All You Need To Know About Bank Account Opening In UAE
Dubai is one of the biggest international trade markets. It is also the Head office to most of the large organizations in the region, which enables it to fall in the category of leading financial centers in the world.
One of UAE’s most accomplished achievements, continuous progress, stems from the rapid growth in all sectors. It makes UAE a very lucrative option for banking. The currency is pegged to Dollar. For outside investors, setting up a company in Dubai is easy. It also has a strong and secure banking structure in place.
All companies that have legal entities in the UAE are eligible for bank accounts, be it Mainland, free zone, or offshore. Statistically speaking, there are about 23 locally incorporated banks and 28 branches of foreign banks. Banking is regulated by the central bank of the UAE.
Opening a corporate bank account is a structured process. Based on the business activity, the documents required may vary from bank to bank. Most of these requirements are around the Central Bank policies, which govern the compliance system. To curb down tax evaders and money laundering activities Central bank has modified the diligence process for banking institutions for opening new bank accounts.
A new approach adopted by the banking system is putting business and the activities-taken in different risk categories. It helps them identify and learn the nature of their business, including expected turnover, inflow, and outflow of the funds.
However, there are a few things one must consider before applying for a new bank account. For example, based on the type of company infrastructure, whether it is an LLC, a subsidiary, or a branch, the applicant has the choice to open a local or international bank account. Nevertheless, based on previous data, startups and small or medium enterprises should open an account in the local banks. It is a much preferable option and affords the applicant’s business an amount of flexibility.
Apart from that, the applicant also needs to consider factors such as the number of shareholders, business activities, business background, and a solid business plan for their new business setup.
How Much Does Opening A Corporate Bank Account Cost?
Let’s talk about how much one has to spend on opening a new bank account. The answer to this question depends, primarily, on whether or not the applicant has hired a consultant to help them with the process. Any charge the applicant has to pay is the fee that the consultant agency will charge them for services procured. Apart from that, none of the UAE local banks charge their customers for opening a new account.
While the account opening might be free of cost, there’s still the need to maintain a minimum balance at all times. For a strong relationship with their bank, one must always maintain the minimum balance.
Furthermore, the applicant will be required to prepare all the documents necessary for opening a bank account. We have listed all the required documents below:
Documents Required For Opening A Bank Account
- Company Documents (MoA, Trade License, etc.)
- Passport copy of shareholders/ Owners
- Residence visa Copy
- Last 6 months’ bank statement of the shareholders / Proof of Funds
- Customary KYC questions
- Details Of 3 suppliers & 3 Customers
- Annual turnover
- Company & Shareholder Profile
- Presence of shareholder required with original passport
- Company Stamp
While these documents are mandatory, the banks may require additional documents. The applicant will be informed about the necessary documents. In few cases, the applicant needs to provide more information about certain documents such as invoices, contracts, or transactions. In such cases, the applicant can get help from a reputed consulting agency that can offer assistance with opening a corporate bank account.
Services Offered By The Bank
The majority of banks in the UAE offer their clients the following services. But some of the services may vary based on the applicant’s choice of bank.
- Multiple Currency.
- Easy transfer of funds
- Non-restrictive banking options
- Dedicated relationship manager
- Phone and online banking
- ATM Services
- Credit and Debit Card
- Cheque Book
- Facility of Credit
Advantages Of Owning A Corporate Bank Account In The UAE
- Personal Information is secured and confined
- Easy flow of funds
- Safe and secure Digital banking system
- Easy access to other International banks
- Multiple Currency accounts linked together.
- On the go banking options available