As the number of companies operating in the UAE increases, it is important for business owners to understand the corporate banking services that are accessible to them. This is a vital part of running a business and it is essential to opt for the right corporate banking solution that caters to your specific financial requirements. This guide to corporate banking for UAE-based companies will give you an extensive summary of the various possibilities available.
Banking Options for Businesses
1. Corporate banking options for UAE based companies
a) Advantages for opening a UAE corporate bank account
Establishing a corporate banking account in the United Arab Emirates comes with a variety of advantages. Firstly it's a convenient way to monitor expenses. Secondly it simplifies the investment process. Additionally, these accounts typically allow for currency exchange. Finally, they provide users with an efficient way to pay their employees and their taxes.
b) Challenges Associated When Opening a Corporate Bank Account in the UAE:
Opening a bank account in the UAE can be challenging, but it is possible if you have the required documentation. An applicant should be prepared to present his/her business information to the bank, it should be noted that difficulties may arise in opening a corporate bank account if there isn't enough information provided. Below is a list of potential challenges you may face:
High-Risk Countries: Opening a corporate account in the UAE may be challenging if you are a citizen of a nation regarded as high-risk.
Establishing Credibility: In order to open a bank account, the applicant must demonstrate that you are well-versed in the field in which you are employed.
Physical Presence in the UAE: A residence visa, a local address, and a physical office space in the UAE are requirements for opening a corporate bank account.
Minimum Balance: To open an account, the applicant may need to deposit anywhere between AED 5,000 and AED 200,000, depending on the bank.
c)Steps to Opening a Corporate Bank Account in the UAE
Obtain a Business License: A prerequisite for opening a bank account is obtaining a business license. The applicant cannot open a corporate bank account in the UAE without such license as the bank will not recognize this as a business.
Prepare Additional Corporate and Legal Documents: Making sure that all corporate and legal documents are in order for submission would be the next step. For instance: a completed application form, a copy of the shareholder representative's Emirates ID, a detailed business plan, memorandum, and articles, etc.
Selecting a Bank: Once the applicant has all the required paperwork, he/she can start looking for the bank that best meets their needs. There are many different local and foreign banks available. When choosing a bank, the applicant should also take eligibility requirements and income into account.
In the UAE, speaking with an advisor or bank representative usually kicks off the application process for opening a bank account. They will walk you through the procedure and the necessary steps. Once the applicant has all the necessary paperwork and an application form that is complete, the applicant can hand it to the bank representatives. Following a review and verification of all the data, the bank will decide whether to accept or reject the application. If accepted, the bank will research the applicant's board of directors, shareholders, and management team. The interview with the bank is the final step, following which, the bank account will be opened.
d)Documents required for bank account opening:
- Passport, Visa & Emirates ID
- Local Resident Address Proof - DEWA Bill and Tenancy Contract.
- Personal profile or CV of all the partners or owner.
- Company Profile
- 6 Month home country bank statement with bank stamp - Company or personal source of proof of funds.
- Contracts and invoices (if any)
*Note: Documents may vary depending on the choice of the Bank (information sourced from client)
How can we help?
We understand that getting a corporate bank account in the UAE can be difficult. At D’Andrea & Partners Legal Counsel, we offer customized solutions for every client based on their business requirements. Through our partnerships and strong business relations with various banks in the UAE, we can help you open a corporate bank account in no time.