The UAE has an efficient and advanced banking industry that provides the best conditions for businesses to operate in the country. Banks in the UAE are well-equipped with mobile and digital banking while consistently looking to adopt new technologies. Therefore, opening a business bank account will allow you to access outstanding benefits.
In this article, we will make sure you understand everything about the opening procedure for a corporate bank account in the UAE. The ease of banking offered by UAE financial entities facilitates foreign investment while they are setting up in the country.
- What are the benefits of opening a business bank account in the country?
- Keep in mind the following important factors
- What are the documents required for opening a business bank account in Dubai and the UAE?
- How much does it cost to open the account?
- Why the UAE bank accounts are highly secure
- What is the step-by-step process?
- How can Connect Free Zone assist you to open a business bank account in the UAE?
1. What are the benefits of opening a business bank account in the country?
- Cash flow: it is easier for business owners and managers to monitor their transactions and cash flow through a business bank account.
- Tracking your expenses: companies can use a corporate bank account to keep track of their overall expenses; allowing them to manage their costs more effectively.
- Tax calculations: organizations can easily assess their tax liabilities with a corporate bank account. In addition, it assists them to maintain tax payment transparency.
- Professionalism: many business owners are hesitant to deposit funds into a non-business account, they rather send their payments to an account in the name of the organizations instead of them. It is seen as more professional and inspires confidence around their potential customers.
- Business loans: if a business owner wants to get a business credit card or take loans for their organization, opening a bank account in Dubai or the UAE will help.
- Card payments: corporate bank accounts in the UAE allow businesses to accept credit card payments from their clients.
2. Keep in mind the following important factors
- One of the main aspects that have contributed to the success of the banking sector of the UAE is its security and efficiency. In the same vein, the UAE has signed several agreements with other nations in an attempt to combat tax evasion. That is to say, despite strongly working on privacy, banks can collaborate with foreign authorities in some instances.
- If you have a company in the UAE, a subsidiary, corporation, or registered branch, you can apply for a business bank account in the country.
- For verifying your passport and submitting the application, your presence at the bank entity is required.
- When it comes to documentation, you must evaluate your business operations, the new entity’s business plan, your managers’ business background, and the number of shareholders.
3. What are the documents required for opening a business bank account in Dubai and the UAE?
You must submit the following basic list of documents to open a corporate bank account. Likewise, it is important to note that this tends to vary depending on your type of business and the bank’s criteria:
- Comprehensive resume: you need to have 5 to 7 years of business and professional experience. In addition, ensure that your organization’s commercial activity fits your personal and technical expertise before you start the application process.
- Identity cards: the company director and shareholder representative must provide a valid passport (copy) and Emirates ID card (copy). Further, the shareholder representative’s residence visa is also necessary for some instances.
- Company business documents: to open a business bank account in the UAE, you must provide your organization’s business documents.
- Utility bill: you must provide a utility bill copy acting as proof of your address (issued in the past 3 months).
- Corporate bank statement: you must also provide the previous six months from the current company of your shareholder (if applicable).
- Personal bank statement: each of your business shareholders must provide a personal bank statement for the previous six months.
- Corporate document for proof of ownership: you must present a document of the company serving as evidence of ownership for your current business. For instance, it may be a Certificate of Incumbency or any other similar type of document issued by the government for the last six months.
- Business plan: this is crucial and it must include all information about your organization’s business activities, concise business development plan, financial plan, potential clients, suppliers (if you have a trading firm), and partners. In addition, you must present the management team’s background.
- Board resolution: it is important to have a Board Resolution, this authorizes a Company Officer to open the account.
3.1. Eligibility criteria for bank account opening in the UAE
Your organization must meet specific criteria standards specified by the bank to open a business bank account in Dubai and the UAE. However, each bank has its own set of eligibility criteria. Two of the are listed below:
- To qualify for a business account, some banks required the organizations to hold a savings or current business account.
- The company is required to keep a minimum balance in its bank account every month.
You must have in mind that you may require to meet additional criteria in addition to the listed above.
4. How much does it cost to open the account?
As a business person planning to open a corporate bank account, you may ask yourself what are the involved fees for the setup. Moreover, UAE local banks do not charge additional fees for the bank account opening. Further, all local banks in the UAE are required to keep a minimum monthly average balance and each bank has different sets for the minimum monthly.
For local banks in the country, this balance starts from AED 50,000 to AED 500,000. However, this varies from bank to bank. For example, the Emirates NBD starts from AED 50,000. If you do not maintain the minimum monthly balance, the applicable penalty starts from AED 250 monthly.
It is important if you open a corporate account in a local bank with a specific average maintaining balance, we always recommend keeping this balance. That is to say, from the start, you need to maintain a healthy and good relationship with your bank.
Another important benefit of banks in the UAE has outstanding online services; one of the best around the globe.
4.1. Choosing the right bank
Here is a list of some of the best banks for you to open your business bank account in the UAE:
- Abu Dhabi Islamic Bank.
- Commercial Bank of Dubai.
- Abu Dhabi Commercial Bank.
- National Bank of Fujairah.
- Dubai Islamic Bank.
- Mashreq Bank.
- RAK Bank.
- Emirates NBD.
5. Why the UAE bank accounts are highly secure
One important reason for the massive demand for UAE banks is the high level of privacy. Similarly, this level of confidentiality is a key factor contributing to the banking industry; making it secure and efficient for your funds. As a business person considering this fact, you can ensure that you will have world-class privacy.
As aforementioned, the UAE and other important countries have signed various agreements in an attempt to crack down on tax crimes. That is to say, some agreements were made to protect privacy, however, local banks can cooperate with foreign authorities in some instances.
If you have a UAE entity (Offshore, Free Zone, or LLC) or a registered subsidiary or branch; you can always apply to local banks for business bank account openings. On the other hand, you can also apply for international banks such as Standard Chartered, Citibank, and HSBC; but when it comes to startups and SMEs, a local bank is more suitable.
When you have already decided which bank to apply to, the next that may inquire you is if your presence is necessary to submit the application? As mentioned, if you have a startup company or SME in the UAE, at Connect Free Zone, we recommend local banks. In other words, they are more suitable and secure.
In short, your presence as the bank signatory is required for 1 to 5 hours to submit to verify the passport and submit the application in the presence of the bank authority.
As aforementioned, you are to consider the number of shareholders, your business plan, and some important documentation.
6. What is the step-by-step process?
- Obtain your business license: acquiring your business license is an essential step when you are opening your business bank account. That is to say, without this license, the bank entity will not recognize you as a business making you unable to open a bank account.
- Getting the required documentation: this step consists in ensuring all corporate and legal documentation is aligned for submission. For example, a copy of the Emirates ID, memorandum and articles of association, fully-filled application form, detailed business plan, etc.
- Checking the visa requirements: the next step is to ensure if your shareholders and partners require a residency visa. Moreover, some banks require it as proof of residence from at least 1 partner. However, some banks may not ask for it.
- Choosing the right bank: after you have all your documents ready for submission, you can look for the bank that suits your organization’s requirements. There are various international and national banks to choose from. You also need to consider the eligibility criteria we mentioned above while determining the bank.
- Application process: this process is usually carried out after discussing it with us. That is to say, we will advise you on how to go about the process.
After you submit the documents mentioned above with a properly filled application form, the next step is to submit it to the officials. Subsequently, the bank will authenticate every detail and verify upon disapproving or approving the application.
After approval, the bank checks all the information about your business management, its directors, and shareholders.
The final step is the interview, the bank interviews you. After that, the financial entity will create your business bank account.
7. How can Connect Free Zone assist you to open a business bank account in the UAE?
We know how overwhelming and grueling the process of opening a business bank account in Dubai and the UAE is and the possibility of the bank denying the account if you do it on your own. That is why we offer you outstanding tailor-made banking services according to your requirements.
With us, you will comply with every minimum detail, improving the chances of approval.
On the other hand, in Connect FZ we also offer you cost-effective packages and the best discounts. Our main objective is to offer you innovative and accessible solutions. Therefore, you can establish any type of business in the Mainland or Free Zone area.
Most importantly, we understand how difficult it can become to complete a company formation process; especially if you are on your own. Fortunately, we have the most solid experience and knowledge so you can establish your organization easily.
We will allow you to access the best locations for your organization, obtaining the benefits of all the jurisdictions in the UAE. You will be able to compare free zones’ regulations, rules, and rates regarding your PRO requirements.
Would you like us to assist you and help you open a business bank account for your business? If you want to work with the best partner in the UAE or if you have any additional questions, you can email us at firstname.lastname@example.org or you can call us at +971 43 316 688. Contact us!