After establishing your company and obtaining a UAE resident visa, the next step is to open your business’ bank account. Without a functioning corporate bank account, you are handicapping your business operations.
There is no denying that opening a business bank account in the UAE can be time-consuming, challenging, and sometimes annoying. It is not a simple process since it requires time and work owing to each bank’s own internal rules and regulations.
Find out all you need to know about opening a company bank account in the United Arab Emirates, from the required paperwork to potential stumbling blocks to a simple workaround. In this post, we will cover the following:
• Benefits of opening a corporate bank account in the UAE
• Challenges you could face when trying to open a corporate bank account in the UAE
• Things to remember before opening a corporate bank account in the UAE
• Steps to open a corporate bank account in the UAE
• Documents needed to open a corporate bank account in the UAE
• Working with Creative Zone
Benefits of opening a corporate bank account in the UAE
The UAE is renowned for its banking sector and the privacy it provides its customers. Its effective banking system allows businesses to function and flourish along with the country’s economy.
• International investors and companies enjoy complete privacy while opening a corporate bank account.
• Multiple currencies account for convenient currency conversion can be set up.
• A company account makes it simple for businesses to better monitor cash flow and manage expenses.
• Businesses may quickly receive business loans or credit cards through their bank account.
• Access to global banks but with locally provided customer service and administration..
Challenges you could face when trying to open a corporate bank account in the UAE
Opening a corporate bank account in the UAE is not a given, as some entrepreneurs may encounter difficulties. Here are some of them, so you know what to expect:
• Due to the UAE’s dedication to combatting financial crimes, including money laundering, establishing a corporate bank account can be difficult.
• Applicants must prove their trustworthiness to the bank they are applying to. You must show you know the industry in which you wish to operate your company, and thus, they need a bank account.
• If you are a UAE resident and want to open a business bank account, you will need a residency visa and a local address to apply.
• Banks need companies to have a physical office location. Some banks may send an inspector to the location listed in the documentation to check the actual office.
• If you want to do business in or come from high-risk locations or nations, obtaining a UAE corporate account may be difficult.
• Most banks need a minimum of AED 25,000 to AED 50,000 to create an account.
Things to remember before opening a corporate bank account in the UAE
Here are a few things you should consider before opening your bank account:
• You may open a corporate bank account in the UAE if you have a mainland or free zone, branch office, or subsidiary.
• If you are a startup or SME, you will need to present at the bank for a few hours as a bank signatory for the application and passport verification.
• Your company licence setup and activities will significantly influence your chances of having a corporate bank account.
Get in contact with one of Creative Zone’s business setup managers if you have any questions about the prerequisites. They can assist you in setting up your company as quickly as possible while keeping you completely compliant.
Steps to open a corporate bank account in the UAE
The UAE Central Bank regulates every bank in the country; however, each bank has its compliance department and its own set of specialised regulations. Here are the steps you need to take to open a bank account:
1.Get your business licence: Opening a bank account requires a business licence. Without a licence, the bank will not recognise you as a business, and hence you will not be able to open a corporate bank account in the country.
2.Get other legal and corporate documents in place: You need to ensure that all of the corporate and legal paperwork is in order and ready to be submitted. This includes a copy of your Emirates ID, a thorough business strategy, and your Memorandum of Association, among other documents.
3.Check visa requirements: You must confirm that your shareholders also have a resident visa. Some banks may need proof of residency from one or all shareholders for their records.
4.Choose the bank: Once you have the relevant paperwork, you need to choose a bank. There are several national and international banking institutions from which to choose. When picking the bank, you also need to consider their qualifying and financial requirements.
5.Application process: After selecting the bank, submit the pertinent paperwork and a completed application form to the bank advisor to be reviewed. The bank will then check every detail and confirm before approving or rejecting your application. Following approval, the bank will collect background information on the company’s management team, shareholders, and directors.
Documents needed to open a corporate bank account in the UAE
Based on our experience, we can provide you with a list of the essential paperwork required to open an account yourself. Note that this can vary depending on your scope of business activity and the bank’s criteria.
• Trade licence
• Copy of Memorandum of association
• Incorporation certificate
• Shareholders’ valid passport copy
• In case shareholders have UAE residency, a copy of their Emirates ID and visa is required
• Company share certificate
• Office lease agreement
• Comprehensive CV
• Utility bill or proof of address
• Previous personal bank statements for the last six months
• Business plan
• Name of existing or prospective clients
• List of suppliers or partners
In addition to the documents and details listed above, banks may ask for more information regarding transactions, invoices, or contracts. They will let you know if they need more documents or information to open a corporate bank account in UAE.
Working with Creative Zone
Initially formed in 2010 to help entrepreneurs with their business setup in Dubai, Creative Zone presented itself as a one-stop shop with flexible payment options. Since then, we have successfully assisted over 44,000 entrepreneurs in establishing their companies in the UAE, Saudi and Qatari markets.
Today, we have grown into an ecosystem that helps businesses start up, maintain, and expand their offerings. Additionally, we provide value-added services in a variety of areas, including:
• tax and accounting
• concierge services
• payment gateways
• human resources
• media and marketing services
• legal; insurance
• IT solutions; sales
• business centres
• currency exchanges
• communications centres
Because of our years of expertise and dedication to our customers, before and after the establishment process, no one does it better than us. As a result, you can count on us whether you merely need a visa, need help for a mainland company formation in Dubai, or need ongoing business assistance.
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