Payment Options in the UAE Every Small Business Should Know About
Operating a business in the UAE is a fine choice for those interested in the free zone company setup and want to know about Payment Options in the UAE. The UAE’s free zone offers numerous benefits to entrepreneurs and business personnel. Not only does the UAE provide an expanded array of opportunities, but it also relieves them of taxation.
Once the company registration process has been followed through, the avenue of return on investment increases drastically. In this highly developmental and fast-paced country, small businesses need to keep up the pace.
If you are a small business owner, then read on. In this blog, we will explore;
- Importance of business bank accounts
- Payment Options in the UAE
- Major banking options in the UAE
- Why choose SPC Free Zone?
Importance of business bank accounts and Payment Options in the UAE
A business bank account is essential for franchise businesses and small sole proprietors. As per federal law, a business bank account provides protection in cases of disputes. Mixing personal assets with business assets may result in lawsuits and penalties.
A business bank account allows the payments and expenses associated with a business to be kept separately from a personal bank account. A business bank account must be registered in the case of an LLC or corporation. An LLC or corporation is essentially a separate legal entity.
A separate business bank account makes accounting easier for businesses. It provides clean, easy-to-understand financial records that can be used to obtain business loans or auditing. A business bank account also ensures privacy.
Major banking and Payment Options in the UAE
Operating a small-scale business in the UAE requires thorough knowledge of the system’s intricacies. Following are some major banking options in the UAE.
- Mashreq Bank
Mashreq Bank ensures the seamless provision of basic banking necessities for entrepreneurs. It allows customising business accounts according to clients’ requirements. The bank has no minimum balance requirement and provides up to 12 free monthly local fund transfers in AED.
Types of accounts
Mashreq bank offers five types of business bank account options. Digital Business Bank, Business First, Business Premium, Business Platinum, and Business Select.
The Business Premium account offers the opportunity of free online remittances for foreign currency transfers. Moreover, the bank also provides a discount of 10% on trade transaction fees. Through the Quickremit service, Mashreq bank offers funds transfer in one day. Local transfers cost AED 3 for First and Premium bank account holders and premium. For Platinum business bank account holders, these charges are waived.
- Abu Dhabi Commercial Bank (ADCB) Premium Current Account
Ideal for various business models and their needs, the Abu Dhabi Commercial Bank (ADCB) ensures to meet requirements. The bank provides an array of options in the form of six different business accounts.
The bank provides unlimited teller transactions with an opportunity for internet banking. The payment preference methods can be selected for internet banking and transactions. Small businesses can avail of multi-currency flexibility accounts, which are available in USD, EUR, AED and GBP.
- Wio Bank
Wio Bank offers value-based business banking services. The option of operating a business bank account is available to sole proprietors or individuals with sole authority to operate it at their company’s discretion. Freelancers with permits issued by licensing authorities are also authorised to operate a business bank account at Wio Bank.
The bank allows opening a business bank account using the Wio Business application online. The bank provides a free debit card for businesses, and 10 leaves free cheque book. Wio Bank also offers the option of free virtual cards for business bank accounts.
Wio Bank offers free local fund transfers with international transfers-wise fees. The foreign currency bank transaction fee is 1.00%. Cash withdrawals at ATMs other than FAB are AED 2.10, with GCC ATMs costing AED 6.30.
- Emirates NBD Business Banking
Emirates NBD provides customised banking packages, and one of the major solutions is its business banking account. It provides basic baking necessities to entrepreneurs.
The Emirates NBD provides a complete form of the facility for business banking. This bank has multiple branches, ATMs and cash deposit machines throughout the UAE. The banking system also offers online banking facilities to businesses. It also provides the option to access accounts in multiple currencies like USD, AED, JPY and Euro.
Types of accounts and payment options
The Emirates NBD Business Bank provides three viable business account options. These are called deposit accounts and current accounts.
Deposit Account: It provides a range of transactions in major currencies. The bank transfer is convenient and provides flexibility.
Current Account: In the case of routine businesses, a current account provides easy fund transfer.
- Commercial Bank of Dubai (CBD)
The Commercial Bank of Dubai (CBD) offers value-based business bank account packages. These are designed to meet businesses’ daily baking requirements in expectations. The “My Business” account package of CBD is ideal for clients who prefer maintaining low bank account balances.
The bank provides the option of choosing from 6 account currency denominations. These are AED, USD, GBP, EURO, JPY and CNY. A business client may also receive a complimentary Dubai Chamber of Commerce prepaid card. Clients can also access website-based business advisory services and business planning toolkits using CBD’s Resource Center.
- Sharjah Islamic Bank (SIB)
The Sharjah Islamic Bank provides viable business banking options to entrepreneurs. SIB also provides its customers with digital banking options. There are three major account types for businesses at SIB. These include Deposit Account, MaxPlus account, and Current account.
SIB provides customers with the option of customising their banking experience. Moreover, in terms of business banking, there are various options to choose from. These include changing financial goals to meet requirements or finding ways to invest. The SIB MaxPlus Deposit Account allows for profit potential rate of up to 14.25% in 36 month tenure and 6.375% in 18 months.
Why choose SPC Free Zone?
Establishing a business bank account may require a lot of paperwork. With an array of choices available to small-scale businesses in the UAE, SPC Free Zone can help make a choice easier. At SPC Free Zone, we can assist entrepreneurs with the corporate bank account opening process.
With SPC Free Zone, businesses can be set up quickly and hassle-free. Moreover, SPC Free Zone also assists entrepreneurs in filing documents for submission and compliance requirements.
We offer different setup packages depending on business requirements. These include obtaining a memorandum of association (MOA), Lease Agreement, Business Activity Certificate, and Trade License.
Moreover, SPC Free Zone provides licenses that include up to 100 visas. With SPC Free Zone, businesses can maximise their profits with zero paid-up share capital, 0% corporate and personal income tax, and 100% foreign ownership.
SPC Free Zone also provides a general trading license and e-commerce license for all commercial activities. We aim to give business owners the tools and knowledge they need to navigate their way.
SPC Free Zone is here to help with your business setup in the UAE!