The United Arab Emirates always attracts entrepreneurs from all over the world. Thanks to its dynamic economy and large immigrant population, Dubai attracts more than most investors looking to start a business in Dubai. Dubai has a first-class transport network and a stable system of law and order. Also, Dubai is tax-free. All this makes this city the best choice for starting a new business in the UAE. If you plan to open a company in the United Arab Emirates or Dubai, you will need a company bank account.
Importance of Corporate Bank Account in UAE?
The first important reason for having a corporate bank account is your new business setup in UAE. The corporate bank account opening in UAE can be helpful for you in specific ways –
- To make investments
- To carry out trade
- to have access to funds
- to make transactions
If you run a business in the UAE region, then a corporate bank account is essential for your smooth functioning business process. It would help if you had it to make payments, receive payments, pay fees, trading, other operational purposes, and so on.
How To Open A Bank Account in UAE ?
Stability and security are the hallmarks of the banking industry in the UAE. Together with the best reliability and service, these characteristics have made banks in the UAE recognized worldwide. Like other trusted UAE business formation advisors, if you wish to conduct UAE business, you will get the information to open a company bank account in Dubai or the United Arab Emirates if you want to work business in the UAE.
Step 1
Incorporate a Company
The very first step for having a bank account in UAe is to set up your business first, and it also a small process-
- Choose a business activity. Make sure to finalize the business plan and what kind of business you want to operate in the UAE.
- Choose the correct location based on your business type, whether you want to open your business in UAE mainland or free zones or offshore. Depending on ten business activity select the location.
- Select the trade name and select the name according to the UAE norms because UAE is stringent for trade names. Do not use any prohibited word in your trade name. You can also select 2,3 titles in advance just in case your first suggestion doesn’t get approval.
- Finalize and submit the company documents to the relevant authority that will issue the company license for you. Don’t forget or miss any documents; otherwise, your application will be rejected or delayed.
Step 2
Get a Trade License
For opening a business bank account in UAE, it is essential to have a trade or business license first. It is also the first step for company formation in UAE. Issue a valid trade license after your register your company in UAE. If you don’t have a valid trade license, no bank will accept and approve your bank account opening application. Submit all the necessary documents and issue your trade license quickly without delay.
Step3
Document and Application Submission
After your successful issuance of a trade or business license, submit the essential documents mentioned in the application. The records act as evidence of your business. The documents list varies from one bank to another, but some forms are common for every bank.
- Trade License
- Lease Agreement
- Certificate of Registration
- Passport copies of shareholders
- Company MOAand AOA
- Copy of Emirates ID
You also need to share some other information and all these documents like the supplier’s name, shareholders’ bank statement, etc.
Step 4
Select the Right Bank
Don’t just choose any bank randomly, instead learn about the bank’s requirements, eligibility criteria, and benefits you have from the opening account in that particular bank. Then choose wisely the banks. There are many banks available in UAE. Most of the UAE banks will ask you for a residency visa and a local address. the next important thing you should consider is the minimum balance one should have in the account and how much you can promise. The minimum balance varies from one bank to another, but it ranges from AED 20000 to AED 500000.
The most common banks that many new businesses set up their account for are Emirates NBD, Emirates Islamic Bank, Mashreq Bank, RAKBANK, Noor Bank, Ajman Bank, Abu Dhabi Bank, etc. Note one thing that not every bank will accept applications os a new company in the UAE. Taking into consideration all these points, choose a bank.
Step 5
Application Process
After you have collected all the essential documents for opening a bank account and shared them with the bank, submit the application form. You go to a bank branch where you want to open an account and then offer them all and make your signature on the account opening forms. Some banks ask for an appointment prior, so make a call in the bank before visiting.
The meeting may be for at least an hour because they will ask you various queries, and also, they will verify every document you have submitted. Also, make sure to carry the original documents along with the copies. The bank representative may also visit your office or home to verify the address and other documents information you have shared with them.
The bank will review your application internally via various departments. The compliance department will speak back to you and ask you for additional documents or information, depending upon the review they receive.
Additional documents may include the invoices, business plans, clarifications, reference letters, and contracts with suppliers and clients. The bank account opening will take at least 7-20 days.
Get Your Bank Account
After all the processes and documents work complete, you will have a bank account in UAE. Now you can do all your transactions in a hassle-free manner.
Conclusion-
Opening a bank account in 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 setup consultant in Dubai, UAE. The professionals will help you overcome all these challenges and help you smooth the bank account’s smooth opening.