How to Open a Business Bank Account in the UAE
If you are reading this article, you may be someone who is longing for a more secure place to keep your money, and where to make your privacy well respected. By opening a corporate account in UAE, your ambitions are achievable. First and foremost, why should you choose UAE?
The United Arab Emirates is well known for its famous banking industry and the high level of privacy the banks provide their Customers. The remarkable growth of private companies, transparent public policies and 0% corporate tax rate has shaped the economic landscape of the UAE. More to this is an efficient banking system that provides conducive conditions for companies to operate so as to enhance their economic growth in the country.
Another key reason behind the huge demand for UAE bank account opening services is the high level of privacy. This secrecy is one of the utmost reasons for the success of the UAE banking industry which is reliable and secured for your funds. As Investor, considering this fact, you can be well assured that your privacy will be totally respected.
Allow us to provide you a few information you must consider before applying for corporate account opening in the UAE.
Facts to Consider Before Applying For a UAE Corporate Bank Account
- One key reason for the huge demand for UAE banks is the high level of privacy. This secrecy is one of the main factors that contributes to the success of the UAE banking industry, which makes it efficient and secured for your funds. As an investor considering this fact, you can be sure that your privacy will be totally respected. You should note that in recent years, several agreements have been signed between UAE and other countries in an attempt to crack down on tax evasion. These agreements mean that, while fiercely protecting privacy, there are some circumstances under which banks must cooperate with foreign authorities.
- If you have any type of the UAE Company (LLC, Free Zone or Offshore) or a registered branch or subsidiary company in the UAE, you can always apply for local banks for corporate account opening. Moreover, you can apply for international banks, such as HSBC, Standard Chartered Bank, Citibank, however, when it comes to flexibility for SME and startup companies, a local bank account is more preferable.
- So when you have made up your mind to which bank to apply, the next what might bother you is whether your presence is required to submit the application? As we mentioned above, if you have startup or SME Company registered in UAE, the local banks are more recommended and suitable for you. To be more specific, your presense as the bank signatory is required just for a day or for 1 to 5 hours for submitting the application and verifying the passport at the presence of the banker.
- In terms of documentation, you are to consider the business activities, number of shareholders, the business background of the management and business plan for the new entity in the UAE.
List of Documents Required For Bank Account Opening in UAE
Given our extensive experience, we’ll provide you the basic list of the required documents required to apply for account opening by yourself. Note that this can differ based on each client scope of business activity and requirements of the bank.
- Comprehensive CV: This must include your professional and business experience for the past 5-7 years. And make sure that the business activity of the company for which you want to get a corporate bank account matches with your personal professional experience in a certain industry.
- Utility Bill, as proof of address (issued on the last 3 months);
- The company’s corporate documents
- Personal Bank Statement for each shareholder for the past 6 months
- Corporate Bank Statement for the past 6 months for existing company of the shareholder (if applicable);
- Corporate Document that indicates proof of ownership for your existing company, for which the statement is provided. It can be Certificate of Incumbency or any other document, issued within the last 6 months from the Authority.
- Business Plan, which should include all information with regards to business activity of the company, financial plan, brief business development plan, potential clients, suppliers (for a trading company) and partners, the background of the management team.
Further to previous comments, the list of the required documents can be different considering each profile. We suggest you provide the exact and full documents which consist of all the information. When you follow these guidelines and specifications, you should have your UAE bank account running within a month. Once again, to avoid delay, ensure that your documents are well prepared and filed before submitting. We need to lay emphasis on this because we’d experienced some clients who had to wait for several months just because they have tried to open the bank account themselves and it took them many months to get it done. When we’re mentioning several months – we mean 3 to 7 months, and you understand well how crucial time is for any business. The reason for the delay was only one – they failed to prepare and submit the correct list of documentation or have chosen the bank which is not entertaining your business activity.
How Much Will It Cost You to Open a Bank Account
As the investor, who is planning to open a corporate account, you might ask what is the fees for setting up a corporate bank account? The good news is that UAE local banks do not charge any fees for bank account opening just like most of the banks in other countries. All the local banks are required to maintain the minimum monthly average balance and each bank has several categories of the minimum monthly average balance.
For local UAE banks, this balance starts from 50k AED to 500K AED, this depends on which bank you will apply to. For instance, for Emirates NBD, it starts from 50,000 AED. If you are not maintaining the minimum monthly average balance, the penalty applicable starts from 250 AED per month
We’ll also mention that if you open the corporate bank account in any local bank with a specific minimum maintaining balance, we would recommend always to maintain this balance. Because from the beginning, you need to maintain a good relationship with your bank.
You should also know that all banks have very good online banking facilities – one of the best in the world.
You may find more information on various UAE banks in my next blog. When you make up your choice on UAE bank which matches your requirements call us for assistance. Our professional fees start from USD 2,000.