The increase in privately owned businesses with zero tax benefits transforms the monetary scenes of UAE. There is a proper financial framework for all business organizations, which contributes to the economic and financial development of the UAE.
Types of UAE banks
There are approx.. 40 banks present in UAE, from local to global banks. the three main types of the bank account to open in UAE are-
• Resident Banks Account
Most people apply for this bank account once they receive their trade license. While setting up a business in Dubai, people require a corporate bank account as licensing process. So the company opens this bank account once they receive residency visas.
• Non-Resident Bank Account
When the authorized signatories do not have a residency visa, then they open this non-resident bank account. It takes a long time to open this bank account and is also very strict.
• Offshore Bank Account
The offshore bank account is not in UAE and is held in a foreign offshore Bank. It is very beneficial to have a bank account here if you have a business in multiple jurisdictions.
Process of Opening Bank Account in UAE
If you have a business or registered office or subsidiary, you must have an active business account. Opening a commercial bank account in Dubai is available for free zone companies and offshore companies. The documents requirements for opening a corporate bank account differ from Bank to Bank. Below are the steps you need to take when you plan to open a bank account in Dubai, UAE.
choose the Bank
Many banks choose from in Dubai, including Emirates NBD, Mashreq Bank, HSBC, Standard Chartered, Citibank, and others.
However, if you want to open a payroll account, the best thing to do is ask your company about the Bank they work for. It is better to open an account at your company’s Bank to receive your salary as soon as it is credited. Otherwise, other banks may have to wait a while for the funds to appear in your account.
When opening a personal or business bank account in Dubai, some banks may ask you to keep a minimum balance. The Central Bank of UAE recently imposed AED 25 for falling below that limit.
Fill Application form
The Bank will provide you with an application form for an account, which several documents will hold. You need to attach various documents proving the company’s existence.
Submit the Documents
These steps are essential; you have to submit the necessary documents along with your banking application form. Check and offer all the documents very carefully because missing any vital document or wrong document can lead to bank account opening cancellation.
Submit the following documents
• Copy of emirates ID
• Passport copy of the company director
• Documents related to Business plans
• Passport and residence visa
• Existing business contracts
• Certified company incorporation documents
• Any other form required by the Bank
• Reference letters from business partners
Authentication by the Bank
The Bank checks every document you submit. Any discrepancies in the form can reject your application. If the Bank approves the application, the condition of the company and its employees will be interviewed. The Bank will carefully review the management team and business data and certify the company’s shareholder data. This check can also cover the company’s financial stability.
Final Interview of You By Banking Authority
If the banking authorities are satisfied, they will also permit you to open an account. The final step is an interview with the candidate, where bank employees can clarify their questions. Ask them about other requirements, etc.
Submit the Fees
It’s good to know in advance the fees and penalties included in a business account. You will need to check the required initial deposit amount or transaction frequency, account withdrawal limits, and more. Get a list of possible fees in advance and read the terms and conditions in detail.
Conclusion
As an international business center, Dubai is a bustling city with a lot of financial activity. To facilitate these economic activities, many financial institutions operate in Dubai and the United Arab Emirates. The UAE banking sector has a unique significance as the largest in the Middle East. You can start a corporate bank account in Dubai, the United Arab Emirates, for personal and business use.
Opening a bank account in Dubai for foreigners is also not a difficult task. If you are not a resident of the UAE, you can open a personal bank account in the UAE, with specific restrictions on banks’ choice and the features they offer. However, this limitation is not a big problem as many well-known banks in the UAE provide non-resident bank accounts. Most of the banks in the UAE only allow foreigners to open savings accounts.