The United Arab Emirates is well-known for its prestigious banking business and the high level of anonymity that its banks offer their clients. The UAE's economic landscape has been defined by the exceptional expansion of private firms, clear official policies, and a corporate tax rate of 0%. Furthermore, a well-functioning financial system creates favorable conditions for businesses to operate in order to boost the country's economic growth.
The high level of secrecy is another major factor for the growing demand for UAE bank account opening services. One of the most important reasons for the success of the UAE banking business, which is dependable and secure for your assets, is its confidentiality. Given this, as an investor, you can rest confident that your privacy will be fully maintained. Allow us to offer you with some facts that you should think about before applying for a corporate account in the UAE.
Factors to Think About Before Opening a UAE Corporate Bank Account
The high level of anonymity is one of the main reasons for the increasing demand for UAE banks. This confidentiality is one of the most important aspects in the UAE banking industry's success, as it makes it efficient and secure for your assets. As a result, as an investor, you can be assured that your privacy will be fully maintained. It's worth noting that various agreements have been reached in recent years between the UAE and other nations in an attempt to combat tax evasion. These agreements mean that, despite jealously preserving privacy, banks must collaborate with foreign authorities in some cases.
If you have a UAE firm (LLC, Free Zone, or Offshore), a registered branch, or a subsidiary company in the UAE, you can always apply for a corporate account with one of the local banks. Furthermore, you can apply for international banks such as HSBC, Standard Chartered Bank, and Citibank; however, a local bank account is preferable in terms of flexibility for SME and beginning businesses.
So, once you've decided which bank to apply to, the next question you could have is if you need to be present to complete the application? As previously stated, local banks are more suggested and suited for you if you have a startup or SME company registered in the UAE. To be more explicit, your presence as a bank signatory is only required for one day or 1 to 5 hours in order to submit the application and validate the passport in the presence of the banker.
In terms of documents, you must evaluate the company operations, the number of shareholders, the management's business background, and the new entity's business plan in the UAE.
Documents Required for Opening a Bank Account in the United Arab Emirates
Dhanguard Consultancy present you with a basic list of the documents you'll need to apply for an account on your own, based on our significant experience. It's important to note that this varies depending on the extent of each client's business and the bank's criteria.
- Utility bill (issued within the recent three months) as evidence of address;
- The corporate records of the company
- For the past six months, each shareholder's personal bank statement
- Corporate bank statement over the previous six months for the shareholder's existing company (if relevant);
- The declaration is accompanied by a corporate document that serves as proof of ownership for your existing company.
- It could be a Certificate of Incumbency or any other document issued by the Authority within the last six months.
Business Strategy, which should include all information pertaining to the company's business activities, financial plan, concise business development plan, possible clients, suppliers (for a trading company), and partners, as well as the management team's background.
In addition to earlier comments, the list of required documents can vary depending on the profile. We recommend that you supply exact and complete documents that contain all of the information. If you follow these instructions, you should be able to open an account in the UAE within a month. To avoid delays, make sure your documents are properly prepared and filed before sending them. We feel compelled to emphasize this because we've had clients who have had to wait many months just because they attempted to open a bank account on their own and were unsuccessful.
What Does It Cost to Open a Bank Account?
As an investor looking to open a business bank account, you may be wondering what the fees are for doing so. The good news is that, like other banks in other countries, UAE local banks do not charge any fees for creating bank accounts. Every local bank is required to keep a minimum monthly average balance, and each bank has its own set of minimum monthly average balance categories.
This balance ranges from 50k AED to 500k AED for local UAE banks, depending on which bank you apply to. For Emirates NBD, for example, it starts at 50,000 AED. If you do not maintain a minimum monthly average balance, you will be charged a penalty of 250 AED every month.
Conclusion
Dhanguard will also emphasize that if you open a corporate bank account with a set minimum maintenance amount with any local bank, we strongly advise you to keep this balance. Because you must maintain a positive relationship with your bank from the start.
You should also be aware that all banks offer excellent internet banking services, which are among the best in the world. For further information connect with Dhanguard.
