Company Setup and Business Bank Account Opening in the UAE – All Things to Know
A guide to opening a corporate bank account after setting up a company in the UAE.
It covers the documents banks require, the minimum average balance rules, the services offered, and how blockchain-based KYC sharing is speeding up account approvals for new businesses.
- The UAE has 23 local banks and 28 foreign bank branches, all regulated by the Central Bank of UAE.
- Required documents include the trade licence, board resolution, supplier details, and shareholder passport copies.
- Banks require a minimum monthly average balance, typically ranging from AED 50,000 to AED 200,000.
- A KYC Blockchain Consortium between UAE banks and licensing authorities is speeding up account opening for startups.
UAE is always the most preferred location for investors due to its extensive government support for business establishments, Freezone business setup options, transparent public policies, tax benefits, and business infrastructure. Global investors prefer UAE Company Setup and Business Bank Account Opening to facilitate smooth trade operations in the region and abroad.
The banking sector in the UAE is very mature and offers investors confidence & security for their funds and facilitates streamlined international banking services. There are two categories of Commercial Banks in the UAE – Locally incorporate banks and branches of foreign banks.
Statistics indicate that there are 23 local banks and 28 branches of foreign banks that operate in the UAE currently. The Central bank of UAE regulates all banks operating in the UAE.
Setting up a Company and Bank Account in the UAE
All companies registered in the UAE, be it in the mainland, Freezone, or offshore are eligible for opening a bank account here in the UAE. Corporate bank account opening in the UAE is a relatively straightforward process. However, based on the size and business activity, the customer identification requirements may vary.
All companies registered in the UAE, be it in the mainland, Freezone, or offshore are eligible for opening a bank account here in the UAE.
Mostly the details required by the banks will be around the legal existence of the entity. They will request the corporate documents to identify the management and nature of the business. Companies with shareholders outside of the UAE will require the documents to be notarized in the home country by the UAE embassy there and also in the UAE from the Ministry of External Affairs to proceed with the bank account opening.
The Central bank has imposed enhanced customer diligence procedures on financial institutions that open accounts of Offshore companies especially. The move is to curb tax evasion and money laundering activities.
Currently, the banks follow a risk-based approach for account opening, they try to understand customers’ primary business areas, the anticipated volume of currency & total deposits, expected customer base, supplier relationship, etc.
Our Expert Consultants at Aurion will assist you to choose the right bank account for your business purposes based on your requirements and business activity. All the necessary documentation and attestation required will be taken care of by our expert consultants.
Documents required to open a Corporate Bank Account
- New UAE Company Documents (Company Trade License, Certificate of Registration, Share Certificate (s))
New UAE Company Documents (Company Trade License, Certificate of Registration, Share Certificate (s))
- Board Resolution empowering a Company Officer to Open the Account
- Expected Annual Turnover
- Copy of Invoice – first transaction amount coming to the account
- Details of 3 Suppliers/ 3 Buyers
- Passport Copies for Shareholders and Authorized Signatories
- Any other documents that the bank may ask for (Company Memorandum & Articles of Association, etc.)
It is to be noted that all local banks are required to maintain the minimum monthly average balance and each bank has several categories of the minimum monthly average balance.
Depending on the bank, the minimum monthly average balance ranges from 50K AED to 200K AED. Banks will levy a penalty if the minimum average balance is not maintained by the corporate.
Services Offered by Corporate Banks in the UAE
- Online Banking
Online Banking
- Types of Bank Account (International, Offshore)
- ATM Services
- Credit and Debit Card
- Cheque Book
- Flexible Transfer of Funds
- Multi-Currency Account
- Customer Service
- Facility of Credit
Benefits of having a Corporate Bank Account in the UAE
- Full confidentiality for personal information. The Common Reporting Standards (CRS) Agreement forces banks to share the details if required during the instances of any suspicion or detection of fraudulent activities.
Full confidentiality for personal information.
- Easy and reliable transfer of capital in and out of the UAE
- Safe and Secure Online and Phone Banking System
- Access to International Banks and their Services
- Almost all types of Currency Exchange options are available
- Credit/Debit Card benefits and facilities
- Joint Account options
- Online Banking and Mobile App based transaction
Banks in the UAE offer a high level of privacy and security to the customers. The banks follow international standards and offer exceptional customer service. The effective banking system here provides a conducive environment for businesses to involve in active transactions.
Integrating Blockchain Technology for Faster Bank Account Opening
Using the Blockchain data-sharing platform the UAE’s top banks and government institutions are interlinked to enable faster accounting opening. The Banks of the UAE & Dubai Economy have formed a consortium for sharing verified KYC data between banks and licensing authorities in the UAE.
Using the Blockchain data-sharing platform the UAE’s top banks and government institutions are interlinked to enable faster accounting opening.
The KYC Blockchain Consortium will facilitate faster, more secure onboarding and exchange of digital customer data enabling faster bank account opening for startups and entrepreneurs.
For any assistance regarding Company Setup and Business Bank Account Opening in UAE feel free to reach out to us right away!
