UAE offers a great business environment. UAE has a stable governance and easy policies for trade. Furthermore, the geographical location of UAE makes global connectivity easy via water, air and land. Due to these reasons, the UAE has always attracted traders from all over the world. Dubai always attracted a large number of investors due to its sparkling economy and large expat population. The current market trends of Dubai have opened a huge number of opportunities for foreign investors. The most attractive factor of UAE is, it is Tax Free. Due to all these factors more and more investors are attracted to UAE, to open their dream business in UAE. Dubai has one of the best transport networking systems and a strong law and order system followed. Nevertheless, every upcoming business requires a strong foundation for its cash flow and balance. You should also select a location to open your business which is convenient, stable and cost effective. Without having reliable banking support, growing a business would be a bit tough. To avoid these issues, banks in UAE offer a great deal on business banking, which in turn makes it favorable for the entrepreneurs. A corporate bank account is essential to open a business in the UAE. It is recommended to research the profit rates, benefits bank offers, charges on the banking services, etc., before opening a business bank account.
How to start a business bank account in the UAE for entrepreneurs?
The main advantage in having a business account in Dubai mainland business setup is its stability and security provided on your data and transactions. Business accounts with credit services help entrepreneurs to obtain large loans in turn helping large initial purchases. For new business holders UAE banks provide a good deal in the interest rate. Some of the criteria used in opening a business bank in UAE are:
- Business bank accounts can be opened either online, phone call or offline. Application form has to be filled and submitted along with necessary documents.
- A business license is required
- Documents include: Emirates ID copy, residence visa copy, all shareholder’s passport copies, 6months bank statement.
- Business related documents include: source of fund disclosure, business plan, memorandum and articles of association, Certificate of registration, certificate of incorporation, utility bill of shareholders showing address proof, good conduct certificate, Company Trade License, Lease Agreement.
- While choosing a corporate bank account, keep in mind the minimum balance you should maintain always.
It is viewed, opening a business account in the UAE is one of the most critical tasks. It can take almost three months to complete all the procedures and to open a business bank account. Especially companies in the Dubai free zone, find a major issue in opening a corporate bank account due to the lack of office space or compliance. Due to these stringent regulations of UAE authorities, opening a bank account is difficult and takes longer than expected.
Eligibility criteria to start a corporate bank account in the UAE
There are a few criteria involved in determining whether a business is eligible to create a corporate bank account.
1. Minimum deposit – Before creating a corporate bank account, you will have to deposit a certain amount of money as an initial deposit. This is done to show banks that your business has the adequate amount of funds needed to start and run operations smoothly. Each bank has different requirements regarding the amount to be deposited and can even vary depending on whether your company is a mainland business, or one set up in a free zone business. SPC Free Zone provides assistance with setting up corporate bank accounts, along with a zero paid up capital policy.
2. Minimum average balance – In order to maintain a corporate bank account, you will need to show consistent bank balances to banks. The average balance is generally determined by the bank you are working with.
3. Know your customer (KYC) – You must provide your bank an accurate profile of your existing and potential customers and clients. This aids the bank in understanding your business better and can result in your application process for various bank services to be streamlined onto a fast track.
Process of starting a corporate bank account.
The process of opening a business bank account can be done online as well as in person at the bank. For both, you’ll be required to follow the same procedure and submit the following basic documents:
A. Company trade license
B. Memorandum of Association.
C. Passport, visa, and Emirates ID of all partners
D. Office tenancy or Ejari contract (for a physical office)
These are the most basic documents that you will be mandated to submit along with your application. The requirements may slightly vary depending on whether your business is in a free zone, is a foreign entity, or an offshore entity.
Importance of a Business Bank Account
Having a business bank account is crucial to running a business for a multitude of reasons. It boosts your business’ overall accessibility to funds and helps the business create and maintain a system where transactions can be tracked effectively. Moreover, a growing business may require long term investments for which a substantial amount of money may be needed.. Acquiring this money through means of a loan is impossible without creating and maintaining a corporate bank account.
Finally, bank accounts come with a multitude of services like checkbooks, international transaction availability, and added purchasing power that can aid your business in its management of finances.
Starting a corporate bank account can be intimidating, especially if you are new to the field of business. Our experts can help you! Our consultants can break down what your business needs to do to start a corporate bank account with ease. Contact us to start your corporate bank account today!
