Venturing into business in the UAE is an exciting one, but one critical step you can’t afford to miss is to open a business bank account. Whether it’s a small startup or a corporation, a business account is a key to effective and efficient final boundary management. While the UAE banking sector is largely efficient and offers fair services, it may seem overwhelming if you do not know where and how to start.
This blog ‘How to Open a Business Bank Account in the UAE: Requirements & Process’ will walk you through all requirements and the step-by-step process, for a UAE Bank account opening. From agreeing on the right bank to gathering your documents, here is literally everything you need to know.
Why Do You Need to Open a Business Bank Account in Dubai?
Having a business bank account in Dubai is important for several reasons:
- Accessing your funds
- Making investments
- Carrying out trade
- Sending and receiving payments from suppliers, customers, and others.
In short, once your business is established in Dubai, you’ll need a corporate bank account to handle payments, fees, trade, and day-to-day operations. Running a business setup in UAE or dealing with international customers will be difficult without a business account. To avoid delays in transactions that could affect your business, it’s a good idea to reach out to an experienced company setup specialist like Damaar to help you open a bank account in Dubai.
Eligibility Criteria
Before filing an application, your business entity must review the qualifying requirements, which vary from bank to bank. Here are some general eligibility requirements.
Minimum Down Payment
Make a minimum initial deposit. The initial deposit will be different from bank to banks and needs to be verified in advance.
The bare minimum of average balance
The company needs to maintain a minimum average balance. The banks will decide the minimum amount.
Current Account or Savings
Some banks are required to submit recent bank statements of their current or savings accounts.
How To Open A Business Bank Account in Dubai
1. Choose the Right Bank
Selecting the right bank is a crucial step in setting up your business, though it’s often overlooked. Different banks have varying eligibility criteria, so it’s important to find one that suits your needs. Most banks recommend you have a residence visa along with local address in the UAE. Another factor to consider is the minimum balance that must be maintained in the account.
2. Obtain a Business License
Without a valid license, banks won’t allow you to open a business account. To make the process smoother, it’s helpful to work with trusted business setup consultants, such as Avyanco.
3. Prepare the Required Documents
These documents typically include proof of your business, such as contracts and invoices, as well as information about your clients and suppliers.
3. Have the Necessary Documents
You will need to submit the necessary documents to open a business bank account UAE. Even though the document list differs from bank to bank, usually the documents for opening a corporate bank account include:
- Copy of the Emirates ID card
- Company Trade License
- Certificate of Registration
- Lease Agreement
- Passport copies for shareholders and authorized signatories
- Company Memorandum & Articles of Association
Documents For Opening a Business Bank Account in UAE
Mainland Bank Account
Basic Documents:
- Trade License: Official authorization to operate a business in the UAE.
- Memorandum of Association (MoA): Legal document outlining the company’s objectives and structure.
- Identification Documents: Passports, visas, and Emirates IDs of all partners (if applicable).
- Office Tenancy or Ejari Contract: Proof of a physical office space.
Supporting Documents:
- Bank Statements: Six months of personal or company bank statements from the UAE or home country.
- Utility Bills: Address proof for certain nationalities.
- VAT Certificate: If applicable.
- Business Profile: Company model, profile, website, or plan.
- Applicant Profile: Curriculum Vitae (CV) of the signatory.
- Client Information: Names of existing or prospective clients (suppliers/buyers).
- Invoices: Debit and credit invoices.
- Note: All basic documents are mandatory. Supporting documents are required based on the business profile.
Free Zone Bank Account
Basic Documents:
Trade License: Official authorization to operate within a free zone.
Share Certificate: Proof of shareholding.
Memorandum/Articles of Association: Legal documents outlining the company’s structure.
Identification Documents: Passports, visas, and Emirates IDs of all partners (if applicable).
Office Tenancy: Proof of a physical office space.
Supporting Documents:
Bank Statements: Six months of personal or company bank statements.
Utility Bills: Address proof.
Business Profile: Company model, profile, website.
Applicant Profile: Curriculum Vitae (CV).
Client Information: Names of existing or prospective clients (suppliers/buyers).
Transaction Documents: Invoices, bills of shipment, shipping documents, agreements, or customs clearance.
Offshore Bank Account
Basic Documents:
Trade License/Certificate of Incorporation: Official authorization to operate offshore.
Share Certificate: Proof of shareholding.
Passport: Identification document.
Supporting Documents:
- Parent Company Documents: Legal documents of the parent company.
- Office Tenancy: Proof of a physical office space for the parent company.
- Bank Statements: Last six months of company bank statements from the home country.
- Certificates: Good Standing & Certificate of Incumbency
- Identification Documents: Visa and Emirates ID (if available).
- Applicant Profile: Curriculum Vitae (CV).
- Business Profile: Company model, profile, website (if available).
Foreign Entity Bank Account
Basic Documents:
- Memorandum/Articles of Association: With legal attestation.
- Trade License: Official authorization to operate.
- Share Certificate: Proof of shareholding.
- Identification Documents: Passports with UAE entry page of shareholders.
- Emirates ID & Visa Pages: For shareholders with UAE residency.
Supporting Documents:
- Client Information: Names of existing or prospective clients (suppliers/buyers).
- Bank Statements: Six months of personal or company bank statements from the home country.
- Utility Bills: Address proof for shareholders.
- Corporate Documents: Legal documents and bank statements of shareholders’ companies outside the UAE.
Open Your Business Bank Account with Damaar
Opening a business bank account with Damaar is simple, secure, and designed to support your entrepreneurial journey. With easy online access, customized solutions, and expert support, Damaar helps you manage your finances efficiently. Whether you’re a start-up or an established business, our flexible services cater to all your banking needs. Open your account today and grow with confidence!