The United Arab Emirates is well known for its famous banking industry and the high level of privacy banks provide their clients. Its financial system is synonymous with stability. Local banks are recognised thanks to their top-rank security, reliability and excellent services globally. As a result, more and more business people from different countries wish to open a bank account and operate their businesses in the UAE. It is essential to note that each financial institution has its specific requirements for opening a business bank account.
Find below all that you need to know before opening a bank account in the UAE...
Banks in the UAE
The UAE is home to many international and local banks. The top local options for opening a corporate bank account here are:
- Emirates NBD
- Abu Dhabi Commercial Bank
- RAK Bank
- Mashreq Bank
- First Abu Dhabi Bank
- United Arab Bank
- First Gulf Bank
- Commercial Bank of Dubai
Major foreign banks that open accounts for businesses registered in the UAE include:
- Standard Chartered Bank
How to Open a Bank Account in the UAE
The requirements to open a corporate bank account in the UAE vary from bank to bank, but the presence of a significant shareholder or director is typically required. To open a bank account, the first step is completing an account opening application, which is to be supported by detailed company records. That information can include proof of business, like contact and invoices, as well as information about the company’s clients and suppliers. The steps to open a corporate bank account in the UAE are:
1. Get Your Business License
When you open a company, one of the essential steps is to get a valid license. Without a license, the bank will not recognise you as a business and you won’t be able to open a corporate bank account.
2. Get the Necessary Documents
The next important step is to ensure that your legal and corporate documents are in line. The exact documents needed will differ slightly from one bank to another. These are a few of the documents required to open a corporate bank account in the UAE:
- Bank account opening form
- Resolution from the board of directors sanctioning the opening of bank account, and the signatories to the account
- A copy of the business license
- A copy of share certificates
- Copies of passports of all the business partners
- Copy of the Memorandum of Association and Articles of Association
- Copies of valid passports of all the shareholders
Certain banks may need additional documents such as invoices, reference letters from the business partners, company business plan, and information regarding your planned business activity.
3. Check Visa Requirements
The next step towards opening a business bank account is to establish whether your company shareholders are required to have a residency visa. A few banks require proof of this from at least one shareholder, while others do not ask for it at all. So the issue of whether or not your stakeholders have residency visas in place may have a bearing on which banks you consider to apply.
4. Choose the Bank
Once all the documents are in place, you can look for a bank which suits your requirements. As listed above, there are several national and international banks one can choose from. Do consider the eligibility criteria and income while determining the bank.
5. Application Process
Now is the time to begin with the formal account opening process. It is usually advisable to visit a branch of any bank and speak face-to-face with an advisor who can answer any queries you might have. Once they tell you what to do, you can go on with the process.
Offshore Bank Account | A Simpler Alternative
If you are running a business in the UAE, you’d definitely like to take advantage of the benefits that come with a bank account here. If, for some reason (like nature of business activity, nationality constraints, etc.), you aren’t able to get a corporate bank account for your company in the UAE, you may always opt for an offshore bank account instead.
An offshore bank account is one that is present in a country different from your location of business. It provides you the same level of accessibility and benefits, plus more!
Commitbiz is the approved introducer for ABC Banking Corporation, Mauritius. It provides the following facilities:
- Minimum account opening deposit of just 5,000 USD (or equivalent)
- Multi-currency accounts
- No statement or ledger fee
- Free internet banking (both viewing and transaction)
[You need not get your documents attested for a second time for the offshore bank account.]
While the bank account opening process only consists of a few steps, ensuring you complete each one accurately will go a long way to getting your bank account open as quickly as possible, importantly when it comes to opening a bank account.
We at Commitbiz can help you out with the process in a hassle-free and straightforward manner. Contact us today to know more.