With its stable economy, top-notch infrastructure, and supportive government system, the UAE offers the perfect launch pad for starting and growing a successful business. For anyone looking to do the same, one essential step is to open business bank accountUAE. There are numerous banks in the UAE that offer exceptional banking services to facilitate the finances of businesses. However, there is a proper procedure and set of guidelines to follow.
Let us uncover the process of company bank account opening in UAE and understand its documentation, benefits, and associated fees.
Opening a business bank account in UAE
A business bank account UAE is a type of bank account that is opened in the name of a corporation with a suitable bank. In UAE, it is mandatory for all businesses to open a business bank account to handle all business-related finances and transactions. Business owner’s personal accounts cannot be used for this purpose. There are many well-known domestic as well as international banks in UAE with whom an account can be opened. The choice of the bank depends on your preference, the facilities offered by the bank, the cost and fees, and other such factors.
Why is a business bank account needed in UAE
A business bank account UAE serves various purposes. First, all the businesses must have a bank account for handling financial transactions. Secondly, you get to access the services from one of the world’s top financial hubs, UAE. Here are the reasons to open business bank account UAE:
To access funds:
A bank account is essential for storing and managing the company’s funds.
To make and receive payments:
Businesses need to make payments on a day-to-day basis and also receive payments from customers. Having a bank account makes these transactions efficient and easy.
To make investments:
Business bank accounts can be used for making periodic investments, helping generate revenue through investments.
To manage expenses:
Keeping track of all expenses is crucial for monitoring the profitability of the business. Knowing where the money is going and where it is coming from is essential, and this is facilitated through business bank accounts.
For obtaining loans:
When you hold a business bank account with a bank, the process of obtaining and applying for various loans becomes easier.
For getting credit cards:
To get a business credit card, you mostly need to open a business bank account in UAE.
To maintain tax records:
You can maintain clear tax records in your account and easily access bank statements and summaries for tax purposes.
Who can open a business bank account in UAE
To open business bank account UAE, the organization must fulfil certain criteria:
- Minimum initial deposit: You must make an initial deposit when opening the bank account. The required amount depends on the bank’s guidelines.
- Minimum average balance: You are required to maintain a minimum balance in your business bank account. Again, this depends on the bank’s policy.
- Current account statements: In some cases, you may need to provide statements for your current or savings accounts.
- Know Your Customer (KYC): You must provide accurate information about your potential clients or customers. Based on this information, your relationship manager will create a profile and submit it for approval by the compliance team.
Process to open a business bank account
Here is the step-by-step guide for company bank account opening in UAE:
Choose your bank:
Choose an ideal bank for yourself. Dubai hosts a number of national and international banks. You must choose the one after carefully considering factors such as services available, cost of opening and maintaining account, etc.
Gather the documents:
Next, you must gather all documents, such as visa and passport copies, UAE trade license copies, and other paperwork.
Request for an account:
Next, you must approach the selected bank for submitting a request for a business bank account. You can make the application either online through the bank’s website or offline by visiting the bank’s branch.
Await application processing:
After you submit your application, the bank authority will review it. Once the request is approved, your account will be opened, and you will receive the instructions to activate it.
Activate account after approval:
Following the instructions, you must activate your business bank account UAE to start using it.
Access the services you need:
Once you activate your account, you can start accessing the services you want. You must also check what services are available online and how you can use them.
Documents needed for business bank account opening
The documentationneeded to open business bank account UAE may vary depending on the jurisdiction where you want to open the bank account:
Mainland Bank Account: To open a mainland bank account, you would generally need a trade license, MOA, passport, visa, Emirates ID copy, and office tenancy contract. Additionally, you would also need:
- Bank statement for 6 months
- Utility bills
- VAT
- Detailed CV
Freezone Bank Account: To open a freezone bank account, you would generally need a trade license, share certificates, passport, visa, Emirates ID copy, MOA, and tenancy contract. Additionally, you would also need:
- Bank statement for 6 months
- Detailed CV
- Utility bills
- Company profile
- Invoices, etc.
Offshore Bank Account: To open an offshore bank account, you would generally need a business license/registration certificate, share certificate, and passport copy. Additionally, you would need:
- Legal documents for the parent company
- Tenancy agreement of the parent company
- Visa and Emirates ID copy
- Bank statements for the last 6 months
- Good standing certificate
- Company profile
Overview of banking fees in UAE
Most local banks do not charge any fees for opening a bank account. However, one must maintain a minimum balance to keep the account running smoothly, which can range from AED 50,000 to AED 500,000. Besides that, here are the banking fees in the UAE you can expect to pay:
- Maintenance fees
- Cheque service fees
- Card and internet banking costs
- Value Added Tax (VAT)
- Account closure fees
- Teller transaction fees
To minimise and manage your banking costs in UAE, it is best to consult the experts like Dubiz Business Setup.
UAE business bank account simplified
For all businesses operating in the nation, it is essential to open business bank account UAE. Opening a business bank account can be a bit complex, especially for non-residents in the Emirates. That is why it is always a good idea to consult professionals who can guide you through the entire process. They can ensure that the documentation is accurate and timely, making the account opening hassle-free. Dubiz Business Setup has been helping entrepreneurs and foreigners open bank accounts for years. Their team of experts can handle everything on your behalf along with a professional advice. Get in touch with them today.
