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.
In this guide, we will walk you through the entire process of how to open a business bank account in the UAE. We cover the key benefits, eligibility criteria, and provide a detailed breakdown of the document requirements for Mainland, Free Zone, Offshore, and Foreign Entity Branch companies to ensure your application is successful.
What are the Benefits of Opening a Business Bank Account in 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.
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?
To open a business bank account in Dubai, you will need to submit specific documents. These documents typically validate the business’s existence, such as contracts and invoices, as well as details regarding the company’s clientele and suppliers. Although the exact requirements may vary among banks, the customary documents for opening a corporate bank account include:
To open a business bank account in the UAE, follow these steps:
1. 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.
2. 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
The required documents vary depending on your company type (Mainland, Free Zone, Offshore) and the bank you choose. Below is a detailed breakdown to help you prepare.
Prerequisites for All Applicants: Before you start, ensure you have:
- Your company Trade License.
- UAE Residency Visa and Emirates ID (for most account types). Most banks will not process applications for non-residents.
1. For a Mainland Company Bank Account
Essential Documents:
- Original Trade License
- Memorandum of Association (MoA)
- Passport copies, UAE Visa, and Emirates ID of all shareholders/partners
- Office Tenancy Contract (Ejari)
Supporting Documents (be prepared to provide):
- 6 months of bank statements (personal or existing company)
- Business plan, company profile, or website
- CV of the authorized signatory
- Details of expected clients/suppliers
- Sample invoices (debit/credit)
- VAT Certificate (if registered)
2. For a Free Zone Company Bank Account
Essential Documents:
- Original Trade License
- Share Certificate
- Memorandum & Article of Association (MoA/AoA)
- Passport copies, UAE Visa, and Emirates ID of all shareholders
- Office Tenancy Contract (from the Free Zone)
Supporting Documents (be prepared to provide):
- 6 months of bank statements
- Business model and company profile
- CV of the applicant
- Details of trade activities (clients/suppliers)
- Commercial documents (e.g., invoices, shipping documents, contracts)
Read more: Opening a Free Zone Company Bank Account in UAE
3. For an Offshore Company Bank Account
Essential Documents:
- Certificate of Incorporation
- Share Certificate
- Passport copies of shareholders and directors
Supporting Documents (be prepared to provide):
- Parent company’s legal documents (if any)
- Office tenancy proof of the parent company
- 6 months of company bank statements from home country
- Certificate of Good Standing / Incumbency
- Business model and profile
- UAE Visa & Emirates ID (if available)
Read More: Open An Offshore Company Bank Account in Dubai
3. For a Foreign Entity (Branch) Bank Account
Essential Documents:
- Attested Memorandum & Article of Association (MoA/AoA)
- Attested Trade License of the parent company
- Share Certificate of the parent company
- Passport copies with UAE entry stamp of shareholders
Supporting Documents (be prepared to provide):
- 6 months of bank statements from home country
- Utility bill of shareholders as address proof
- Corporate legal documents of the foreign parent company
- Details of expected clients/suppliers in the UAE
Pro Tips & Important Notes
- Always Check with Your Bank: This is a general checklist. Always confirm the exact requirements with your chosen bank as they can differ significantly.
- Original Documents: Banks almost always require sight of the original documents.
- Minimum Balance: Be prepared for a minimum balance requirement, which varies by bank and account type.
- Timeline: The process can take from 2 weeks to 2 months, so plan your finances accordingly.
Open your Corporate Bank Account with Shuraa!
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 license and, in many circumstances, your UAE residence visa.
Shuraa Business Setup’s team of expert legal corporate advisors, efficient PROs, and tax experts, 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.
Frequently Asked Question (FAQs)
1. Is opening a bank account in Dubai while on a visit visa possible?
Non-residents are restricted to acquiring savings accounts in the UAE; they are ineligible for current versions. The individual seeking to open an account must hold either a visit visa or a transit visa and must personally visit the bank.
2. Can I use my personal bank account for business in the UAE?
Conducting business activities through a personal bank account in the UAE is not allowed. To operate a business or company, opening a corporate bank account and exclusively using it for business purposes is necessary.
3. What is the typical duration for opening a business bank account in Dubai?
Typically, it takes around 2 to 4 weeks to open a business bank account for an LLC or Free Zone company in the UAE.
