The United Arab Emirates is highly known for its prestigious banking industry and the high level of client privacy that banks provide. Its financial system is a model of stability. Local banks are well known for their high standards of security, trustworthiness, and great customer service throughout the world. As a result, more and more businesses from different nations seek to create bank accounts and conduct business in the UAE. It is important to realize that the prerequisites for opening a business bank account vary depending on the financial institution. If you are aware of the necessary documentation and KYC standards and the relevant costs, creating a business bank account in Dubai is a straightforward process.
Therefore today in this Blog, Dhanguard will extensively discuss the cost as well as other requisites which can be helpful for you to start your Business Bank Account in Dubai. So without any further ado, let’s learn!
What is the Cost of Opening a Corporate Bank Account in Dubai?
You might be curious about the costs involved in opening a corporate bank account if you're an investor who intends to do so.
What's really shocking is that, similar to the majority of banks in other nations, local banks in the UAE don't charge any fees when opening a bank account.
There are multiple minimum monthly average balance categories for each local bank, and all local banks are required to maintain a minimum monthly average balance.
Depending on the bank you apply to, this sum can range from 50k AED to 500k AED for local UAE banks. 50,000 AED is the starting price for Emirates NBD, for instance.
If you fail to keep up the required minimum average monthly balance, you will be penalized with a monthly fee of 250 AED.
When opening a corporate bank account at any local bank, our team at Dhanguard advises that you always maintain the minimum keeping amount specified in the account agreement. Since you need to have a good relationship with your bank from the beginning.
How to open a Corporate Bank Account in the UAE?
When opening a bank account in Dubai, bankers may ask for additional information or require more paperwork. Therefore, it is imperative that applicants answer in this way. Before opening a bank account in Dubai, our staff at Dhanguard can provide advice on the KYC requirements and make the registration process as straightforward as possible for applicants.
The steps below must be followed in order to open a corporate business bank account or company bank account in Dubai or any where in UAE-
Select a Bank
The first step is to select a Bank which caters to your specific needs and requirements. With a long array of Banks available in the UAE, it becomes a difficult task to shortlist and select the best Bank as per your requirements. But you don't have to worry as our team of experts will make this process easy for you.
Filling the Application Form
The application for opening a bank account must be completed in its entirety and be accompanied by thorough business records in order to be approved. The proof of business, such as contact and invoice details, as well as details about the company's customers and suppliers, may be included in this data.
Get your Specific Business License
Obtaining a legal license is among the crucial first stages in beginning a business. Without a license, you cannot create a corporate bank account since the bank will not recognise you as a corporation.
Assemble the Necessary Paperwork
Checking that your legal and corporate documentation are in order is the crucial step that comes next. We have also provided the full list documents which you will require to open the Corporate Business Account further in this Blog.
Look up the Visa Requirements
If shareholders of your firm require a residency visa, that is the next stage in opening a business bank account. At least one shareholder must provide proof of this to the bank, but not all institutions do. Because of this, the banks you contemplate applying to may be affected by whether or not your stakeholders have resident visas.
Read More: Need a Small Business Loan in Dubai? Read this Blog Prior to Applying for One!
What are the Documents required to open a Corporate Bank Account in Dubai?
Below mentioned is a comprehensive list of documents that you will need to acquire before approaching the Banks to open your Corporate Bank Account in the UAE. It is true that the list of Documents required vary from Bank to Bank. But in the below mentioned list, we have tried to cover all the general documents that all banks may ask.
They are listed below-
A Bank Account opening Form which is filled accordingly
The board of director’s resolution authorizing the opening of a bank account, as well as the signatories to the account.
A copy of the business license.
A copy of share certificates.
The Copies of all business partner’s passports.
The Copy of the Articles of Association and the Memorandum of Association.
Factors to consider before opening a Corporate Bank Account in Dubai
You can apply for a corporate bank account with a local bank if you have a Limited Liability Company in the Mainland, a Freezone, or even a branch or subsidiary.
If you own a small or medium-sized business, you will also need to be present for a day or a few hours as a bank signatory to submit the application and check the passport in front of the banker.
You need to take into account the business operations, the number of shareholders, the management's business experience, and the business plan for the new organization in the UAE when it comes to documentation.
There is no reason to be anxious about privacy. In an effort to tackle tax evasion, several agreements have recently been inked between the UAE and other nations. These agreements imply that banks must respect the privacy of their clients while simultaneously working with foreign authorities when necessary.
Benefits of starting a Corporate Bank Account
The benefits of opening a Corporate bank account for your company are as follows-
Your account is kept confidential.
Secure and dependable banking services.
The charges of maintaining your account will be minimal.
The facility of Online Banking is also made available to the account holder.
Withdrawing and depositing money is simple.
Business owners can handle their corporate business bank accounts with Dhanguard's assistance. With the help of our team, we can give our clients a comprehensive range of services for opening and maintaining bank accounts. The bank that would best serve the demands of your business can be suggested by our team of expert professionals. You can use our services to save your valuable time. Thus, we hope this blog provided you with insightful information. For more information on other related aspects, feel free to check out our website or visit our head office as well.