If you are a working professional or own a business in Dubai, then you might be longing for a more secure place to keep your money. But you are still doubting how to open business bank account in UAE where your finances are well–respected? So, if you are reading this article, we have all the answers for you!
The United Arab Emirates has set a benchmark in the banking industry with its reliable banking system as well as the high level of privacy provided to its customers. It is no doubt that the exceptional growth and development of the UAE’s private companies and public policies have shaped the economic landscape of the country. Moreover, the banks in Dubai are well equipped as well as digitally advanced with emerging technologies like AI and Blockchain. Even the UAE government supports them with reputed private groups and large international banking institutions. Furthermore, it is dedicated to combating financial crimes such as money laundering, which makes Dubai banks the safest and the most secure place to hold your money.
Apart from that, foreign investors and businessmen working in the UAE benefit a lot from the banking conveniences provided by the UAE banks.
Benefits of opening a business bank account in Dubai
First and foremost, let’s discuss the benefits of having a corporate bank account.
- Easy to monitor cash flows and transactions
- Enables managing costs more efficiently
- Easy to access tax liabilities
- Aids maintenance of tax payment transparency
- Inspires confidence in potential customers
- Easy to take loans and get business credit cards
- Enables acceptance of credit card payments from the customers
- Accurate book-keeping
Before you question how to open business bank account in UAE, it is important to know why you should open a corporate bank account in UAE. Hence, you must first try to study the benefits of starting a corporate account in the UAE bank. Some of these benefits are –
- Zero taxation policies
- Dedicated banking officials and regional managers
- Non-restrictive banking options
- Easy access to international communities
- The facility of mobile and online banking
- Easy transfer of funds
- High level of privacy
- Flexible investment solutions
- Availability of asset management
- Quick and easy currency exchange
Documents essential for opening a business bank account in Dubai
- A complete CV including your professional/business experience in the past five to seven years. Also, ensure that your current business activity matches your professional experience.
- Proof of address/utility bill for the past three months.
- Corporate documents of your company
- Bank statement of each shareholder’s personal account, for the past six months
- Bank statement of any existing company of the shareholders, if any
- Proof of ownership of your existing company, such as a Certificate of Incumbency or any other document
- A business plan including all the information related to the company, such as business activities, financial plan, business development plan, potential clients, suppliers and partners, and the background of the management team.
- Passport and Emirates ID of the shareholders
- Shareholders registry
- Certificate of good standing
- Disclosure of source of funds
- Copy of MOA(Memorandum of Association) and AOA(Articles of Association)
- Business license
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How to open business bank account in UAE?
Below is the basic idea of the process of how to open business bank account in UAE –
Get a business license
One cannot start a bank account in the UAE without a valid business license. To gain the confidence of the bank, they need to recognize you as an authorized business. Hence, procuring a trade license is a mandatory step before applying for a corporate account in any of the UAE banks.
You can apply for a business license depending on the type of business activity and legal structure you choose.
Check and submit all the legal and corporate documents
Prepare all the legal documents and business papers and double-check for any errors or mistakes. Also, ensure they are presented in order during submission. For example, application form, Emirates ID, details of the shareholder representative, business plan, MOA, AOA, and so on.
Check the visa requirements
When you set up your business and acquire a license accordingly, you also need to procure resident visas for yourself as well as your employees. Therefore, confirm with your stockholders whether they require a resident visa. Most banks demand proof of residency from at least one shareholder, which later might help in getting visas for other partners as well.
To learn more about the visa services in Dubai and UAE, get in touch with the consultants of Shuraa Business Setup.
Choose a bank
Now that you have all the relevant documents with you, you may start looking for a reliable bank that can meet all your banking requirements. Additionally, UAE offers several options of national and international banks to choose from. However, while choosing a bank for your business needs, you need to first examine several factors such as eligibility conditions, income, etc. The requirements for opening a corporate bank account vary in different banks.
Application for opening a business account
Once you have finalized a bank for opening your business account, you may now seek advice from an adviser or the bank office on how to open business bank account in UAE.
The bank officials would first ask you to fill out the application form with all the necessary details and submit the documents as well. After a thorough examination and inspection, the bank will decide whether to accept or reject the application. Once it approves the application, it will conduct a background check on the applicant’s management team, shareholders, and directors. Afterward, the officials will interview the applicant and proceed with the account opening, if convinced.
Requirements for opening a corporate account in the UAE bank
- The entrepreneur needs to gain the trust of the bank and its managing officials.
- Possession of a residence visa and a local address is a must.
- The applicants, who are UAE residents, must have an actual office space.
- The business owner must have a minimum balance of AED 25,000 to AED 50,000, depending upon the bank.
- Before setting up a business or opening a corporate account, thoroughly study the area for any business risk factors or professional hurdles.
- Start-ups or small business owners must be present as bank signatories for submission of the application and verification of the passport.
- While preparing papers for the bank account, clearly define the business activity, the number of shareholders, the business background, and the business strategy.
Dubai is indeed a lucrative hub for businesses to rise and grow. Besides, the economy of the UAE has been escalating for a long time. Because of this, expats have turned to Dubai for initiating their professional careers and intensifying their businesses. While forming a company in Dubai, UAE is a fair chance, opening a corporate bank account to manage the business finances is an equally important task. However, this is not a straightforward process, and also includes certain guidelines that every business owner needs to follow while opening a business bank account in Dubai.
Nevertheless, you can make this entire process easier by consulting a business consultancy firm. Shuraa Business Setup is one of the leading business consultancy firms in the UAE that offers a wide range of business setup services to its clients. The Shuraa team of experts helps them open a bank account in Dubai and in addition, supports in managing these accounts. They also recommend a suitable bank as per the business needs that can help the business owners save their precious time from researching and brainstorming.