Dubai is the most attractive UAE emirate for business people, like investors and entrepreneurs. Its efficiency and security are some of the reasons why it is a popular business location. And these advantages are also guaranteed for the banking sector. Therefore, opening a business bank account in Dubai is also favorable.
In this article, you will learn everything about having a corporate bank account in this UAE emirate. For example, you’ll discover the benefits you can get by opening this type of bank account in Dubai. Also, here you will learn how to complete the process to open your bank account. Let’s observe:
- Why should you open a corporate bank account in Dubai?
- What benefits can you obtain by having a business bank account in this emirate?
- Elements you should consider before opening a corporate bank account.
- How can you open a business bank account in Dubai?
- What documents do you need to open your corporate bank account?
- Available banks in Dubai in which you can open your business account.
- How much can cost to open this type of bank account?
- Information about the offshore bank account option.
- How can Connectfz help you to complete the process to open your corporate bank account?
1. Why should you open a corporate bank account in Dubai?
There are many reasons why an investor like you should open a business bank account in Dubai. However, the main one is that it’s necessary to complete the business setup process in the emirate. Here you’ll find the information you need about this important matter.
Banks in Dubai and the UAE are known for the many good features that they have. For example, their reliability, top-rank security, and efficient services are some of their most outstanding characteristics. Besides, the high level of privacy that they offer has contributed to the growth of many companies.
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2. What benefits can you obtain by having a business bank account in this emirate?
If you open a business bank account in Dubai, you’ll be able to obtain certain advantages to manage your account. Besides, all of these benefits are guaranteed no matter the bank you select to open your corporate account. Furthermore, some banks might even offer more benefits to you, but that will vary depending on the bank. These are some of the common benefits that all banks offer:
- Transactions are easy and safe. Besides, the transferring of capital from and to Dubai is also possible.
- You can make transactions in multiple currencies. Also, there are currency exchange options.
- All banks in Dubai ensure secrecy regarding your transactions and data.
- There is the option of availing loan facility and credit card with added benefits.
- You will be able to access and use the services of international banks too.
- There is flexibility in the transfer of accounts.
- You can have many facilities, including a phone banking facility and a credit facility.
- Regardless of the bank you choose, there will be dedicated support from the bank.
3. Elements you should consider before opening a corporate bank account.
Before you decide to open a business bank account in Dubai, it is essential to consider certain factors. For example, you must take into consideration the level of privacy that offers each bank. You need to make sure that the bank will respect your privacy at all costs.
Another thing you must consider is whether to choose a local or an international bank. In case you are an SME or a startup, it is more recommendable to choose a local bank. And lastly, make sure to have clear documentation of your company. That includes elements like the number of shareholders, business activities, the business background of the management, and the business plan.
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4. How can you open a business bank account in Dubai?
In order to complete the business account opening process, there are five main steps that you must take. Furthermore, you’ll also need to gather and submit certain documents to complete the process, which we’ll mention below. Now let’s take a look at the steps you have to complete to open your corporate bank account:
- Firstly, you have to obtain a valid business license. If you do not have a business license, the bank will not allow you to continue the process. Therefore, you will not be able to open your business bank account. After getting your license, you’ll have to get the required documents.
- Secondly, you must check the visa requirements. In other words, you must decide if your company shareholders must have a residency visa. While some banks require proof of this matter from at least one shareholder, other banks do not require it.
- Thirdly, choose the bank in which you want to open your account. There are many options to choose from, but you should select a bank that fulfills your requirements. You are free to choose between local and international banks.
- And lastly, you may start with the application process. You can request help from an advisor or your business setup partner in case you have any questions.
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5. What documents do you need to open your corporate bank account?
Before start completing the process, you must meet some requirements to open a business bank account in Dubai. You need to attach certain documents with the application form before you submit it to the relevant authorities. Let’s take a look at some of the general documents that you need to gather and submit:
- The passport and the residency visa of the company’s shareholder representative.
- A passport copy of the company director.
- A copy of the Emirates ID card of the shareholder representative.
- A complete business plan that includes information about the business activity of the company. It must also include information about a financial plan, a brief business development plan, suppliers, partners, and potential clients.
- The trade license.
- Relevant information regarding the type of activities on the account.
- Reference letters from business partners.
- Disclosure of the source of funds.
- Existing contracts.
- A full set of certified company incorporation documents.
- The certificate of incorporation.
- Memorandum and Articles of Association.
- The shareholders’ registry.
- Each shareholder’s personal bank statement for the past 6 months.
- The certificate of good standing.
- A list of current and potential clients.
- Company extract from the official companies registry.
Nonetheless, it is important to remember that some additional documentation might be necessary during this process. Therefore, you must get in touch with a reliable business setup partner to obtain more relevant information.
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6. Available banks in Dubai in which you can open your business account.
Another important step that you must take when opening your business bank account in Dubai is selecting a bank. In Dubai, you will be able to find the following local and foreign banks available for you:
- First Gulf Bank.
- Commercial Bank of Dubai.
- Emirates NBD.
- United Arab Bank.
- Dubai Islamic Bank.
- Abu Dhabi Commercial Bank.
- Mashreq Bank.
- HSBC Bank Middle East Limited.
- Citibank.
- Barclays.
- Standard Chartered Bank.
Make sure to select a proper bank that fulfills your business needs. Besides, you must also analyze the minimum deposit that each bank requires. After that, you will be able to select the most affordable one for your business.
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7. How much can cost to open this type of bank account?
Analyzing the cost of setting up a company is a vital element that investors should consider. And among the most important costs, you can find the cost for opening a business bank account in Dubai. Here we will take a look at some approximate costs for completing this step of your business setup process.
Unlike most countries, local banks in Dubai and the UAE do not charge fees for bank account opening. That is a great advantage for all investors and entrepreneurs who look forward to opening a corporate account. However, they do require maintaining a minimum monthly average balance, but it could vary according to the selected bank.
In local UAE banks, the balance might start from AED 50,000 to AED 500,000 approximately. But, as we mentioned before, this will depend on the bank you apply for. If the investor does not maintain the minimum balance, a penalty can be applied monthly. This monthly penalty starts from AED 250 approximately.
Therefore, it is recommendable to meet the requirements and make sure to always maintain the minimum balance. Having a good and healthy relationship with your bank will be necessary to achieve your goals and reach success. If you need more information or tips, you can ask your business setup partner for guidance.
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8. Information about the offshore bank account option.
Running a business can be a lot easier if you have a business bank account in Dubai. However, if for some reason you’re not able to open a corporate bank account, you can opt for another option. We’re talking about the offshore bank account as your other alternative, which is also efficient and can bring you benefits.
Offshore business bank accounts are present in a country different from your business location. Also, this type of corporate bank accounts can provide investors with the same benefits and level of accessibility. And, in most cases, they can provide even more advantages and facilities to allow investors to have a marvelous experience.
In some cases, investors cannot open the normal bank account option for several reasons. Some of them could be the nature of the business activities, the investors’ nationalities, constraints, among others. Nonetheless, these investors can choose to open an offshore account and obtain several advantages, including the following ones:
- You can have multi-currency accounts.
- There is the option of using e-banking systems.
- The minimum deposit for bank account opening is USD 5,000 or equivalent.
- There is no statement or ledger fee.
- You will be able to use free internet banking for both viewing and transaction.
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9. How can Connectfz help you to complete the process to open your corporate bank account?
Although the process to open a corporate bank account is simple, you can ask for help to complete it. There’s an advantage you can get by requesting help from a professional agency, which is saving your time. For example, if you let Connectfz help you complete this process, you’ll be able to skip this process.
Besides, our banking services offer many benefits for investors like you. For instance, you can get the information you need regarding the banking system in the UAE. Besides, you’ll be able to understand the financial elements that you must take into consideration. For example, some of those elements can be financial management and development.
On the other hand, you can also request other services to boost your business in the UAE. For instance, you can hire payroll services to cover your company’s payroll necessities. Also, you can get tax advisory services to have a total understanding of this matter. Contact us and discover more useful services for your business.
Would you like to contact Connectfz to obtain more information about the process to open a corporate bank account in Dubai? If you have any questions, call us on +97143316688. You can email us at info@connectfz.ae, and you will talk to one of our representatives who will answer your questions.