How to Open Your Free Zone Company Bank Account in UAE?

Your Free Zone company in UAE needs a Free Zone bank account to manage all monetary transactions and other financial liabilities. Opening a bank account for a Free Zone company can be an overwhelming process but with the right consultancy and support, it turns into a hassle-free and seamless process. The banking system of the UAE is considered one of the most trustworthy networks in the Middle-Eastern region. But it comes with some additional scrutiny and security measures.

The entire process of Free Zone bank account opening involves a range of mundane tasks and a lot of paperwork. There is no absolute way to open a bank account for a Free Zone company as the terms and conditions deviate depending on the nature of the business and the bank you opt for.

This blog post is intended to cover the entire process of opening a Free Zone bank account in UAE including all the necessary requirements and prerequisites. Let’s discuss this in detail.

Free Zone bank account opening

Why Does Your Free Zone Company Need a Bank Account?

The Free Zone bank account in UAE is offered particularly for businesses. The primary objective is to patronize and encourage investors to create new business avenues with hassle-free transactions and financial processes.

By opening an account for a Free Zone company, you can easily monitor and manage your company’s expenses, estimate tax liabilities seamlessly, and automate cash in-flow and out-flows. It also assists the owner in distinguishing between business and personal transactions.

Therefore, it is crucial to choose bank offering services that best align with your business process to refrain from outsourcing any other dedicated support.

Advantages of Free Zone Bank Account for Your Business

Some of the potential perks of opening a Free Zone bank account for your business in UAE include:

  • Transparent financial management – Having a separate personal account and business account can help you draw a fine line between your personal and business expenses, liabilities, and cash flows.
  • Online transactions – In this digital era, online transactions made via credit or debit cards are often preferred over mainstream paper money. With the rapid expansion of your business, it will be inevitable for your company to abstain from offering online transaction modes to your vendors, clients, and customers. 
  • Build rapport in the business ecosystem – Dubai Free Zone bank account can undoubtedly scale up your business profile. For instance, if your client or partner wants to make a transaction with a pay order or a cheque, it is more professional to offer a business account rather than a personal one.
  • Security and ease of access – Dealing with monetary transactions in the digital world has increased the vulnerability of businesses to face any potential cyber threat. A Free Zone business bank account also assists you in securing your privacy and data. With a Free Zone bank account, you can make international or local transactions with peace of mind.
  • The convenience of having access to ATMs – Have access to international banks and services through ATMs.
  • No taxes – In Free Zones, you will not be required to pay taxes.
  • Unrestricted purchasing power – With a Free Zone bank account, you’ll be able to possess a credit card with unrestricted purchasing power.
  • Freedom to acquire loans – With a Free Zone bank account, you’ll have the freedom to acquire personal, business, and other types of loans.
uae free zone bank account

How to Open a Free Zone Bank Account for Your Company in UAE? 

Keep in mind that the process of opening a bank account for a Free Zone company varies from bank to bank. Free Zone bank account opening requires a significant amount of time and a range of steps before successful completion. We have covered a separate guide covering all the steps to open a corporate bank account in the UAE. Perhaps you might find it helpful. 

However, to save your time and effort, it is recommended to opt for any well-recognized professional company formation service with rich experience in assisting SMBs and enterprise-grade organizations in setting up their businesses in the UAE. 

Some of the prerequisites to open a Dubai Free Zone bank account include:

  • All business partners need to ensure physical presence at the time of submitting their documents.
  • Off-shore businesses opening a Free Zone bank account need to verify and certify their documents from the Consulate of Emirates (for the state they are going to set up in).
  • The next step for any off-shore company is to certify their documents from the UAE’s Foreign Affairs Ministry.

If you meet all the requirements, you can open a Free Zone bank account without facing rejections. After that, you can be on your way to establishing a business in the UAE. Speaking of which, we highly recommend you check out our guide on how to establish a business in the UAE.

Documents Required for Freezone Company Bank Account Opening

Below is the list of documents required for opening a Free Zone bank account in the UAE.

  1. Complete Business Profile
  2. Last 6 months’ bank statement
  3. Resume of the account holder and other stakeholders involved
  4. Proof of physical existence
  5. Valid Passport or Emirates ID
  6. Trade License
  7. Company’s regulatory document
  8. Directors Resolution
Bank account for Free Zone Company

Types of Free Zone Bank Accounts You Can Choose From

Different free zones in the UAE allow you to set up your business with zero tax liabilities and choose from three types of Free Zone bank accounts, namely:

  • Current Account
  • Saving Account
  • Investment Account

1. Current Accounts

The current account is suitable for daily transactions. It involves the issuance of a visa or master card (credit or debit) including a checkbook. This account can be used for dispatching or receiving client payments and managing payrolls in different currencies.

2. Savings Accounts

A savings account offers a significantly higher interest rate compared to current accounts but they come with penalties for cash outflows. The interest rate can be fixed or variable with support for international currencies.

3. Investment Accounts

They offer higher interest rates than both savings and current accounts. They have strict limitations to access funds that can be limited or denied for a defined time frame. Therefore, if you need instant access to your funds, it is not recommended to opt for Investment accounts. 

It comes with signing a contract with your bank that ranges from 1 to 10 years or more. The contract asks you to transfer a particular amount of money to your investment account to be managed and invested in different sectors by the bank. In return, you can simply earn from 2 to 8 percent of your blocked money annually depending on the current interest rate.

airzone

How Airzone Can Help You in Opening a Free Zone Bank Account?

Airzone offers a rich knowledge base to help businesses of different scales to gain insights into how to set up their business in the UAE. By helping you connect with trusted business formation partners, we make sure to equip you with the right knowledge necessary to set up a business in the UAE without any hassle and distraction.

By getting in touch with our trusted and experienced business formation partners, you can leverage their proven experience in setting up multiple businesses in your niche. Connect with Airzone and we’ll help you find the right business setup professionals to help you out – whether it’s opening your Free Zone bank account or getting a trade license in UAE.

FAQs About Free Zone Bank Account

How do I open a Free Zone account in Dubai?

The Dubai Free Zone account opening process is a tedious process that varies from bank to bank and the nature of business. It is recommended to opt for any experienced and well-recognized business setup service in UAE like Airzone for a seamless and quick process.

To fulfill the prerequisite step, you need to complete the following list of documents mandatory for opening a Free Zone bank account in the UAE.

  1. Complete Business Profile
  2. Last 6 months’ bank statement
  3. Resume of the account holder and other stakeholders involved
  4. Proof of physical existence
  5. Valid Passport or Emirates ID
  6. Trade License
  7. Company’s regulatory document
  8. Directors Resolution

Is it possible to open a Free Zone bank account remotely?

No. The Free Zone bank account is not for remote entities outside the UAE. Proof of physical presence is one of the primary requirements of The Central Bank of the United Arab Emirates (CBUAE) when opening a Free Zone bank account.