Establishing a company in the United Arab Emirates may involve some measures that some individuals may find unsettling. A bank account opening in UAE for the business is one of these crucial actions. With a corporate bank account, the corporation may be able to conduct commercial activities.
Depending on the kind of business and the characteristics of the firm and its investors, opening a corporate bank account in the United Arab Emirates may be a complicated process. Some people may find the procedure exhausting, and it may need several document and information exchange rounds between you and the bank’s compliance department. To provide the bank with the necessary documentation and information, considerable thought and compilation are needed. Almost all new company shareholders are uneasy in this area and may need some direction.
The four essential stages to creating a business bank account in the United Arab Emirates are outlined below to make things simpler for you:
1. Become a company.
The first essential step in obtaining a business bank account is incorporating a legal organization. A corporation must be completely formed and have a business license granted by the appropriate government agency to create a corporate bank account. The following steps may be included in the company creation process, depending on the kind of legal organization being incorporated:
- Select the company type and jurisdiction:
Decide whether to establish an offshore, free zone or mainland business in the United Arab Emirates. Once a decision has been made, choose the appropriate Emirate for a mainland firm, the appropriate free zone for an offshore company, or the appropriate corporate register.
- Select a name for your business:
If the appropriate authorities reject the first choice name, have at least two or three backup business names ready, arranged in order of importance.
- Select your line of work:
The activity you choose should align with the real business activity you will do and should come from the options provided by the appropriate government agency.
- Complete and submit company documentation:
Prepare all the paperwork and send it to the appropriate agency so your business license may be issued.
- License issuance:
Get a business license from the appropriate government agency.
2. Be Aware of the Standards and Choose Your Bank
After obtaining your new business license, you must choose a bank from among the several that provide corporate account-establishing services in the United Arab Emirates.
- Banks in the United Arab Emirates
For your business bank account application, you may choose among the 50 local and foreign banks available in the United Arab Emirates. The banks that new businesses most often open corporate bank accounts with include First Abu Dhabi Bank, Ajman Bank, Emirates NBD, RAKBANK, Mashreq Bank, Noor Bank, and Emirates NBD. It is unlikely that all banks would accept applications from newly established companies in the United Arab Emirates.
In general, mainland businesses that are incorporated in the United Arab Emirates may be able to establish an account with almost any bank.
Depending on where the free zone is located, banks have different policies regarding businesses operating inside it. Usually, these organizations submit applications to banks.
Banks like Mashreq Bank, RAKBANK, Noor Bank, Emirates Islamic Bank, and Ajman Bank often provide bank accounts for offshore businesses.
- Requirements for UAE residency, address, and personal attendance
It is important to remember that most UAE banks demand that shareholders have a local address and a valid visa for residency in the UAE. It is mandatory for these shareholders to meet with the bank to sign the application documents personally. These conditions are mostly satisfied by the shareholders of mainland and free zone businesses. If meeting these conditions isn’t feasible, some banks could provide exemptions based on a case-by-case analysis.
- Minimum Requirements for Balance
The UAE’s banks mandate that corporate accounts maintain a minimum balance continuously. The minimum balance requirements range from AED 20,000 to AED 500,000, varying from bank to bank.
If you fulfil the conditions above, you can choose the best bank.
3. Get Your Files Ready
After deciding on a bank, you must get the list of papers that they want. While certain banks may have different paperwork needs, all banks in the United Arab Emirates generally request the following broad list of papers and information:
Form for starting a bank account
A duplicate of the business license
A duplicate of the company’s certificate of incorporation, if relevant
Copies of the relevant share certificates
A copy of the articles of organization and memorandum of the firm, as well as an office lease or tenancy agreement (the precise name of the document may differ depending on the jurisdiction)
The company’s profile
An individual shareholder’s profile
Individual six-month bank statements for the shareholder(s)
Copies of the shareholder’s passport and Emirates ID
The names of three customers and three suppliers
4. Procedure
After obtaining the necessary documentation from the appropriate bank, you may submit your application to establish an account. You must go to the appropriate branch to submit your application and sign the necessary account opening paperwork. It could be a good idea to phone the bank beforehand to schedule an appointment. Depending on how many papers you may need to bring for verification and how many questions the bank representative has, the visit might take up to an hour. You must provide the original copies of every document the bank requests.
Depending on your current connection with the bank, the appropriate relationship manager may be willing to come to your business or residence to pick up the application and sign the necessary paperwork.
The application is then examined internally by several of the bank’s divisions, chief among them being the compliance department. After reviewing your application, the compliance department could get back to you with further proof or details. The supplementary materials/data may include executed agreements with vendors and customers, bills, explanations of matters, the company’s business strategy, and testimonials.
Establishing a bank account with the assistance from trusted bank account opening services might take five to twenty working days, depending on what further paperwork and information the bank may need.
Conclusion:
Establishing a corporate bank account is crucial in starting a business in the United Arab Emirates. Even though the process is straightforward, to complete the paperwork and create a bank account, you will need support from a reputable company setup agency in the United Arab Emirates. People usually need clarification about the procedure, which leaves them in a difficult position.
