Being a regional business epicentre, UAE offers a suitable environment for the business to grow and flourish. However, businesses require detailed fund management and frequent transactions to carry out their operations. Due to vast regular transactions, businesses and enterprises in UAE require a robust banking system that offers them security and reliability. General bank accounts aren’t capable of sustaining such levels of transactions every day, so the financial institutions came up with business bank accounts.
Business bank accounts in UAE are designed to cater to the clients’ needs with security and flexibility. These accounts support huge regular transactions, convenient fund access and easy cash management for smooth business operations. Additionally, opening a business bank account in UAE is easy and require minimal paperwork. The article below sheds light on the requirements of business bank accounts and their benefits.
Benefits of Opening a Business Bank Account in the UAE
Business bank accounts in UAE deliver services fulfilling the needs of business owners to undertake frequent withdrawals and transfers without hassle. The banks offer a variety of accounts ranging from zero balance business accounts for new businesses to large corporate accounts. Key benefits of business bank accounts are as follows.
- The business accounts in the UAE offers unlimited daily transactions. A few banks may cap the daily cash withdrawal limit depending on the account type.
- The banks offer complimentary chequebooks, free teller transactions and debit cards to access the funds conveniently. A few banks in UAE also offer credit cards against your account.
- Almost all business accounts in the UAE accept multiple foreign currencies such as USD, GBP, EUR apart from the UAE Dirhams, offering you the convenience of transferring funds globally.
- Several banks offer interest on your funds in the business account, thereby providing you with an additional benefit. For example, the RAKBANK current account offers up to 0.25% interest rate on the funds.
- With a business bank account, you get a dedicated relationship manager who assists you manage your business account. A basic business account may not provide you with a dedicated manager, but it depends on the bank you are applying to.
- As a business account holder, you get monthly statements for all the transactions done throughout the month, which would help you maintaining accuracy in the record.
- With a business bank account in the UAE, it is easy for you to acquire business loans at competitive rates.
- The accounts offer lucrative foreign exchange and trade finance rates with the business bank account.
- Along with a business bank account, you can open a business fixed deposit account that offers attractive interest rates and helps to grow and sustain your business.
- With a business account, you can pay the employees’ salaries conveniently and securely.
- In addition, you get full access to the digital business account to access and manage your funds anywhere and anytime.
What are the requirements to open a business bank account in the UAE?
To open a business bank account in the UAE, the applicants need to satisfy a few requirements. The criteria may vary depending on the business type and related aspects. After fulfilling the requirements, individuals need to submit the required documents for the business bank account opening process. The following are the requirements for a business bank account in the UAE
- Obtaining a business license in the UAE - In order to start a business in the UAE, you must have a valid business license, also called a trade license. For obtaining a trade license, you need to visit the Department of Economic Development (DED) and specify your business type with relevant documents. After the verification, DED would dispatch your license, and you can use it for business account opening.
- Visa Requirements - You must make sure you fulfil visa requirements before applying for a business bank account in the UAE. The banks may ask you to submit a trade permit or work visa. It is important to have at least one shareholder with a residency visa to make the process hassle-free. If you don’t have a work permit, you can visit various agents who can help you with your paperwork.
- Nationality and Residency - While the market is open for business for both expats and nationals, the requirements for each are different. For a local, a mere trade license and incorporation would be enough to start a business. An expat needs several supporting documents along with the trade license.
- Minimum Average Balance Requirement - Although numerous zero balance business accounts do not require a minimum amount in the account, they offer basic account services. To have an extensive service, you need an intermediate or advanced business account. Such bank accounts require a minimum average balance ranging from AED 50,000 to 500,000 or more depending on the bank. A shortfall in account balance may result in a penalty based on the account type and the bank. Additionally, to earn interest in your business account, you need to maintain the average balance in your account.
- Required Documents - To open a business bank account, the applicants need to submit the documents related to their identity, business, proposed business plans, identities of shareholders, individual bank account statements, etc. The business account opening is subject to the submission and verification of various documents by the bank.
What are the Documents Required to Open a Business Bank Account in the UAE?
As mentioned above, during the business bank account application, you need to submit a few documents supporting the company and the personal details of shareholders. The bank may ask you to take approval from various authorities and government bodies, so you must be ready with all those documents. Following are the general documents that you need during business account opening in UAE.
- An original and copy of passport and residence proof of all the company’s shareholders and representatives
- A valid passport copy of the director of the company
- An original and a copy of the shareholders or representatives Emirates ID
- A valid trade license from the Department of Economic Development
- Articles and Memorandum of Association
- A blueprint of the company’s business plan, details about the business activity, including the financial plan, patterns and future clients
- Information about the business account related activities
- Incorporation Certificate
- Last six months bank account statement of all the company’s shareholders
- Documents related to the company’s registration and incorporation
- Information related to the funding sources
- Good standing certificate
- Reference letter from the business partner/partners
- Registry of the shareholders
- A list of investors, current clients and potential clients
Apart from the above documents, the bank may ask for additional information and documents pertaining to your business and related activities at its discretion. Assistance from a business setup agent may help you to ease out the process. Several banks also accept convenient online applications for business bank accounts in the UAE. You can simply visit the bank’s official portal and apply without any hassle by following a few simple steps.
Things to Consider When Opening a Business Bank Account in the UAE
Before opening a business account in the UAE, you need to consider a few factors related to the type of account you require, your budget and the upfront cost of opening a business account in the UAE. Following are some factors to consider while opening a business account.
- First and foremost, you need to select the type of bank account that provides the services as per your business’ needs and falls under your budget.
- If you own a new business, you should apply for an account with a low or zero average balance requirement as it would ease out the monetary liability towards the bank account.
- You have the freedom to choose a local or an international bank; however, if your business is relatively new, it’s better to go for a local bank since their account charges are low.
- After choosing your business account in the UAE, you must submit all the documents as per the bank’s requirements to have a hassle-free application.
The business accounts in the UAE are affordable and come with lenient eligibility criteria. Several banks in UAE offer convenient account opening through online and offline channels. The applicants, however, need to fulfil all the requirements and submit various documents related to the shareholders and the business activity. The business account opening process in the UAE is quick, and once you submit all the documents, the bank activates your account within a few working days.