A Comprehensive Guide to Opening a Business Bank Account in Dubai
Having your own business bank account in the UAE is beneficial when registering your business in the country. Due to UAE’s peaceful governance and simplified trade rules, the country offers an ideal business surrounding. However, every business, whether it is a startup or an established one, needs a basis for its easy cash transactions and balance. Therefore, it can be easily solved by opening a business bank account in Dubai. It might be a difficult task for someone who does not have enough understanding about the same. In this blog, we will highlight how to open a business bank account in this dynamic country.
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What are the Advantages of Opening a Business Bank Account in the UAE?
A business account will be essential to send or receive money, handle business operations, and make financial transactions in the UAE. Business bank account opening comes with several benefits. These include:
- Manage Spending: A business bank account in the UAE supports in tracking of the organization’s spending. It also aids the growth of future investment strategies on the basis of the present standing of the company.
- Acquiring Business Loans: A business bank account helps in obtaining business loans and even corporate credit cards. Usually, the account is opened in the business’s name which supports acquiring loans by building a strong presence.
- Banking Services: A corporate bank account comes with several features. Not only does it serve as a basis for incoming and outgoing money but also acts as a reminder that expenses must be incurred to fulfill the business requirements.
- Precise Record Keeping: UAE business accounts are created to manage every kind of business deal which makes it easy to keep track of a large amount of information. These benefits make it specifically dependable in terms of paying taxes, salaries, and other bills on time.
- To make Investments: The investment procedure becomes much simpler with a corporate bank account which involves features like reminders and guidelines. Therefore, business owners can easily carry out investments.
Eligibility Criteria for Opening a Business Account in the UAE
Your company is required to fulfill the criteria developed by the bank of your choice. The eligibility criteria are unique for every bank. Generally, it includes:
- Minimum Initial Deposit: You need to make a minimum initial deposit in the bank account. Each bank has its own amount of initial deposit.
- Savings or Current Account: Before letting a business open a bank account, some financial institutions demand your existing bank statements of savings and current accounts. So, it is vital to offer them with the same.
- Know Your Customer(KYC): Based on your potential customers or clients, your bank manager can make a profile and show you before the compliance team to streamline simplified approval.
- Minimum Average Balance: To upload a business bank account in Dubai, your company is required to maintain a minimum balance in the account. The amount depends on the bank guidelines.
How to Open a Business Bank Account in UAE?
To open a business bank account in Dubai, you are required to submit some essential documents and follow a precise procedure. The exact needs of each bank might vary but the process is the same. Here is what you need to do:
1. Selecting the Right Bank
It is advised to select the right bank as per your needs. This is often overlooked by many entrepreneurs and they might not get the best business account in UAE. Check their eligibility criteria, their documentation requirements, and do not forget to consider the minimum balance that you need to maintain in the account.
2. Get a Business License
The process of company registration in Dubai commences by getting a business license. You are required to have a valid license following the registration of your company. If you do not have any license, then the bank will not consider your business bank account opening in the UAE.
3. Gather Essential Documents
To open a business bank account in Dubai, you are required to submit specific documents. The list may vary for different banks but usually, it includes the following:
- 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
4. Application Review
After submitting all the needed documents, your application for opening a business bank account in Dubai will be reviewed through a comprehensive due diligence procedure.
5. Bank Approval
After the verification, you will get your approval from the bank. You will get all the details about your bank account.
Things to Consider When Opening a Business Bank Account in Dubai
Here are some of the points that you need to consider while opening a business bank account in Dubai:
1. Bank Charges: Analyze all the essential expenses linked with your account such as fees for global transfers, ATM utilization, charges of annual account maintenance, and transaction fees as well. If you compare the banks well, you can save a lot of money in the long run.
2. Services for Online Banking: For contemporary organizations, efficient Internet banking services are necessary. It acts as an online bank account for business on a digital platform which is related to security operations, and provides easy usage of banking facilities. It is necessary to confirm whether they manage payroll processing, substantial transactions, and other business solutions.
3. Currency Options: If you deal regularly with multi-currency dealings then it would be wise to check the exchange rates that the bank charges for its service.
Conclusion
Business bank account opening in the UAE is one of the most critical tasks to conclude after setting up a new business. In recent, this process has become more complicated and time-consuming due to the stringent rules of the Dubai banking authorities.
However, the experts at Future Dream can help in many ways in opening a bank account in Dubai. We have legal corporate advisors, reliable PROs, and tax professionals who can simplify the entire procedure. So, get in touch with us and streamline your business bank account opening procedure.