Because of its thriving economy and favorable business climate, the UAE has always drawn a huge number of investors and entrepreneurs from throughout the world. If you intend to start a business in the UAE, you must create a corporate bank account.
UAE banks are well-equipped with secure banking systems that use cutting-edge technology. They provide a high level of anonymity for international foreign investors when forming a company in the UAE. The following is a comprehensive guide on creating a corporate bank account in the UAE.
Opening a Corporate Bank Account in the UAE
1. Obtain a Business License: Without a business license, the bank will not recognise you as a business and you will be unable to create a corporate bank account in the UAE.
2. Submit Required Documents: Ensure that all legal and corporate papers, as well as the completed application form, are submitted.
3. Determine Visa Requirements: Your stockholders may need a residence visa as well. While some banks need a residency visa from at least one shareholder as proof of residency, others may not.
4. Select the Right Bank: Once you have all of the essential paperwork, you must select a national or international bank that best meets your needs. When selecting a bank, you should also examine the qualifying conditions and your income.
5. Complete the Application Process: Send all required papers, together with a properly completed application form, to bank authorities. Following that, the bank will validate every detail and collect background information. After that, the company bank account will be opened.
Considerations Before Opening a Corporate Bank Account in the UAE:
- If you have an LLC on the Mainland or a Free Zone, or even a branch office or subsidiary in the UAE, you can register for a corporate bank account.
- Your presence as a bank signatory is essential to check the passport and submit the application for SME or start-up.
- You must evaluate the company activity and background, the number of shareholders, and the business strategy for the new corporation in the UAE for paperwork reasons.
- When applying for a corporate bank account in the UAE, you must demonstrate your legitimacy as an entrepreneur. You must demonstrate that you have extensive expertise of the sector in which you intend to launch your firm and that you require a bank account. Before creating a corporate bank account, ensure that the company's commercial activity matches your personal technical knowledge.
- If you are a resident requesting for a corporate bank account in the UAE, you must have a residency visa in addition to a local address in the UAE.
- UAE banks also require that residents have a real office space. Some banks may send an Inspection Officer to confirm the physical existence of the office at the address specified in the submitted documentation.
- An investor should always be prepared to give comprehensive facts and economic substance about his firm to banks. Incomplete information may make it difficult to register a corporate bank account in the UAE.
- If you are from a high-risk countries or want to conduct business in such locations, acquiring a UAE corporate account may be difficult.
- Most banks need a minimum balance of AED 25,000 to AED 50,000, depending on the bank with which you create an account. The minimum amount necessary to open a bank account in the UAE is AED 5,000.
- Investors in the UAE can open multi-currency bank accounts in a range of currencies, including AED, USD, Euro, GBP, CHF, and others.
Because each bank has its own internal process and timeframe, there is no set time restriction for creating a business bank account. Opening a bank account in the UAE for an LLC or a Free Zone firm typically takes 2 to 4 weeks.
As an investor, you may wonder if there are any costs associated with opening a business bank account in the UAE. The good news is that there are no costs associated with opening a bank account in the UAE. All local banks, however, demand that you maintain the minimum monthly average balance set for each category. If you do not maintain the required monthly average balance, the penalty begins at 250 AED each month.
We recognize how challenging it might be for overseas investors to open a business bank account in the UAE. As a result, we provide unique solutions for each customer depending on their business needs.
We can help you to create a corporate bank account. Do not hesitate to contact us if you need further information on our Contact page.