Opening A Company Bank Account in Dubai 2024

How To Open A Company Bank Account in Dubai/UAE

For UAE Mainland companies, opening a company bank account in Dubai is a reasonably simple process. A bank account is required for any type of business conducted by a firm, whether onshore or offshore. However, depending on the size and activity of the organization, different standards may apply for client identification.

The financial institution will ask for documentation proving the entity's legal existence. To determine the management and ultimate beneficial ownership of the structure, companies that are held by corporate entities must produce a complete set of corporate documents. These documents will often require notarization or legalization twice: once in the UAE and once in the country of origin.

The Central Bank is required by international campaigns against tax evasion, money laundering, and terrorist funding from the previous ten years to enforce stricter client due diligence policies on banking institutions opening accounts for offshore companies. Consequently, banks were forced to start establishing accounts using a risk-based strategy. Further comprehension of the customer's principal business areas, expected currency and total deposit volume, revenue level, and primary clients and suppliers are all necessary for the financial institution.

What types of corporate entities are there in Dubai?

For international businesses looking to establish an official presence in Dubai, there are five company establishment avenues available under UAE law:

Establishing a long-term facility
Opening a subsidiary office
Establishing a company in one of the free zones in the UAE
Establishing a civil firm
Signing a contract for a commercial agency

Companies founded in any of the emirates are required by the UAE Commercial Companies Law to have a minimum of one UAE national partner who owns at least 51% of the company's capital. Some industries, such as those in the oil and gas sector, those that generate electricity and gas, and those engaged in the distribution and treatment of water, may, nevertheless, be exempt from the legislation. As long as the free zone has regulations specific to it, businesses founded there are also not subject to the 51% limit.

There are seven techniques for establishing long-term businesses:

Partnerships in General
Restricted Associations
Ventures with Joint Participation
Companies with Public Joint Stocks
Companies with Private Joint Stocks
Companies with Limited Liability
Limited Partnerships with Shares

Businesses that want to be present in Dubai can also open a branch office, which has the same legal identity as the main business. Branch offices may carry out tasks as denoted by their specific license, including contracts and other activities.

Opening a bank account for your business?

The United Arab Emirates is renowned for its exceptional customer service and has a fantastic financial system. We at PanaceaBiz Company Setup & Banking Services Consultants can assist you in opening a company bank account in Dubai to design your company there. We are assisting you with opening bank accounts with domestic financial institutions. Business owners are generally unaware of local and foreign banks.

We, PanaceaBiz Company Setup & Banking Services, assist them in opening a company bank account in Dubai. In the past, we have assisted numerous business owners and entrepreneurs in opening bank accounts in Dubai.

We also assist business owners with bank account management. Our company, PanaceaBiz Company Setup & Banking Services, offers a comprehensive range of services to its clientele concerning the establishment and administration of bank accounts.

Does Dubai allow international companies to register company bank accounts?

The United Arab Emirates does not accept apostille since it is not one of the nations that ratified the 1961 Hague Convention. The first step is to have the required company documents certified at the Consulate of the Emirates in the nation where the company is registered, as that authentication is not recognized in Dubai. Next, the UAE Ministry of Foreign Affairs must certify the documents. The certification process at the UAE MFA often costs $3000 or more, with each document requiring certification costing about AED 2,000. In addition to the cost, the certification procedure frequently takes months.

In summary, opening a company bank account in Dubai is frequently quicker and more affordable to incorporate in the United Arab Emirates.

Eligibility for Opening a Company Bank Account in Dubai

To operate in the UAE, your company needs to be a legitimate corporation.
The legal form of your business should be either a single-layer corporation (where the ultimate beneficiaries are individuals) or a sole proprietorship.
You must possess a current Certificate of Incorporation or Trade License issued by one of the UAE's granting bodies.
All partners and authorized signatories must possess valid passports and Emirates IDs.
A current board resolution, article of association, or memorandum of association is required.
A six-month bank statement for the business (if it's an existing business) or the partner (if it's a new business) must be shown.

How can we open a corporate account when we are certified or incorporated?

Bank to bank has different requirements when it comes to creating an account, but generally speaking, a significant shareholder or director must be present. Though it's not always the case, lawyers might occasionally create accounts on behalf of their clients.

The first step in opening a company bank account in Dubai is to fill out an application, which will be backed up by thorough business documents. This data may consist of client and supplier lists for the business as well as documentation of transactions, such as contracts and invoices.

Documents required for opening a Company Bank Account in Dubai

The shareholder representative of the company's passport, together with their resident visa
A duplicate of the shareholder representative's Emirates ID card
A copy of the firm's director's passport
Details regarding the kinds of activities on the account
Revealing the funding source
Current agreements
Letters of recommendation from business associates
Business strategy
Complete set of authorized business incorporation paperwork
Articles and memoranda
The incorporation certificate
Registry of shareholders
Excerpt from the official Companies Registry regarding the company
A good-standing certificate

The bank will then obtain background data on the applicant's directors and shareholders, as well as the management team. Financial predictions will also be part of the information-gathering process.

Finally, the applicant will have an interview with the bank. A company bank account in Dubai will be created after those phases are finished. You can also check out Free Zone Company Formation Dubai UAE.

Best Banks for Company Bank Account in Dubai

Both local and international banks are well-represented in Dubai. The best local choices for establishing a company bank account in Dubai are:

Emirates NBD

In Dubai alone, Emirates NBD has more than 300 branches. AED 50,000 to $300,000 is the minimum balance needed for business accounts, depending on your account package. In addition to exceptionally competitive foreign exchange rates, special rates on deposits and investments, and several free or discounted fees on daily transactions, account holders will receive a dedicated relationship manager.

Commercial Bank of Abu Dhabi

Businesses can select from five different account types offered by Abu Dhabi Commercial Bank, with minimum balance requirements varying from AED 25,000 to AED 1,000,000. Accounts come with the flexibility to handle several currencies, special rates for online and in-person payments, access to 300 ATMs and 50 branches around the United Arab Emirates, and a personal relationship manager.

Mashreq Bank

The minimum balance requirements for the two business account choices offered by Mashreq Bank are AED 25,000 and AED 150,000, respectively. Discounted foreign exchange rates, free checkbooks, online business banking, Visa business debit cards, and a favorable rate on the bank's business finance products are all included with the accounts.

United Arab Bank

Company bank accounts in Dubai are available in AED and several other currencies. Ten free teller transactions and a free checkbook are additional features. AED 10,000 is the minimum balance required by UAB.

First Gulf Bank

First Gulf Bank mandates a minimum balance of AED 20,000 for business checking accounts, but if the business uses the bank for banking, there are no monthly fees. Free checkbooks, a safe monthly e-statement, free SMS banking notifications, round-the-clock mobile banking access, and limitless teller transactions at the business' closest FGB branch are all included with accounts.

Commercial Bank of Dubai

A variety of business banking products and services are available to account holders of the Commercial Bank of Dubai. Access to bank accounts, finances, and helpful online tools for business support are available around the clock through a variety of service delivery platforms. In addition, the bank provides cash flow management services, business insurance policies, business banking relationship managers, and flexible business finance choices.

Leading international banks that create company bank accounts in Dubai with UAE registrations include:

Bank Standard Chartered
HSBC
Citibank
Barclay

What kind of costs might I anticipate from my bank?

Due to the high cost of opening a company bank account in Dubai, it's wise to obtain a complete list of all possible costs before deciding where to register a company bank account in Dubai.

Paying attention to foreign transfer costs is especially crucial if you intend to send money abroad. For example, each time you send money internationally, Mashreq Bank charges AED 60, but Dubai Islamic Bank charges much less than AED 25.

To eliminate these foreign fees, you might want to think about funding your company bank account in Dubai from abroad using Wise. Wise transfers money between currencies using actual mid-market exchange rates. This implies that there is no unstated markup on the currency conversion rate, in contrast to standard bank transfers. Additionally, Wise eliminates any foreign fees because it sends and receives your money using local bank transactions in the UAE and abroad.