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A lucrative business hub like Dubai has always been an attraction for foreign investors and companies. Moreover, the rising economy of the country calls for starting a business in Dubai. However, one of the most important approaches to take is to open a business bank account in Dubai. A business bank account is a secure way to save your money and ensure that your privacy is protected. In fact, the banks in Dubai are well-equipped with digital and mobile banking and also armed with emerging technologies like AI and Blockchain. Hence, it facilitates foreign entrepreneurs with ease of banking while incorporating a company in UAE.
Starting a business bank account Dubai is not a straightforward process. One has to follow certain rules and guidelines. So, here are a few details on how you can open a bank account easily and get it up and running in no time.
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So, if you have any doubts regarding how to open a business bank account in Dubai, then kindly do not hesitate to contact us. We would be pleased to assist you.
Reasons to open a business bank account in Dubai –
Ability to track expense
A business account helps to keep track of spending and manage costs more effectively.
Manage cash flow
It is easy to monitor cash flows and transactions through a corporate account.
Calculation of tax
A business account helps maintain tax payment transparency. Thus, companies would be able to evaluate their tax liabilities.
If the business owners have a corporate account, it would be easy for them to take loans for their company or get a business credit card.
A corporate account enables accepting credit card payments from customers.
If you want to conduct an effortless exchange of currencies, a corporate bank account can help.
Features of business bank account Dubai
- Protection and security
- Purchasing power
- Minimum account balance
- Interest rate
- Cheque book facility
- Online access
- Overseas payment
- Multiple currencies
Benefits of starting a business bank account Dubai
- Confidentiality of account details
- Privacy of foreign applicants
- Safe and consistent banking services
- Low upkeep costs for account
- Availability of online banking services
- Easy withdrawal and deposit of money
- Security of money
- Easy & effortless exchange of currencies
- Transparency in tax payments
- Easy to monitor cash flows and transactions
- Effective cost management
- Convenience in accessing tax liabilities
- Easy to avail business loans and credit card facility
- Free from all kinds of online maltreatments
- Assistance in administration
- Zero taxation
- Non-restrictive banking decisions
- Asset management
- Flexible investment period
- Accurate book-keeping
Procedure to open a business bank account in Dubai
Obtain your business license
A business license is a necessity in order to Start A Corporate Account In Dubai. Unless you don’t possess a business license, the bank won’t recognize you as a valid entity, and thus, you will not be able to open a business account in any bank.
Prepare other legal and corporate documents
Before submitting all the legal and business paperwork, double-check for any errors or mistakes. Make sure you do not miss any information and carry all the pre-required documents to the bank for better service.
Check visa requirements
Now that you have the business license and all the corporate documents, confirm whether your stockholders also require a resident visa. This is because some banks asks for residency proof from at least one shareholder. Hence, ensure that you have an official address to present before the bank.
Select a reliable bank
Choosing the right bank for your business is the most vital step in this process. Hence, you must look for a bank that meets all your requirements. Additionally, Dubai is home to several national and international banks from which you can choose the one that is suitable for your banking needs. However, you must look at the eligibility conditions and income while selecting a bank.
Proceed with the application process
Before getting into the actual procedure, conduct a thorough conversation with an advisor or a bank official who can advise you on how to proceed. Further, present all the necessary papers and a properly completed application form to the officials. Later, the bank will examine your application and share the outcome accordingly. if the application is approved, the bank further extracts background information about the company’s management team, shareholders, and directors. Lastly, the bank will conduct an interview after which the bank account is established successfully.
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Documents required to open a business bank account in Dubai:-
- Memorandum of Association(MOA) & Articles of Association(AOA)
- The trading license of your business
- Share certificate
- Passport copy of the applicant
- UAE entry permit of the applicant
- Certificate of Incorporation
- Emirates ID of resident shareholders
- Visa of resident shareholders
- Name of prospective clients
- Bank statements of the applicant for the last 6 months
- Address proof (For example, utility bill, etc.)
- Corporate legal documents of any existing company outside the UAE
- Detailed business plan
- Information about the business activities you are planning to carry out
- Disclosure of the source of funds
- Existing contract details
- Comprehensive CV of the applicant
- Certificate of Good Standing
Apart from the above documents, the bank officials might ask for further details and clarity on transactions or invoices, or contracts.
Points to remember while opening a business bank account in Dubai
When you decide to open a Corporate Bank Account In Dubai or any other emirates in the UAE, you need to consider certain points:
- If you own a limited liability company on the mainland or free zone, you can un hesitantly apply for a corporate bank account.
- However, if you launch a startup or a small business, you have to be present as a bank signatory in order to submit the application and for the verification of your passport.
- While preparing essential papers and documents for the corporate bank account, determine the business activity, number of shareholders, business background, and the business strategy of the new corporation in Dubai.
Challenges faced when you open a business bank account in Dubai
Knowing the challenges of starting a corporate account is equally important as knowing the advantages. Here are a few of the challenges one can face when you open a business bank account in Dubai:
- The applicant must prove trustworthiness.
- Possession of a residence visa and a local address is a must.
- The resident applicants should have an actual office space.
- Businesses carried out in high-risk areas are more likely to face obstacles.
- A minimum balance of AED 25,000 to AED 50,000 is required, depending on the bank.