Due to newly implemented guidelines, opening a bank account is always a stressful task for investors and company owners as it's a time taking process as well complicated process. The reasons for complications areas there are multiple options available in the market and a lack of knowledge about choosing the right account to invest in.
But there is a good aspect if you choose the right company to invest in then certainly you will overcome the major banking complications and will enjoy less taxable or non-taxable income from investments.
How to Overcome Hurdles while Choosing Right Business Account?
To overcome this hurdle of choosing the right business account for investments, here are some easy-going processes to overcome this stress.
Step 1- Setting up your company or venture
To start the process of foundation of a business bank account it's necessary to have a business plan consisting of the following:-
Company Profile- It's a depiction of services that the company provides, its worth and vision, and a monograph of unique assets that it possesses.
Number of consumer/vendor- listing of major vendors and no of consumers your company or venture possesses.
You should be aware of fact that the UAE has two types of bank account –UAE resident bank account and non-resident UAE bank account.
Step 2 – Choose a Bank
There are plenty of banks to choose from as per the requirement of the company's venture. The one who fulfills the requirement and is less costly for you will depend on your specific requirements. You must consider the following criteria before choosing a bank in UAE:
Choosing the Right Bank Account
The business bank account is very essential for fulfilling your transactions. So choose the right bank based on your nature of transactions and facilities such as a checkbook, Debit/credit card, trade finance, and other instruments. Always seek professional recommendations before heading to the bank, which helps you to complete the documentation at the same time.
Information of fees structure
Before opting for any bank, be well informed about the average balance requirements, penalties for non-maintenance of balance, transaction cost, annual service charge, etc.
Criteria, aspects & Bank Policies
Banking policies are different from bank to bank. Create a checklist with all your business needs, and make sure the bank you select can meet them now and grow with you as your business evolves.
Step 3 – Appeasement and Signing
In this last step, you have to be very accurate and careful while delivering your details and documents. Concede the following procedure before submission and signing any documents in a bank:
Remitting accurate details and documents (KYC)
Make sure that your legal and corporate documents are in line. Several banks may also require additional supporting documents: this may consist of contracts or invoices, reference letters from business partners, company business plans, and information regarding your intended business activities.
Providing proper details of business type or venture.
Knowledge of time
Details of the time frame for the process. The time frame might differ from bank to bank.
Perceive the facilities – getting to know the facilities which bank provides like a checkbook, credit/debit card, online banking facilities, Letter of Credit (LC), Stand by Letter of Credit (SBLC), etc.
Maintenance of average balance in the account
Remember to maintain an average balance in the account in your business bank account. If you fail to do so, it might lead to a shutdown of your business bank account.
Lastly, Working with a professional is the best way to certify this process runs smoothly. Our Business Consultants can assist with the entire procedure. You have already got a lot of things to worry about when setting up a new business, make sure that setting up your business bank account isn't one of them.
Advantage of a Business Account in the UAE
It is a valuable idea to have a business account in UAE. Take a view at these benefits of a business account:
1. Business records will be organized
You can keep a track record of your business accounting program organized by checking your account. All your business transactions are tracked on an abstracted Statement. Thereby ensuring authentic bookkeeping which helps with a clean record for the accountant at the year-end while payment of income tax.
2. Detailed taxes and deductions
A business account helps to ensure you file taxes accurately. You look at your Business account statement and track the figures on your tax return. Thereby you can lower the business expenses from your tax return.
3. You can acquire credit cards
You limit your customer pool and implied sales when you only accept cash payments. Many consumers pay with credit cards over cash. Securing credit cards helps you assist a larger number of customers. You can also set up a credit acceptance system through the bank with your business account.
4. Business loans
Having a corporate account can be helpful to obtain a credit card or can be beneficial if the owner wishes to take a loan for their business.
5. Professionalism and gaining bank relationships
Whether you are a start-up or an established business, you want to look Professional. Will you pay merchants with cheques that have your personal
information printed on them? Or, will you tell customers to issue payments to your name? A business bank account gives you a more certified look.
6. Maintaining minimum account balance
Several banks in the UAE offers low to zero balance accounts to the organizations making it easier to manage cash flows.
7. International amortization
Banks in UAE endeavors the facility of making International Remittance on business bank accounts.
8. Numerous Currencies
Aside from the UAE dirham, these bank accounts can be opened in many other major currencies across the globe. These are the reasons why you would need a business / corporate account in UAE as you continue to extend your company, keep these business bank account benefits in mind.
In the light of these results and upon exploring the situation from multiple perspectives,
The conclusion can be as, there are certain things should be considered which are consist of bank profile, assets, debts of bank, policies, taxation policies and rules of debit and credit.
As the UAE is the hub for business ventures and investment, these points should be considered and analyzed while investing in UAE.