The UAE has always attracted a large share of investors and entrepreneurs from the world over, thanks to its vibrant economy and a conducive business environment. If you plan to set up your business in the UAE, you will need to open a corporate bank account.
UAE Banks are well-equipped with reliable and secure digital and mobile banking systems consistent with latest technologies. They offer ease of banking and a high level of privacy to foreign investors while incorporating a company in the UAE. Here is a complete guide on opening a corporate bank account in the UAE.
Points to Consider Before Getting a Corporate Bank Account in the UAE:
- You can apply for a corporate bank account if you have an LLC in the Mainland or Free Zone or even a branch office or subsidiary in the UAE.
- For SME or start-up, your presence as a bank signatory is required to verify the passport and submit the application.
- For documentation purposes, you have to consider the business activity and background, the number of shareholders, and the business plan for the new entity in the UAE.
- As an entrepreneur, you need to prove your credibility while applying for a corporate bank account in the UAE. You need to prove that you have a good knowledge of the industry in which you plan to open your business and require a bank account. Make sure that the company’s business activity fits your personal technical expertise before opening a corporate bank account.
- In addition to a local address in the UAE, the banks require you to have a residence visa if you are a resident applying for a corporate bank account in the UAE.
- UAE Banks also mandate that resident applicants have a physical office space. Some banks may send an Inspection Officer to verify the presence of the physical office at the address mentioned in the submitted documents.
- An investor should always have the complete information and economic substance about his business ready to be presented to the banks. Incomplete information may create challenges in opening a corporate bank account in the UAE.
- You may also face hurdles in opening a UAE corporate account if you belong to a high-risk country or are planning to conduct business in such areas.
- Most banks require you to maintain a minimum balance of AED 25,000 to AED 50,000, depending on the bank you choose to open an account. AED 5,000 is the minimum balance required to open a bank account in the UAE.
- Investors can open a multi-currency bank account in the UAE: They can open accounts in a variety of currencies, such as AED, USD, Euro, GBP, CHF, and more.
Cost to Open a Corporate Bank Account:
As an investor, you might ask if there are any fees for setting up a corporate bank account in the UAE. The good news is that the local banks in the UAE do not charge any fees for opening a bank account. However, all the local banks require that you maintain the minimum monthly average balance specified for different categories. If you are don’t maintain the minimum monthly average balance, then the penalty levied starts from 250 AED per month.
Time Required to Open a Corporate Bank Account in the UAE:
The procedure for opening a corporate bank account has no specified time limit since each bank has its own internal process and timeline. Typically, opening a bank account in the UAE for an LLC or a Free Zone company takes anywhere between 2 and 4 weeks.
Steps to Open a Corporate Bank Account in the UAE
Step 1: Get your Business License: Without obtaining a business license, the bank would not recognize you as a business, and it would not be possible for you to open a corporate bank account in UAE.
Step 2: Submit Necessary Documents: Ensure that all legal and corporate documents are submitted along with duly filled application form. The list of main documents required to open a UAE corporate bank account includes:
- Copy of the Emirates ID and shareholder representative
- Comprehensive CV showing 5 to 7 years of professional and business experience.
- Company trade license
- Certificate of registration / Incorporation
- Lease agreement
- Utility Bill
- Detailed business plan
- Company Memorandum and Articles of Association
- Board Resolution authorising a Company Officer to open the bank account
- Copies of Passport of shareholders and authorised signatories
- Disclosure of the source of funds
- List of names of at least 5 suppliers and 5 customers
- Shareholders’ Personal Bank Statement for the last 6 months from their home country or the UAE (as applicable)
- Shareholders’ Corporate Bank Statement (of existing company) for the last 6 months (if applicable)
- Certificate of good standing
Step 3: Check Visa Requirements: Your shareholders may also require a residency visa. While some banks ask for residency visa as proof of residence from at least one shareholder, other banks may not ask for it at all.
Step 4: Choose The Right Bank: Once you have all the necessary documents in place, you need to choose a national or an international bank that best suits your requirements. You also need to consider the eligibility criteria and income while choosing the bank.
Step 5: Complete the Application Process: After a proper discussion with an advisor or the bank branch, the nest step is to complete the application process by submitting all the necessary documents with the duly-filled application form to the bank officials. The bank will thereafter authenticate every detail and gather background information about the applicant’s management team, its Shareholders, and Directors. The final step is the applicant’s interview. Once completed, the corporate bank account will be opened.
How Creative Zone Can Help
We understand how difficult it can be for foreign investors to get a corporate bank account in the UAE. This is why we offer customized solutions for every customer based on their business requirements. Through our partnerships and strong business relations with various banks in the UAE, we can help you open a corporate bank account in no time.