How to Open A Bank Account In The UAE?

The requirements for opening a corporate bank account in the UAE differ from bank to bank, although most banks demand the presence of a significant shareholder or director. The first step in opening a bank account is to fill out an account opening application, which must be accompanied by complete firm data. Proof of business, such as contact and invoice information, as well as information about the company’s clients and suppliers, might be included.

The steps To Open A Corporate Bank Account In The UAE Are:

• Obtain a Business License: –
  When you open a company, one of the essential steps is to get a valid license. Without a license, the bank will not recognize you as a corporation and you won’t be able to create a corporate bank account.
  
• Gather the Required Documents:-
  The next critical step is to double-check that all of your legal and business paperwork are up to date.
  
• Examine the Visa Requirements:-
  The next step in opening a business bank account is to find out if any of your company’s stockholders need a residency visa. Only a few banks need verification of this from at least one shareholder, while others do not. So there’s the question of whether your stakeholders have resident visas or not.
  
• Choose Bank:-
  Once you have all of your documentation in order, you may start looking for a bank that fulfils your requirements. There are various national and international banks to pick from, as noted above. When choosing a bank, keep the qualifying conditions and income in mind.
  
• Application Process:-
  It’s time to start the formal account-opening procedure. It is usually a good idea to go to a bank branch and speak with an advisor who can address any questions you may have. You can continue with the process once they tell you what to do.

Why Do You Need a Business Account?

Once the business is set up and operational in UAE, a business account will be required to send-receive money, manage business transactions, and make financial payments. A business account makes it very handy for firms to make their transactions, tracking the expenses, acquiring loans, etc. An entrepreneur must get a business account for the following reasons:

• Access Business Funds – A business account is required for not only accessing funds but also managing and tracking transactions.
  
• To Make Investments – An entrepreneur or a business owner will be required to make certain investments from time to time. A business account makes it very convenient, with facilities like standing instructions and reminders.
  
• Managing Expenses – A business account in UAE helps in tracking expenses and building strategies for future investments according to the present situation of the enterprise.
  
• Acquiring Business Loans – A business bank account can be helpful in getting business loans and a business credit card. Usually, the business bank account is opened in the name of the company, which helps in acquiring loans as it creates a genuine presence.
  
• Banking Services – A business bank account offers plenty of services that help in easy surveillance of the incoming and outgoing funds in the business account. It also reminds of the expenses to be made as per the business requirement.
  
• Accuracy in Maintaining Records – Business accounts in UAE are designed to handle almost all kinds of business transactions, making it easy to handle a large set of records. These benefits make it very reliable in paying taxes, salaries, etc. on time.

Features and Benefits of Business Banking Accounts in UAE.

Business accounts in the UAE offer an enticing set of features and benefits. Usually, these accounts may include savings accounts, merchant accounts, merchant services accounts and a dedicated credit card account. Following are some benefits and features that are offered by business accounts in UAE to entrepreneurs.

• Security and Protection – The business account provides protection on personal liability by keeping the personal funds and business funds separate. The services offered to the business account holders keep their data and transactions safe.
  
• Purchasing Power– A business account with its credit services makes it very easy to acquire bigger loans by constructing a decent business credit score, which, in turn, helps to make bigger initial purchases.
  
• Minimum Account Balance – Numerous banks in UAE offer nominal minimum account balance, while some banks have zero balance business accounts, making it easier for low budget businesses to flourish conveniently.
  
• Attractive Interest Rates – UAE banks offer a great deal on the rate of interest for new businesses through their business bank accounts, which makes it a source of additional benefit for the organization.
  
• International Transactions – Banks in UAE offer a platform to business owners for transferring foreign currency remittance at very nominal costs.
  
• Multiple Currency Accepted – Banks in UAE accept multiple currencies like USD, GBP, EUR, etc. apart from UAE Dirham, allowing foreign clients from all around the globe to open a business account.
  
• Cheque book Facility – Every bank in UAE offers a cheque book facility in the name of the business, thereby giving a parallel way for making easy payments of various purchases done.
  
• Online Access to the Funds – The business account holders can easily access the company’s fund while on the go with a user-friendly online banking portal. Business owners can manage their business bank accounts anywhere and anytime, thereby saving time and effort.

Documents Required to Open a Business Account in UAE.

Banks in UAE will require certain documents before opening a business bank account for entrepreneurs or any business. These documents may include identity, address proof, documents related to the business, and some additional documents. Following is the list of common documents required for opening a business account.

Identity and Residence Proof –

• Emirates ID of shareholder representative (Original and Copy)
• Valid passport of shareholder representative and company director (Original and Copy)
• Shareholder representative’s Residence Visa.

Business Related Documents-

• Sources of fund disclosure
• Business plan or blueprint
• Memorandum and articles of association
• Certificate of Incorporation
• Registry of shareholders
• Good standing certificate
• Company extract (through the official registry of the company)
• Existing contracts

Other Required Documents-

• Letter of reference through the business partners
• Information related to the kind of activities to be performed on the account

Eligibility Criteria for Opening a Business Account in the UAE
The business organization must meet specific qualifying conditions set forth by the bank in question. The following are some of these requirements:

Average minimum balance:-
The organization is obligated to keep a monthly average balance of a certain amount.

Savings account or checking account:-
To be eligible to open a business account, several banks need the business organization to have a savings or current account.

Types of Business Accounts in UAE

• Offshore Account
• Mainland Account
• Free Zone Account

Opening a bank account in the UAE is a very long but straightforward process if you follow all the procedures correctly. There are few challenges also for opening a bank account in UAE-

• Incomplete information
• Weak business plan.
• Minimum balance requirement.
• Physical office space issues
• the credibility of the founder

Therefore it is wise to take the help of a business bank account service provider in Dubai, UAE. The professionals will help you overcome all these challenges and help you smooth the bank account’s smooth opening.