A Quick Guide on how to Open a Corporate Bank Account in UAE
After completing the procedures for company formation and obtaining residency visas, the crucial next step in the UAE is the establishment of a corporate bank account. Indeed, a business without a corporate bank account often lacks significance. The process of opening such an account can be more challenging for business owners compared to the paperwork and compliance checks required for company formation in Dubai. This difficulty stems from recently introduced rules, constantly changing compliance regulations, international banking protocols, and increased demands on banks in recent years.
Fortunately, the task of opening a corporate bank account in the UAE has become more straightforward with the assistance of professional business and banking consultants. It is highly recommended for all businesses aiming for seamless and effective cross-border operations. The United Arab Emirates is renowned for its exceptional banking sector and the high level of customer privacy offered by its institutions.The economic landscape in the UAE has been shaped by the remarkable growth of private enterprises, transparent government policies, and a 0% corporate tax rate for qualifying companies. A robust financial system that provides favorable business environments further contributes to the nation's thriving economy.
How to Open a Corporate Bank Account in UAE?
Although the Central Bank of the United Arab Emirates regulates all banks in UAE, each one has its own compliance department and own procedures. However, the process for opening a corporate account opening procedure is the same for the majority of banks. The following are the steps to open a corporate bank account in Dubai or any other emirate of the UAE:
• Obtain your trade license
Obtaining a UAE trade license is the first step in opening a corporate bank account with any UAE bank. Without a trading license, you won’t even be considered a legal entity in the UAE for operating business activities.
• Choose a bank
In the United Arab Emirates, there are various banks that are either local or subsidiaries of international banks. Every bank has developed a reputation over time. One is more credible, one is pickier about deals, and one is known for having relatively quick operations! Therefore, it would be wise to carefully select your bank based on its reputation, advantages, and disadvantages.
• Collect the necessary paperwork
For opening a corporate bank account in the United Arab Emirates, the following documents are often needed:
- Trade license
- Memorandum of association
- Office lease agreement
- Valid passport copies of all managing directors and shareholders
- Valid Emirates IDs of all shareholders and managing directors
- Residence visa copies of all shareholders and managing directors
- Company share certificate
Depending on the circumstances, banks may also require additional paperwork and certifications, such as:
- Business plan
- Comprehensive CV
- Utility Bill or proof of address
- List of partners
- Previous personal bank statements
Start the Application and Wait
Once your paperwork is in order, you must meet in person with a bank representative to start the application process. The hardest part of the process is waiting after all the paperwork. In many countries, obtaining a corporate bank account is a quick process, but in the UAE, it takes longer than typical.
In the UAE, opening a corporate bank account is challenging. Starting the application procedure requires a lot of effort and time, and waiting for the application to be successful requires a lot of patience. Here’s where Virtue can support you in this process. We will move forward with your application quickly and effectively thanks to partners in several UAE banks. Due to their experience with UAE rules and regulations, our business consultants will be able to steer clear of some problems, reduce the likelihood of application rejection, and move the process along more quickly. Give us a call for a free consultation if you need assistance and want to know how to open a corporate bank account in UAE.