How To Get A Corporate Bank Account For UAE Business?
Your to-do list is going to be never-ending when it comes to setting up a business in UAE. While having your business set up in Dubai, there are so many tasks that you need to complete. Setting up your corporate bank account in Dubai also falls deep within this list.
There is an array of reputable local and foreign financial institutions and banks that are operating in the UAE ranging from Abu Dhabi Commercial Bank, Emirates NBD, Abu Dhabi Islamic Bank (ADIB), RAK BANK, CBD commercial bank of Dubai, Mashreq bank, and HSBC, etc. All these institutes offer a wholesome package of services that can assist you in further climbing up your business ladder.
Why You Need a Corporate Bank Account for Your Business in UAE
Don’t make the mistake of using personal accounts if you are starting a business in the UAE. Open a proper corporate bank account to keep finances separate for liability protection and clean books. Mixing personal and business makes accounting messy.
- With corporate accounts, your personal assets stay shielded if there are ever legal issues. A corporate account also lends credibility with vendors and customers. It looks more professional compared to using a personal account for business needs.
- Choose a bank that offers digital platforms and loans tailored for UAE enterprises. Local banks often provide personalized service. While it may seem like an extra step, setting up a corporate account right away protects you and sets your new venture up for success. Don’t let this key formality fall through the cracks.
Bank Account Opening
Opening a bank account in the UAE can be a multi-step process with requirements that differ depending on your nationality and business activity. Hence, you need to pay a little extra consideration to all the documents and procedures that you are required to complete before you approach your choice of a banking institution for opening a corporate, company, or business bank account.
Set Up Your Corporate Bank Account In UAE in 5 Easy Steps
01. Get Your Business License Ready
This is the most crucial step in setting up your business because a bank will not acknowledge your business identity nor open an account without a business license. The license application procedure is also simple. All you need to do is to choose your business activity first, then finalize the name for your business, choose the right type of incorporation, and get all your relevant paperwork done.
Once you get this done to submit the documents your application process has been completed. Once you receive your license, you are all set to move ahead with applying for a corporate bank account. Business Setup Consultants can help you choose the right activity type for your business needs. You can contact us today for more information. Also, you can hire a PRO service in Dubai .
02. Get All Your Legal Documents Together
Once you get your business license ready, get all other important documents organized too. Document requirements vary from bank to bank, however, the documents that are generally required by all include a copy of your trading license, share certificates, article of memorandum and article of association of your company, passport copies of all your partners, and the resolution of the board of directors sanctioning the corporate account opening and also of all the account signatories. Some banks may also call for additional documents like business invoices and reference letters etc.
03. Make Sure You Have Met All Visa Requirements
As soon as you arrange all the legal documents, you need to ensure whether the shareholders of your company require a residency visa; as some banks ask for this. It is recommended to find at the earliest whether the banks in your list require a residency visa so that this does not delay your application at the last moment.
04. Choose The Bank That Most Suited Your Needs
When all your documents are in line, you are now all set to approach one of the many banks in UAE. However, it is important to choose the bank that best suits your needs. Eligibility, business cash flow, foreign trading, online or mobile deposit options, and Islamic banking are some of the options that you may consider while choosing a bank for opening your corporate account.
05. Complete Your Bank Application Process
When all your paperwork is done, you can now finally begin the formal process of opening a corporate bank account. Some of the banks in the UAE allow you to complete the process online, however, it is advisable to visit the nearest branch for gaining a better insight into the process. You can reserve an appointment with the bank representative to further understand the setup process.
This is the way you can complete the setup process for opening a bank account. Although there are a few steps, it is very important to fulfill each of them accurately. It is almost advisable to work with a business partner so that the process runs smoothly.
Do I Need to Open a Business Bank Account
Opening a dedicated business bank account keeps company finances separate from personal, establishes credibility with external parties, provides access to corporate facilities like business loans and payroll, enables smoother transactions and accounting, and meets compliance requirements – making a compelling case for most companies to operate with their own corporate accounts.
Open a Business Bank Account for Your Business
Choosing the Best Bank
When you want to open a business bank account in the UAE, you first need to choose a bank that meets your company’s needs. With over 50 banks in the country, you have many options to choose the best business bank account.
Important factors to consider when selecting a bank include location and proximity to your offices and operations, account opening and monthly fee and whether discounts are offered for new SMEs, digital services like mobile banking and online banking, customer service, and support teams dedicated to business clients, and recommendations from other entrepreneurs on their business banking experiences. Comparing these aspects across a few shortlisted banks can help identify the optimal one for your company.
Prepare the Required Documents
Banks have certain requirements that must be fulfilled to open a business account. These usually include presenting your valid business license to prove your company is legally registered in the UAE. Banks verify license validity with the Department of Economic Development (DED).
You’ll also need to submit valid passports, Emirates IDs, and proofs of address for business owners and account signatories. Some banks may also require residence visas. Minimum cash deposit or capital requirements to open an account range from AED 10,000 to over AED 150,000 depending on the specific bank. Having references such as contact details for previous bankers or business partners is another common requirement.
Application Process
The application process involves completing the account opening form with details on your expected transactions and business operations, submitting copies of licenses, IDs, proofs of address and capital, meeting with a bank representative to discuss account features suited to your needs, and awaiting approval.
Account approval can take 2-4 weeks as banks conduct due diligence procedures. Once approved, you will receive account numbers, cards and can activate by making the initial deposit.
Ongoing Account Use and Management
After opening the account, be sure to maintain any minimum balance requirements, request additional services as needed like complete payment solution, corporate or business credit card or online banking access for your team, assign clear user rights and transaction powers, and schedule quarterly reviews with your relationship manager to align financial goals and discuss new product needs.
Also promptly update the bank on any KYC changes in business address, business owner, or activities to avoid transaction freezes. Managing your account properly ensures a productive long-term partnership with your bank.
Company Bank Account Opening in UAE
Company bank account opening in UAE is a crucial step when establishing your business in the United Arab Emirates. Selecting the optimal bank that caters to your corporate needs is important.
Selecting the Right Bank
Take time to research and evaluate potential banks suitable for your company in the UAE. Meet with relationship managers from leading local and international banks such as Emirates NBD, Mashreq, HSBC, and ADCB. Discuss your business activities, average transaction volumes, credit needs, and growth plans.
Compare account features like digital platforms, payment solutions, accounting integrations, trade financing options, and payroll management. Opt for a bank that understands your sector and provides a range of corporate banking services aligned to your needs.
Preparing the Necessary Documents
The bank will require certain documents to complete the account opening process. The key ones include your business’s commercial license, memorandum and articles of association, and resolution forms indicating authorized signatories.
Additionally, copies of shareholders’ and directors’ Emirates IDs and passports are needed. If operating in a free zone, obtain the required registration forms and approvals from the free zone authority. Ensure all documents are notarized and carry the necessary attestation.
Submitting the Account Application
Applications can be submitted online or in person at the bank branch along with copies of the prepared documents. The bank will begin reviewing the company information and verifying the authenticity of the papers. Expect a turnaround time of 1-2 weeks on average. Follow up if you do not receive an update after 2 weeks.
In-person Verification Meeting
Once your application is approved, schedule an in-person verification meeting at the bank branch. Take original copies of documents for scrutiny. Signatures will be verified against your passport. Written instructions may be needed from shareholders if they will not be personally present. The branch will make copies of your Emirates IDs.
Activating Access and Usage
After successful verification, the corporate account will be activated. Platinum debit cards, personalized checks, and online login details will be provided. Set up access levels for authorized users. Take advantage of digital services, overdraft protections, corporate credit cards, and integrated business solutions that the bank offers.
Maintaining Compliance
Renew trade licenses and other documents as per their expiration dates. Notify the bank of any changes in shareholder information, ownership percentages, or management by submitting updated resolutions. Non-compliance can lead to account freezing or closure.
Get Help From the Expert
Our experienced business setup consultants streamline opening business accounts, corporate accounts, or company bank accounts in the UAE. We advise on selecting the right bank, ensuring all documents are prepared properly, leveraging strong bank relationships for smooth application processing, providing ongoing assistance after account opening, and making the process easy so you can focus on business growth. Give us a call or email us to schedule a meeting for Free Consultation!
Don’t forget to read about How to get a Professional License in Dubai.
FAQs
What documents are required to open a corporate bank account in the UAE?
Typically, you will need documents such as a valid passport, visa, Emirates ID, trade license, and proof of address. Additional documents may be required depending on the type of business entity.
Can a foreigner open a corporate bank account in the UAE?
Yes, foreign investors and non-residents can open corporate bank accounts in the UAE. However, specific requirements and documentation may vary based on the nationality and residency status of the account holder.
What types of corporate bank accounts are available for UAE businesses?
The UAE offers a range of corporate bank accounts, including current accounts, savings accounts, and fixed-term deposit accounts. Additionally, there are specialized accounts for specific industries or business needs.
Are there any minimum deposit requirements for opening a corporate bank account?
Minimum deposit requirements vary among banks in the UAE. Some banks may have specific minimum balance criteria, while others may offer accounts with no or low initial deposit requirements. It’s advisable to check with the chosen bank for their specific terms.
How long does it take to open a corporate bank account in the UAE?
The timeframe for opening a corporate bank account can vary depending on factors such as the completeness of documentation, the bank’s internal processes, and any additional due diligence required. In general, the process may take a few days to a few weeks.
Is it necessary for the business owner to be present in the UAE to open a corporate bank account?
While some banks may require the business owner’s physical presence during the account opening process, many banks offer remote account opening services. This allows for the initiation of the process without the need for the business owner to be physically present in the UAE.
What are the fees associated with maintaining a corporate bank account in the UAE?
Corporate bank accounts may have various fees, including monthly maintenance fees, transaction fees, and charges for additional services. It’s important to inquire about the fee structure and choose a bank that aligns with the business’s financial needs.
Can I open a multi-currency corporate bank account in the UAE?
Yes, many banks in the UAE offer multi-currency accounts, allowing businesses to transact in different currencies. This can be beneficial for companies engaged in international trade or dealing with clients and suppliers in various regions.
What are the security measures in place to protect corporate bank accounts in the UAE?
Banks in the UAE implement various security measures, including two-factor authentication, secure online banking platforms, and fraud detection systems, to safeguard corporate accounts. It’s essential for businesses to follow best practices in online security as well.
What happens if my business undergoes a change in ownership or structure?
In the event of a change in ownership or business structure, it’s crucial to inform the bank promptly. The bank will guide you through the necessary steps to update account information, provide new signatories, and ensure compliance with regulations.
