Opening a Business Bank Accounts for Entrepreneurs in UAE

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  | Published: 30 July 2021 | Last Updated On: 11 August 2021

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UAE offers a great business environment with its stable governance and easy policies for trade. Moreover, its geographical location makes global connectivity easy via water, air and land. Owing to these reasons, the UAE attracts a lot of entrepreneurs to try their fate. However, every nurturing business requires a strong foundation for its cash flow and balance and without having a sustainable banking support, growing a business can be a bit rough. To avoid the same, banks in UAE offer a great deal on business banking and make it very convenient to open business bank accounts for entrepreneurs.

While opening a business bank account in UAE, an entrepreneur must research the profit rates and benefits it offers, charges on the banking services, etc.

Why Do You Need a Business Account?

Once the business is set up and operational in UAE, a business account will be required to send-receive money, manage business transactions, and make financial payments. A business account makes it very handy for firms to make their transactions, tracking the expenses, acquiring loans, etc. An entrepreneur must get a business account for the following reasons:

  • Access Business Funds - A business account is required for not only accessing funds but also managing and tracking transactions.

  • To Make Investments - An entrepreneur or a business owner will be required to make certain investments from time to time. A business account makes it very convenient, with facilities like standing instructions and reminders.

  • Managing Expenses - A business account in UAE helps in tracking expenses and building strategies for future investments according to the present situation of the enterprise.

  • Acquiring Business Loans - A business bank account can be helpful in getting business loans and a business credit card. Usually, the business bank account is opened in the name of the company, which helps in acquiring loans as it creates a genuine presence.

  • Banking Services - A business bank account offers plenty of services that help in easy surveillance of the incoming and outgoing funds in the business account. It also reminds of the expenses to be made as per the business requirement.

  • Accuracy in Maintaining Records- Business accounts in UAE are designed to handle almost all kinds of business transactions, making it easy to handle a large set of records. These benefits make it very reliable in paying taxes, salaries, etc. on time.

Features and Benefits of Business Banking Accounts in UAE

Business accounts in the UAE offer an enticing set of features and benefits. Usually, these accounts may include savings accounts, merchant account, merchant services account and a dedicated credit card account. Following are some benefits and features that are offered by business accounts in UAE to entrepreneurs.

  • Security and Protection - The business account provides protection on personal liability by keeping the personal funds and business funds separate. The services offered to the business account holders keep their data and transactions safe.

  • Purchasing Power- A business account with its credit services makes it very easy to acquire bigger loans by constructing a decent business credit score, which, in turn, helps to make bigger initial purchases.

  • Minimum Account Balance- Numerous banks in UAE offer nominal minimum account balance, while some banks have zero balance business accounts, making it easier for low budget businesses to flourish conveniently. 

  • Attractive Interest Rates - UAE banks offer a great deal on the rate of interest for new businesses through their business bank accounts, which makes it a source of additional benefit for the organisation.

  • International Transactions - Banks in UAE offer a platform to business owners for transferring foreign currency remittance at very nominal costs.

  • Multiple Currency Accepted - Banks in UAE accept multiple currencies like USD, GBP, EUR, etc. apart from UAE Dirham, allowing foreign clients from all around the globe to open a business account.

  • Chequebook Facility - Every bank in UAE offers a chequebook facility in the name of the business, thereby giving a parallel way for making easy payments of various purchases done.

  • Online Access to the Funds - The business account holders can easily access the company’s fund while on the go with a user-friendly online banking portal. Business owners can manage their business bank accounts anywhere and anytime, thereby saving time and effort.

Eligibility Criteria to Open a Business Account for Entrepreneurs in UAE 

An enterprise will have to satisfy a set of eligibility criteria as laid down by a specific bank in order to open a business account in UAE. The eligibility criteria vary from bank to bank and the business entity must go through it before applying. Given below are some general eligibility norms.

  • Minimum Initial Deposit - An enterprise will have to invest a certain initial deposit before opening a business account. Each bank has a different initial deposit and it must be checked beforehand.

  • Minimum Average Balance - A business entity may also have to maintain an average minimum balance in order to operate and maintain a business account in UAE. The minimum amount again depends on the bank you are applying to.

  • Savings or Current Account - Some banks also require an individual or a business to have a savings or current account in order to be eligible for opening a business account with the bank.

Documents Required to Open a Business Account in UAE

Banks in UAE will require certain documents before opening a business bank account for entrepreneurs or any business. These documents may include identity, address proof, documents related to the business and some additional documents. Following is the list of common documents required for opening a business account. 

Particulars Required documents
Identity and Residence Proof
  • Emirates ID of shareholder representative (Original and Copy)
  • Valid passport of shareholder representative and company director (Original and Copy)
  • Shareholder representative’s Residence Visa 
Business Related Documents
  • Sources of fund disclosure
  • Business plan or blueprint
  • Memorandum and articles of association
  • Certificate of Incorporation
  • Registry of shareholders
  • Good standing certificate
  • Company extract (through the official registry of the company)
  • Existing contracts
Other Required Documents
  • Letter of reference through the business partners
  • Information related to the kind of activities to be performed on the account

Note: The bank you are applying to might ask for additional documents at its sole discretion.

Best Banks in UAE for Business Accounts for Entrepreneurs

Given below is the list of the banks that offers best deal on business accounts in UAE.

Bank Minimum Initial Deposit Benefits and Features
Dubai Islamic Bank AED 50,000
  • Unlimited withdrawals and chequebook facilities
  • Easy access to the business funds across UAE with a network of 90 bank branches in UAE.
Abu Dhabi Islamic Bank AED 5,000
  • Free banking assistance
  • Zero fee debit card 
  • Facility of chequebook
  • Multiple currency accepted 
  • Online Enterprise banking available
Mashreq Bank AED 50,000
  • Facility of chequebook
  • Zero fee debit card
  • Online Enterprise banking available
  • Multiple currency accepted 
  • Availability of business loans
RAK Bank AED 25,000
  • Facility of Chequebook 
  • Monthly account Statements 
  • Multiple currency accepted
  • Attractive interest rates
Commercial Bank of Dubai N/A
  • No annual or monthly maintenance fee
  • Multiple currency accepted
  • Chequebook facility 
  • Zero fee debit card 
  • Free e-statement services
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How to Open a Business Bank Account in the UAE?

To open a business account in UAE, identity proof and address proof are required by almost all the local and international banks. Moreover, an enterprise opening a business bank account might need to be physically present in the UAE. The bank account opening process is very easy and can be done online by visiting the bank’s web portal and filling out the required details.

Opening a business account in UAE can be done in the following ways: 

  • Opening a Business account online in UAE - A business account can be easily opened by visiting the bank’s website and filling up the online application form along with submitting the required documents.

  • Opening a business account offline in UAE – It’s very convenient to visit the local branch of a bank in UAE and follow the instructions given by the banking personnel to open a specific type of bank account that suits your business needs.

  • Opening a bank account via a phone call in UAE - Individuals can open an account by calling the bank’s customer care number. The bank representative will revert with the account opening process and details required to open a business bank account in UAE.

Frequently Asked Questions

Q1: Can an expatriate open a business account in the UAE?

Ans: Yes, an expatriate can open a business account in the UAE, subject to the furnishing of required documents as asked by a specific bank. 

Q2: Can I open a business account in a currency other than AED?

Ans: Yes, banks in UAE offer business accounts to be opened in other currencies as well. The other major currencies include USD, GBP, EUR, etc.

Q3: What are the banking services available for business accounts in UAE?

Ans: The business accounts offer a number of services like standing instructions, online access, monthly statements, and in some cases, a relationship manager as well. 

Q4: What are the entities that are considered corporate entities in the UAE?

Ans: Any entity in UAE is considered a corporate entity in the following cases:

  • An entity establishing a permanent set-up
  • Putting up a local branch office
  • Starting an agreement with a commercial agency