Bank Account Opening in UAE

If not for a bank account, none of us can protect, save, transfer, or loan funds. Your bank is your friend in need, whether you are a student, worker, or business person.

For efficient trade operations both locally and internationally, foreign businesses in the UAE are highly recommended to open a current (aka corporate) account with the most suitable bank. The banking industry in the UAE is highly evolved, offering investors trust, protection for their money, and convenient foreign banking services. The only question that can spring up in your mind now is how to find out which bank is right for your business. And the answer is to take stock of your business needs, shop around different UAE banks for the best services and figure out the amount of convenience you are getting from the bank in terms of various fees, interest rates, customer service, atm and branch locations, etc. A Corporate Service Provider like us can also help you find the bank that’s perfectly suitable for you.

Choosing the right bank in the UAE for corporate banking

If you ask us, here are some valuable tips to find the right bank in the UAE to start a corporate account.

Research and compare different banks: Look at the different options available in the UAE and compare the features and benefits of each bank. Consider factors such as fees, exchange rates, and the types of accounts and services offered.
Consider your business needs: Think about the specific needs of your business and what you will be using the corporate account for. This will help you narrow your options and find a bank that meets your needs.
Look for a bank with a good reputation: It’s important to choose a bank that is reliable and has a good reputation. Look for banks with a long history in the UAE and those with a strong track record of customer satisfaction.
Consider the location of the bank: If you are conducting a lot of in-person banking, choosing a bank with branches near your business may be helpful.
Talk to other businesses: Ask other businesses in the UAE about their experiences with different banks and get their recommendations. This can be a valuable source of information and can help you make an informed decision.
Consider the fees and exchange rates: Fees and exchange rates can vary significantly from one bank to another, so it’s important to compare these carefully before making a decision.
Choose a bank with good customer service: Good customer service is important when you are setting up a corporate account, as you may have questions or need assistance with various aspects of the process. Choose a bank that is known for its helpful and responsive customer service.

Banking System in the UAE

The United Arab Emirates (UAE) is a federation of seven emirates in the Arabian Gulf. The banking sector in the UAE is well-developed and plays a significant role in the country’s economy. Banking in the UAE is regulated by the Central Bank of the UAE, which was established in 1980. The Central Bank sets monetary policy, regulates the banking sector, and issues currency. There are both local and international banks operating in the UAE.

The local banks in the UAE include:

Abu Dhabi Commercial Bank

Dubai Islamic Bank

The local banks in the UAE include:

Abu Dhabi Commercial Bank

Dubai Islamic Bank

Emirates NBD

First Abu Dhabi Bank

National Bank of Abu Dhabi

Emirates NBD

First Abu Dhabi Bank

National Bank of Abu Dhabi

There are also a number of international banks operating in the UAE, including:

Citibank

There are also a number of international banks operating in the UAE, including:

Citibank

IndusInd

HDFC

HSBC

IndusInd

HDFC

HSBC

Standard Chartered

Bank of America

Deutsche Bank

Standard Chartered

Bank of America

Deutsche Bank

The banking sector in the UAE offers a range of financial products and services, including checking and savings accounts, loans, credit cards, and investment products. In addition, many banks in the UAE offer online and mobile banking services, making it convenient for customers to manage their accounts and conduct transactions.

Types of banks in the UAE

There are several types of banks operating in the United Arab Emirates, including:

Commercial banks

These banks provide a wide range of financial products and services, including checking and savings accounts, loans, credit cards, and investment options.

Investment banks

These banks specialize in providing financial services to businesses, including underwriting, merger and acquisition advice, and trading.

Islamic banks

These banks follow Islamic finance principles, such as profit and loss sharing, and offer financial products and services that comply with these principles.

Central bank

The central bank of the UAE is the Central Bank of the United Arab Emirates, which is responsible for regulating the country's monetary policy and financial system.

Development banks

These banks focus on providing financial support for economic development projects and small and medium-sized enterprises.

Types of banks in the UAE

There are several types of banks operating in the United Arab Emirates, including:

Commercial banks

These banks provide a wide range of financial products and services, including checking and savings accounts, loans, credit cards, and investment options.

Investment banks

These banks specialize in providing financial services to businesses, including underwriting, merger and acquisition advice, and trading.

Islamic banks

These banks follow Islamic finance principles, such as profit and loss sharing, and offer financial products and services that comply with these principles.

Central bank

The central bank of the UAE is the Central Bank of the United Arab Emirates, which is responsible for regulating the country's monetary policy and financial system.

Development banks

These banks focus on providing financial support for economic development projects and small and medium-sized enterprises.

How to open a corporate bank account in the UAE?

Now, coming to the process of opening a corporate account in a UAE bank. Before you start to get in touch with the desired bank in the UAE regarding your corporate account opening you must know that you may file your bank account opening request in two ways:

In-person application
Online application.

If you choose the In-person application, you must be present at the time of application to meet the bank official for identity verification, sign the bank account opening application form and submit the required documents.
On the other hand, if you choose an Online application because you are outside of the UAE, you can start the process by meeting the bank representative either via a phone call or an online meeting but upon application approval, you have to physically visit the bank and sign the bank account application form. You might have to wait for 25 days or more after application submission, depending on the complexity of the application. Ahead we have explained the documents requirements and process of opening a bank account in the UAE in easy steps.

Step 1: Decide the bank with which you want to start the corporate account. Selecting the right bank for your business account can get tricky, especially if you are not consulting a business setup expert. However, suppose you know how to analyze which bank can squarely fit into your business requirements. In that case, your first step can get a lot easier. Whether the chosen bank is feasible for your business or not depends on certain parameters. So, the simplest answer is to consider the following:

The nature of your business transactions and services (such as a chequebook, debit/credit card, trade financing, and other instruments)
The bank fees and charges that will be levied for the services your firm might need, the policies and guidelines of the bank
The availability of WPS (Wages Protection System) services
The location of the bank branches and ATMs

For your information, ADCB, Abu Dhabi Islamic Bank, Emirates Islamic Bank, Emirates NBD, RAKBank, and Mashreq Bank, are some popular choices amongst expat investors when it comes to opening a corporate account in the UAE. Choosing the right bank for your business is half the battle because the process of starting an account with the desired bank is easy.

Step 2: Ensure you are eligible to open a current account in the UAE You and your company must be able to suffice specific eligibility criteria as specified by the concerned bank to open a corporate bank account in the UAE. This can vary from bank to bank as each bank in the UAE has its own eligibility requirements. For instance,

The company must keep a specific minimum monthly balance in its bank account.
Several banks demand the organization to hold a savings or current account to qualify for a business account in the UAE.

Step 3: Submit the application with all the mandatory documents for opening a bank account in UAE In order to open a bank in UAE, applicants need to meet the documentation requirements, which can change from business to business and bank to bank. Here are the documents you must carry to your bank to open a company account in a general scenario.

Identity Card: Emirates ID card (copy) and a valid passport (copy) of the shareholder representative and company director, plus the residence visa of the shareholder representative.
Complete CV: The applicant must show 5-7 years of professional and business experience in line with the chosen commercial activity.
Utility Bill: Proof of your current address (issued in the last three months) is required to open a business bank account in the UAE.
Company Business Documents: You’re required to present your company’s business documents at the time of opening a corporate bank account in the UAE
Shareholders’ Corporate Bank Statements: Provide the bank statements of the previous six months from the shareholder’s current company (if applicable).
Shareholders’ Personal Bank Statements: 6 months’ personal bank statements from each shareholder are required.
Corporate Document for Proof of Ownership: Submit a business company document that acts as proof of ownership for your current business. For instance, a Certificate of Incumbency or any similar paper dispensed by the authority within the last 6 months.
Business Plan: A detailed business plan is a must to open a current account in the UAE. The comprehensive business plan should contain all information about the intended business activities, potential clients, a straightforward business development plan, financial plan, suppliers (for a trading company), partners, and the management team’s background.
Board Resolution: It is crucial to produce a Board Resolution authorizing a Company Officer to open the account.

Hang on; there’s more: The above checklist of business bank opening documents can include other documents as well at the bank’s sole discretion.

Step 4: Wait. The bank needs time to review and verify your request to open a business bank account. There is no specified time limit for completing the bank account opening procedure, as each bank has its internal approach and timeline. Opening a bank account in the UAE can take 2 – 4 weeks, whether for mainland companies or free zone companies. Step 5: Make time for the interview with the banking official The final step is you will be called for an interview with your dedicated account manager, after which the bank account will be opened. Phew!

Why open a corporate account to do business in UAE?

There are several reasons businesses in the UAE may need to open a current account. One reason is that it provides a convenient and efficient way to manage the business’s financial affairs. A current account allows the business to deposit and withdraw funds as needed easily, and it can also be used to make and receive payments from customers and suppliers.

Another reason a current account may be required in the UAE is that it is often required to obtain certain licenses and permits. Many government agencies and regulatory bodies in the UAE require businesses to have a current account in order to operate legally.

In addition, a current account can also be useful for establishing a business’s financial stability and creditworthiness. By maintaining a current account and demonstrating a track record of responsible financial management, a business can access additional financial resources and opportunities, such as loans and investments.

Corporate Bank Account in UAE

Also called a current or business account, a corporate account is a type of bank account typically used by businesses to manage their day-to-day financial transactions. These accounts are designed to facilitate the movement of money in and out of the account on a regular basis and are usually used for purposes such as paying salaries, managing bills and expenses, and conducting other financial transactions related to the business. Be informed that opening a corporate account is vital for businesses operating in the UAE as the law prohibits them from doing business with a personal account. One of the reasons behind this is that companies have to process a large volume of transactions.

Ensure you have all the required documents before heading to the intended UAE bank to open a corporate account. The exact document requirements can differ from bank to bank depending on the type of your company; however, in a typical scenario, you must be ready with the following documents:

Company trade license
Company’s registration certificate
Share certificates
The company’s articles of association and memorandum
A letter from the board giving a company officer the power to open a corporate account
Shareholders’ visas and passports
Office lease agreement / EJARI
Personal profile or CV of all the partners or owner and Manager
Company Profile
6 months’ personal Bank statements of all the partners
3 Customer & Supplier names from non-sanctioned countries i.e., North Korea, Syria, Sudan, Afghanistan, etc.

Corporate Bank Account in UAE

Company trade license
Company’s registration certificate
Share certificates
The company’s articles of association and memorandum
A letter from the board giving a company officer the power to open a corporate account
Shareholders’ visas and passports
Office lease agreement / EJARI
Personal profile or CV of all the partners or owner and Manager
Company Profile
6 months’ personal Bank statements of all the partners
3 Customer & Supplier names from non-sanctioned countries i.e., North Korea, Syria, Sudan, Afghanistan, etc.

Cost of opening a current account in UAE banks

Local banks in the UAE, just like most banks in other countries, do not levy any fees for opening bank accounts. Nevertheless, every bank has its own minimum average monthly balance categories. Depending on your chosen bank, this balance can swing between AED 50k – AED 500k for local UAE banks. Case in point: For Emirates NBD, it is AED 50k. There is a monthly penalty of 250 AED for failing to maintain a minimum average monthly balance.

PS: Corporations in the UAE can have accounts in various currencies, including AED, USD, Euro, GBP, and CHF, amongst others.

Your Ingenious Business Setup Expert Can Help

As a one-stop shop for all kinds of business support in the UAE, we at Ingenious Corporate Services can take care of all bank account opening needs. Working with a suitable bank from your company’s inception is invaluable – it will save you a lot of time, hassles, money, and sleepless nights. With our business setup consultant by your side, you don’t have to worry about choosing the right bank for your business in UAE. For more information on bank-related aspects, feel free to contact our business setup advisors in Dubai. We can also meet on Zoom through this link.

Cost of opening a current account in UAE banks

PS: Corporations in the UAE can have accounts in various currencies, including AED, USD, Euro, GBP, and CHF, amongst others.

Your Ingenious Business Setup Expert Can Help

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