Things to remember while opening a Corporate Bank Account for your business

The great infrastructure, the support from Government, the pro-development mind-set makes Dubai the perfect city to form a new business. For this reason Dubai has fast grown into the industrial hub of the Middle East. With the assistance of experts of the business set-up companies it had become fairly simple to set-up a new company. But the next step is as crucial and beneficial as acquiring the required trade license for the new business. This important step is to open a corporate bank account for your business.

Before looking at the things to remember while opening a corporate bank account, let us look at the benefits of getting one:

1. A corporate bank account ensures the safety of all transactions which may include transfer of capital from and to home country.
2. With a corporate bank account is capable to transact in multiple currencies.
3. It allows one to access and use the services of international banks.
4. One can get loan and credit cards and credit facilities if they have a corporate bank account.
5. Not only phone banking option would be made available but even one will get dedicated bank services with a corporate bank account.

Now that we know why to open a corporate bank account let’s look at the things that are important to remember while opening one:

1. The full service of a corporate bank account are available for UAE resident accounts only. Check-books and debit cards will not be issued to non-resident corporate bank accounts. They can only transact online.
2. Firstly know your business needs and then choose a bank that has the facilities and which allows the type of transactions that cater to your business needs. It is also important to check if that bank has the capability to grow with you. Many banks like Emirates NBD, RAK bank, Mashreq bank, Emirates Islamic Bank and First Abu Dhabi Bank offer great corporate bank account services.
3. Ensure that the bank’s ATMs and branches are near your company location in case of emergencies.
4. Understand the fee structure of the bank that you are going to open your corporate bank account with. You need to know the average balance requirement for the account, The fines or penalties if minimum balance is not maintained, annual charges, etc.
5. Submit necessary KYC details as mentioned by the bank.
6. Documents that need to be submitted as per the Central Bank are:

• Certificate of company’s registration;
• Trade license of the company issued by Department of Economic Development (DED);
• Shareholders’ information and all relevant certificates with respect to the same;
• Buyers/ sellers/ clients details (three each);
• Owner and shareholders’ passport photocopies [In case of foreigners, identity documents must be attested by ministry and UAE Embassy/ Consulate in home country and finally by UAE Ministry of Foreign Affairs (MOFA)];
• Estimated turnover in a fiscal year;
• Company’s declaration that authorizes one person to open the corporate bank account;
• Additional documents may be required later as per amendments.

*Many banks may ask for additional documents like referrals, invoices, contracts, etc.

7. Get correct information about the processing time.
8. Once the corporate bank account had been opened make sure that the average account balance is always maintained.

The whole procedure needs lots of time and effort. An expert in the field of forming new companies may provide bank account opening assistance for ease of operation. The appointment of the same can be arranged by the same business set-up company.

Flying Colour Business setup in Dubai services has been helping clients form companies since the past 17 years. We can help you open your new corporate bank account in a hassle-free manner. Please feel free to mail your queries at info@flyingcolour.com or contact us at +971 4 4542366.