How to open a business bank account in the UAE for entrepreneurs
When starting up your dream business, it is crucial for all documentation and legal procedures to be in order, to ensure the smooth flow of operations. One of the major requirements every business must follow is opening a bank account. This bank account will not be in the name of the entrepreneur but rather in the name of the company itself. The account will handle all bank related transactions the business may deal in.
Growing a business in the UAE without a corporate bank account is nearly impossible, and having one proves itself to be a stable medium through which cash flow and other balances can be observed. In this article, we explore how you can open a business bank account for your business easily.
The importance of a business bank account
Having a business bank account is crucial to running a business for a multitude of reasons. It boosts your business’ overall accessibility to funds and helps the business create and maintain a system where transactions can be tracked effectively. Moreover, a growing business may require long term investments for which a substantial amount of money may be needed.. Acquiring this money through means of a loan is impossible without creating and maintaining a corporate bank account.
Finally, bank accounts come with a multitude of services like checkbooks, international transaction availability, and added purchasing power that can aid your business in its management of finances.
Eligibility criteria to start a corporate bank account in the UAE
There are a few criteria involved in determining whether a business is eligible to create a corporate bank account.
1. Minimum deposit
Before creating a corporate bank account, you will have to deposit a certain amount of money as an initial deposit. This is done to show banks that your business has the adequate amount of funds needed to start and run operations smoothly. Each bank has different requirements regarding the amount to be deposited and can even vary depending on whether your company is a mainland business, or one set up in a free zone business. Sharjah Publishing City Free Zone provides assistance with setting up corporate bank accounts, along with a zero paid up capital policy.
2. Minimum average balance
In order to maintain a corporate bank account, you will need to show consistent bank balances to banks. The average balance is generally determined by the bank you are working with.
3. Know your customer (KYC)
You must provide your bank an accurate profile of your existing and potential customers and clients. This aids the bank in understanding your business better and can result in your application process for various bank services to be streamlined onto a fast track.
Process of starting a corporate bank account
The process of opening a business bank account can be done online as well as in person at the bank. For both, you’ll be required to follow the same procedure and submit the following basic documents:
A. Company trade license
B. Memorandum of Association.
C. Passport, visa, and Emirates ID of all partners
D. Office tenancy or Ejari contract (for a physical office)
These are the most basic documents that you will be mandated to submit along with your application. The requirements may slightly vary depending on whether your business is in a free zone, is a foreign entity, or an offshore entity.
Starting a corporate bank account can be intimidating, especially if you are new to the field of business. Fret not, our experts can help you! Our consultants can break down what your business needs to do to start a corporate bank account with ease. Contact us at 800 SPCFZ to start your corporate bank account today!