Bank Account Opening
Establishing a business bank account in the UAE can pose challenges due to rigorous compliance procedures mandated by the UAE Central Bank. However, our bank account opening service eliminates this complexity. Our team will support you throughout the process, guiding you through each stage to ensure a seamless and trouble-free experience.
Must Know
In-person application: Your presence is essential during the application process. This allows you to personally meet with the bank representative, sign the application form, and submit the necessary documents.
Online application: For those outside the UAE, you can commence the bank account opening process online. However, your presence will still be necessary either through a phone call or an online meeting. Upon approval of the application, the bank will request you to visit the UAE to sign the account opening form. The standard processing time is approximately 14 days for digital applications and 25 working days or more for in-person applications, contingent on the complexity of the application.
Our Bank Account Opening In UAE
Client assessment
Our team will evaluate your company’s activities, operations, anticipated annual turnover, and the initial funds available for account opening. Using this information, our team will suggest the most appropriate bank for your business.
Liaising with the bank
If the bank necessitates additional information or undertakes further processes, we will engage with them and aid you in fulfilling the additional requirements. In certain situations, if you are unavailable to meet the Contact Point Verification Agent, we can also serve as your representative.
Documentation
We will support you in gathering and organizing the necessary documents requested by the bank. These may include:
- Officially certified company incorporation documents
- Company profile
- Valid passport copies of all shareholders
- Personal profiles (CVs) of all shareholders
- Six months’ personal/business bank statements for all shareholders
- Emirates ID and residence visa copy, at least for the signatory
- A copy of your Ejari or proof of UAE residential address
An Entrepreneurs Guide
The United Arab Emirates is rapidly becoming one of the most attractive destinations, drawing around 200,000 newcomers annually. With its combination of oceanic beauty and a fast-paced city life, it offers a diverse experience all in one place!
If you’re planning to relocate to the UAE, having a bank account is essential. Managing one or multiple bank accounts facilitates money transactions and payments for goods and services in your new country. To simplify the process for you, we’ve compiled a brief guide on opening a bank account in the UAE. Let’s delve into understanding everything you need to know about the diverse banking services in the UAE!
An Overview of Banking in the UAE
Before delving into the process of opening a bank account in the United Arab Emirates, let’s take a moment to discuss the country’s banking sector. Regulated by a central bank, the UAE boasts a banking system comprising around 50 international and local banks dispersed across the nation. The system is recognized for its stability, attributed to the banks’ substantial liquidity buffers and resilient capital levels.
Deposits primarily fund most banks in the UAE, with their robust capital levels serving as a significant buffer to absorb potential losses. The UAE hosts four distinct types of banks, namely commercial banks, investment banks, industrial banks, and Islamic banks. The latter has witnessed a surge in popularity, with UAE banks extending their services to comply with Islamic financial requirements, catering to the significant Islamic population residing in the country.
Presently, the nation is home to 23 Islamic bank windows and 8 full-fledged Islamic banks, collectively constituting almost 20% of the UAE’s banking sector. In addition to serving the Islamic community, UAE banks also accommodate foreigners and international clients. They adhere to various international regulations and provide their banking services in both Arabic and English.
Some of the international regulations that UAE banks adhere to include the International Accounting Standard, International Financial Reporting Standards, and the Capital Adequacy Regulations outlined in Basel III Regulations.
Types of Bank Accounts in the UAE
Before delving into the process of opening a bank account in the UAE, it’s essential to understand the various types of bank accounts available. These accounts cater to both non-residents and residents of the UAE.
Current Accounts
The Emirates Islamic Current Account functions as a transaction account, offering a checking option for the accountholder. This account includes Debit card facilities, a check-book, and various other banking benefits. Ideal for daily transfers and transactions, it is particularly useful for issuing rent checks to your landlord.
Banks in the United Arab Emirates typically provide two types of current accounts, one with salary transfers and the other without. If you are employed in the UAE, opening an account at your employer’s bank can expedite salary transfers. Opting for a different bank may result in a delay of up to a few days for your salary to be credited.
Emirates Islamic Current Account can be opened for major currencies, including USD, GBP, AED, Euro, Yen, Saudi Riyal, Kuwaiti Dinar, Canadian Dollar, Qatari Riyal, Bahraini Dinar, and Omani Riyal. However, if the account is in a different currency, it won’t offer debit card and check-book facility options.
For opening a Current Account, a minimum balance of at least AED 3,000 is required. However, when your salary is transferred to the Current Account, the minimum balance requirement is waived.
Savings Accounts
Many individuals in the UAE opt for a savings account to maximize their financial resources. Savings accounts typically offer higher interest rates compared to checking accounts, but they come with limited access to funds and may incur penalties for withdrawals.
Savings accounts operate on either variable or fixed interest rates, allowing you to choose the currency in which you’d like to denominate your funds. While savings accounts can also function as salary accounts, they usually lack the convenience of a check-book.
When considering opening a savings account, it’s crucial to select the right bank. Interest rates, minimum deposit requirements, and fees vary among banks. Though these differences may seem minor, they can accumulate over an extended period, potentially costing you money.
Investment Accounts
Another service available when initiating a bank account in the UAE is an investment account. You have the option to sign an investment agreement with any bank, enabling you to establish an investment account.
Typically, the investment period for these accounts spans from 12 months to 10 years, although it can extend even longer. The investment agreement guarantees a minimum annual return on investment (ROI) ranging from 3-7%.
It’s essential to be aware that investment accounts come with specific minimum balance requirements, and the minimum balance can vary based on the bank you decide to collaborate with.
Offshore Accounts
The UAE, particularly Dubai, is a favored destination for expatriates, and as such, it provides access to offshore banks from various global jurisdictions. Expatriates residing and working in Dubai find this option appealing.
In the United Arab Emirates, individuals holding a valid residence visa have the eligibility to open an offshore account, allowing them to seamlessly import and export funds. Offshore banking in the UAE is recognized for its security, stability, and reliability, offering a financially advantageous alternative with generally lower taxes compared to other banking options.
Offshore banking services in the United Arab Emirates encompass a range of offerings, including:
- Asset protection
- Wealth management
- Portfolio management
- Private bank accounts
- Company formation
- Inheritance planning
How to Open a Bank Account in UAE
Armed with this information, you are well-prepared to proceed with opening a bank account in the UAE, a process known for its speed and efficiency, typically taking anywhere from a few days to a couple of weeks.
For UAE residents looking to open either a current account or a savings account, the following documentation is required:
- Your original passport along with a copy
- A copy of your UAE resident visa
- A salary certificate
- Your Emirates ID card or a copy of your registration form if not yet received
Non-residents can only open a savings account, and although a checkbook won’t be provided, a debit card for withdrawals is included. Opening a savings account as a non-resident often involves background checks, with banks requesting the following documents:
- A recent utility bill
- A reference letter from your home bank
- The six most recent monthly bank statements from your home bank
- Information verifying consistent funding sources
These documents ensure that you possess the means to maintain a bank account in the UAE. Opening a non-resident savings account may take a bit longer due to the additional documentation required.
Opening an Account on a Mobile Device
Another noteworthy aspect of opening a bank account in the UAE is the convenience of mobile banking. In a tech-centric society, it’s no surprise that two banks offer the ability to open an account directly through their mobile banking apps.
While most banks provide mobile banking features for tasks like money transfers and balance checks, not all allow the application for new accounts through their mobile apps. However, some banks facilitating mobile account creation include Liv, backed by Emirates NBD; Neo, powered by Mashreq; and YAP, the UAE’s first independent digital banking platform.
To open an account with these banks, start by downloading the application and scanning your Emirates ID into the system. Subsequently, you’ll be guided through an account opening process similar to online platforms. Once the account is active, adding funds initiates the account.
With funds in your account, you are ready to go. Within a day or two, a local delivery team will contact you to arrange the delivery of your new debit card. These debit cards function internationally and at various ATMs. Additionally, your bank provides a Swift code and IBAN account number, facilitating easy transfers using your new account.
Corporate Accounts
If you intend to conduct business in the UAE using a bank account, it is imperative to open a corporate bank account, as UAE law prohibits business transactions through personal accounts. Corporate accounts are typically structured as current accounts to efficiently handle a large volume of transactions. The process of opening a current corporate account in the UAE generally spans two to four weeks.
When initiating the opening of a corporate bank account, it’s essential to be aware of the additional documents required. While the specific documents may vary based on your chosen bank and the type of company, they commonly include:
- Your company trade license
- A certificate of your company’s registration
- Share certificates
- The company’s articles of association and memorandum
- A letter from the board authorizing a company officer to open a corporate account
- Visas and passports from all shareholders
With these documents in hand, you’ll be well-prepared to proceed with the corporate bank account opening process.
How to Choose the Right Bank Account in UAE
For expatriates, the prospect of opening a bank account in the UAE can be daunting, with concerns about accessing necessary services as a foreigner. Fortunately, approximately 85% of the UAE’s population consists of expats, making banks well-acquainted with catering to the needs of foreign residents. They possess the resources required to ensure a smooth account opening process.
To ensure you choose a reputable financial institution, consider asking the following key questions:
- Do you have a required minimum balance, and if so, what is it?
- What fees and penalties are associated with the account?
- Are there requirements for salary transfers?
- What is the monthly withdrawal limit?
- What are the fees for ATM cards, debit cards, and new checkbooks?
- Do you offer international transfer services, and if so, where to and how long do they take?
- How many ATM locations do you have, and where are they?
- What happens if my account has an outstanding loan, and I lose my job?
Obtaining answers to these questions will help you determine whether the bank can meet your specific needs. Additionally, it’s beneficial to check if your employer banks with the chosen financial institution, facilitating easier access to your salary. Reviews from colleagues, friends, and other individuals can also provide valuable insights into the banking experience with a particular company.
Credit Cards for Business in UAE
Business credit cards are specialized credit facilities designed to assist business owners in making small purchases on credit, specifically for business expenses and not for personal use. While they can be used for emergency finances, the primary purpose of obtaining a business credit card is to establish and build a credit score for your business, a crucial metric for its financial health.
Selecting the best credit card for your business in the UAE requires careful consideration, given the numerous options available from various banks. To qualify for a credit card from a UAE bank, specific criteria must be met. Eligibility factors include age, income, and the provision of a valid trade license, among others. It is essential to take the time to identify the most suitable credit card that aligns with your business needs and meets the required eligibility criteria.