How to open a business bank account in the UAE
Opening a business bank account in the UAE has become easier recently and is highly recommended for all companies. Are you looking for a secure way to save your money and ensure that your privacy is protected? Here’s how your new bank account will be up and running in no time.
BENEFITS OF OPENING A BUSINESS ACCOUNT IN UAE
There are several advantages to having a business account in the UAE. Let’s take a look.
CASH FLOW
It’s easier for business owners to monitor cash flows and transactions through a business bank account.
TRACKING OF EXPENSES
Business owners can use a business account to keep track of their spending and manage costs more effectively.
TAX CALCULATION
Organisations can assess their tax liabilities with a business account, as it helps maintain tax payment transparency.
PROFESSIONALISM
Many clients are hesitant to deposit funds into a non-business account. In fact, they prefer sending payments to an account in the business’s name rather than the owner. Business accounts are perceived as more professional and inspire confidence in potential customers.
BUSINESS LOAN
If a business owner wants to take loans for their company or get a business credit card, having a corporate account can help.
CARD PAYMENTS
This bank account enables the company to accept customer credit card payments.
FOREIGN CURRENCY ACCOUNT
When you open a business bank account in the UAE, you can also select foreign currencies. This means an effortless exchange of currencies.
PROCEDURE TO OPEN A BUSINESS BANK ACCOUNT IN UAE
Here are a few things to consider before registering for a business account in the UAE.
OPEN BUSINESS ACCOUNT ONLINE IN THE UAE
Applicants can apply to open business account online in the UAE. Here is the process for business account opening in the UAE.
- Visit the bank website and fill in the form for business account UAE. This would include your basic business information and checking eligibility.
- The next step for opening a small business bank account in the UAE is to submit financial documents related to the business and shareholders (if applicable).
- Verify your identity.
- Select the package that suits your needs.
- A team from the bank will visit your premises with all signatories present for verification.
- After final confirmation, your account details will be shared via email.
THINGS TO CONSIDER BEFORE OPENING A BUSINESS BANK ACCOUNT IN UAE
- One of the primary aspects contributing to the success of the UAE business banking sector in recent years is the efficiency and security provided. Recently, several agreements have been negotiated between the UAE and other nations to combat tax evasion. These agreements entail that, despite strongly preserving privacy, banks must collaborate with foreign authorities in some cases.
- If you have a UAE corporation, a registered branch, or a subsidiary company in the UAE, you can apply for a corporate account in the country.
- Your presence as the bank signatory is necessary for submitting the application and verifying the passport.
- In terms of documents, you must evaluate the company operations, the number of shareholders, the management’s business background and the new entity’s business plan in the UAE.
DOCUMENTS REQUIRED TO OPEN A COMPANY BANK ACCOUNT IN THE UAE
Some mandatory documents must be submitted to open a business account. It’s important to note that this can vary depending on the extent of each client’s business and the bank’s criteria.
- Identity Card: The shareholder representative and company director must provide an Emirates ID card (copy) and a valid passport (copy). The shareholder representative’s residence visa is also required.
- Comprehensive CV: You must have 5 to 7 years of professional and business experience. Make sure the company’s commercial activity fits your personal technical expertise before opening a business bank account.
- Utility Bill: You need a utility bill copy as proof of your current address (issued in the last three months).
- Company Business Documents: To open a business bank account in the UAE, you’ll need to bring your company’s business documents.
- Corporate Bank Statement: The previous six months of bank statements from the shareholder’s current company (if applicable).
- Personal Bank Statement: Each shareholder must also provide a personal bank statement for the previous six months.
- Corporate Document for Proof of Ownership: Bring a business company document that serves as evidence of ownership for your current business. It could be a Certificate of Incumbency or any similar document issued by the authority within the last six months.
- Business Plan: A business plan is essential, and it should include all information about the company’s business activities, potential clients, a concise business development plan, financial plan, suppliers (for a trading firm) and partners, as well as the management team’s background.
- Board Resolution: It is necessary to have a Board Resolution authorising a Company Officer to open the account.
Note: In addition to the documents listed above, the applicant organisation may be required to provide other documents for establishing a business bank account at the bank’s sole discretion. The documents required to open company bank account in the UAE may differ in individual cases.
ELIGIBILITY CRITERIA REQUIRED TO OPEN A BUSINESS BANK ACCOUNT IN UAE
The corporation must meet specific eligibility standards as specified by the concerned bank to open one of the best business bank accounts in the UAE. Each bank has its own set of eligibility criteria. A couple of these are listed below:
- The company must keep a specific minimum monthly balance in its bank account.
- Several banks require the organisation to hold a savings or current account to qualify for a business account.
Note: The applicant organisation may be required to meet additional eligibility criteria, at the bank’s sole discretion. For further details about how to open a business bank account in Dubai, contact the bank directly.
COST Of OPENING A BUSINESS BANK ACCOUNT IN UAE
Like most banks in other countries, local banks in the UAE do not charge any fees for opening bank accounts. However, every bank has its own minimum average monthly balance categories.
This balance ranges from AED 50k to AED 500k for local UAE banks, depending on your selected bank. For Emirates NBD, it is AED 50,000. If you do not maintain a minimum average monthly balance, you will be charged a monthly penalty of AED 250.
CHOOSE THE RIGHT BANK
Here’s a list of some of the best banks for business accounts in the UAE:
- Emirates NBD
- Dubai Islamic Bank
- Abu Dhabi Islamic Bank
- Mashreq Bank
- Dubai Islamic
- Al Maryah Community Bank
- RAK Bank
- FAB Bank
- Bank of Baroda UAE
- Commercial Bank of Dubai
- Abu Dhabi Commercial Bank
- National Bank of Fujairah
- HSBC
Our guide to the best banks in Dubai goes more in-depth on the country’s top financial institutions.
You can compare business bank accounts in the UAE offered by different banks. You can also visit the branch to discuss your options with an advisor.
Once you have made the final decision, an application is submitted. The bank then authenticates the documents and gathers information about the management team, directors and shareholders.
The last step is an interview with the applicant, after which the bank account is opened.
FAQS ABOUT BUSINESS ACCOUNT OPENING IN THE UAE
HOW LONG WILL IT TAKE TO OPEN A BANK ACCOUNT IN THE UAE?
This procedure has no specified time limit. For account opening, each bank has its own internal method and timeline. In the UAE, opening a bank account for an LLC or a Free Zone firm typically takes between 2 and 4 weeks once you have met the UAE business account requirements.
IS IT POSSIBLE TO CREATE A MULTI-CURRENCY ACCOUNT IN THE UAE?
Yes, businesses in the UAE can hold accounts in various currencies, including AED, USD, EUR, GBP, CHF and others.
WHAT IS THE MINIMUM BALANCE ONE NEEDS TO MAINTAIN IN A UAE BUSINESS ACCOUNT?
The minimum balance threshold differs from bank to bank. For instance, Emirates NBD has a limit of minimum AED 50k. On lower balance, a charge of AED 250 is levied per month. The same limit applies for ADCB, whereas the fine on breach is AED 200.
WHICH BANK IS BEST FOR BUSINESS ACCOUNT IN THE UAE?
This is subjective and dependent on the needs of your business. Banks offer different packages and you will have to spend some time researching which package suits your business needs best.
That concludes our guide to opening a business bank account in the UAE. The UAE government has taken multiple steps to facilitate businesses. The requirements to open a business bank account in the UAE have also been reduced, so it is a much simpler process. Nevertheless, you should still do your due diligence and compare business bank accounts in the UAE.
New to Dubai? Here’s the process of opening a bank account in Dubai. Alternatively, if you’re considering leaving the country, here’s our guide to cancelling all your accounts before leaving UAE.
If you are moving to the capital, here’s the list of the top banks in Abu Dhabi you can consider.
