WHAT ARE THE OPTIONS TO OPEN A CORPORATE BANK IN DUBAI, UAE?
Several locally established banks offer commercial banking services in the UAE, as well as branches of foreign banks. Locally established banks are publicly listed companies licensed in accordance with federal law No. 10 of 1980, now Federal Law No 14 of 2018, and branches of foreign banks are licensed by the Central Bank to operate in the UAE as per the same law.
IS IT DIFFICULT TO OPEN A BANK ACCOUNT IN DUBAI, UAE?
Compliance, compliance, and compliance as well as satisfying banking policies, KYC and Anti-Money Laundering (AML) processes is mandatory for all banking applicants. Since 2010, the US government has fined most of the global corresponding banks in some way or another. This has caused a descending compliance pressure, meaning the UAE banks are vigilant when dealing with the onboarding of new customers and periodically reviewing existing clients to ensure compliance processes are met.
A bank may close a corporate bank account or refuse to open a corporate bank account if a company cannot provide documentation requests such as invoices, contracts etc.
HOW TO OPEN A BANK ACCOUNT FOR A FREE ZONE BUSINESS IN DUBAI & THE UAE?
UAE banks have implemented stricter compliance rules for certain free zones and license types. Economic substance now plays an important role when it comes to starting a banking relationship. This means enhanced checks will be required by the bank if you have a virtual, no smart or flexi desks with your free zone company. Almost all types of business activities are welcomed yet some business activities may also require additional supporting documentation and proof of business facilities. For example, a General Trading license the bank will request to see a full list of suppliers and customers both current and targeted companies. A bank may not consider a General Trading license if the company has a virtual office address. Most banks require to see the link of legitimate trading and request to visit the business warehouse facilities. It is often urged that shareholders obtain UAE residency, spend most of their time in the country and show commitment to their endeavours by operating from a physical office and having a residential address, and utility bills.
HOW TO OPEN A BANK ACCOUNT FOR AN OFFSHORE COMPANY IN DUBAI & THE UAE?
Offshore companies again are subject to enhanced due diligence by the bank. Most banks will request additional documents to support a banking application. Abu Dhabi Global Market (ADGM), RAK International Corporate Centre (RAKICC) and Jebel Ali Free Zone Authority (JAFZA) are the main offshore jurisdictions that banks will consider for the on-boarding.
HOW TO OPEN A BANK ACCOUNT FOR ONSHORE ENTITIES IN DUBAI & THE UAE?
It is relatively easier for onshore (mainland) companies to enter a banking relationship with most of the banks, the reason being, economic substance. In most cases, onshore entities operate through physical offices, warehouses, and retail stores, and with an adequate staff in place to run the company’s affairs. Background checks of shareholders are still relevant in this case, the founders or UBOs should not be from blacklisted countries. Each bank has its own internal criteria to assess the risk and KYC and it is important to provide the required information in an appropriate manner.
WHAT ARE THE REQUIREMENTS TO OPEN A COMPANY BANK ACCOUNT IN THE UAE?
Below we have provided a basic overview on the main documentation requirement to open a company bank account in Dubai and the UAE.
- Comprehensive business plan.
- Company website that demonstrates suppliers’ and customers’ details.
- Physical office location.
- Shareholders’ UAE Residence visa and local address, utility bills.
- Shareholders’ personal, professional profiles and bank statements.
- Audited financials from the home country.
- Details related to the source of funds.
- Key countries where funds will move to and from.
To allow for smooth operations, it is best to carefully analyse each individual application, and document the procedures being presented to the bank.
WHAT IS THE FASTEST WAY TO GET A CORPORATE BANK ACCOUNT OPENED FOR MY BUSINESS IN DUBAI & THE UAE?
It is vital to structure your company correctly in the right jurisdiction, because choosing the simplest or cheapest option could put you six to eight months behind by the time you get your successful bank account opened. Creation Business Consultants will help you throughout the entire process. From selecting the right route for your company and securing the proper documentation. Our team of experts will leverage our experience to help simplify the process while simultaneously providing you with all the details needed to complete the process in UAE and Saudi Arabia.
Contact our expert team to learn more about setting up a company in the UAE and Saudi Arabia, email us at [email protected] or call UAE at +971 4 878 6240 Saudi Arabia at +966 54 995 2676.
