BANK ACCOUNT
Corporate Bank Account OpeningBank Account Opening
A lot of business people are interested to open a bank account in Dubai-UAE, everyone wants to open their personal and corporate bank accounts in Dubai, so they can secure their monetary assets.
When it comes to Corporate Bank Accounts you have a wide choice of UAE-based banks to open an account with.
Even though a saying says “Cash is King”, idle cash in the wallet is not the future of wealthy people. Making your money work while you sleep is even better.
There are several banks that offer some interest rates on your cash. But this little profit comes with charges when you don’t maintain a minimum balance in the account. Banks charge some fees for non-maintenance of the minimum balance in the account. Not all banks charge fees, there are few banks that provide Zero Balance accounts in UAE.
It is important to mention that the procedure of Dubai bank account opening for corporate use
differs from bank to bank.
Bank account opening in Dubai requires time in order to complete all necessary steps
of the application to open a bank account in Dubai.
The following section of information about opening a bank account in Dubai
will give you a greater understanding.
Bank Account in Dubai UAE – Presence Requirements
As per the legal protocol of the financial institutions of the United Arab Emirates, it is compulsory to be physically present in Dubai for UAE bank account opening. Else, the process will be considered illegal and the bank will not permit opening a bank account in Dubai. The reason for physical presence is that the original signature of the documents and personal identity confirmation is an obligatory requirement that allows the applicant to open a corporate bank account in UAE. However, most banks allow online applications for the pre-approval stage to open an account.
Internet Banking
Most UAE banks allow internet banking which allows access to the account while traveling oversea
Account Owner
If you are a single shareholder or a joined company owner, bank accounts accommodate many ways of setup
Currency
Most banks offer accounts in different currencies like AED, EUR, USD or SFR
We at “1stop Connect” understand how crucial and grueling the process of opening a corporate bank account in UAE can be, and the possibility of the bank denying opening an account for you.
This is why we seek a personal conversation to understand your business and offer you a customized solution according to your business requirements and ensure to comply with every minute detail so that we can cater to you seamlessly.
So, if you have any queries related to company formation in Dubai, UAE, or how to open a corporate bank account in UAE then contact us. For bank account opening keep your documents ready, most banks are asking for the following documents.
- Your Passport as Shareholder or Director or Manager
- Copy of the Emirates ID and shareholder representative
- Comprehensive CV
- Utility Bill or Letter for the accommodation of the General Manager
- Detailed business plan
- Info about the type of activities on the account
- Last 6 months’ personal bank account as well as corporate bank account statement (if your company is not new)
- List the names of at least 5 suppliers and 5 customers
- Disclosure of the source of funds
- Existing contracts with Partners
- Complete set of certified company incorporation documents
- Memorandum and articles
- Certificate of incorporation
- Shareholders registry
- Company extract
- Certificate of good standing
Type of Financial Service Provider
No matter which financial services provider you prefer the process is quite similar in 3-steps.
1-Step: Submit the required documents
2-Step: Fulfil FSP verification requirements in person or digitally
3-Step: Receive your IBAN, Debit card or cheque book and start your business
Local Banks
A variety of local banks allow you to have a Minimum Balance, make International Transactions and hold Multicurrncy accounts
Digital Banks
Fintech Business Account
Very useful when you frequently need to receive money in different Currencies. We have two options of vendors which do not require a minimum balance on your account.
1stop Connect Specialities
The business landscape has changed over the last decade. While traditional financial services are battling decentralized financial services and alternative payment solutions we understand the need and help you to find the right product and service for you.
Exchange
No matter if you need multicurrency accounts, FIAT exchange or Crypto
Wallets
Our Partners help you to open Wallets for tokens, coins, or digital currencies
Online
Online payment gateways for e-commerce and online shops
Request Quote
Bank Account Opening
Challenges you might face while opening a corporate bank account in UAE
Entrepreneurs or SMEs may face hurdles while opening a corporate bank account in UAE. We want to share some experiences we had in the past with you and give you knowledge on how you can navigate around them:
- Regulatory requirements and compliance are tight and the UAE’s commitment to fight financial crimes like money laundering, these effects also the bank account opening process.
- You as an entrepreneur need to prove your credibility while applying for opening a corporate bank account in UAE. You are required to prove good know-how of the industry in which you plan to open a business.
- Some banks in UAE require you to have a residence visa if you’re a resident applying for a bank account in addition to a local address in the UAE.
- If you plan to operate a physical office be prepared that some banks will send an Inspection officer to the address mentioned in the documents submitted to verify the presence of the physical office.
- At any cost, you as an investor should have all information about the business ready to be presented to the banks. Incomplete information can lead to the refusal of the bank in opening a corporate bank account in UAE.
- Avoid conducting business in high-risk areas or countries (embargo countries like Iran or Sudan should be avoided).
- If your Nationality belongs to a high-risk country, then be prepared that opening a corporate bank account is a big hurdle in the UAE.
- The majority of banks will require you to have a minimum balance of AED 25,000 to AED 50,000, depending upon the bank you pick to open an account in. A best practice is to pay in the shared capital on your opened corporate bank account.
FAQ
How long will it take to open my corporate account?
The process varies by a financial service provider (FSP), as each has its own internal procedures and timeframe for account opening. However, opening a corporate account generally takes approximately 4 to 6 weeks. In digital banking, it can happen that your account is ready in 1 week, depending on shareholder structure and background check results.
Is Emirates ID a mandatory requirement to open a corporate account?
Yes, Emirates ID of the authorized signatory(s) of the company is a mandatory requirement for the account opening.
Are there any minimum balance requirements in the UAE?
Most local financial service providers (FSP) in the UAE require a minimum balance to be maintained, which varies depending on the FSP. Generally, corporates must maintain a minimum balance of AED 10,000 to AED 500,000. However, zero balance facilities are also offered with a minimum account maintenance fee.
Can I open the corporate account remotely?
Yes, you can start the process of opening your account remotely. However, you may require to be present in UAE depending on your chosen financial service provider (FSP) to fulfill the verification requirements.
What is the difference between digital FSP and traditional FSP?
For digital FSP, the onboarding process is entirely online compared to the traditional FSP.
What is a virtual account?
A virtual account (VA) or a Virtual IBAN account is an IBAN reference issued by a bank to allow incoming payments to be directed to a physical bank account. Using a virtual account, you can send and receive money worldwide.
How long does it take to open and obtain my virtual IBAN account?
The IBAN should generally be received within five working days after the application is submitted and approved.
How is my money handled when transferred to my Virtual Account?
The funds will go directly to the master account registered for the Virtual Account. With this master IBAN account, companies can create and allocate a segregated virtual IBAN account to each of their customers to send and receive payments.
How many Virtual IBANs can I create?
You may create as many virtual accounts as you like depending on your needs. Each VA number has 18 digits. All you have to do is to customize the last 12 digits of your VA number and assign that unique number to one of your customers. You can repeat the same process for other customers.
Do the virtual IBANs bear my company’s name?
Yes, you receive the virtual IBAN under your company name.
Does the Virtual IBAN support SWIFT transfers?
Yes, it supports SWIFT transfers in multiple currencies, both inbound and outbound.
We have a team of expert professionals with relevant experience in this field. Our professionals work closely with clients and carefully analyze their specific requirements.