How to open a Business Bank Account in Dubai
Dubai is a lucrative place to start your own business and there is no debate over that fact. But when we talk about business setup, we also mean that you need to open a Business Bank account in Dubai.
Over the past few years, Dubai has grown tremendously and acquired a lot of applause from almost all developed countries across the world.
Abdul Aziz Al Ghurair, Chairman of the UAE Banks Federation (UBF) also mentioned that “The economy will reap benefits from Expo 2020 for about nine years as more international visitors and investors will be attracted to the country”.
If you are such an Investor, then Opening a business bank account in Dubai can be a game-changer for your company.
In this article, we’ll explore all the benefits of opening a business bank account in Dubai, the documents required, the steps involved, and how we can assist you throughout the process. So make sure to read till the end.
Benefits of Opening a Business Bank Account in Dubai
A business bank account in Dubai offers numerous advantages that can significantly impact your company’s growth and success. Some key benefits include:
Financial Management
- Better organization of your company’s finances
- Easier expense tracking and budgeting
- Separation of personal and business finances, reducing legal risks
Access to Credit
- Availability of business loans and credit facilities to support growth
- Improved credit score through responsible financial management
International Transactions
- Faster and more cost-effective international transactions
- Access to favorable exchange rates
- Simplified cross-border trade
Professional Image
- Enhanced credibility with clients, suppliers, and partners
- A professional appearance for your business
Security and Fraud Prevention
- Advanced security measures to protect your funds and sensitive information
- Reduced risk of fraud and financial loss
Streamlined Tax Reporting
- Simplified tax filing and compliance
- Easier access to financial records for tax purposes
Simplified Auditing Process
- Improved financial transparency and accountability
- Easier preparation and review of financial statements
Enhanced Cash Flow Management
- Better visibility into your company’s cash flow
- Tools to forecast, monitor, and manage cash flow more effectively
Networking Opportunities
- Access to networking events and partnerships through your bank
- Opportunities to collaborate with other businesses in the banking community
Digital Banking Services
- Convenient online and mobile banking services
- Access to advanced financial tools and resources
Documents Required to Open a Business Bank Account in Dubai
The documents required to open a business bank account in Dubai vary depending on your company type. Here are the specific requirements for each type of company:
Mainland Company Bank Account
- Company trade license
- Certificate of incorporation
- Memorandum and Articles of Association
- Passport copies of shareholders and authorized signatories
- Emirates ID copies of shareholders and authorized signatories (if applicable)
- Board resolution authorizing the account opening and appointment of signatories
- Share certificate(s)
- Ejari Contract of the Office
- Company profile or business plan
- VAT certification (if applicable)
- Debit or Credit Invoices
- CV or professional Qualification of the Shareholders
- Financial statements or projections for the past 6 months (if available)
- Proof of address for shareholders and authorized signatories (utility bill or bank statement)
Freezone Company Bank Account
- Company trade license issued by the Freezone Authority
- Certificate of incorporation
- Memorandum and Articles of Association
- Passport copies of shareholders and authorized signatories
- Emirates ID copies of shareholders and authorized signatories (if applicable)
- Board resolution authorizing the account opening and appointment of signatories
- Share certificate(s)
- Company profile or business plan
- Financial statements or projections for the last 6 months (if available)
- Proof of address for shareholders and authorized signatories (utility bill or bank statement)
- Bank reference letter for shareholders and authorized signatories
- Letter of undertaking or letter of no objection from the Freezone Authority (if required)
Offshore Company Bank Account
- Trade License
- Certificate of incorporation
- Memorandum and Articles of Association
- Passport copies of shareholders and authorized signatories
- Board resolution authorizing the account opening and appointment of signatories
- Registered agent’s approval letter (if applicable)
- Certificate of good standing (if the company is more than one year old)
- Proof of address for shareholders and authorized signatories (utility bill or bank statement)
- Bank reference letter for shareholders and authorized signatories
- Business profile or business plan
- Financial statements or projections for the past 6 months (if available)
Steps to Open a Business Bank Account in Dubai
Opening a business bank account in Dubai involves a series of steps that ensure you choose the right bank and submit the required documents accurately.
Here is a step-by-step guide to help you through the process:
Step 1: Research and Choose the Right Bank
Conduct thorough research on various banks in Dubai, evaluating the range of services they offer, transaction fees, account maintenance costs, customer service quality, and their reputation. Make sure to choose a bank that caters to your specific business needs and requirements.
If you are not sure which bank to choose for your business activities, then this list might help you get started:
| Bank | Criteria |
| Emirates NBD | Largest bank in UAE, best for business and ex-pats, best interest rates |
| First Abu Dhabi Bank | Best for retail banking and credit cards, best for non-residents |
| Abu Dhabi Commercial Bank | Best for investment banking and corporate banking |
| Mashreq Bank | Best for digital banking and innovation |
| Dubai Islamic Bank | Best for Islamic banking and Sharia-compliant products |
Step 2: Verify Document Requirements
Contact the chosen bank and inquire about the specific document requirements for your type of company (Mainland, Freezone, or Offshore). This will help you gather the necessary documents and ensure they are up-to-date and complete.
Step 3: Prepare the Necessary Documents
Based on the bank’s requirements, gather all the necessary documents for your type of company. Make sure to double-check that all documents are accurate, complete, and up-to-date to avoid delays in the account opening process.
Step 4: Submit Your Application and Documents
Visit the chosen bank in person to submit your application and required documents. Alternatively, you can consult with a business setup service provider, such as VR1 Global Business Setup Consultancy, to assist you with this process.
Step 5: Attend a Face-to-Face Meeting
Some banks require a face-to-face meeting with their representatives to discuss your application and clarify any concerns. Make sure to attend this meeting, as it is an essential step in the account opening process.
Step 6: Wait for the Bank’s Approval
After submitting your application and attending the face-to-face meeting (if required), wait for the bank’s approval. The approval process may take up to several weeks, depending on the bank and your company’s profile.
Step 7: Deposit the Required Minimum Balance
Once your account has been approved, deposit the required minimum balance to activate your account. The minimum balance requirement varies depending on the bank and the type of account you have opened.
| Bank | Minimum Balance Requirement |
| Emirates NBD | AED 50,000 |
| First Abu Dhabi Bank | AED 50,000 |
| Abu Dhabi Commercial Bank | AED 25,000 |
| Mashreq Bank | AED 25,000 |
| Dubai Islamic Bank | AED 50,000 |
| RAKBANK | AED 25,000 |
Step 8: Complete Any Additional Formalities
After depositing the minimum balance, complete any additional formalities required by the bank, such as setting up online banking access or ordering a checkbook.
Step 9: Access Your New Business Bank Account
With all the steps completed, you can now access your new business bank account and start managing your company’s finances more effectively.
Additional Requirements to Open a Bank Account in Dubai
How to Choose the Right Bank?
When selecting a bank for your business in Dubai, consider the following factors:
- Range of services offered
- Transaction fees and account maintenance costs
- Reputation and credibility of the bank
- Quality of customer service
- Ease of access to branches and ATMs
- Availability of digital banking services
- Support for international transactions
What is the Eligibility Criteria to open a Business Bank Account in Dubai?
To be eligible to open a business bank account in Dubai, you must meet the following criteria:
- Possess a valid trade license issued by the relevant authority (Mainland, Freezone, or Offshore)
- Be registered as a company in the UAE
- Have all required documents for the specific type of company
- Meet any additional bank-specific requirements
- Must be a Resident of Dubai or possess Residency Visa in Dubai.
If you are an ex-pat planning to start your business in Dubai, then you can check out this article on How to set up a Non-Resident Bank Account in Dubai
Cost of Opening a Business Bank Account in Dubai
The cost of opening a business bank account in Dubai may include:
- Account opening fees
- Monthly or annual account maintenance fees (Starting from AED 99 per month)
- Minimum balance requirements
- Transaction fees for specific services (starting from AED 1.05 per transaction)
- Foreign exchange fees for international transactions (starting from AED 2.00 per transaction)
How VR1 Global Business Setup Consultancy can assist you in Opening Business Bank Account in Dubai
Navigating the process of setting up a business bank account in Dubai can be complex and time-consuming. At VR1 Global Business Setup Consultancy, we can assist you throughout the process, making it smoother and more efficient.
We can assist you in gathering, preparing, and submitting all necessary documents accurately and on time, ensuring a hassle-free business bank account opening process.
Contact us today to connect with our Company Formation Experts to open a Business Bank Account today!
