Starting a company in Dubai is advantageous, but you need to ensure that you also establish a solid financial foundation by opening a bank account. Let us understand the details of opening a corporate bank account in Dubai.
What is a Corporate Bank Account?
Any type of company set up in Dubai’s mainland, freezone, or offshore jurisdiction requires a bank account. Dubai business banks provide corporate banking services to startups and established companies. Maintaining a record of cash flow and balance, investing assets, obtaining loans, and converting currencies are some of the services they offer. When it comes to opening a bank account in Dubai, you can choose one of these 4 types of accounts: International, savings, current, and foreign currency accounts.
Benefits of Opening a Business Bank Account in Dubai
Some benefits that an entrepreneur can access by opening a business bank account are:
Security and Transparency
The robust security measures of corporate banks in the Emirate provide management peace of mind. The bank account ensures that the business's assets are protected.
International Transaction
Owners of the company can enjoy savings on foreign currency payments due to the competitive rates of local banks.
Ability to transact in Multiple Currency
You can transact in various currencies using a Dubai bank account, such as USD, EUR, GBP, and others. Some banks also provide chequebook facilities.
Having a corporate bank account will enhance the credibility of any business.
Attractive Interest Rates
Dubai banks offer attractive interest rates for new companies or business ventures, enhancing their value.
Requirements to Open a Business Bank Account in Dubai
Before opening a business bank account in Dubai, there are a few essential things to consider. Let's have a look at them:
The company must make an initial deposit to open a business bank account. The amount differs from one bank to another.
Submitting Bank Statements
Some banks require an individual or organization to submit bank statements for a current or savings bank account before creating a business account.
Your company must maintain an average monthly balance to operate and maintain a business account in Dubai. The bank determines the amount depending on its policies.
Know Your Customer (KYC) Details
A proper customer profile, including potential buyers and clients, needs to be maintained. The bank's relationship manager will draft your profile based on the KYC list and present it to the compliance team.
Steps to Open a Business Account in Dubai
To open your business bank account, you need to follow the below steps:
Obtain License
The initial step is to obtain a business license in Dubai. The banks recognize only licensed businesses as legal corporate entities.
Submit Necessary Documents
The next step is to submit the required documents to the government authorities. The documents which need to be submitted depend on the jurisdiction.
Meet Visa Requirements
At least one shareholder must have a visa in Dubai. Some banks require you to submit a copy of your visa as residence proof.
Finalise Bank
The next step involves selecting the bank. Before finalizing the bank to open an account, consider things like business requirements, eligibility, income requirements, and minimum deposit amount.
Submit Application
You will need to submit the duly filled application form along with the additional documents. Once they are submitted, the bank authorities will verify them before opening the corporate bank account.
Documents Required to Submit for Opening a Business Bank Account
The documents that you must submit to the authorities depend on the jurisdiction. Let us take a look at them:
Mainland Bank Account
- Copy of Trade license
- Copy of Memorandum of Association (MoA)
- Address proof
- Copy of VAT certificate
- ID proof of all the partners
- Copy of applicant’s Curriculum Vitae
- Copy of business plan
Free Zone Bank Account
- Copy of Trade license
- Memorandum and Articles of Association (MOA/AOA)
- ID proof of all the partners
- Copy of Share certificate
- Copy of Tenancy certificate
Offshore Bank Account
- Copy of the Certificate of incorporation/trade license
- Registrar of the company
- Address proof
- ID proof
- Copy of Company bank statement
Success with BSW
When choosing a bank account, you must research to find a suitable bank for your business. Professional assistance from Business Setup Worldwide (BSW) will be helpful in this regard. The expert business advisors will analyze the business requirements and recommend the perfect bank for your business. Reach out to avail yourself of a free consultation with our consultants and get started.
