Dubai, the heart of the Gulf, has been a businessperson’s delight. People from all over the world look forward to starting their business in Dubai. Thanks to the highly cooperative government and their flexible rules and regulations, establishing business in Dubai is easy and fast.
The fundamental licensing and trading rules are well set to suit any kind of business. The processes are established for different types of companies – be it free zone, mainland or offshore.
Dubai has a well-set banking industry that aims towards extensive economic development of the nation. Banks are modernized and continuously leveraging the latest technologies like AI, ML, Blockchain etc.
For any businessperson, it is imperative to open a corporate bank account for opening a business unit in Dubai. The process is quite comfortable, but it is apt to have a look at the different facets of the same, prior to opening the account.
This article showcases the process of opening a corporate bank account in Dubai, its advantages, challenges, list of documents and approximate costing.
Keep The Following in Mind Prior to Opening a Corporate Account in Dubai
- You can apply for corporate bank account if you have an LLC, branch office or subsidiary in free zone or mainland
- If you are a small enterprise of startup, you may be needed for a day or so, while the passport is verified
- You can apply for local banks as well as international banks. Local banks are preferred for flexible operations and starting businesses
- Your organization’s license details will influence your bank account opening
The Process of Opening a Corporate Bank Account in Dubai
Here are the detailed steps that must be followed while opening the account
- Firstly, obtain your business license without which banks will not consider your business official and hence you will not be able open an account
- Keep all legal and corporate documents handy to submit to the bank. These documents could be detailed business plan, Emirates ID, MoA, application form etc.
- All identification documents must be properly notarized and attested by the home country. These documents must be submitted to UAE’s Ministry of Foreign Affairs (MOFA).
- Your shareholders must have a valid residence visa since banks may need the same
- Select an appropriate bank from the list of local and international banks that suit your needs and fit your criteria
- Once bank is decided, get detailed advice from the bank authorities on how to proceed further
- Fill in the application form with all details and supporting documents
- Once the bank has verified all details and approved, it may run a background check on the shareholders and directors
- Once verified, the bank may interview the applicant and if found ok, the corporate bank account will be opened.
Challenges That Come Along the Way
As simple as it looks and as easy as Dubai makes it, there could still be certain hurdles that may come along the way. It is better to be wary of them from the start, and hence here is a peep into some challenges:
- Following strict regulatory norms of the government for fighting against money laundering and terrorism activities
- Providing a thorough knowledge of your business domain prior to account opening
- The mandate of having a physical office space since banks may send some officer for inspection
- Maintaining a minimal balance of approximately AED 25,000 to AED 50,000 based on the chosen bank
- Choosing a high-risk area as your business space
List of Documents Needed for Opening the Corporate Bank Account in Dubai
Here is the list of documents that must be kept ready while opening the account. This list could change based on the bank chosen, since there could be addition/updating of documents.
- Trading license
- Company registration certificate and other incorporation documents
- Emirates ID and shareholder’s resume and information
- Passport copies of shareholders and business owners
- Company’s authorized declaration for opening bank account
- Approximate turnover statement
- List of buyers, sellers, clients, suppliers
- Latest utility bills
- Detailed business plan
- Last 6 months bank statement
- Details about sources of fund
- Memorandum and articles
Key Advantages of Having a Corporate Account in Dubai
People often wonder why a need of a corporate bank account in Dubai is there, when there are so many international banks operating all over the world. Here are the basic advantages that attract a businessperson towards opening a corporate account in Dubai:
- Complete privacy to foreign businesspersons
- Transaction in multiple currencies
- Transparency in tax calculations and payments
- High level security and easy access to transactions
- Phone banking facility and latest technological advancements
- Easy and flexible currency exchange
- Obtaining credit card and business loan facility
- Credit facility
- Easy monitoring of cash flows and transactions
- Taking services from international banks
- Easy transfer of accounts if needed
- Resolute support from the bank
Approximate Costing of Opening a Corporate Bank Account in Dubai
As a new businessperson in Dubai, you may wonder about the charges involved in opening the corporate bank account. Usually, Dubai local banks are quite nominal as far as their charges are concerned.
They don’t charge much for opening a bank account. But yes, they do demand a minimal balance in the accounts that range from 50K AED to 500K AED depending upon the bank you choose.
If the minimal balance is not maintained, you could be charged with a penalty of approximately 250 AED a month.
Summing It Up
Opening a corporate bank account in Dubai is an easy process but what if the bank denies it due to some lack of documents or inappropriate application form etc. Why would you waste your time and energy into all the formalities, when we @ Horizon Biz Consultancy can take complete care of it.
We offer comprehensive solutions for all our clients in Dubai and UAE that pertains to company formation, finance, taxation, and accounting, opening of bank accounts, setting up your business.
We have been offering our services to businesses – big and small. Our extensive experience can assist you in any kind of requirement that you have. Contact us and let us be of help to you!
