Over the years, Dubai has been a significant hotspot for business setups. In recent times, many small to mid-sized and large businesses are building up their bases in Dubai because of its dynamic business environment. But do you know what is required to run a business in Dubai? Active business bank account. No matter what size or type of business you run, having a business bank account in Dubai is essential.
But how do you open a business bank account in Dubai? What documents do I need to submit? What benefits will I get with this bank account? You will find answers to all these questions below. We have covered a comprehensive guide to opening a business bank account in Dubai in 2024.
Types of Business to Open Account in Dubai
There are different types of businesses that can open bank accounts in Dubai. These are-
- General Partnerships
- Limited Partnerships
- Joint Participation Ventures
- Public Joint Stock Companies
- Private Joint Stock Companies
- Limited Liability Companies
- Partnerships Limited with Shares
The UAE Commercial Companies Law states that companies having establishment in any of the emirates’ must be partnered with UAE national holding at least 51% capital of the business. However, establishing the company in free zone won’t come under this law.
Why open a Business Bank Account in Dubai?
There are many reasons why opening a business bank account in Dubai is essential. Some of these are-
- Tax Benefits: The UAE is renowned for having a tax system for its thriving business environment, as there are no personal or corporate income taxes. This helps business to save money against heavy tax payments.
- Global Business Hub: The UAE’s advantageous location provides access to a sizable market of clients and partners, acting as a gateway to the Middle East and beyond.
- Economic Stability – Political and financial stability are significant factors in the UAE’s business capacity and long-term plans.
- Easy Transactions – Since there are few restrictions on banking transactions within Dubai or other nations, you can enjoy seamless transactions.
How to Open a Business Bank Account in Dubai?
Since you know the benefits of opening a business account in Dubai, let us now check the steps to open one.
- Choose a Bank
Look for a bank that offers hassle-free documentation for opening a business account. Choosing the correct bank is essential because they could have varying requirements and fees. For example, you may want to choose a bank with a significant worldwide presence if most of your company’s transactions are overseas.
- Check for the Eligibility Requirement
The common question among entrepreneurs is, what are the eligibility criteria to open a bank account? The requirements remain the same for all banks. Some of these are
- Must have Emirates ID and a valid passport.
- You should have a registered company.
- Business documents and company profile
- Must be above 18 years old.
What are the Documents Required to Open a Business Bank Account in Dubai?
You must submit certain documents for verification as part of the account opening process. These are
- Business License
- Memorandum and Articles of Association
- Signature of Directors
- Valid copy of visa and passport
- Proof of address
- Bank Reference
- Duly filled application form
Submit your Application
On the day of application submission, visit the bank and meet the officials. Once you submit all the documents, the bank will review your application via a thorough due diligence process.
Bank Approval
Once the verification is done, you will get the approval from your bank. Once approved, you will get complete details about your bank account along with the documents.
Initial Deposit
To open your business account in Dubai, you must keep a minimum balance of AED 5,000 to AED 150,000, which differs from bank to bank.
Points to Consider when Opening a Business Bank Account in Dubai
When you look forward to opening a new business account in Dubai, there are specific points to consider. These are
- Bank Charges
Examine all potential expenses associated with your account, such as fees for international transfers, ATM usage, annual account maintenance, and transaction fees. You can save a lot of money by comparing these in the long term.
- Services for Online Banking
For modern enterprises, efficient Internet banking services are essential. Examine the bank’s digital platforms for aspects related to security, functionality, and ease of use. It is crucial to confirm whether they handle payroll processing, significant transactions, and other business services.
- Currency Options
Every bank offers a multi-currency exchange service. You need to check the exchange rates if you have regular multi-currency dealings.
Conclusion
These are the typical steps to open a business account in Dubai. Doing good research about what benefits the bank will offer, customer service, and reputation is an essential part of your lookout. The best you can do is seek assistance from a professional financial service offering you complete information about banks and account openings.
