Opening a company in the UAE is an easy and smooth process, especially when appointing a company formation specialist like Synergy. However, after acquiring a company trade license the next step is to open a business account within the UAE. This is where many entrepreneurs, SME’s and startups hit a roadblock as opening a business bank account is not as simple as it would seem. We have compiled the latest information and requirements to help guide you through the process.
Documents Required to Open a Business Bank Account in the UAE
Gathering the correct documentation is vital when opening a new account, one of the most common reasons for your application being rejected is incorrect or missing documents. The Synergy team is on hand to help you with submitting the right documents and increasing the likelihood of acceptance by the bank.
The following documents are mandatory for opening an account in most banks:
A complete account application form.
A signed directors resolution sanctioning the opening of the account.
A copy of your passport and Emirates ID.
Proof of a residency visa (not required by all banks).
Proof of residence address, from your home country if not a resident of the UAE.
Certified company documents – including share certificates, certificate of incorporation and articles of association.
A business plan and company profile.
Bank statements for the past three to six months.
Minimum Balance Requirement to Open A Bank Account in the UAE
The amount of money you need to deposit to open a bank account in the UAE varies depending on the banking institution you apply for an account with. Current minimum opening balances to open an account vary from AED 0 to AED 50,000. It all depends on the type of business banking facilities you require for your account, what type of business you run and which bank you prefer to deal with. It is also important to understand that most banks require a minimum monthly average balance which needs to be maintained otherwise you risk occurring additional charges if the amount drops below the amount required.
How Long Does it Take to Open a Bank Account in the UAE?
The amount of time is variable depending on the bank and your ability to provide the required documentation correctly in the first place, which is why it is advisable to appoint a company like Synergy to apply on your behalf. Usually, the amount of time to open an account for a mainland or freezone company is between 2 and 4 weeks in total.
How to Choose the Right Bank for your UAE Business?
Deciding on the right bank to open your business account in depends on a number of factors such as your banking requirements, opening and monthly average balance, service charges and benefits.
The following is the list of some of the best banks for business accounts in the UAE:
Dubai Islamic Bank
Abu Dhabi Islamic Bank
Mashreq Bank
RAK Bank
Commercial Bank of Dubai
Abu Dhabi Commercial Bank
National Bank of Fujairah
Emirates NBD
Advantages of Opening a Business Bank Account in the UAE
Apart from being a mandatory requirement of operating a business in the UAE, business accounts also provide additional benefits:
Cash Flow
It’s easier for business owners to monitor cash flows and transactions through a business bank account.
Expense Tracking
Business owners can use a business account to keep track of their spending. It enables them to manage costs more effectively.
Tax Calculation
Organisations can easily assess their tax liabilities with a business account. It aids in maintaining tax payment transparency.
Customer Confidence
Many clients are hesitant to deposit funds into a non-business account, they often prefer sending payments to an account in the name of the business rather than the owner. It is perceived as more professional and inspires confidence in potential customers.
Business Loans
If a business owner wants to take loans for their company or get a business credit card, having a corporate account can help.
Card Payments
A business account provides the ability to accept card payments physically or online.
How Synergy can help you Open a Business Bank Account in the UAE
Our experienced team can guide you through the process of opening a bank account in the UAE and apply on your behalf, removing the stress and hassle of trying to tackle the task yourself. We have assisted many companies in the UAE in successfully setting up business bank accounts, enabling them to start operating their business as soon as possible.
We offer impartial advice on which bank would best fit your business needs and budget, with the latest information on new business bank packages from the UAE’s leading banks. You can rely on us to successfully get your new business bank account up and running in no time.
To speak to one of our business consultants, simply call or send us your details to get started.