Open Bank Account in UAE

The business-friendly policies and attractive SOP for corporates has made UAE a hot destination for businesses. Opening a company bank account in dubai is pivotal to routine operations and many start-ups and entities often flounder due to a lack of awareness about the procedures.

Businesses that are unaware of the amount of time that is required, the mandatory submissions, and formalities may end up experiencing delays in opening business bank account which could jeopardize their operations. With the global clampdown on tax evasion, all banks undertake due diligence, and it is therefore important to ensure that you are fully prepared to fulfil the requirements.

Bank Account in Dubai UAE – Presence Requirements

As per the legal requirement of the financial institutions in the United Arab Emirates, it is compulsory to be physically present in UAE for bank account opening. The reason for physical presence is that original signature of the documents and personal identity confirmation is an obligatory requirement which allows the applicant to open a corporate bank or personal account in UAE.

Outlined below are important information about bank opening procedures and requirements in the UAE.

Average minimum account balance

The minimum account balance that is required to be maintained for opening business bank account may differ from bank to bank, but the least is around AED 10,000 and this could go up to as much as AED 200,000.

It is important to understand that there are two types of business entities in UAE.

Offshore company
Onshore company

An offshore company will have to maintain higher minimum balance, while an onshore company will have to maintain lower minimum balance for opening bank account in Dubai.

Necessary documents for opening a business bank account

Any business that intends to open a company bank account in UAE needs to furnish a minimum of six categories of documents.

Company memorandum and articles
Corporate structure and ownership
Source of funds/investments
License/incorporation details
Business activities
Leadership experience in related activities

Documents that disclose the above details are to be furnished at the time of bank account opening formalities. The passport and residency visa of the shareholder representative of the company also requires to be made available for account opening formalities.

The time required for opening business bank accounts

Depending on the bank that you choose, it may take anywhere between one week to around four weeks for conclusion of formalities before the bank account is successfully opened. This is because of the need for due diligence and KYC requirements.

Time required for offshore and onshore bank account opening

Typically, it takes lesser time to open an onshore account than an offshore account. This is because of the lesser formalities involved, on a comparative scale and the time taken for verification of the same. Onshore accounts are generally preferred by businesses that need to set up operations at the earliest. Without a bank account it would be difficult to commence other activities.

Opening Bank Account in UAE For Foreign Company

It is possible to open a bank account in UAE for the foreign companies.

A foreign company is a company registered outside the UAE jurisdiction, irrespective it is offshore Company such as BVI Offshore Company or Onshore Company in any jurisdiction around the globe. In order to open a bank account in UAE, All the required documents should be approved/legitimatized and attested from UAE embassy in the country of origin and then from the ministry of foreign affairs (MOFA) in UAE. The course of action of UAE bank account opening can be cost-intensive.

Make it easy with a business setup partner – Consult Kumar

Consult Kumar specialists are available round the clock in not only setting up your company and legal structure in the UAE but take the initiative in getting you the right banking solution tailor made as per your requirements. With a network of over 10 national and international banks, we are sure to introduce you to the right solution.

Dubai Islamic Bank

Abu Dhabi Commercial Bank

Emirates NBD

Ajman Bank

FAB

Mashreq Bank

RAK Bank

And few International banks having presence in UAE

Bank of Baroda

Banque Misr

Citi Bank

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