The United Arab Emirates has always attracted entrepreneurs from all over the world. Owing to its vibrant economy and large expat population, Dubai attracts more than a fair share of investors who are keen on setting up a business in Dubai. Dubai boasts of a top-notch transport network and a robust law and order system. On top of all this, Dubai is tax-free. All of this makes the city the prime choice to set up a new business in UAE. If you plan to set up your business in UAE or Dubai, you will need a corporate bank account.
How to open a bank account in UAE?
Stability and security are the hallmarks of the banking industry in UAE. Along with reliability and excellent services, these qualities are what make UAE banks respected worldwide. As any reliable business setup consultants in UAE will tell you, if you want to run a business in UAE, you have to open a corporate bank account in Dubai or the UAE.
Why do I need a corporate bank account in UAE?
You need a corporate bank account in UAE to
- To access funds
- To make investments
- To carry out trade
- To make and receive payments to/from suppliers, buyers, etc.
To sum up, once your business in UAE is up and running, you will need a corporate bank account in UAE to pay fees, receive and pay money, conduct trade, and do routine operational purposes.
How can I open a corporate bank account in UAE?
- Get a business license
This is the first step for company registration in UAE. You will need to get a valid license after registering your company in UAE. Without a license, none of the banks will recognize or let you open a corporate bank account. You should approach reliable business setup consultants in Dubai to get this done. If you need to know more details about company formation in Dubai, please go through the complete guide on how to get an import-export business license in Dubai, a guide on business set up in Dubai, or how to set up your business in UAE?.
- Have the necessary documents
To start a bank account in Dubai, you will need to submit certain documents. The documents provide information on proof of business, like contracts and invoices, and the company's clients and suppliers. While the list differs from bank to bank, usually the documents for opening a corporate bank account in Dubai include:
You will also need to provide the buyer's name, suppliers' name, shareholders' bank statement from their home country / or UAE (as applicable) for opening a bank account in Dubai.
- Copy of the Emirates ID card
- Company Trade License
- Certificate of Registration
- Lease Agreement
- Passport copies for shareholders and authorized signatories
- Company Memorandum & Articles of Association
- Choose the right bank
An important but usually overlooked aspect of business set up in Dubai is choosing the right bank for your requirements. You may also look into the eligibility requirements that various banks mandate to find one that you can comply with. Most banks in Dubai will need you to have a residence visa and a local address in the UAE. Another thing you need to consider is the continuous minimum balance that you are required to maintain.
- Strict regulatory and compliance requirements like Anti Money Laundering (AML) and Combating the Financing of Terrorism (CFT).
- Proving the credibility of the founder.
- Insufficient information or weak business plan.
- Issues with physical office space.
- Minimum balance requirement.
Challenges in opening a corporate bank account in Dubai
A study conducted by the Dubai Chamber of Commerce and Industry (Dubai Chamber) and the UAE Ministry of Economy showed that at least 65% of entrepreneurs believe banking is the biggest challenge they face during business setup in Dubai. Opening a bank account in Dubai can take as long as three months, making it difficult for businesses to begin commercial operations. Some of the significant challenges in opening a corporate bank account in Dubai are
Companies in UAE free trade zones without office space or compliance may find it quite challenging to open a corporate bank account in Dubai.
While these stringent regulations enforced by the UAE authorities safeguard and protect against financial wrongdoings, opening a corporate bank account is time-consuming and difficult. This is where Avyanco Business Consultancy LLC can help. With extensive knowledge of international and local regulations, we have years of experience dealing with banks and opening corporate bank accounts in Dubai. Avyanco is one of the leading business set up consultants in UAE who provide corporate bank account opening services.
Avyanco can assist you in opening your corporate bank account in Dubai based on your requirements and purpose. While there are business setup consultants who provide cheap services, including business setup in UAE free zone without having a corporate bank account, it's the entrepreneur who will bear the brunt. The fact is, almost 50% of companies in free zones cannot open a corporate bank account. You cannot achieve much by starting a business in UAE without having a corporate bank account.
At Avyanco we understand clients, their requirements, their specific intent and can guide them from A to Z with our complete and comprehensive business setup services for Dubai. This includes initial approval, doc clearing, visa service, license, etc. Our team of experts consists of business set up consultants, seasoned lawyers, PRO executives, offshore personnel, and operations staff to ease the business set up in Dubai. Our foundation is based on relationships and sustained through continuous innovation and productivity, and trust.
Contact us now for a free consultation to know more about opening a corporate bank account in Dubai, UAE.
Call/WhatsApp: +971 50 3989000, (T): +971 4 240 5000, Email:firstname.lastname@example.org.