Open Business Bank Account in Dubai, UAE
Many companies saw great success in the UAE as their base of operations. Since the economy has been growing for a long time, it makes sense to start a business in Dubai. One of the most critical steps to take when starting a company is to open a business bank account online in Dubai.
Nevertheless, establishing a bank account in the UAE is not a simpler procedure. To start a bank account, there are a few rules to follow. You can connect with our Banking experts to make the whole process easy.
Benefits of having a Bank Account in the UAE
Important features & benefits of opening a bank account in Dubai are as follows-
Protection
The business-related financial transactions offer a limited protection on personal liability of the business owner by separating the personal and business funds. The merchant services provide the customers with protection to ensure that their personal data is safe.
Purchasing Power
The credit card helps the business in production of huge start-up purchases or helping in establishing a credit score.
Preparedness
The business-related banking mostly comes with a selection of the line of credit in support of the organisation. This can be beneficial in case of any emergency or when the association requires any new equipment.
Minimum Account Balance
Many banks in the UAE offer low or zero balance business accounts to the business organisations making it easier for them to manage the cash flow.
Cheque Book Facility
The banks also provide the facility of free cheque books to the business organisations.
Online Access
The business owners can supervise the business accounts online through the available online banking portal.
International Remittance
The banks also offer the capability of making international payment on the business account, making it easier for the businesses to transfer funds.
Multiple Currency
This type of bank account can be opened in various other major currencies, apart from the UAE dirhams.
Eligibility Criteria to open a Business Bank Account in Dubai
The business organisations are required to fulfil certain eligibility requirements determined by the concerned bank. Some of these requirements are as follows-
Minimum average balance
The organisations are required to maintain a minimum amount as the monthly average balance. Each and every bank has their own specified limit.
Savings or Current Account
Some of the banks ask the business organisation to have a savings or current account in order to be eligible to open a business account.
Initial Deposit Requirement
Your company must pay a minimum initial deposit before creating a business account. Each bank has its own initial deposit, which must be verified in advance.
Know Your Customer (KYC)
You must have a thorough understanding of your consumers, both potential purchasers and clients. Based on this information, your banker or Relationship Manager can create a profile for you and represent you in front of the compliance team to expedite approval.
How to Open a UAE Business Bank Account?
Before opening a business account, almost all local and foreign banks in the UAE need identity and address evidence. A corporation that opens a commercial bank account in the UAE may also be needed to be physically present in the nation.
To create a business account in the UAE, utilise one of the following methods:
Opening business bank account online in the UAE
A business bank account in Dubai can be opened online by completing an online application form and providing the required documentation.
Offline establishment of a business account in the UAE
Visit a local branch of a bank in the UAE and follow the advice given by the banking specialist to create a corporate account that best matches your company needs.
However, it is best to select a reliable banking consultancy who will communicate with banking specialists on your behalf. Our experts will oversee coordinating and expediting the creation of your bank account.
Documents Required to Open a Business Bank Account in Dubai
Here is a short list of the paperwork required to open an account. It is crucial to note that the length of this list varies based on the scope of each client's business and the bank's criteria for the kind of corporate account you wish to create.
Mainland Bank Account
Basic Documents
- Trade licence
- Memorandum of Association (MoA)
- Passport, Visa & Emirates ID of all partners (if applicable)
- Office tenancy or Ejari contract (physical office)
Supporting Documents
- 6 months bank statement (personal/company from UAE/home country)
- Utility bills as address proof (for certain nationalities)
- VAT certificate (if applicable)
- Business model/company profile/website/plan
- Applicant profile (CV) of signatory
- Name of existing or prospective clients (suppliers/buyers)
- Debit & credit invoices
Note: All basic documents are mandatory. Supporting documents are as per business profile
Free Zone Bank Account
Basic Documents
- Trade licence
- Share certificate
- Memorandum of Association (MoA)/Article of Association (AoA)
- Passport, Visa & Emirates ID of all partners (if applicable)
- Office tenancy (physical office)
Supporting Documents
- 6 months bank statement
- Utility bills as address proof
- Business model/company profile/website
- Applicant profile (CV)
- Name of existing or prospective clients (suppliers/buyers)
- Invoices/bill of shipment/shipping documents/agreements/custom clearance, etc.
Offshore Bank Account
Basic Documents
- Trade licence/Certificate of Incorporation
- Share certificate
- Passport
Supporting Documents
- Parent company’s legal documents
- Office tenancy of parent company as address proof
- Last 6 months company bank statement from home country
- Certificate of Good Standing (if applicable)
- Certificate of Incumbency (if applicable)
- Visa & Emirates ID (if available)
- Applicant profile (CV)
- Business model/company profile
Foreign Entity Bank Account
- Memorandum of Association (MoA)/Article of Association (AoA) with legal attestation
- Trade licence
- Share certificate
- Passport with UAE entry page of shareholders
- Emirates ID & visa pages of shareholders (in case shareholders have UAE residency)
- Name of existing or prospective clients (suppliers/buyers)
- 6 months bank statement (personal/company from home country)
- Utility bill of shareholders showing address proof
- Corporate legal documents and bank statements (in case of a shareholder having a company outside UAE)
Cost to open a business bank account
If you are an investor who plans to create a business bank account, you might be wondering about the charges involved.
What is even more surprising is that, like many banks in other countries, local banks in the UAE do not charge any fees when creating a bank account.
Each local bank has various minimum monthly average balance categories, and all local banks are required to maintain a minimum monthly average balance.
This quantity might range from 50,000 AED to 500,000 AED for local UAE banks, depending on the bank you apply to.
If you do not maintain the requisite minimum average monthly balance, you will be charged a monthly fee of 250 AED.
Dhanguard recommends that while creating a corporate bank account at any local bank, you always retain the minimum keeping amount stipulated in the account agreement.
