Set up a corporate bank account in UAE
UAE boasts of an advanced and efficient banking industry that provides conducive conditions for companies to operate and enhance the economic growth of the country. Banks in UAE are well-equipped with digital and mobile banking and consistently trying to adopt emerging technologies like AI and Blockchain. Undoubtedly, the ease of banking offered by UAE banks facilitates foreign entrepreneurs while incorporating a company in Dubai, UAE. Therefore, in this blog, we will help you understand different aspects of “how to open a corporate bank account in UAE”.
Benefits of opening a corporate bank account in UAE
- UAE offers full privacy to foreign investors and entrepreneurs who wish to open a corporate bank account in UAE.
- Corporate bank accounts in UAE can be opened in most currencies, offering easy & effortless exchange of currencies.
- It’s easy for entrepreneurs to monitor cash flows and transactions through a business account.
- A business account helps an investor to access tax liabilities with a business account. It helps in maintaining transparency in tax payments.
- Business entrepreneurs use their business accounts to keep track of their spending to help manage costs more effectively.
- Availing business loans can be easy for business owners for their company or get a credit card.
- Free from any & all maltreatments on the web and telephone banking frameworks.
- The assistance to worldwide banks and their administration is also easily done here.
What to keep in mind before opening a corporate bank account in UAE
- If you have an LLC in the Mainland or Free Zone or even a branch office or subsidiary, you can apply for opening a corporate bank account in UAE.
- If you are a startup or an SME, your presence as a bank signatory is also needed for a day or a few hours for submitting the application & verification of passport.
- For documentation, you have to consider the business activity, the number of shareholders, business background, and business plan for a new entity in the UAE.
Challenges you might face while opening a corporate bank account in UAE
Entrepreneurs may face certain challenges while opening a corporate bank account in UAE. Some of these are listed below for your prior knowledge:
- Tough regulatory requirements and compliance pressure due to the UAEs commitment towards fighting financial crimes like money laundering add to difficulties in opening a bank account.
- An entrepreneur needs to prove their credibility while applying for opening a corporate bank account in UAE. They need to prove that they possess a sound knowledge of the industry in which they plan to open a business and therefore, require a bank account.
- Banks in UAE require you to have a residence visa if you’re a resident applying for a bank account in addition to a local address in the UAE.
- Banks in UAE mandate the resident applicants to have a physical office space. Some banks may send an Inspection officer to the address as mentioned in the documents submitted to verify the presence of the physical office.
- At any cost, an investor should have all information about his business ready to be presented to the banks. Incomplete information can lead to difficulties in opening a corporate bank account in UAE. Banks in UAE insist upon knowing the complete economic substance of your business.
- In case you are planning to conduct business in high-risk areas or countries, then you are likely to face hurdles in opening a corporate account in the UAE.
- If you belong to a high-risk country, then that could lead to a big hurdle in opening a bank account in the UAE.
- Most banks will require you to have a minimum balance of AED 25,000 to AED 50,000, depending upon the bank you pick to open an account in.
Procedure to open a corporate bank account in the UAE
- Get your business license: Getting a business license is an essential step while opening a bank account. Without the license, the bank wouldn’t recognize you as a business and it wouldn’t be possible to open a corporate bank account in UAE.
- Get other legal and corporate documents in place: The next step would be to ensure that all legal and corporate documents are aligned for submission. E.g.: fully-filled application form, copy of the Emirates ID and shareholder representative, Detailed business plan, memorandum, and articles, etc.
- Check visa requirements: The next step would be to ensure that your shareholders also require a residency visa. Some banks would require that as proof of residence from at least one shareholder, while other banks may not ask for it at all.
- Choose the bank: Once you have all the necessary documents in place; you can look for the bank that suits your needs. There are several national and international banks to choose from. You also need to consider the eligibility criteria and income while determining the bank.
- Application process: This process is generally carried out after a proper discussion with an advisor or the bank branch that guides you on how to go about the process.
- After the submission of the above documents with a duly-filled application form, it is to be submitted to the officials. The bank will thereafter authenticate every detail and verify upon approving or disapproving the application.
- Upon approval, the bank gathers background information about the applicant’s management team, its Shareholders, and Directors.
- The final step is the interview. The bank interviews the applicant. Once completed, the bank account will be established.
Documents required to open a corporate bank account in UAE for residents and non-residents
- Copy of the Emirates ID and shareholder representative
- Comprehensive CV
- Utility Bill
- Detailed business plan
- Info about the type of activities on the account
- Last 6 months personal bank account as well as corporate bank account statement
- List of the names of at least 5 suppliers and 5 customers
- Disclosure of the source of funds
- Existing contracts
- Complete set of certified company incorporation documents
- Memorandum and articles
- Certificate of incorporation
- Shareholders registry
- Company extract
- Certificate of good standing