Dubai and the UAE in general provide an exciting business climate that attracts foreign investments from different parts of the world. Setting up a business here has never been easier, thanks to its stable governance and simple trade policies. The city is built on an admirable transport system and infrastructure, with robust laws and a tax-free system. All these factors make Dubai a certain choice for setting up a business.
Once the company formation process has been concluded, it is advised that business owners should look at the available options to open a corporate bank account in the UAE.
What are the Requirements to Open a Company Bank Account in the UAE?
Below are some of the main documents that are required to assist with Dubai and UAE company bank account opening. This includes and is not limited to:
- Trade License
- Certificate of Incorporation
- Company Memorandum and Articles of Association
- Board Resolution authorising a company officer to open the account (if applicable)
- Passport copies of shareholders and authorised signatories (if applicable)
The documentation requirements for each bank may vary depending on the business activities and the legal structure. Some other supporting documents include:
- Utility bills, lease agreement
- Company profile or website
- Six-month bank statement
- Agreements with current vendors or partners
- Buyers, Suppliers, Vendors, client details
- A short business plan
- Audited financials (if applicable)
- Shareholder UAE resident visa, Emirates ID (where applicable)
Challanges in Opening a Corporate Bank Account in Dubai and the UAE
The strict regulations and compliance requirements in the UAE have made it difficult for many businesses to open a corporate bank account. The requirements also differ from bank to bank, so it is beneficial to conduct research beforehand and apply the suitable available option. Some of the eligibility criteria to open a bank account in the UAE are as below:
- Strict Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations that ensure compliance with financial regulations and disregard involvement in illegal activities
- Constantly updating laws and regulations
- Meeting the bank requirements is important as each bank has its own internal policies and procedures
- High-risk activities might face further complexities and checks
- Nationality of the business owner or shareholder
- New businesses with no track record or have only a limited financial history
- Time-consuming process
- Physical presence is required
- Minimum initial deposit and balance requirements
Key Considerations for Foreigners When Opening a Coporate Bank Account in the UAE
Some specific considerations for foreign businesses planning to open a business and a corporate bank account include:
- Checking if your business structure is eligible for a corporate bank account is important, as not all company structures are accepted
- Certain business activities that are deemed high-risk might face stricter scrutiny
- Requirement to provide additional documentation like an apostilled certificate of incorporation, translated documents, etc.
- Requirement for shareholders to have valid UAE visas
- Some banks require a higher minimum balance for foreign companies
- Not all UAE banks offer comprehensive online banking functionalities for corporate accounts, particularly foreign-owned businesses
- Checking for the availability of different currency options offered by the various banks and the exchange rates and fees they offer
- Knowing the banking charges and fees, some charge transaction fees, monthly or annual account fees, ATM fees, or international transfer fees
Tips on Guaranteed Opening of a Corporate Bank Account in the UAE
Although all banks carry out their own procedural checks and have stringent laws, you must ensure that you are following the right path. Following are some ways you can reduce the hurdles on the way to opening a corporate bank account in the UAE:
- Ensure the documents requested for the application are correctly provided
- Select a bank that aligns with your business needs, industry, and financial goals
- Ensure that your UAE business complies with all UAE regulatory and licensing requirements, including having a valid trade license that permits the business activities
- Have a well-prepared business plan, as it is one of the crucial requirements to open a business bank account. It should contain a set financial plan and entail a clear vision and strategy for your business operations in the UAE
- Provide cash flow projections, audited financial statements, etc. that indicate the financial stability of your business
- Seek assistance from professionals who can make the process swift and smooth and guide you through the entire process
How can Gatestone Group Help?
While the intricacies of opening a corporate bank account in the UAE may feel overwhelming, the team at Gatestone Group is ready to help and ensure that you secure a corporate bank account for your UAE business. Our team of experts will assist you to navigate the compliance requirements, understand bank expectations, and ensure a smooth and successful account opening experience. Contact Gatestone Group today via email at [email protected] or call +971 4 450 1023 for a free consultation and to avail corporate banking services in the UAE.
Author: Nageen Abidi – Marketing Manager
