in the country. If you need information regarding free zones, we also have detailed guides on UAE free zones.