Offshore bank account in Dubai

Guide to Opening an Offshore Bank Account in Dubai

by Vishakha Agarwal 11, Jan 2024

Dubai has a growing economy, and its great location has become a centre for international business and finance. Various business people and individuals are attracted to opening a business in Dubai, which increases demand for an offshore bank account to take benefits of a favourable tax environment, financial stability, and strong banking infrastructure.

This article covers the steps of opening an offshore bank account in Dubai, the benefits and other considerations required for a bank.

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What is Offshore Banking in Dubai?

Offshore banking in Dubai means a company operating outside Dubai opening a bank account nationwide.

Any individual or a business entity that wishes to set up or has already set up its own offshore company needs to open an offshore account to carry out its financial transactions.

You can open two types of offshore bank accounts in the city:

  • Offshore accounts for individuals.
  • Offshore accounts for corporates.
     
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Benefits of Opening an Offshore Bank Account in Dubai

The benefits are why an entrepreneur is attracted to creating an offshore bank account, so understanding those benefits is essential. They are as follows –

  1. Tax Policies:

Dubai is popular for its favourable tax environment. The tax rates are comparatively low in Dubai's offshore accounts. It is an effective factor for wealth management and asset protection.

  1. Financial Privacy:

These bank accounts provide a high level of financial privacy. The bankers and financial institutions strictly follow the regulations and policies of Dubai. This is a major reason banks can fight money laundering and other financial crimes and offer top-quality services to companies.

  1. Asset Protection:

An offshore account provides a layer of protection for your assets. If your home country has legal issues and financial crises, assets can be held and protected from creditors in these offshore accounts. 

  1. Expansion of Investments:

Opening an offshore bank account in UAE allows your company to expand investments internationally. It helps reduce risks related to economic and political uncertainties in the country.

  1. Currency Expansion:

Dubai is a popular business destination, and banks provide various currency options. Holding funds in different currencies is beneficial for businesses engaged in international transactions. 

  1. Business Transaction Facilities:

The banking system in Dubai is known for its efficiency and well-designed infrastructure. Offshore accounts in Dubai offer various banking services like online banking, finance management, and account maintenance. This eventually helps in smooth business transactions and transparency in the company.

  1. Wealth Management Services:

An offshore bank account in Dubai offers extensive wealth management services like investment advisory, financial planning, estate planning, etc., helping Dubai's businesses in various ways.

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Best Offshore Bank Accounts in Dubai

An offshore bank account opens various opportunities and provides various banking services to companies, but all this depends on finding the right bank account. Let’s look at some of the best offshore banks in Dubai for opening an account –

  1. Noor Bank:

  • It is a renowned international bank with a global presence.
  • Regular trading, asset holding, investment, etc are allowed.
  • An account with multiple currency accounts is permitted.
  • The account holder must be present in UAE.
     
  1. Emirates Islamic Bank:

  • It is a leading Sharia bank in Dubai that allows global transfers.
  • The account type here is corporate with internet banking facilities. 
  • Must be physically present in the UAE.
  • An account with multiple currencies, like AED, EURO, USD, etc, is permitted.
     
  1. Emirates NBD:

  • It is one of the top offshore banks in Dubai. 
  • Asset holding, investment, accumulation, etc, are all permitted here.
  • Multiple currencies are allowed. The operational cost is average.
     
  1. RAK Bank:

  • It is a popular offshore bank that allows international transfers.
  • A corporate account type with Internet banking facilities.
  • Need to be physically present in UAE.
  • Multi-currencies such as AED, USD, EURO, etc., are allowed.
     
  1. Commercial Bank International:

  • It’s a renowned bank in the Middle East that permits global transfers.
  • Investment, Regular trading, Asset holding, etc., are allowed.
  • The operational cost is average.
  • Physical presence in UAE is required for account opening.
     
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Steps of Opening an Offshore Bank Account in Dubai

An account holder must follow the below steps to open an offshore bank account in Dubai. These steps help in compliance and the smooth functioning of activities in the long run of the business.

Here is a general guide to help you understand the process –

   i) Research and Selection:

The account holder must research various banks, their benefits, services and formalities and select a bank accordingly. They must consider factors like reputation, fees, account types and services provided. 
 

  ii) Verify Eligibility:

Individuals should make sure that they satisfy all the conditions set by the bank. They must provide the required application forms, personal documents, etc for creating your business bank account.
 

 iii) Apply for the Account:

You must apply to the bank in person or apply online according to the needs of the bank in Dubai. The account holder must fill out the required application form with accurate and detailed information, follow the procedure, and complete the application form.
 

iv) Submit Documents:

The bankers require certain documents to create an account. The account holder must submit the documents below within the said time for further approval and the opening of the offshore bank account in Dubai.

  • Client profile.
  • Articles of Association.
  • Certificate of Incumbency.
  • Memorandum of Association.
  • Company brochure with description.
  • Attested certificate of good standing.
  • Bank passbook (past 6 to 12 months).
  • Document certificate by the Ministry of Foreign Affairs.
     

 v) Complete KYC:

The KYC process for bank account opening involves the following four test proofs:

  • Credit History Report.
  • Proof of Residency. 
  • Proof of Identity.
  • Proof of Wealth.
     

 vi) Due Diligence and Verification:

The bank will conduct due diligence to verify the information provided, the conditions if meeting the standards and compliance issued by the government. 
 

vii) Pay Initial Deposits:

After completing the above steps and receiving approval from the authorities of the bank, you must deposit money in your offshore bank account in Dubai.
 

viii) Maintain Compliance:

Lastly, the account holder must ensure that the local laws and regulations issued by the bank and government authorities are followed while applying for the account, after receiving approval for the account and while using the account.

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Conclusion

Opening an offshore bank account in Dubai can be a beneficial move for individuals and businesses looking for lower tax rates, financial confidentiality, and currency expansion. Account holders can enjoy the benefits of an offshore bank account in Dubai by understanding the application process and following the required laws issued by the authorities of the place.

However, it is essential to conduct detailed research, gather required documents and follow the conditions specified by the bank. It can easily be acquired by seeking help from a consultancy firm because they will provide all the required services for setting up your business bank account in Dubai, provide top-quality services, and ensure professional guidance. 

Commitbiz is one of the reputed business setup consultants in Dubai that will ensure a smooth and successful experience. They will easily obtain an offshore bank account in Dubai through their work and dedication. We are your one-stop solution. Contact us today!

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FAQs

Can I open an offshore account in Dubai?

Yes, you can open an offshore bank account in Dubai, provided you have a valid residential visa.

Is an offshore bank account in Dubai legal?

Yes, holding your money and assets in Dubai offshore banks is not illegal.

Does Dubai have offshore banks?

Yes, several offshore banks are operating in Dubai.

What are the types of offshore accounts?

There are two types of offshore bank accounts:

  • Offshore accounts for individuals
  • Offshore accounts for corporate

Which is the best offshore bank account?

  • Noor Bank 
  • Emirates Islamic Bank  
  • Emirates NBD      
  • RAK Bank      
  • Commercial Bank International