Are you setting up a new company and wondering how to open business bank account in UAE? You are in the right place. Dubai’s banking industry is known for its reliability and outstanding services worldwide. Although, opening a bank account is not easy if you are a foreign investor starting a new business in the UAE. But, to meet the criteria of regulatory authorities and successfully open your bank account, you should work with a local expert in the UAE.
There are different bank accounts with different eligibility criteria, products, services, and packages. When selecting a bank, it is important to understand the needs of today’s dynamic industry and choose the right package for your business. Let us look at the process of opening a business bank account in Dubai in detail.
Why is it Necessary to Open Business Bank Account in UAE?
You need a corporate bank account for the following reasons,
- To access your business funds
- To make investments
- To do trade
- To make and receive payments from suppliers and buyers
In short, after your business is set up and running, you’ll need a business bank account to make and receive payments, conduct trade, pay fees, and perform other financial business operations. If you do not have a bank account, dealing with your local and international customers will become problematic. To remain on track, you must work with an expert and select an appropriate bank account as early as possible.
How to Open Business Bank Account in UAE? – Step by Step
Remembering the following steps for opening a business bank account in Dubai is essential.
Select the Right Bank
The first and most crucial step in setting up your business is selecting the correct bank account according to your company’s requirements. Find the eligibility requirements of different banks to find the most appropriate for you. Some banks may be required to maintain a minimum bank balance. At the same time, some banks require a residence visa and a local address. With the help of business consultants, this process can be completed smoothly.
Get your Trade License
After registering your business, you need to get a trade license in Dubai. A trade license is a must for opening a bank account in any bank in the UAE. Business consultants can also help you get this done quickly.
Submit Required Documents
You must prepare certain documents to open a business bank account in Dubai. The document requirements can be different for each bank, but the most common are,
- Photocopy of Emirate ID
- Trade license for your company
- Passport photocopies of shareholders and authorized representatives
- Registration certificate
- Rental agreement
- Articles & memorandum of association of your company
Benefits of Opening a Business Bank Account in Dubai
A business account can make it easier to pay/receive money, make financial payments and manage your overall business. Below are the benefits of opening your corporate bank account in the UAE.
- Having a corporate bank account allows you to access your finances and also helps you keep track of your business transactions.
- A business owner needs to occasionally make certain investments, which can be quickly done if you have a business bank account.
- With the help of your bank account, you’ll be able to get business loans and business credit cards.
- The UAE banking system is designed to handle all types of financial transactions and makes it easy to handle massive amounts of data. These systems help with tax payments, wages and other bills on time.
Advantages of Corporate Banking System in the UAE
Here are some features the UAE banking system provides to corporate entities.
- Business account holder’s accounts provide security and safety to your data and transactions.
- If you have a corporate bank account with credit services, it will be easy to get large loans to build a good business score, which allows for larger initial purchases.
- Some corporate bank accounts have no minimum balance requirement, making it easy for small businesses to thrive.
- For international transactions in foreign currencies, the UAE provides a platform to send money at a low cost.
- The banks in Dubai accept different currencies, making it easier for foreigners to make transactions easily.
- The banks also provide cheque books for your business payments, making it easier to make payments when needed.
- There are also online/mobile banking services, which make it easier for business owners to make payments, manage their accounts on the go.
Challenges of Opening a Business Bank Account in Dubai
According to a Dubai Chamber survey, most entrepreneurs find it hard and challenging to open a bank account in Dubai. It takes about three months to open a corporate bank account, making it difficult for companies to start their operations. The most common challenges are,
- Strict compliance and regulatory requirements include Anti Money Laundering and Combating the Financing of Terrorism.
- Proving the founder’s credibility
- Issues with office spaces
- Insufficient information or a weak business plan
- Requirement to maintain a minimum balance
Additionally, if you have a free zone company without an office space, you will find it difficult to open a corporate bank account in Dubai.
The authorities have set these regulations to avoid any kind of financial misconduct, but it makes the whole process challenging for entrepreneurs to open their corporate bank accounts in the UAE. That is why it is important to work with business consultants in the UAE, as they can help you simplify the process.
How to Open Business Account in Emirates Islamic Bank?
The Emirati business account can only be opened for a business with at least one UAE national signer. It can be opened in one day, and you can select the right package according to your needs, including Gold, Platinum, Premium, E-trader, and digital account. All of the packages mentioned have their benefits and attributes.
Benefits of an Emirate Business Bank Account
The benefits of opening an Emirati business account are,
- Quick and easy account opening
- A business debit card which gives you access to more than 30 million traders across the globe.
- They provide a dedicated services manager to assist you with banking services.
- Easy access to mobile and online banking.
- Easy access to banking call centres.
Required Documents for an Emirates Islamic Bank Account
You’ll need the following documents for your Emirates business account,
- Company profile
- Emirates ID, valid passport and residence visa of all owners
- Trade license
- Business registration
- Shareholders documents or articles of association
- Certificate from chamber of commerce
Note. The documents submitted must be verified.
How to Apply?
To speak to an assistant manager, you can call +971 4 36 0080 or visit any Emirates Islamic Bank branch.
Summary
In the end we hope you have understood how to open bank account in UAE and its purpose and requirements. Without a corporate bank account, you can not grow your business in the UAE. Additionally, selecting the right bank for your company is essential as it will help your business grow.
Contact our expert team at Al-Riyady to learn about the complicated process of opening a bank account in the UAE. We understand our client’s specific needs and intent and help them select the correct bank account for their business, submit the necessary documents, and meet the eligibility criteria. Our Experienced team can also help you get a UAE Golden Visa, get your business license, and more.
