With businesses and startups flourishing in Dubai, UAE, you must be thinking to have your own venture as well. If so, the requirement for opening a business bank account must be learnt to avoid any difficulty and challenges in business transactions.
As Dubai is the business capital of the United Arab Emirate, and one of the world’s most business-friendly cities, there are many benefits for businesses, entrepreneurs, and startups for the business bank accounts here. Therefore, we’re here with the detailed guide on how to open a business bank account in Dubai through this article.
You’ll be able to explore the advantages of opening the UAE corporate bank account, the cost associated with it and the complete process involved.
So without further ado, here we go.
Corporate Bank Account in Dubai: What Are The Benefits?
Dubai has become the hub for business, commerce, trade, and financial activities globally, during the past two decades. The Dubai’s banking system is utmost robust and stable catering to the businesses and startups in Dubai for their unique needs.
With a small business idea, you must know how to open a business bank account in Dubai to keep things transparent from the beginning. You may also hire a consultancy service for the said purpose.
Some of the benefits of knowing how to open a business bank account in Dubai are:
· You can avail of wide variety of banking services and products
You’ll be able to access a wide range of products and services by UAE banks including loans, credit cards, overdrafts, online banking, trade finance, and more.
· Carry out transactions in multiple currencies
You’ll be able to carry out transactions in different currencies, including US dollars (USD), Pounds Sterling (GBP), and Dinars and Dirhams.
· Tax free transactions
You can enjoy low tax transactions or even 0% taxation on your income through business, as Dubai government has tax relaxations for individuals in private sectors for their corporate incomes.
· Build financial credibility
You’ll get benefitted from your strong financial credibility and reputation in Dubai banking sectors that enhances your business, or enterprise’s image and attract more clients and investors.
· Leverage the Dubai’s free trade zones
You will be able to leverage the Dubai’s free trade zones and benefits come with it. With a business bank account in Dubai, you will be able to access the special incentives and various facilities that a foreign businessman can enjoy. For instance, import and export businesses in Dubai can enjoy 100% ownership, custom duty exemption, , and streamlined structure for their procedures.
Cost of Opening A Corporate Bank Account in Dubai
Keep in mind that running a business or corporate in Dubai successfully is not possible without any reliable consultancy service provider. Besides that you must open your business bank account for complete financial transparency and for that, you must bear the initial cost of opening a corporate bank account in Dubai.
Although the cost of opening a business bank account in Dubai depends on:
- The bank type
- The bank account type you are opting for
- The minimum requirement of balance for bank account you are opening
- The account’s annual fee
- The required documentation
Typically, the cost of opening a bank or corporate account in Dubai can start from AED 1,000- AED 10,000 which is approximately $ 272 USD to $ 2,722 USD. This cost is implies to your initial deposit and bank account setup fee.
In addition, you may be charged for bank account fee for monthly or quarterly maintenance which can be AED 50 to AED 500 according to the bank account type. The documents that are required for opening a business bank account in Dubai are varied according to the bank type, business type, or bank account type. However, you need to submit these documents:
- Copy of your trade license or registration certificate
- A board resolution authorizing the opening of the account and appointing the signatories
- Copy of your memorandum and articles of association
- A copy of your passport and visa (for non-residents)
- Letter from your auditor or accountant confirming your business activity and turnover
- Copy of your Emirates ID (for residents)
- A bank reference letter from your existing bank (if any)
- Copy of your utility bill or tenancy contract (for proof of address)
Best Bank for Business Account in the UAE
There are many best banks for business account in the UAE to choose range of services to suit every business needs. Whether you need a basic checking account, or a fixed-asset account, or an account with flexible deposits, opt for these best banks for business accounts in the UAE or particularly, Dubai:
Dubai Islamic Bank
Businesses of all sizes can avail of Sharia-compliant banking solutions from this bank. Dubai Islamic Bank has 90 branches and 1,200 ATMs all over the UAE making it the bank with wide network. The services it offers are:
- Business Accounts
- Rewards Account
- The Wages Protection System
- Ijara
- sukuk
- Musharika
- Murabaha
- Islamic Banking trade facilities
- Istisna
- Mudaraba
- Mudaraba
- E-Trader Business Account
Abu Dhabi Islamic Bank
This is another leading bank providing Islamic banking services in the UAE for businesses and corporations. With more than 80 branches and 700 ATMs all over the UAE you can manage your account payments, finances, and cash flow easily through business bank account of Abu Dhabi Islamic Bank. It offers the following services:
- Telephone Banking
- Mobile Banking
- SMS Banking
- Dedicated Business Centers
- ATM & CCDM
- Business Finance
- Savings and Investments
- ADIB Merchant Services
- Business Covered Cards
- Business Takaful
- Treasury Products
- Business Elite
- Business Premium
- Business One
- Merchant Account
- Business Connect
- Compare Accounts’ Packages
- Business Accounts Selector Tool
Moreover, through ADIB Direct, you will be able to get the state of the art facilities for cash management, covering all needs for working capital for your local operations, regional work and global transactions as well.
Mashreq Bank
One of the oldest banks with innovative banking approach is Mashreq Bank of the UAE. With over 50 branches and 400 ATMs all over the UAE, it also offers wide range of services including:
- Business accounts
- Debit cards
- Trade services
- Merchant solutions
- Local money transfer
- Swift transfers
- Foreign currency exchange
- Quick remittances
- Multi-currency account
- Secured business loan
- Merchant lending
- Trade & working capital finance
- Mortgage-backed business financing
- Lease rental discounting
- Fixed income
- Equities
- Mutual funds
- Structured products
- Insurance for life, illness and women
- Savings solutions
Through its online, mobile, and Mashreq NeoBiz solutions, it caters to SMBs and enterprises at all levels.
HSBC
HSBC is one of the most reputable and largest banks recognized globally for its efficient services. In the UAE, it has over 20 branches and 150 ATMs with services like online and mobile banking, and HSBCnet, which is an encrypted online platform to manage business accounts. It has basically three main banking solutions for businesses:
- HSBC Business Banking Standard
- HSBC Business Banking Elevate
- HSBC Business Banking Vantage
In addition, you can manage business payments, Forex, and other trade services with a range of business accounts with unique features, advantages and benefits.
Business Bank Account in Dubai: What Are The Requirements to Open It?
There are several requirements you need to fulfill before opening a business bank account in Dubai along with the necessary documents including:
- You must have a Department of Economic Development (DED) Trade License
- If you are operating in any free zone in Dubai, work permit from the relevant authority.
- You must have a valid company registration certificate
- You must submit Memorandum of Association letter (if applicable)
- You must possess a Dubai resident visa.
- Evidence of residential address like utility bills, rental agreement or contract.
- Must submit the board resolution with name signatory or power of attorney to authorize the business account opening.
- Must submit a personal bank statement or you can also submit a reference letter from your current bank.
- You must submit audited financial statement of your business or a predicted statement of cash flow for your business.
These were the basic requirements from the bank in the Dubai, UAE for opening the business account. Also, there are the following requirements by some banks in Dubai that you must meet:
- A detailed Business plan
- Your company’s profile
- Your sponsor or partner’s Letter of Introduction
- NOC Letter from your current bank (if applicable)
- A good standing certificate from your Dubai zone authority (if applicable)
Corporate Bank Account in the UAE: What Procedures Should Be Followed?
It is relatively easier and simple procedure to open a business account in Dubai. Just go through these steps below:
- Choose a suitable bank according to your preferences, business requirements and needs.
- Visit the bank branch, and meet the representative to ask questions related to options of business account, requirements, benefits, and initial deposit.
- Line up all the required documents, fill application form carefully and submit it
- Bank will review your application and verify your details
- After they ensure you are clear, sign the agreement for account opening
- Receive your account number, along with your debit card, cheque book, and credentials for online banking
It may take few days to a week or two for the whole process to be completed depending on your company profile and corporate bank account you are opting for your Dubai operations.
Corporate Bank Account in Dubai: Cost of Opening A Dubai Business Bank Account
Well, opening a business bank account in Dubai comes with a typical cost that is according to the Dubai based bank and the account type you choose. However, here are some common factors that play a vital role in cost of corporate bank account in Dubai:
You Have To Submit Initial Deposit
The minimum amount required to deposit into your business account after it is approved to open may be from AED 5,000- AED 200,000. It varies from bank to bank or account type you choose.
Business Bank Account Annual Fee
This is the maintenance fee for your account that you must pay every year and it can be from AED 0 to AED 180,000. It varies from bank to bank or account type you choose.
Keeping A Minimum Balance
You must keep some amount in your account or you may be eligible for a penalty fee. It varies from bank to bank or account type you choose however, AED 0 to AED 350,000 is the range.
A transaction fee
Each transaction that you make from yoru business account in Dubai comes with a particular fee depending on the type of transaction, the transacted amount, and transaction frequency. It varies from bank to bank or account type you choose.
An overdraft fee
In case if you have used more money than you have deposited in your account, you have to pay overdraft fee. Depending on the band and account type, it includes an interest rate and a flat charge as well.
Conclusion
Businesses from all over the world are pouring in Dubai and your business can be one of these flourishing businesses with the business bank account in Dubai. All you have to do is to register you company, gather all the documents required, and choose the best bank catering to your business needs.
You can also contact MBS Consulting if you have any difficulty regarding it. We have helped many businesses and corporates to get settled in Dubai through our valuable services and you can rely on us for your business bank account opening in Dubai as well.
