Everything You Need to Know About Corporate Bank Account Opening in the UAE
There are various things that need to be kept in mind while applying for a business bank account in the UAE. There are two types of bank account that can be applied; one must have a UAE residence visa to be eligible to obtain a UAE resident bank account. The other one, in certain cases, the client would like to establish a license without a residence visa, so the business bank account will be Non-UAE Resident Bank Account where all transactions will done online and no checkbooks or debit cards are provided to account holder. Other things to be considered are as follow:
Business Plan
This will include the company portfolio where description of the services will be listed down including company’s vision, aim and values. Business plan will also have the number of clients and vendors a company possesses.
Trade License
Obtaining a trade license which includes the following:
- Choose the right business activity – Selection of the right business activity is very important as nobody likes to face any challenges when it comes to audits.
- Obtain the office/shop/warehouse – Obtaining an office/shop/warehouse is a compulsion and mandatory requirement to get your trade license in the mainland. In the Free zone, you can obtain the License with Flexi/Share desk facility but bank compliances will be on the higher side.
Documentation
Consider the following criteria before submission and signing any documents in a bank:
- Deliver accurate details and documents (KYC) – Ensure that legal and corporate documents are in line. The exact documents required will differ slightly from bank to bank. Some banks may also require additional supporting documents: this may include contracts or invoices, reference letters from business partners, company business plans, and information regarding intended business activities.
- Be aware of the time frame – Know the time frame of the process. The time frame might differ from bank to bank.
- Understand the facilities – And understand the facilities which bank provides like a checkbook, credit/debit card, online banking facilities, Letter of Credit (LC), Stand by Letter of Credit (SBLC), etc.
- Always maintain the average balance in the account – Remember to maintain an average balance in the account in business bank account. If you fail to do so, it might lead to a shutdown of business bank account.
This blog is written by Ms. Heena Arora, Partner Relation Executive at Flyingcolour Business Setup, VAT and Accounting Services, Dubai. If you have any query regarding opening a corporate bank account in the UAE then please contact us at +971 4 4542366 or email us at info[at]flyingcolour[dot]com.
