Business Bank Account Opening in Dubai, UAE
One of the most popular types of accounts opened in the United Arab Emirates is a business bank account. Companies of the following types can open bank accounts in Dubai:
- Offshore companies in the UAE
- Companies in free economic zones (FEZs)
- Mainland companies
Documents needed to open a business bank account in UAE
Companies typically designate their shareholders to sign the accounts. Signatories may be one or more shareholders, or a board resolution may choose them.
Banks need the following paperwork to process an application for an account opening:
- Documents for company registration
- Shareholders’ passports
- Utility bills to verify a home address
- CVs of stockholders with relevant professional backgrounds
- As proof of the funds, stockholders’ personal bank statements
- Documents relating to any current companies (if applicable)
- If applicable, a bank statement of currently operating firm
- The sphere of commercial activities
- Forecasts for the account’s opening initial deposit and yearly turnover.
Depending on the kind of business, registering a company account in the UAE can take anywhere from one to three months.
Accounts are typically opened quicker for businesses located in Dubai’s free zones and on the mainland. In the UAE, offshore businesses usually have to wait longer for account approval.
Maintenance of business bank accounts
The minimum average monthly balance for business accounts in UAE banks must be between 50,000 and 500,000 dirhams. The average monthly balance is determined by the bank service tariff for the business account, whether it is retail or managed by a personal manager.
- The retail tariff gives a balance of 50,000 dirhams in the account.
- An average monthly balance of at least 250,000 dirhams is required for the tariff with a personal manager.
- WIO Bank offers the option to open a business account online, but there are limitations on the kinds of operations that can be done.
The bank charges a maintenance fee if the average monthly balance in the account is less than the required amount.
We advise choosing the tariff with a personal manager since there is a much higher likelihood of opening a business account in this scenario. Our business consultants will assist you in preparing properly for the compliance procedure and schedule your meeting with a banker.
Critical factors for opening a business account in the UAE
We can identify two key elements for creating a business account successfully based on our years of experience working with Dubai banking institutions:
Compliance clearance
The applicant must go through the bank’s compliance process in order to have the best chance of receiving a favorable decision when opening a business account.
Giving a comprehensive collection of trustworthy information about your company, transactions, funding sources, industry, and previous international business experience is crucial.
Building a relationship of trust with a personal manager
His interest in your firm will determine whether or not the bank will open an account for your company.
Such a connection should benefit both parties. The banker may occasionally request that the client raise the average monthly amount above 500,000 dirhams.
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Office No 20, 4th Floor, Al Moosa Tower 2,
Sheikh Zayed Road Dubai, United Arab Emirates P.O. Box 27614.
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Business accounts or Corporate accounts for foreign companies
Businesses not based in the UAE may also apply to open a UAE bank account. This is the most difficult applicant group, and accounts in this category have a very low acceptance rate.
As a foreign firm, you must prepare all of the foreign legal entity’s formation documents, which must be approved by the UAE embassy in the nation where your business is registered.
They then need to be approved by Dubai’s Ministry of Foreign Affairs. The expense of this operation is high; each document will cost roughly $1,000. The corporate documents listed below are necessary:
- Certificate of Incumbency
- Certificate of Good Standing
- Articles of Association
- Memorandum
- Certificate of Incorporation
- License (if applicable)
- Board Resolution appointing a signatory for the business account
- Bank statements and supporting documents (contracts, invoices, bills, etc.) for transactions.
It always takes a long time to get approval for foreign businesses to open accounts in the United Arab Emirates. The compliance process is to blame for this. These businesses are classified as “high-risk,” and banks usually don’t try to approve their applications.
We advise establishing a legal corporation in the United Arab Emirates (in an offshore or free zone) and applying to create a bank account from the company. Instead of a foreign one if you need the account established more quickly.
Benefits of a business account in a UAE bank
- Quick transfers of funds. Using the SWIFT system, money may be transferred quickly. Transfers are typically performed between accounts.
- Reliable financial system. Members of the royal family own major banks in the United Arab Emirates; thus, the bank will be just as dependable as the nation.
- If the minimum balance requirement is satisfied, there is no maintenance fee. Online banking may incur a monthly fee of 150–300 dirhams from certain institutions.
- Stable currency exchange rate. The US dollar is the dirham’s stable benchmark. 3.6725 AED is equal to 1 USD.
- There are no currency regulations in the nation. Anywhere in the globe, you can receive payments and transfer money with the right paperwork. In addition, you can move funds from a corporate account to a tax-free personal account.
Corporate bank account opening in Dubai
- Register a business.
- Obtain residence permits for signatories or owners.
- To open a business account, submit an application to the bank.
- As part of the compliance process, respond to all bank inquiries.
- Get account information.
- Deposit the minimum balance.
- Start conducting business, using the business account to make transactions, and taking advantage of all the advantages of doing business in the United Arab Emirates.
In our capacity as consultants, we will inquire about you and your company in order to identify the optimal course of action that will ensure that you are able to open a business bank account.
We will assist you in avoiding the numerous blunders that businesses make while attempting to create an account with a Dubai bank independently.
The most frequent errors are selecting the incorrect location, registering authority, or business activity category. We have over ten years of experience in the UAE market. Therefore, we are well-versed in all aspects of dealing with banks and their needs.
Compliance Procedure
Every business that opens a bank account in the United Arab Emirates must go through initial compliance. In order to create an impression of your business, the bank will ask for a variety of documentation. This information includes:
- forecasted number of transactions per month
- transaction amounts
- names of suppliers and customers
- information about the business you conducted in another country.
It is crucial that your company has a relatively lengthy and successful history, which you can verify with the appropriate paperwork (invoices, contracts, bank statements, shipping documents, etc.).
The bank will view your firm as high-risk if you’re establishing it from scratch in the United Arab Emirates and have little chance of opening a business account for it.
The bank will stop operations until the situation is resolved if any activities on your business account go beyond your profile in the bank, such as receiving funds from unidentified sources or significantly over the allotted amount.
You have to change the account specifications and inform the bank if you are expecting more than the set limitations.
Important! Currently, all Russian payments are regarded as high-risk and must go through required compliance processes. Your banker receives the explanation questions from the bank, which halts the transaction and sends them to you.
The money is returned to the bank within 14 days if no satisfactory response is received. Thus, we stress the importance of keeping a positive relationship with your personal manager.
Opening a business account in a UAE bank: the most suitable local banks
The following list includes packages for “Opening an Account in a Bank” with and without a relationship manager (RM) and a minimum account balance.
Emirates Islamic Bank
Among the four Islamic banks in the United Arab Emirates, this one allows its customers to handle their money online in various languages, including English.
AED 35,000 (no RM). AED 100,000 (with RM). AED 250,000 (with RM).
Emirates NBD
In terms of assets, the Government Bank of Dubai is among the biggest banking organizations in the Middle East.
AED 50,000 (no RM). AED 200,000 (with RM). AED 500,000 (with RM).
Mashreq Bank
One of the oldest and most reputable semi-government banks in the United Arab Emirates. It is appropriate for asset management, investments, and personal use and functions in both conventional and Islamic banking.
AED 25,000 (no RM). AED 150,000 (with RM). AED 350,000 (with RM).
First Abu Dhabi Bank
A major bank in the United Arab Emirates, First Abu Dhabi Bank, was established in April 2017 by the combination of First Gulf Bank and the National Bank of Abu Dhabi.
It is ranked first among the top 10 most dependable banks in the Middle East and among the top 100 most dependable banks globally by Global Finance.
AED 50,000 (no RM). AED 250,000 (with RM). AED 500,000 (with RM).
You need to go through a number of difficult steps and processes when creating a business account with a UAE bank.
These steps are crucial for financial institutions. To help you save money and stress, we provide expert services for creating a business account in the Emirates.
How JSB Incorporation can help with opening a business account in Dubai and the UAE
With a wealth of commercial and financial expertise, we help clients open accounts in Dubai. We also keep positive connections with the top banks in the Emirates, acting as middlemen and offering customized solutions.
You may be sure that you will get complete assistance with company registration and business bank account opening after contacting our organization.
Book your free consultation call today and get started
We will find the best solution for you
In the first consultation, we will ask you a lot of questions about your company and yourself. Based on your objectives, skills, and past experience, we will create a customized solution for you in terms of company registration. Also, set up your company to ensure the opening of a business account at a UAE bank.
We will schedule meetings with your personal manager at the bank
We will designate a personal assistant for you, set up a meeting with a bank official, make your case, and go with you to sign the paperwork.
We will monitor the status update of your application
We monitor your application’s progress, make sure the banker sends the required paperwork for compliance, and make sure all the processes are finished while responding to the bank’s inquiries.
We will guide you every step of the way until the account is opened
Our business advisers will answer all of your inquiries about establishing a business and a business account with a UAE bank.
FAQs
The business type and the background of the shareholders determine the timing. While overseas companies typically have to wait longer to open, mainland businesses receive accounts more quickly. The procedure may take one to three months.
In this situation, there is no best bank. Every company has unique needs and potential customers. A single bank cannot serve all customers. Based on your business, we choose the bank during consultations where your account will most likely be opened.
Yes, but the application for opening an account may be denied or the approval procedure will take a very long time. To achieve a quicker outcome, it is advised to establish a local business in the United Arab Emirates, either on the mainland or in a free zone, and look to open a bank account for it.
Yes, most UAE banks offer online banking for business accounts, including fund transfers and account management.
In most cases, the account holder or an authorized signatory must be physically present during the application process.
Don't miss out on this limited-time opportunity!
We'd Love To Hear From You
contact us
Find us Here
Office No 20, 4th Floor, Al Moosa Tower 2,
Sheikh Zayed Road Dubai, United Arab Emirates P.O. Box 27614.
Get In touch
+971 4 824 4842
info@jsbincorporation.com