Starting a business in UAE has grabbed the attention of many entrepreneurs looking to start their ventures overseas. The attractive tax regime, excellent facilities and extensive government support make Emirates an ideal business location. The process to get started with a venture, however, includes a step-by-step process. It includes getting the business license, visas and one of the most important aspects: a business bank account UAE.
Opening a business bank account in the UAE allows businessmen to enjoy access to top-notch financial services, manage funds and keep track of their transactions. However, it requires attention to documentation and legal requirement fulfilment. In this article, we will look into the essential aspects of opening a business bank account in the UAE.
What is a corporate bank account
Just like humans have bank accounts, businesses and firms can also have their own accounts opened in their respective names. In the UAE, businesses need to have their own accounts, as the personal accounts of entrepreneurs cannot be used for business purposes. There are many well-known international and domestic banks in the UAE where business accounts can be opened.
Overview of UAE’s banking sector
UAE’s banking sector is known to be one of the most advanced and technology driven banking sectors worldwide. There are some of the most popular banks that have made the nation their home, offering excellent and diverse banking services meeting requirements of all types. The banks offers highest level of security to safeguards people’s money. Also, they support multiple currency transactions and offer favourable interest rates too. Here are some of the top banks in UAE:
- Citibank
- Emirates NBD
- HSBC Middle East
- Standard Chartered Bank
- Royal Bank of Canada
- Noor Bank
- Dubai Islamic Bank
Why a business bank account is needed
Firms open a business bank account UAE for many benefits and reasons:
Expense management:
A bank account helps to keep track of business expenses. Whether it’s the payments being made to vendors or other expenses, you can make the payments easily through the bank and view the entire transaction history through statements.
Compliance:
It is a regulatory requirement to have a separate business bank account for companies. Having one ensures that you are compliant with UAE laws.
Tax estimation:
Having proper record of your taxable income in your account helps in ascertaining tax liabilities accurately.
Cash flow management:
The inflows and outflows of cash can be managed through bank accounts. It makes both receiving and making payments more convenient. Especially in today’s digital era, online banking facilities ensure safe and fast transactions.
Investment opportunities:
Through a bank account, businesses can make investments from time to time that helps in creating additional revenue stream.
Loan and card application:
With a bank account you can easily apply for loans and business credit cards.
Documents needed for business bank account opening in UAE
Here is the list of documents needed to open business bank account UAE:
Basic documents:
- Copy of trade license/certificate of incorporation
- Copy of Memorandum of association
- Shareholders’ Emirates ID and visa
Additional documents:
- Source of funds
- Business plan
- Target audience details
- Shareholders’ CV
- Utility bills as address proof
- Bank statement of the company (if existing) or the partner (if new company)
Please note that there may be additional documents needed depending on the jurisdiction where you want to open business bank account UAE: mainland, freezone and offshore. For accurate documentation, it is advisable to contact industry experts like Dubiz Business Setup.
Process for bank account opening in UAE
Businesses looking to open business bank account must follow these steps:
Bank selection: First of all, you must choose the ideal bank for your business. there are many banks in UAE that offer exceptional financial services. You decision would be easy if you take things like minimum balance requirement, services provided, fees and costs, etc, while choosing a bank for your business.
Document preparation: For making a bank account application with the bank, you must submit certain documents. It typically includes your company’s trade license, registration certificate, passport and Emirates ID copies of all partners, valid Memorandum of Association, business plan etc.
Application with bank: Next, you can approach the selected bank and request for the business bank account. You will typically need to fill in application form, and submit it along the documents and fees. You can either choose to go personally to the bank’s branch or you can utilize the online portal of the bank (provided the bank offers such facility).
Verification and approval: Once your application is submitted, it will be under thorough review. If it meets all the legal and bank’s requirements, your application will be approved and you will receive a confirmation mail on your provided email ID. You will also receive the instructions on how to activate the account.
Account activation: Following the activation instructions sent to you by bank, you can make your account functional and start accessing the bank’s services.
Legal requirements for opening a business bank account
There are some primary requirements for opening a corporate bank account in the UAE, which include:
- Initial deposit requirement: A minimum amount to be deposited at the time of account opening.
- Minimum average balance: A minimum balance that must be maintained to keep the account active.
- Current account statements: Existing current/savings account statements, if needed.
- KYC compliance: A list of potential clients and buyers must be submitted for profile creation, which is then approved by the compliance team.
What banking costs to expect
The cost associated with opening a business bank account UAE comprises of many elements, including:
- Fees for account maintenance
- Cheque services charges
- Minimum initial deposit
- Teller transaction fees
- Debit card fees
- Internet banking charges
You can expect to pay AED 50,000* to AED 500,000* as minimum average monthly balance. Please note that the costs depend on the bank that you choose and your specific requirements.
UAE business bank account simplified
For every type of business setup in the UAE, a business bank account is required. As a novice, you may find yourself struggling with the lengthy processes, approvals, and piles of paperwork. However, with the right expert assistance, it can be quick and easy.
Dubiz Business Setup can help you with your business bank account in the UAE. They have an experienced team that is well acquainted with the procedures and legal documentation needed for successful account opening. Besides that, they can also assist you with your trade license, business visa, and tax filing. Contact them today for more details.