Opening a Bank Account in Dubai

Overview of Opening a Bank Account in Dubai

Dubai is a lucrative place of business for numerous businesses. As the economy has been rising for quite a long time, starting business in Dubai is fair enough. One of the essential approaches to take while incorporating a company in Dubai is to open a corporate bank account.

However, opening a bank account in Dubai can be a complex process. To open a bank account, one should follow a few guidelines. Banks in Dubai are well-equipped with digital and mobile banking and consistently trying the adoption of emerging technologies like AI and Blockchain.

All banks in Dubai are extremely safe due to Government backing them with reputed private groups or large International Banking institutions. Foreign entrepreneurs incorporating a company in Dubai benefit from the convenience of banking provided by Dubai banks.

Advantages of Opening a Bank Account in Dubai

The various advantages of opening a bank account in Dubai are discussed below -

• Better Monitoring of Cash Flow: A corporate bank account in Dubai helps in monitoring the cash flow and other transactions in a better way which facilitates keeping a check on the day-to-day operations of the business.
• Tracking of Expenses: The corporate bank account can also be used to keep track of the expenses incurred by the company, thereby managing the cost of the company in an efficient manner.
• Calculation of Tax: Organisations can assess their tax liabilities with a business account as it helps maintain tax payment transparency.
• Professionalism: Many clients hesitate to deposit funds into a non-business account. In fact, they opt for sending payments to an account in the business’s name instead of the owner's. Business accounts are perceived to be more professional and therefore inspire confidence in potential customers.
• Business Loan: If an entrepreneur intends to take loans for their company to get a business credit card, having a corporate account can be helpful for him.
• Card Payments: The bank account allows the company to accept customer credit card payments without any hassles.
• Foreign Currency Account: When the entrepreneur opens a business bank account in Dubai, you can also select foreign currencies. This means an effortless exchange of currencies.

 Requisite Documents for Opening a Corporate Bank Account in Dubai

The below-mentioned Documents shall be required for opening a bank account in Dubai.

• Employment, income and tax details
• Valid identity proof (this may include the entrepreneur’s  passport, driving license or National ID)
• Address proof, including a utility bill or a bank account statement
• The residency visa and passport of the shareholder
• A copy of the Emirates ID of the shareholder
• A copy of the director’s passport
• Disclosure of the type of business activities and the source of funds
• Existing contracts
• Reference letters from business partners
• A comprehensive business plan
• The company’s corporate Documents
• Company’s MOA and AOA.

Key Considerations for Choosing the Bank for Opening an Account in Dubai

The entrepreneur must consider the below-mentioned parameters for choosing the bank for opening a bank account in Dubai.

• The expected volume of banking transactions of the entrepreneur
• Some of the initial capital that the entrepreneur intends to deposit with the intended bank
• Other additional financial services required by the business
• The minimum requirements regarding account balance of the account by the bank
• The type of currencies the entrepreneur be transacting in
• Ease of making the transaction

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Detailed Procedure to Open a Bank Account in Dubai

The detailed procedure to open a bank account in Dubai is discussed below

Obtaining the Requisite Business Licences

The obtainment of a business licence is an essentialstep while opening a bank account in Dubai as the absence of the same may lead to the non-recognition of the entrepreneur’s businessby the bank, and it won't allow the entrepreneur to open a corporate bank account in this destination.

Checking for Visa Requirements

The shareholders also require a residency visa, and the entrepreneur must ensure the availability of the same during the process of opening a bank account in Dubai. Some banks would require it as proof of residence from at least 1 shareholder, while other banks might not need it at all.

Selecting a bank

 The various banks in Dubai make it necessary for the entrepreneur to carry out extensive research for finding the right bank for the business. Some banks have specialization in certain types of clients or provide particular services. It would be useful to contact several banks for the comparison of services and costs.

Arranging the Essential Documents

The Documents which would be needed to open a bank account in Dubai can depend on the banks. However, the entrepreneur must make arrangements for the basic Documents as discussed above.

Filing out an Application

 The entrepreneur should fill out the application in the prescribed manner, ensure to provide the bank with all the required information, and carefully check the terms and conditions.

Depositing the Funds

The banks in Dubai often need a minimum management deposit to open a bank account for foreign companies. The amt of this deposit shall differ between banks and the business activity risks.  The entrepreneur must check the deposit requirements with the chosen bank prior to depositing funds.

Providing the Requisite Documents

The entrepreneur must provide Documents as discussed above. Document requirements may differ among banks, so the entrepreneur should be aware of such Documents.

Interview and Bank Approval

After submitting all the required Documents and depositing the necessary funds, the bank shall conduct the interview of the applicant and ask questions regarding the company's activity, the names of the suppliers, the names of the customers, the no. of incoming and outgoing transactions, along with the source of funds, after which the entrepreneur must wait for the bank approval which shall be obtained after the verification of the information and Documents provided by the entrepreneur. 

Accessing the bank account

After getting the approval for opening a bank account in Dubai, the entrepreneur can access the account online, through a mobile app or in person,  at the bank, as well as being able to make transactions and check his balances and transaction history, followed by performing other routine banking operations.