The United Arab Emirates banking industry is well-known for upholding a reputation for financial stability and providing a high level of client confidentiality. The Banks located in the UAE are renowned for their strict security procedures, trustworthiness, and top-notch client care. Consequently, an increasing number of foreign business owners are expressing interest in setting up bank accounts and conducting operations in the UAE. It's crucial to keep in mind that every financial institution has its own rules and guidelines when opening a corporate bank account.
Banks in the UAE
The banking industry in the United Arab Emirates is varied, with both domestic and foreign banks. The following well-known neighborhood banks are appropriate for creating corporate bank accounts:
- Emirates NBD
- Abu Dhabi Commercial Bank
- RAK Bank
- Mashreq Bank
- First Abu Dhabi Bank (FAB)
- United Arab Bank
- First Gulf Bank
- Commercial Bank of Dubai
Major overseas banks that make it easier to create accounts for companies registered in the UAE also include:
- Standard Chartered Bank
- HSBC (Hongkong and Shanghai Banking Corporation)
Benefits of opening a Corporate Bank Account in UAE
The UAE is a very safe and dependable place to do banking, and this is partly due to the government of the UAE's ongoing vigilance in defending the interests of its inhabitants and residents. The following benefits of opening a corporate bank account in the UAE are in addition to its importance.
- Enhanced secrecy for Foreign Investors and Entrepreneurs: Foreign investors and businesspeople who create corporate bank accounts in the UAE can do so with a high degree of secrecy, protecting their financial data from unauthorized inspection.
- Multi-Currency Banking: Companies have the option to open accounts in a variety of currencies, easing currency exchange procedures and streamlining global trade.
- Effective Cash Flow Administration: Corporate accounts make it simple to track transactions and cash flows, simplifying financial administration for organizations.
- Transparency in Taxation: Tax transparency is enhanced by the UAE's corporate business accounts, which assist investors in determining their tax obligations and encourage timely and precise tax payments.
- Cost management: Through corporate accounts, business owners may efficiently monitor their spending and support effective cost control.
- Access to Financial Support: Entrepreneurs have access to credit cards for financial flexibility during loans to suit their business requirements.
- Online Banking Security: Corporate banking offers additional security, shielding business owners from potential risks associated with online and telephone banking.
- Global Banking Support: To ensure smooth international financial transactions, UAE banks provide knowledgeable support and services to international banks and their management.
Factors to Consider Before Opening a Bank Account in the UAE
Before creating a business bank account in Dubai, United Arab Emirates, keep the following points in mind:
- Company Type: Depending on the type of business you have (such as a Limited Liability Company in the Mainland or Freezone, a branch, or a subsidiary), you can apply for a corporate bank account with local banks.
- Bank Signatory: In some circumstances, it can be necessary for you to be present for a short time as a bank signatory. Usually, this is done when you submit the application and have a banker check your passport.
- Documentation: You will be required to provide a variety of documents, including information on your company's operations, the number of shareholders, the qualifications of the management team, and a business plan for your new entity in the UAE.
- Privacy Considerations: Although the UAE values privacy, it's important to be aware that it recently signed agreements with other countries to combat tax evasion.
Process of Opening a Bank Account in Dubai
Depending on the particular bank, certain conditions must be met to open a corporate bank account in the UAE. However, having a significant shareholder or director involved is a typical requirement. Filling up an account opening application and submitting it along with extensive corporate data is the first step in this procedure. These documents should include details on the company's customers and suppliers as well as documentation of transactions like contracts and invoices. The following are the general steps to opening a corporate bank account in the UAE:
- Obtain a Business License: Having a current business license is one of the essential requirements for opening a corporate bank account in the UAE. Banks won't accept your corporation as a real business without a proper license, making it impossible to create a corporate bank account.
- Gather the Required Documents: Make sure you have all the required corporate and legal documents. The folder of documents includes the whole application form, a copy of the shareholder representatives' Emirates IDs, a detailed business plan, an MoA, and an AoA amongst others.
- Check Visa Requirements: Verify the visa requirements to see if shareholders of your firm need resident permits for the UAE. While some banks may require that at least one shareholder have a residency permit, others may not. This element could have an impact on the banks you select when opening an account.
- Select the Bank: Find a bank that fits your needs for your business through research and selection. When selecting a bank from the many national and international options available, take into account things like the eligibility requirements and financial services provided.
- Start the Application Process: The official account opening process can be started once you have all of the necessary documents and have decided on a bank. The best course of action is to go to a bank branch and chat with a representative who can walk you through the application process and answer any queries you might have. To finish opening an account, adhere to the bank's instructions.
Required Documents for opening a Business bank account in the UAE
Depending on the bank you choose, the particular documents needed to open a business bank account in Dubai may differ slightly. To open a corporate bank account in the UAE, the following common documents are normally required:
- Fill out the bank account opening application form that the chosen bank will offer you.
- Typically, a resolution from the board of directors of the company is needed to approve the opening of the bank account. The people who are authorized signatories on the account should also be mentioned in this resolution.
- Submit a copy of your organization's current business license as proof that it is registered and permitted to conduct business in Dubai.
- You should also include copies of the share certificates that show your company's ownership structure.
- Copies of each business partner's or company director's current passports must be presented.
- Copies of your company's Memorandum of Association and Articles of Association, which describe your organization's structure, goals, and governing principles, may also be required.
- The bank should be given copies of all shareholders' current passports.
Depending on the bank you choose, different banks may have different additional documentation requirements. Some banks in Dubai could ask for extra documents, like invoices, letters of recommendation from business partners, a thorough business plan, and details about your proposed lines of operation.
Exploring Offshore Bank Accounts For Your Business in UAE
An offshore bank account offers a less complicated option if opening a corporate bank account in the UAE becomes difficult due to variables like the nature of your firm or nationality restrictions. Offshore accounts, which are situated in other nations, offer accessibility and a host of advantages. BMS provides a simple solution:
- Low opening balance requirements (only 5,000 USD or similar)
- Multi-currency accounts
- No statement or ledger fees
- Free Internet banking (for viewing and transactions)
For the offshore account, you won't need to re-attest your documents. Fast account opening in the business environment of the UAE is guaranteed by this simplified procedure.
Fee Structures for Corporate Accounts in Dubai
In most local UAE banks, opening a business bank account is free of charge. Each national bank, however, establishes distinct minimum average balance requirements for each month, which normally range from AED 50,000 to AED 500,000. For instance, you must keep your business account with Emirates NBD open and have an average monthly balance of at least AED 50,000 to avoid paying a monthly fee of AED 250.
As of the most recent update in 2018, the following is a breakdown of the regular fees related to managing a bank account in the UAE:
- Account opening fee: None
- Minimum balance requirement: AED 5,000
- Monthly penalty for not maintaining the minimum balance: AED 50
- Charges for using a third-party (local) bank's ATM in the UAE: AED 2
- New Cheque Book issuance fee: AED 25 (the first one is complimentary)
- Manager's cheque issuance fee: AED 30
- Charges for providing an Account Balance Letter: AED 50
- Service fee for furnishing a No Liability Certificate: AED 60
- Release Letter charges: AED 50
- Bounced cheque charges: AED 100 (no charge if written to yourself)
- Account closure fee: AED 100
Contact us for Corporate bank Account Opening Assistance in Dubai
The most difficult part of starting a business often focuses on making sure all the required documents are in order, whether it be due to the difficulties of business formation or the barriers to opening a bank account. Fortunately, there are knowledgeable business setup consultants in Dubai, UAE, like BMS Auditing, who can help you outsource this challenging work.
Collaborating with a company formation expert not only enables you to make better use of your time and resources, but also reduces the likelihood that your application for a bank account will be denied. What's more interesting is that you'll determine the best course of action with the help of a reliable business setup counselor who is experienced in the procedure.
Contact us right away if you require assistance launching a business in Dubai, United Arab Emirates, or setting up a corporate bank account there.