Dubai, which has established itself as a financial hub, connecting the eastern world with the western, has a thriving financial sector and a government that makes sure that it provides all the necessary infrastructure for Dubai’s financial growth. It is not surprising that entrepreneurs from across the world want to set up shop in Dubai and one of the major steps in setting up a business in Dubai is the opening of a corporate bank account. That is why it becomes important to understand the types of bank accounts available to a business in Dubai and how to meet the requirements and navigate the corporate bank account opening process. This is when a partner like ‘GrowBiz’ helps its clients navigate all the intricacies of the corporate bank account opening process. Our professionals at ‘GrowBiz’, with their vast experience, help our clients through the whole process by suggesting the type of account to be opened as per the requirement of the business and then by making the regulatory process of opening the actual corporate account as easy as possible for the client.
Benefits of Opening a Corporate Bank Account in Dubai
Some of the benefits of setting up a business in Dubai and opening a corporate bank account are:
- Location: Dubai’s strategic geographic location offers businesses access to global markets, along with this, the emirate’s business-friendly laws and financial infrastructure makes it an ideal business hub.
- Tax Efficiency: Dubai tax laws are designed to offer a favorable tax environment to the entrepreneurs. In Dubai, many businesses benefit from zero corporate income tax. In addition to this, the value-added tax in Dubai is only 5%, which is comparatively lower than in many regions around the world.
- Economic Stability: Dubai’s strict financial regulations along with it’s secure banking infrastructure, provides businesses and entrepreneurs a stable economic environment to do business.
- International Banking Services: To cater to businesses that have international operations, banks in Dubai provide international banking services that include services like multi-currency accounts, trade finance, global transactions etc.
- Business-Friendly Environment: Dubai’s laws are designed to support a stable and vibrant financial environment, so as to attract foreign investment. Dubai offers free zones to entrepreneurs to set up businesses with easy company setup processes and banking procedures.
Types of Corporate Bank Accounts in Dubai
- Current Account: To take care of the daily transactions of a business, the current account is the most common type of corporate accounts. This type of account offers features like online banking, check issuance and debit cards, etc., to a business.
- Savings Account: The savings account is not a common bank account for corporates but sometimes businesses open a savings account to deposit excess funds while earning interest on it.
- Multi Currency Account: Multi currency Account is useful for businesses that are engaged in international trade and do multi-currency transactions thus reducing their need for currency.
- Merchant Account: Businesses that require payment processing solutions like e-commerce platforms and retail outlets, as they take payments through cards need a merchant account which offers them payment processing solutions.
- Trade Finance Account: For businesses that are involved in export and import, the trade finance account offers them specialized services such as letters of credit or LC, trade loans, etc.
Requirements for Opening a Corporate Bank Account
- Company Documentation:
Various documents are to be provided by a company to the bank to open a corporate bank account and some of the main documents are:
– A copy of the trade license of the business.
– Memorandum of Association (MOA) or an Articles of Association (AOA) of the company.
– Certificate of Incorporation of the company.
– Company registration details along with the business address proof. - Know Your Customer or KYC Documentation:
All the KYC documentation requirements have to be fulfilled, like:
– Passport copies of the directors of the company.
– UAE residence visas (if applicable).
– Proof of address of the directors of the company. - Resolution:
A resolution of the board of directors of the company to authorize the account opening and the account signatories is required. - Business Plan:
A business plan of the company listing its operations, financial projections etc., is also required by some banks in Dubai. - Extra Documentation:
Depending on the nature of your business setup, some banks in Dubai may also require some additional documentation like source of funds, expected account activity etc.
Steps to Open a Corporate Bank Account in Dubai
- Selection of Bank:
An entrepreneur should do a thorough research of banks to select one which completely aligns with his business requirements before opening an account. - Documentation:
All the documents mentioned above should be carefully put together keeping in mind that all of them are up to date. Apart from the documents mentioned above a bank can also ask for some extra documents and the entrepreneur should make sure that he has all of the documents together. - Application:
The application for account opening should be properly filled and submitted to the bank along with the relevant documents. - Account Approval:
After the application is submitted to the bank, it reviews the application according to it’s regulations before approving it. This process can take some time. - Account Activation:
After the bank approves the application, it will activate the business account and the entrepreneur will be provided with all it’s details.
FAQ's
GrowBiz is a reputed service provider in the UAE and their experts help you with the account opening without you going through any hassles. This saves you both time and effort.
The whole process of account opening in Dubai can take anywhere between 2 to 6 weeks if all the documents submitted are complete.
Typically the fees may include maintenance fees and transaction fees etc. It is advisable to always review the fee structure of a bank before opening an account.
Yes, a foreign company can open a corporate account in Dubai if it fulfills all the requirements of the bank.
The requirement of a compulsory minimum deposit varies from bank to bank in Dubai, some banks don’t require any minimum deposit while some require you to have a minimum deposit.