Freezone Account Opening in UAE

A bank account is required for a free zone business to conduct transactions and handle other financial matters. It can be difficult to open a free zone account in the United Arab Emirates. Banks in the United Arab Emirates are the most dependable institutions in the country, but opening an account is no longer as simple as it once was. But don't worry, Dhanguard is here to help and direct you.

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Freezone Account

A freezone company requires a bank account to make transactions as well as to handle other money related matters. Opening a Freezone Account in United Arab Emirates is a little tricky task. You need an expert account opening support to get through the matters of opening business bank account easily. Banks in United Arab Emirates are the most dependable entities in the entire region, but now it is not easy to open an account as it was in past but don’t worry, we at Dhanguard are here to assist and guide you in Freezone bank account opening in the UAE.

Freezone Company Account Opening Requirements

The requirements to open Freezone Account in UAE are as follows-

  • Provided the owner of the company has a UAE visa or the owner has to appoints a POA who already has residency visa for United Arab Emirates.
  • Bank statement for the past 6 months of the parent company or the applicant’s personal account.
  • 3-5 invoices to be used as evidence on some of the stated transactions present on the bank statement.
  • Reference letter from the bank where the applicant belongs (Optional requirement, on the discretion of the concerned bank)
  • The authorized documents for the business’s formation in UAE & the owner’s ID Proof.

Features of Freezone Account

The features of freezone account are as follows-

  • Free zone company can receive money from anywhere and spend it locally;
  • Free zone company bank account can also accept money locally;
  • Free zone companies are issued with debit or credit cards;
  • Free zone companies offer trade finances;
  • Few Freezone Companies can be exempted form VAT only in case of Port-to-Port Business, but if the goods are sold in UAE then the company has to register for VAT.

Documents Required for opening Freezone Account in UAE

Documents required for opening Freezone Account in UAE are as follows-

Documents Required for opening Freezone Account

Bank statements

It is essential to understand the foundation of shareholder's income. In other ways, where the money for business arrangement and operations comes from. So, a compulsory requirement is to provide with a bank statement from your private account, where the following information must be displayed whether you accept a salary, bonuses or have any other source of income (example, you accept income from the rent of apartment). If your bank statement does not demonstrate that you hold adequate funds for sustaining your business and you are incapable to provide bank statements from supplementary accounts you hold there is a high risk for your account opening request to be rejected by the concerned bank. Same goes for the source of income. Even if you have adequate funds but you are not able to clarify the source of such income, there is yet again a high chance for rejection of your request.

Resume of the account holder

The resume must emphasize your professional experience as well as education. In combination with the resume your company profile is required to be drafted.

Corporate documents

Corporate document describes the main events of the company, plans for business growth, provides an explanation of how the existing specialization experience of the founder stated in the resume is associated to the choice of activities for the new business. The main aim of the documents is to show that the company will be active and all the activities will agree with those indicated on the company's license

Proof of physical existence

Required documents are to be submitted which indicates that the business has a physical presence and existence.

Signatures of the forms, passports, and other relevant documents

Required Signatures on the relevant documents are states by the concerned Bank.

In general, your business account opening procedure is very straightforward, specially, if you formulate all the documents in advance and follow up frequently with the bank on status of account opening.

Freezone Account Related FAQ

Frequently Asked Questions

  • What is Freezone Company?

    A freezone Company is a defined and remote land or setting, with a distinct tax, duties and imports administration, that is different from a central area. The main benefit of owning a freezone company is that as an emigrant, you can own the corporate activities 100% without wanting to give out any of its shares to other.

  • Is it possible to open Freezone Bank Account remotely?

    No, it is not possible to open any business bank account remotely with United Arab Emirates banks. It is a basic requirement of Central Bank that you are required to be present physically while opening your Freezone Account.

  • What is meant by Freezone in UAE?

    Freezone are essentially economical areas where goods and services can be traded, generally at privileged tax and customs rates.

  • How many Freezone are there in UAE?

    There are total 37 Freezone in UAE.