Before launching a company in Dubai, opening a bank account is a vital step to take. The United Araba Emirates (UAE) is a preferred hub for entrepreneurs and business conglomerates alike. More than 90% of businesses are SMEs. No doubt they play a crucial role in the country's GDP. On the other hand, many new and small businesses often struggle to open a bank account.
Opening a bank account in a foreign country is critical as it establishes your company's credibility, access to capital, and fosters long-term growth. Whether you're launching your business in the Mainland or the Free Zone, a corporate account acts as a foundation for compliance and future business expansion.
Using a personal account may cause problems during audits, interfere with supplier payments, and even lead to delays in visa or license renewals in the current regulatory environment.
Types of Business Accounts in the UAE
Business Current Accounts
Designed for everyday use, like transfers, cash checks, online banking, and in many cases, overdrafts. Most Banks offer multi-currency accounts for easier management of AED/USD/EUR transactions.
Business Call/Savings Accounts
Tiered interest accounts that allow instant access and withdrawal; available in AED, USD, EUR and GBP.
Fixed/Term Deposit Accounts
Surplus cash can be ‘parked’ for a fixed duration of time and ‘left’ to earn interest. Withdrawals can be made at the cost of loss of interest. Accounts can be opened as term deposits in multiple currencies and through digital banking.
Payroll (WPS) Accounts
WPS accounts enable the electronic payment of salaries through the Wage Protection System, which the UAE mandates employers in the private sector to use for paying their employees. Wages are directly transferred to employees by authorised banks and money exchange businesses regulated by the MOHRE, ensuring that salaries are paid on time.
Merchant Services Accounts
Accept cards and digital payments. Payment transactions conducted at the store over the counter or on a mobile device can be processed through payment processors linked to the business accounts of most acquiring banks in the UAE.
Common Hurdles in Opening a Bank Account
It is 100% true that starting a business in Dubai is hassle-free compared to other countries; however, it can sometimes create headaches, especially for new and small startups. The primary reason behind these hurdles is often the documentation process, as most people are unaware of the specific documents required to open a bank account.
Many entrepreneurs rush into the final process without knowing the bank requirements, which leads them to unfavourable results. Here are a few common documentation hurdles entrepreneurs face;
- Office address proof is not registered on RERA.
- Trade license validity.
- MOA, AOA, and board resolution do not correspond with company records.
- Lack of financial records or a clear description of the funding source.
- The ownership structure is unknown, or there is no UBO disclosure.
- Inconsistent signatures, an expired passport, or a missing Emirates ID.
Required Documents for Business Bank Account Opening
- A copy of a valid Trade License.
- Company's Certificate of Registration.
- A copy of the Memorandum of Association (MOA) and Articles of Association (AOA).
- Passport copies of all shareholders and directors (with visa pages if applicable).
- Emirates ID copies of all shareholders and directors (if applicable).
- A copy of the company's lease agreement or tenancy contract.
- Utility bills (water, electricity) for the business address
- Additional Documents (bank-specific).
Benefits of Opening a Corporate Bank Account in Dubai
- Ease of Doing Business
- Tax Advantages
- Brand Credibility
- Multiple Investment Options
- Flexibility and Security
Cause of the Delay
Miscompliance planning is a relatively common cause of the issue. Typically, companies lacking a proper financial history or those that cannot prove a revenue source are flagged. Currently, banks have been alerted to consider any single misdeed in the economic arena, contributing to a more thorough and rigorous internal risk assessment.
Moreover, many businesses realise too late how much documentation is required for opening a business bank account in Dubai. You need to demonstrate your activity, as the license alone is insufficient. Company profiles, customer contracts, invoice samples, and office photographs are a few examples. The banks use these to determine that your company is legitimate.
In the case of a company with multiple international shareholders, delays can be particularly severe. If this is the case, then every document must be embassy-attested or apostilled. Absence of these records would keep the file on hold.
How Consultants Can Help?
Opening a business bank account in Dubai can be made seamless if you partner with the right business consultants. Business consultants make your journey easier and smoother, allowing you to focus on other aspects of your business.
At Markai Corporate Services, we assist you in opening a corporate bank account in Dubai with utmost professionalism and minimal stress. We don't just help you open a bank account, but also guide you to each step that takes your business closer to success.
Choosing Markai Corporate Services means avoiding the hassles and paperwork errors that can delay the application process. We simplify, clarify, and expedite the process so that you can go 100% global.
