In the United Arab Emirates, opening a commercial bank account can be time consuming exercise. Most businessmen are not aware about the process of opening a bank account and the necessary paperwork required hence it can be a daunting process for them.
From documentation to the process of creating a new business account and maintaining it – all these factors can be challenging to manage for the people who are already busy in managing their businesses.
In this article we have created a quick guide on how to open a bank account in Dubai or any other Emirates, as a commercial entity.
Let us get started!!
Why open a bank account in Dubai?
Although you can use overseas bank account for money management, most expats doing business in the region find it more convenient to open a local bank account.
One of the biggest reasons UAE offers is immense taxation benefits and lower charges, due to which businessmen prefer to open a bank account and transact from UAE banks.
Despite the UAE’s banking system’s convenient connections to other nations’ financial systems. Local creditors may at times be reluctant to move funds abroad due to the bank charges associated with such transactions, Finally, having a local account makes it simpler to apply for other banking facilities such as overdraft etc which can help the business with managing their cashflow.
So, how to open a bank account in Dubai?
Opening a bank account in may take anything from a couple of weeks to couple of months – having correct information is very crucial to get the job right.
Primarily, you need to be a legal resident of the country, after which you may prepare a set of documents to apply for a new bank account as a businessman in Dubai:
- Bring both your authentic passport and a photocopy with you.
- Proof that you are a UAE resident, such as an Emirates ID card or copy of the visa page.
- UAE Company License
- Registration Documentation
- Articles of Incorporation or Memorandum of Association
Additional documentation that may be required from bank to bank for non-residents include:
- Newest Utility Invoice
- Original Letter of Recommendation from An Existing Banking Relationship.
- Personal Bank Statements from The Most Recent Six Months, Dated In The Country Of Origin Or The Country Of Current Residence
Over and above there may be more documents required based on each case. Every business activity, nationality of the owner/shareholders are different hence it makes each case very unique.
We at Efficient CFO have more than 30 years of experience in dealing with many banks around the globe and particularly in Dubai and UAE in general. We can guide you in the right direction so that you can get things done in an easier and much efficient manner.
An account may be opened by a corporate official with the approval of the board of directors.
Authentic copies of shareholders’ and signatories’ passports and visas.
Documents required to open a business bank account in Dubai?
There is a list of documents you may require that vary from business to business. However, here are the most basic types of documents you may require while
opening a bank account in Dubai.
- Authorization from the shareholder (if applicable)
- Shareholders national ID such as Emirates ID or a valid passport with the UAE resident visa stamped on it.
- Bank statements from any international bank. This is just a requirement and may or may not be audited.
How much time does it take to open a bank account for an expat businessmen in Dubai or anywhere across the UAE?
For a businessman in Dubai who is willing to open a bank account for a limited liability company (LLC) may take slightly longer than a freezone company. For a Free Zone company in the United Arab Emirates it might take anywhere from two weeks, while for a mainland company it could be up to four weeks.
How simple is it to start a commercial bank account in Dubai?
It is true that business owners may find it extremely difficult to open a bank account especially after the recent changes in the financial systems in the UAE.
Registering a company itself can be a lot, plus running around for paperwork and documentation to acquire a bank account can further be tiresome. Getting a corporate bank account in Dubai is hard due to the vigilant and stern regulations imposed on financial institutions by the United Arab Emirates. However, experts from the region can certainly guide you on how
to easily apply for a bank account in the UAE. There are a few ways through which your bank
an account opening application in Dubai can be accepted.
Is possible to open a bank account in Dubai from
outside the country? How to open a bank account online in Dubai?
You may not be able to open a bank account from outside the country. However, opening a business checking account online is surely a possibility! Not only
is convenient and quick, but it also gives you the ease to complete the entire process with comfort than going to a physical bank.
The time it takes to fill out and submit an online application differs from bank to bank. Nonetheless, it doesn’t take more than an hour or even less!
Could businessmen apply for a bank account in Dubai without a residence visa?
The banks only allow GCC citizens to open current bank accounts without a UAE resident visa. However, all other expat entities need to acquire a residential visa. This is subjective as per the regulations stated by the UAE Central Bank.
Still need clarity?
Speak to a financial advisor and get guided assistance on opening a bank account in the region. With Efficient CFO, we help you scale your business by simplifying all your financial needs.
Efficient CFO offer comprehensive financial and TAX Services in the UAE. We help our clients by providing them proper guidance and assisting them to comply with the updating banking, finance, and UAE TAX provisions.
Book a free consultation with a financial expert today!
