Company Bank Account Opening in Dubai
Bank Account Opening in Dubai: What You Need to Know
Dubai always attracts businesspeople from throughout the world. Due to its strong economy and huge foreign community, Dubai draws more than its fair share of investors eager to launch a business. These investors need to establish a business bank account in Dubai.
Banks in the UAE have the infrastructure for digital and mobile banking, and they continuously work to apply cutting-edge technology like AI and Blockchain. Foreign entrepreneurs are more comfortable forming businesses in Dubai, UAE, thanks to the simplicity of banking provided by UAE banks.
Advantages Of Opening A Corporate Bank Account In Dubai, UAE
- Monitoring all the transactions and cash flows through a bank account statement is easy.
- It keeps track of your expenses and helps control them.
- It helps the company to accept credit card payments.
- A corporate bank provides facilities for foreign currencies where you can exchange your foreign currency.
- For overseas investors and businesspeople looking to register a corporate bank account in the UAE, complete privacy is available.
- A business account allows organizations to analyze their tax obligations while maintaining the transparency of tax payments.
- On the telephone and online banking platforms, free from all abuse.
- Additionally, this place makes it simple to assist with managing international banks.
Procedures For Opening A Corporate Bank Account In Dubai
Different banks have different requirements for creating a business bank account in Dubai. However, some of the documents are mandatory, as follows:
A business licence is essential because banks won’t approve your account or recognize your business in the UAE without it.
Pile Up Your Documents
The next step is to ensure all the legal and corporate documents are organised for submission. For example, filled-out application forms, a Memorandum of Association, Emirates ID, and an in-depth, detailed business plan.
Some banks have a protocol of having the address proof (residence visa) of at least one shareholder. Whatever bank you consider applying to may depend on whether or not your shareholders have resident permits. You should learn which banks have these criteria in advance to avoid extra delays with your application.
Choose The Bank
When you have all the required paperwork, you can easily filter out your needs and the types of banks you require. There are various domestic and international banks to select from in the UAE. But keep in mind eligibility and income for, say, the chosen banks, who might ask for a residence visa or a local address in the UAE.
The bank branch officer will guide you through a proper discussion of the application process. The application must be presented to the officials with the earlier documents and a properly completed application form. After that, the bank will authenticate each detail before approving or rejecting the application. For approval, the bank will look into the applicants’ background information. And call for a final interview, after which your corporate bank account will be established.
Mandatory Documents For Opening A Corporate Bank Account In Dubai
You need to submit the below documents to open a corporate bank account. Documents prove your business and can be extended and differ according to bank criteria as follows:
- The minimal quantities of holding capital that several free zones require.
- A copy of the Emirates ID and passport Copy of the shareholder and a company director.
- A comprehensive C.V. with 5-7 years of professional and business experience.
- Utility bill as proof of your residence for at least the last three months.
- A detailed PDF of the business plan and information about the activities on the account.
- Previous six months’ bank statements of personal as well as corporate accounts of each shareholder.
- List of five customers and suppliers for the least and complete file of company incorporation.
- Board resolution authorising and exposing the source of funds.
- The article of association, memorandum, and registry of shareholders.
Things To Pay Attention To Before Opening A Corporate Bank Account:
- Applying for and validating the passport requires your participation as the bank signatory.
- The firm’s activities, the number of shareholders, the management’s business experience, and the new entity’s business strategy in the UAE must all be considered in terms of paperwork.
- The UAE and other countries have recently begun negotiating some agreements to combat tax evasion. Through these agreements, banks are sometimes required to work with foreign authorities while firmly protecting privacy.
Is A Bank Deposit for Capital Required When Starting A Business?
Formerly required, this is no longer the case. All licensing authorities and registrars in the UAE, except for a few (such as the DMCC free zone and Abu Dhabi Department of Economic Development), eliminated the need for a capital deposit.
A Few Obstacles To Opening A Corporate Bank Account
From an entrepreneur’s perspective, opening a corporate bank account is challenging when setting up a company in the UAE. This got validation by the UAE Ministry of Economy and the Dubai Chamber of Commerce and Industry (Dubai Chamber), which conducted research.
Here are some of the essential challenges one might face:
- Having a physical office space in the UAE
- The minimum amount of capital required
- Severe regulatory and legal requirements include CFT (Combating the Financing of Terrorism) and AML (anti-money laundering).
- Proof of the financial condition of the founder.
- Rejection in case of lacking business plan information.