How to open business bank account in the UAE?

Opening a business bank account in the UAE is useful when registering your company in the country. With its stable governance and simple trade policies, the UAE provides an excellent business climate. Furthermore, its physical location facilitates global trade by sea, air, and land. Because of these factors, many investors turn to the UAE for their entrepreneurial ventures.

However, every firm, whether thriving or a start-up, requires a stable basis for its cash flow and balance. Growing a business without long-term backing from banks might be difficult. Therefore, to avoid this, banks provide excellent business banking services and make business account opening in UAE very easy for entrepreneurs.

When opening a business bank account in the UAE, you should consider the profit rates and benefits, as well as the fees for banking services.

What are the benefits of having a business bank account in the UAE?

A business account will be necessary to send and receive money, manage business activities, and make financial payments once your company is established and active in the UAE. You can then use a business account to make transactions, track spending, and obtain loans, among other things.

You must open a business account for the following reasons:

• Access to Business Funds

A corporate account is essential not just to access funds, but also to manage and track transactions.

• To Make Investments

As a business owner, you will be obliged to make specific investments from time to time. This becomes much easier with a corporate account, which includes features like standing instructions and reminders.

• Manage Spending

A business bank account in the UAE aids in the tracking of your firm’s expenses. It also helps with the development of future investment strategies based on the current state of the firm.

• Obtaining Business Loans

A business bank account can aid in the acquisition of business loans as well as a corporate credit card. Typically, a business bank account is opened in the company’s name, which aids in the acquisition of loans by establishing a legitimate presence.

• Banking Services

A corporate bank account comes with a slew of features that make tracking incoming and outgoing monies in the account a breeze. It also serves as a reminder of the expenses that must be incurred to meet the business’s needs.

• Accuracy in Record-Keeping

UAE company accounts are designed to handle practically all types of business transactions, making it simple to keep track of a huge amount of data. These advantages make it particularly dependable in terms of paying taxes, salaries, and other bills on time.

Business Banking Accounts in the UAE: Features and Benefits

Business accounts in the UAE come with a plethora of appealing features and benefits. Savings accounts, merchant accounts, merchant services accounts, and dedicated credit card accounts are common examples of these accounts.

The following are some of the advantages and features that corporate bank accounts in the UAE provide to enterprises.

Security and Protection

By keeping personal and business cash separate, the business account protects you from personal liabilities. Therefore, the services provided to business account holders ensure the security of your data and transactions.

Purchasing Power

A business account with credit services makes it simple to obtain larger loans by building a good business credit score, which in turn allows for larger initial purchases.

Minimum Account Balance

Many banks in the UAE have a low minimum account balance, and some even have zero balance business accounts, thereby making it easier for small firms to thrive.

Attractive Interest Rates

Through their business bank accounts, UAE banks offer a great deal on interest rates for new enterprises, making it a source of additional value for the company.

International Transactions

Banks in the UAE provide a platform for company owners to send remittances in foreign currencies at very low costs.

Multiple Currency Accepted

Banks in the UAE accept a variety of currencies, including USD, GBP, EUR, and others, in addition to the UAE dirham, allowing overseas clients from all over the world to create a business account.

Chequebook Facility

Every bank in the UAE provides a chequebook facility in the name of your business, allowing for convenient payment of a variety of items.

Internet Funds Access

With a user-friendly online banking site, business account holders can effortlessly access the company’s funds while on the road. As a result, you may access and manage your bank accounts from anywhere at any time, thereby saving time and effort.

Entrepreneurs’ Eligibility Criteria for Opening a Business Account in the UAE

To open a business account in the UAE, your organisation must meet a set of qualifying criteria established by the bank of your choice. The eligibility criteria differ from bank to bank, and your business entity must review them before submitting an application. Some broad eligibility guidelines are listed here.

• Minimum Initial Deposit

Before opening a business account, your organisation must make a minimum initial deposit. Each bank has its own initial deposit, which must be checked ahead of time.

• Minimum Average Balance

In order to operate and maintain a business account in the UAE, your business entity may be required to maintain a minimum average balance. The minimum amount is determined by the bank to which you are applying.

• Savings or Current Account

Some banks need a person or a business to provide existing bank statements of their savings or current account before opening a business account.

• Know Your Customer (KYC)

You must have a proper profile of your customers – your potential buyers and potential clients. Based on this information, your banker or Relationship Manager can make a profile and represent you before the compliance team to facilitate easy approval.

How to Open a Business Bank Account in UAE?

Almost all local and foreign banks in the UAE require identity and address proof before opening a business account. Furthermore, a company opening a commercial bank account in the UAE may be required to be physically present in the country.

The following methods can be used to open a business account in the UAE:

• Opening a business account online in UAE

A business bank account in the UAE can be opened online and involves filling out the online application form and submitting the necessary documents.

• Opening a business account in the UAE offline

To open a corporate account that best meets your business needs, visit a local branch of a bank in the UAE and follow the directions given by the banking professional.

However, it is advisable to find a trusted relationship manager who will liaise with the banking professionals on your behalf. The relationship manager will be responsible for facilitating and expediting your bank account opening process.

Documents Required to Open Business Bank Account in UAE

Here is a basic list of the documents you will need to apply for an account. It is important to note that this list varies depending on the extent of each client’s business and the bank’s criteria as per the type of corporate account you want to open.

Mainland Bank Account

Basic Documents

• Trade license
• 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 license
• 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 license/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
• Website (if available)

Foreign Entity Bank Account

• Memorandum of Association (MoA)/Article of Association (AoA) with legal attestation
• Trade license
• 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)

You will need to have your company licence and, in most circumstances, your UAE residency visa and Emirates ID before your business account opening in UAE. Most banks will not process your account until this time has passed. Depending on your circumstances, the application procedure might take anywhere from two weeks to two months, and most banks will need you to maintain a minimum amount.

Conclusion

Opening a business bank account in the UAE is undoubtedly one of the most crucial tasks to complete when starting a new business. This procedure has recently become more time consuming, as you can only open a business bank account once you have received your trade licence and, in many circumstances, your UAE residence visa.

Shuraa Business Setup’s team of expert legal corporate advisors, efficient PROs, tax experts, and banking partners DhanGuard will help simplify the entire process of your UAE company registration at the most cost-effective rates. Connect with Shuraa today to book your free consultation. Call us on +97144081900, chat with us on WhatsApp on +971507775554, or email us your business setup or corporate bank account query at info@shuraa.com.