UAE has grown into a key financial hub of the Middle East. The banking sector in UAE is a major contributor to the progressive economy, growth in business establishments, and the flow of investors into the UAE. This article lists the requirements for Corporate Bank accounts and non-resident personal bank accounts.
The banking sector is a major component that supports and drives business operations and daily life in the UAE. The Banks in UAE offer various custom-made financial solutions for business and personal customers based on their requirements.
The Banking sector is at the forefront with the latest innovations, digital processes, mobile banking, etc. The banks in the UAE are known for their information security and for maintaining the privacy of the account holders.
Table of contents
- General Banking Requirements in UAE
- Requirements for Non-Resident Personal Bank Accounts in Dubai
- Requirements for Corporate Bank Account Opening in Dubai
- FAQ – Corporate / Individual Bank Account
- 1. Can a Company/Individual Open a Bank Account in the UAE?
- 2. Are there Minimum Balance Requirements to Open a Company/Personal Bank Account in the UAE?
- 3. What is the Timespan for Opening a Bank Account in the UAE?
- 4. Is it Required to Certify the Documents of a Foreign Company to Open a Bank Account in the UAE?
- 5. Is there any alternative to opening the Corporate Bank Account faster?
The banking sector in the UAE has built a robust IT Infrastructure to keep all the transactions secured. The banking sector in the UAE is mature with a lot of local as well as international banks operating and offering a wide range of services for the public.
Let’s look at what are the prerequisites to open a Corporate and Personal Bank Account in the UAE.
General Banking Requirements in UAE
The following are the general requirements for corporate banking in UAE. The whole process of banking in the UAE is based on these requirements.
1. Residence Visa in the UAE – For opening the current account in Dubai, the signatory should be having a residence visa. Certain banks in the UAE allow non-residents to open savings accounts in Dubai.
There are certain guidelines for such types of bank accounts based on various factors such as nationality, the purpose of opening the bank account, etc.
2. Physical Presence of the Account Holder in the UAE – For opening a bank account in the UAE, you must be physically present in the country for signing documents and meeting the bank personnel.
3. Minimum Account Limit – Most of the banks in Dubai have a certain minimum account limit that corporates and individuals have to maintain on a monthly basis.
Depending on the Banks, the limit varies. In general, for the Corporate bank account, the minimum average monthly account balance is from 50 K AED to almost 200K. The minimum balance is decided by the bank based on various factors such as the nature of the business, company financials, business operation, etc.
4. IBAN (International Bank Account Number) – The government of the UAE mandates the use of IBAN for all electronic transactions. Also, IBAN is required for payments within the UAE and abroad.
5. Documents Submission – There is a list of documents required to be submitted to the bank by the corporate/individual customer such as personal and business identification documents.
Depending on the business activity, the bank might request additional documents such as previous bank statements, and bank account details of the home country.
Requirements for Non-Resident Personal Bank Accounts in Dubai
Few banks in Dubai open saving accounts for non-residents. The following are the important requirements for a non-resident bank account opening in Dubai.
1. Six-month original personal bank statement from their country of origin
2. Passport copy, utility bill & bank reference letter of the applicant
3. Minimum balance required as per the bank
4. Physical presence in Dubai/UAE is mandatory
Requirements for Corporate Bank Account Opening in Dubai
There are two types of Corporate Bank Accounts available in Dubai – Offshore Banking and Onshore Company accounts.
Opening an Offshore Bank Account in Dubai is becoming difficult due to the bank’s background check and regulations. Also, Offshore banks require the account holder to maintain a high minimum account balance to open the account.
Onshore Bank Accounts are the preferred way of banking in UAE as it offers more freedom to choose the banks and more services to choose from. Following are the requirements for opening a Corporate Bank Account in Dubai.
Documents required for Corporate Bank Account
- Business documents such as Company trade license, Memorandum of Association, company incorporation, etc.
- Company Ownership documents like Share Certificate
- Source of funds, supplier information, and expected revenue
- Business experience, the inflow of funds, and planned activities
- Passport copies for shareholders and authorized signatories
Documents required for a Personal Bank Account
- Original Passport for verification and copies for preparing the application form
- Copy of visa Page
- Salary certificate
- Emirates ID
- 6-month personal bank statement from any other bank (if already have an account)
KYC Requirements of UAE Banks made stricter
The banks in the UAE are regulated by the UAE Central bank. There is a Know Your Customer policy set by the Central Bank to meet international standards and requirements.
Hence, it is mandatory to provide certain supporting documents and answer questions on your account transactions while and after opening a personal/corporate bank account in the UAE.
Instant Bank Account Opening for UAE Entrepreneurs
The KYC Blockchain platform a consortium of Dubai Economy and all leading banks in the UAE has led way to easy bank account opening for start-ups and entrepreneurs.
The platform will empower banks to streamline and fasten the onboarding process and enhance customer satisfaction as well as ease of doing business in the UAE as a whole.
FAQ – Corporate / Individual Bank Account
Here are some of the frequently asked questions by our clients on Bank Account Opening in the UAE.
1. Can a Company/Individual Open a Bank Account in the UAE?
A Company/individual can open a Bank Account in the UAE by providing the required documents to the bank. Once your Bank Account is opened you can enjoy multi-currency accounts, online banking, and debit/credit card facilities.
2. Are there Minimum Balance Requirements to Open a Company/Personal Bank Account in the UAE?
Most Local Banks require an average minimum monthly balance to be maintained, it depends on the type of account and the Bank. For corporates, the minimum balance can range anywhere from 50k AED to 200K AED. If the average balance falls below the threshold, the bank will levy a small fee for that.
For a Personal Bank Account, the average minimum balance ranges from 3K to 5K AED.
3. What is the Timespan for Opening a Bank Account in the UAE?
There no specific time span as such. Each Bank has its own internal process. Generally, it takes anywhere between 7 to 20 days to open a Corporate Bank Account. It requires submission of the right documents, assessment of the investor credentials, internal compliance process, etc.
For Offshore companies it might be slightly delayed as banks internal compliance and management approval can take longer.
4. Is it Required to Certify the Documents of a Foreign Company to Open a Bank Account in the UAE?
As the UAE did not sign the agreement on Apostille. The documents have to be certified at the consulate of the UAE in the country where the company is registered. Then it has to be certified by the UAE Ministry of Foreign Affairs. The government charges approximately 2000 AED/equivalent per document for such attestation of documents.
5. Is there any alternative to opening the Corporate Bank Account faster?
The easiest way to open a Corporate Bank Account and enjoy the benefits of international banking is by incorporating a company in one of the cheapest Freezones in UAE. The company registration process in UAE is hassle-free and streamlined. In 3-4 working days, you can get it approved if all the documents are in place.
6. For Opening the Bank Account in UAE, Should the Signatory be Physically present in the Bank?
For Bank Accounts Opening in UAE, the signatory has to be present during the bank account opening with the documents for assessment and review.
The shareholders of a company can assign any one of them to be the authorized signatory in the bank via a resolution of the company. And the shareholder appointed as above can visit the bank to open, operate and close the account.
You can also post your queries in the comments section below, our team will give you a reply! To know more about the requirements for opening a corporate bank account in the UAE contact our team.
