It is a crucial and customary step to Open a business account in the UAE when registering your company in this part of the world. Any business, whether a start-up or an established one, needs a solid foundation for its cash flow and balance.
Starting a new business or expanding a company without the long-term support of banks could be challenging. To prevent this, banks offer top-notch business banking services and make it simple for entrepreneurs to open business accounts in the United Arab Emirates.
Why open a business bank account in the United Arab Emirates?
Once your business organization is set up and operating in the UAE, you will need a business account to facilitate business transactions like sending and receiving money, overseeing business operations, and making payments of your staff or workers. Then, among other things, you can use a business account to track spending, make transactions, and apply for loans.
For the following reasons, you need to consider opening a business bank account in Dubai:
- Availability of Business Finances
A corporate account is necessary for managing and tracking transactions to provide access to funds.
- To Invest
You will occasionally need to make specialized investments as a business owner. A corporate account makes this simpler with features like reminders and standing orders.
- Control Your Expenses
Having a UAE business bank account makes it easier to keep track of your company’s spending. It also aids in creating future investment plans that consider the firm’s existing situation.
- Getting Loans for Businesses
Having a business bank account proves useful in many ways. It might help you apply for corporate credit cards and business financing as and when needed for your venture. A business bank account is formed in the name of the firm to establish a respectable presence and facilitate the purchase of loans.
- Banking Services
Numerous facilities that come along with a business bank account make it easy to track money flowing into and going out of the account. It also acts as a reminder of the costs involved in meeting the company’s demands.
- Accuracy in Record-Keeping
Company accounts in the United Arab Emirates are made to handle almost any kind of business transaction, which makes it easy to manage a vast amount of data. It is dependable when paying taxes, salaries, and other payments on schedule because of these benefits.
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Eligibility criteria for business account opening in the UAE
Your company must fulfil several requirements set forth by the bank of your choice to open a business account in the United Arab Emirates. Before applying, your business entity must review the qualifying requirements, which vary from bank to bank. Here is a list of general eligibility requirements that need to be fulfilled.
Initial Deposit
A minimum initial deposit must be made by your organization before creating a business account. Every bank has an initial deposit that needs to be verified in advance.
Minimum Average Balance
In UAE, one must maintain a minimum average balance throughout to operate the business bank account. The minimum balance is determined, as per the existing rules of the bank where one is applying for opening a corporate account.
Current or Savings Account
Banks require individuals or companies to provide statements of existing savings or current accounts they have at other banks before opening a new account.
Know your customer (KYC)
Your customers, or potential clients and buyers, need to be well-profiled. Using this data, your relationship manager or banker can create a profile and represent you in front of the compliance team, thus making it simple.
Ways to Open a UAE Business Bank Account
To open a business bank account in Dubai, a few documents are needed. These records usually include information about the company’s suppliers and clients, contracts, and invoices that attest to the business’s existence. While specific criteria may differ between banks, the following documents are typically needed to open a corporate bank account:
Opening a business account online
To open a business bank account in the United Arab Emirates, one must complete an online application and attach the required supporting documentation.
Opening an offline business bank account in Dubai
Go to a local bank office in the UAE and follow the advice of the banking expert to open a corporate account that best suits your business needs.
Finding a reliable relationship manager who will communicate with the banking experts on your behalf is advised. The process of opening business accounts will be facilitated and expedited by the relationship manager.
Documents required for opening a Bank Account
Applicants need to submit specific documents to register a business bank account.
Documents required for Mainland Business Bank Account
- trade license in UAE
- Memorandum of Association (MOA)
- Visa, passport copy, Emirati of partners if applicable
- Office lease/ Ejari agreement
- Six months’ bank statement of existing account of individual or company
- Utility bills for residence proof
- VAT Certificate if applicable
- Company profile
- Applicant profile
Free Zone Business Bank account
For opening a corporate bank account in Free Zone, in addition to the above documents required for Mainland, the applicant needs to submit these documents
- Invoices. Suppliers and buyers list, shipping documents, customs clearance/agreements, etc.
Offshore Bank Account
In addition to all the above documents, the applicant needs to submit
- Character Certificate
- Incumbency Certificate
- Share certificate
- Parent company’s Legal documents
- Website details
The basic documents required for business account opening in UAE in all circumstances are the company trade license, residency visa of UAE, and Emirates ID for opening a business account in the UAE. Until and unless all documents are submitted, the bank will not process your application. The average timeframe needed to open an account varies between two weeks to two months, depending on the verification of the documents submitted.
Opening a business bank account is one of the most crucial things on your to-do list when starting a new business in UAE. It now takes longer to complete this process because you can only create a business bank account after receiving your trade license and, in many cases, your UAE residency visa.
The staff at A&A Associate, which consists of knowledgeable legal corporate advisers, productive PROs, and tax specialists, will assist in streamlining the entire process of registering your UAE company at the most affordable prices.