Checklist for Selecting the Right Bank for your Business Account in UAE

Checklist for Selecting the Right Bank for your Business Account in UAE

Due to its comprehensive government support for business institutions, Free zone business setup options, clear public policies, tax incentives, and business infrastructure, the UAE is often the most preferred location for investors. Global investors tend to establish a company in the UAE with a corporate bank account to promote smooth trade operations in the area and internationally. The UAE's banking sector is well-developed, providing investors with trust and protection for their funds as well as seamless foreign banking services. The main question that arises is that how to choose the right bank for your business account in UAE, we at Dhanguard will assist you for the same.

Commercial banks in the UAE are divided into two categories: locally incorporated banks and international bank branches.

According to statistics, there are currently 23 local banks and 28 international bank branches operating in the UAE. All banks operating in the UAE are controlled by the UAE Central Bank.

Some of the local banks in UAE are as follows-

  1. Abu Dhabi Islamic Bank
  2. Mashreq Bank
  3. National Bank of Abu Dhabi
  4. Emirates NBD
  5. Union National Bank
  6. Commercial Bank of Dubai
  7. RAKBank
  8. Emirates Islamic

Some of the International Banks in UAE are

  1. HSBC Bank
  2. Standard Chartered Bank
  3. United Bank Ltd.
  4. Citibank

How to choose the right bank account for your business account in UAE?

The banking system in the United Arab Emirates provides members of the business community with a plethora of strategic advantages and benefits. In reality, several banks provide corporate clients with a wide range of financial resources and advanced business services. Several banks, including Emirates NBD, Noor Bank, RAK Bank, Mashreq Bank, Emirates Islamic Bank, and First Abu Dhabi Bank (FAB), are available to meet your needs. The best option for you will be determined by your personal needs.

You must consider the following criteria before choosing a bank in UAE:

criteria before choosing a bank in UAE

Select the Right Bank

For you to complete your purchases, you'll need a bank account. So, depending on the essence of your transactions and services, such as a chequebook, debit/credit card, trade finance, and other instruments, select the right bank. Always seek professional advice before going to the bank, as this will enable you to complete the paperwork at the same time. You need to know about the Bank History, the size of the Bank as well as the Customer Base.

Know about the Fees& Charges

Before choosing a bank, learn about the following things

  1. Minimum Balance Conditions- Few banks in UAE asks to maintain a minimum balance that is the average balance.
  2. Fines for not maintaining a minimum balance- Know the charges that banks levies when one is not able to maintain the minimum balance requirement.
  3. Transaction Fees- Know the transaction charges, if you withdraw more than the allowed withdrawal limit.
  4. Monthly Fix Charges - This is the fix charges asked by the banks whether you maintain the average balance or not. Don’t get confused with the minimum balance requirement.
  5. Annual Service Fees- know the annual service fees applicable by each of the bank.
  6. Other Relevant Charges.

Understand the Guidelines and Policies of the bank

Banking practises vary from one bank to the next. Create a list of all of your business's requirements, and make sure the bank you choose will meet them now and expand with you as your company grows. Check the various features offered by the banks such as

  1. Debit Card facility,
  2. Cheque Book,
  3. Online Banking through Mobile App or Website as per your requirement.

Map out the closest branches and ATMs

Choose a bank that is close to your business location; in the event of an emergency, selecting a bank with the closest branches or ATMs is the best choice.

Check the Payment Facilities provided by the Banks

Always check for the types of payment services that are being offered by the Banks. To choose the right Bank you have to check that whether the bank is offering online payment services for the following-

  1. Payment of utility bills such as
  • DEWA- Dubai Electricity & Water Authority Bill Payments
  • SEWA- Sharjah Electricity, Water and Gas Authority Bill Payment
  • FEWA- Federal Electricity and Water Authority bill payments
  • Telephone Bill Payment- Etisalat & DU
  1. Government related bill payments.
  2. You also need to check that whether the bank is providing for Payment getaway Services.

Offering WPS

Wages Protection System (WPS) is an electronic salary transfer system that allows institutions to pay workers' wages through authorised and registered agents, which include banks, money exchanges, and financial institutions, as approved by the UAE Central Bank. You need to check that whether the bank of your choice is offering this type of service. This is mainly offered for Mainland Company.

What are the services offered by the Banks for business Account?

The Services Offered by Corporate Banks in the UAE are as follows-

  • ATM Services
  • Cheque Book
  • Credit and Debit Card
  • Customer Service
  • Facility of Credit
  • Flexible Transfer of Funds
  • Multi-Currency Account
  • Online Banking
  • Types of Bank Account (International, Offshore)

Best Banks for Business Accounts in UAE

The best banks for business account in UAE are as follows-

Emirates NBD

The best bank in the UAE for opening business bank accounts is Emirates NBD. This bank is prepared to provide the best bank accounts in the UAE to meet all of your business and financial needs. For its customers' daily business banking needs, Emirates NBD provides three business accounts. They are Current Account, Fixed Deposit Account and Call Deposit Account. When it comes to bank accounts, the bank offers everything from simple checking accounts to interest-earning bank accounts and flexible deposit accounts.

It's also worth noting that all of the bank accounts are open in a variety of currencies and have competitive interest rates.

Abu Dhabi Islamic Bank      

For business purposes, Abu Dhabi Commercial Bank provides two main types of accounts:

  1. Commercial Banking Call Account —deposit account with quick access to available funds (available in AED, USD, EUR, and GBP)
  2. Business Current Account —specialised bank account for various business purposes (available in AED, USD, EUR, and GBP)

Simultaneously, each account is available in a variety of account options, each of which is designed to handle a wide range of business financial tasks. The intent of these accounts as well as the size of the minimum account balance vary.

Mashreq Bank   

Mashreq Bank is the United Arab Emirates' oldest private bank. This bank has a long and extensive history of supporting business clients.Mashreq Bank provides a variety of Business Accounts that are rewarding, dependable, and tailored to the needs of the client. Business Accounts are divided into four categories: Business First, Business Premium Account, Business Platinum Speed X Account, and Term Deposit. All of these Mashreq Business Accounts provide extensive and customised account services to their customers in order to facilitate day-to-day business transactions.

RAK Bank 

Your money is always accessible with a RAKBANK Business Account. It's an appealing alternative for their Business Customers because it has a low minimum balance and a variety of local and international currencies. To suit your needs, they provide a range of Current and Deposit Accounts.

Emirates Islamic Bank

Customers who want to handle their money effectively should choose Emirates Islamic Bank. The account holder can use the bank's online or phone banking services to have a good banking experience or to ensure a convenient Emirates Islamic Bank Account Opening process. They will get high profit rates on these accounts, which will help them save more money.

Conclusion

Banking is one of the most difficult issues that entrepreneurs in the UAE face, but there is now a lot of help available from local experts.

Working with a professional is the best way to ensure that everything goes smoothly. Our Banking Consultants will help you with every step of the way. When it comes to starting a new company, you already have a lot on your plate; make sure that setting up a business bank account isn't one of them.

By Om Chaudhary

27-Apr, 2021

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