Incorporated your company in the UAE, but struggling with getting a bank account?
Reasons Why It’s Difficult to Open a Bank Account in Dubai
In light of strict due diligence and dictums by the central bank, all UAE banks are forced to be cautious with new accounts. Owing to the corrective operational burden in case of a default, banks would prefer to avoid approving a less-than-optimal case than deal with any possible consequences later.
Before opening an account for a business, banks check for its economic foundation and trustability - and this can often be hard to define. And although factors such as company vintage, business plan, financial documents, physical office space and residence visa help, whether you’d be able to open a bank account ultimately boils down to how the respective bank perceives you.
An account might get rejected because of potential high risk. For an Emirati bank, reputation is of prime importance; and associating with dubious companies, customers or transactions can lead to stern fines, or even withdrawal of license, which may put the entire bank’s business at risk.
What You Can Do
Although opening your corporate bank account in Dubai can be tough, it is very much feasible. Following these simple tips will greatly increase your chances.
Obtain a physical address for your company
Get a UAE residence visa for the signatories
Don’t transact with sanctioned/high-risk countries
Present a robust business background and thorough business plan
Develop a landing page or website for your business
Avoid high-risk activities
In short, anything that builds your credibility in the eyes of the bank increases your chances of opening a corporate account there.
Chances are you’ve missed some minor clause, internal requirement or compliance checkbox that the bank would’ve preferred.
Fret not! We’ve got your back.
Commitbiz has been operating in the UAE for over a decade. We understand the local market and the best practices to excel in it. We study your distinct case and customize your bank account application to ensure a seamless process with the bank. Do drop us a call!