How to Open a Business Bank Account in Dubai, UAE?

Starting a new business venture or expanding your operations to the vibrant landscape of Dubai? Well, before you do that, opening a business bank account is absolutely crucial. 

Having a bank account in the United Arab Emirates makes financial transactions easy and gives you access to one of the world’s biggest free-market economies.

Our guide covers everything you need to know in order to set up your bank account for your business. We’ll also help you find the best business bank accounts in Dubai, UAE. Read on to learn the essentials of setting up a business account in the dynamic Dubai market.

Required Documents for Business Bank Account in Dubai, UAE

Opening a business bank account in Dubai requires submitting specific documents. These documents typically include proof of your business, such as details about your company’s suppliers and clients, invoices, and contracts. It’s important to note that the required documents may vary from one bank to another.

Also, Most local and international banks in the UAE will ask for proof of identity and address before you can open a business account. Additionally, if a company is willing to open a business bank account in the UAE, there may be a requirement for the company representatives to be physically present in the country.

Here are the primary and secondary documents that you need when you open a bank account for Dubai free zone, mainland, foreign entity, or offshore account.

A bank may ask you for some other documents as well. Primary documents are mandatory whereas secondary documents may vary depending on the business profile of the applicant.

Free Zone Account

Primary Documents

• Trade license
• Proof of residence address (from origin country if not a resident of the UAE)
• Share certificate
• Article of Association (AoA) or Memorandum of Association (MoA)
•  Emirates ID, Passport, and Residency Visa of all partners (if required)
• Business Center, Office Lease Agreement, or Tenancy contract (Ejari)

Secondary Documents

• Bills or invoices of shipment, customs clearance, shipping documents, agreements, etc.
• 6 months bank statement
• Utility bills as proof of address or residence
• Company website, business model, plan, or company profile
• Names of prospective or existing clients (buyers or suppliers)
• Business profile of shareholders or candidates

• Business plan

Mainland Account

Primary Documents

• Business plan
• Trade license
• Memorandum of Association (MoA)
• Business Center, Office Lease Agreement, or Tenancy contract (Ejari)
•  Emirates ID, Passport, and Residency Visa of all partners (if required)
• Articles of Association
• Certificate of Registration

Secondary Documents

• A board of directors resolution authorizing the opening of a bank account and the account signatories
• 6 months’ bank statement of the company or applicant from the home country or the UAE
• Utility bills as address proof (for some nationalities)
• Credit and debit invoices
• CV or applicant profile of signatory
• Company website, business model, plan, or company profile
• Names of prospective or existing clients (buyers or suppliers)
• VAT certificate (if required)

Foreign Entity Account

Primary Documents

• Background details listed on the (CV) Curriculum Vitae
• Corporate bank statements and legal documents (in case of a shareholder having a company outside UAE)
• Previous bank reference letter from the origin country where there is an active bank
• Legally attested Article of Association (AoA) or Memorandum of Association (MoA)
• Utility bills as proof of address or residence
• Applicant signature
• Trade license
• 6 months’ bank statement of the company or applicant from the home country or the UAE
• Share certificate
• Names of prospective or existing clients (buyers or suppliers)
• Passport with UAE entry page of shareholders
• Emirates ID & visa pages of shareholders (in case shareholders are residents of the UAE)

Non-Resident or Offshore Account

Primary Documents

• Certificate of Incorporation or trade license
• Memorandum and Articles of Association
• Passport
• Share certificate

Secondary Documents

• Company Brochure and Information
• Parent company’s legal documents
• MOFA Document Certificate
• Office tenancy of parent company as address proof
• Company website (if any)
• Last 6 months’ company bank statement from home country
• Applicant’s CV or profile

Certificate of Good Standing (if applicable)

• Certificate of Incumbency (if required)
• Business model/company profile
• Visa & Emirates ID (if any)

How to Open a Business Bank Account in Dubai

Follow these steps to open a business bank account in Dubai, UAE:

Step 1. Choose a Bank

Selecting the right bank for your business needs is generally not considered with great attention to detail. It is a very important step as your future financial and transactional activities of the company depend on it.

Some prominent local banks for business accounts include:

• Emirates NBD
• Dubai Islamic Bank
• Abu Dhabi Commercial Bank
• Rak Bank
• Mashreq Bank
• Commercial Bank of Dubai.
• United Arab Bank
• First Gulf Bank

Consider the eligibility requirements set by various banks to find one that aligns with your circumstances. Most Dubai banks typically require a local address in the UAE and a residence visa. Additionally, be aware of the minimum balance you must maintain in the account.

Step 2. Issue a Business License

The first thing you need to do to register a business in Dubai is to get a valid business license. Without a license, banks won’t recognize or permit you to open a company bank account in the city. Consult reputable business setup consultants, such as RIZ & MONA CONSULTANCY, to do this process.

Step 3. Gather the Required Documents

Gather the necessary documents that are required for the business bank account opening process.

Step 4. Meet with Representatives of the Bank

Then, meet with account opening staff at your selected bank in Dubai.

Step 5. Submit the Bank Account Application

Post that, you need to submit the application for opening the account. Bank representatives will review the details of your application before formally submitting it to the relevant department.

Step 6. Receive Your Account Documents

If your account opening application is successful, you will receive your account documents, including any requested cards and chequebooks, within two to four weeks and your business account will be opened in the bank.

How to Open an Offshore Business Bank Account in Dubai?

Considering an offshore bank account for your business outside Dubai or with an international focus? Well, it is a great choice for businesses operating outside of Dubai or those catering to international clients. It comes with added privacy and tax benefits.

Opening an offshore bank account in Dubai follows a process similar to that of a local business bank account but with additional requirements like compliance with international regulations and proof of residence in the offshore jurisdiction.

Here are the steps that you need to follow in order to open an offshore business bank account:

Step 1. Choose a bank

Here is the list of international banks where UAE-registered companies can open a corporate bank account:

• Barclays
• HSBC
• BNP Paribas
• Standard Chartered Bank
• Citibank
• Royal Bank of Canada
• Credit Suisse
• Arab African International Bank
• Habib Bank A.G. Zurich

Step 2. Complete Your KYC (Know Your Customer)

After choosing a foreign bank, the next step is to complete your KYC. This commonly involves providing

• Proof of address
• Identification
• Additional information to verify your identity

Some banks may also request additional documents, such as

• A utility bill
• A copy of your passport

It’s important to note that the KYC procedure can vary depending on the bank and the type of account you’re opening.

Step 3. Pay the Initial Deposit

After providing the identification, you need to make an initial deposit. The deposit amount can vary depending on the bank where you’re opening a business account. For example, some banks may have a smaller minimum deposit requirement, while others may require a deposit of at least AED 2,000.

 Step 4. Submit Required Documents

Once you’ve paid the initial deposit, you’ll have to submit the necessary documents.

Ways to Open a Business Account in Dubai, UAE

To open a business account in the United Arab Emirates, you have two primary methods. It’s recommended to have a trustworthy relationship manager help you in this process. Your manager will talk to the bank staff for you, making the bank account opening process smoother and faster.

Here are the methods for bank account opening:

Open a Business Bank Account Offline in the UAE:

To open a business bank account offline:

1. Visit a local branch of a bank in the United Arab Emirates
2. Meet with the bank staff
3. Provide necessary information and documents
4. Pay initial deposit
5. Submit application

Open a Business Bank Account Online in UAE:

For online banking, you can opt for the website or via the mobile app of the bank:

Via Website

Visit the website of the bank.

• Fill out the online application form.
• Submit the necessary documents.

Via Mobile App

Banks have their official mobile apps for mobile banking. It is possible to open an account via the application. The process is the same i.e. providing information, submitting documents, filling out forms, and submitting the application.

Eligibility Criteria for Opening a Business Account in Dubai, UAE

Before opening a business bank account in the United Arab Emirates, your company must meet specific requirements outlined by the chosen bank. It’s crucial to know these requirements before applying, as they vary among financial institutions. Here are some general criteria:

Know Your Customer (KYC):

Adhering to KYC protocols is also a requirement. You should develop a comprehensive profile of your potential clients and buyers. This information helps your Relationship Manager or banker create a profile to present to the compliance team, streamlining the approval process.

Minimum Initial Deposit:

Your company needs to make a minimum initial deposit before opening a business account. Check with the chosen bank for their specific initial deposit requirement.

Minimum Average Balance:

To run and operate a business account in the UAE, your business may need to keep a minimum average balance. The bank sets this amount, and it’s essential to know it beforehand.

Verification for Current or Savings Account:

Before opening a business account in some banks, they may require the company to have an existing savings or current account. Also, you may be required to provide existing bank statements from your current or savings accounts.

Best Bank Account for Businesses in Dubai, United Arab Emirates

In the competitive landscape of banking in the United Arab Emirates (UAE), choosing the right bank for your business is crucial. Here’s a concise overview of the top banks in the UAE for business accounts:

 

 

 

1. Emirates NBD

 

Website: Emirates NBD

Location: PO Box 2923, Baniyas Road, Deira, Dubai, United Arab Emirates

Contact Information: Phone: +971 600 54 0009

Emirates NBD understands the essential features required for a business account. The bank provides competitive rates for local and international transfers with a 0% interest rate, making it an ideal choice for various businesses, especially small to medium-sized ones in Dubai.

Their business banking accounts address regular financial needs with a manageable maintaining balance of AED 50,000. For smaller enterprises, it may be too high, so, for them an alternative monthly fee of AED 250 is available.

Opening a bank account with Emirates NBD for your company offers a complimentary international debit card, even for single signatory accounts and sole proprietorships. The accounts are available in GBP, USD, EUR, and AED, catering to businesses with transactions in these currencies. Backed by the reputation of Emirates NBD, this small business account stands on a solid foundation.

Advantages:

• Manageable maintaining balance
• Many basic account features
• Perfect for small to medium-sized businesses

Disadvantages:

• Account features may not be enough for large businesses

2. Abu Dhabi Commercial Bank

Website: Abu Dhabi Commercial Bank

Location: Abu Dhabi Commercial Bank Building, Shk Zayed street. P. O. Box: 939, Abu Dhabi, United Arab Emirates

Contact Information: +971 600 50 2030, +971 600 56 2626

The bank, operational since 1985, is well-established and known not only in Dubai but throughout the UAE. Abu Dhabi Commercial Bank offers six distinct business accounts, tailored for every business owner. Despite a high maintaining balance of AED 100,000, the 0% interest rate and numerous benefits compensate for it.

Advantages:

• No interest is applied on these accounts
• Get amazing account features upon opening this business account

Disadvantages:

• High minimum maintaining account balance
• Fees may limit access for new business owners

3. Commercial Bank of Dubai

Website: Commercial Bank of Dubai

Location: CBD Head Office, Al Etihad Street Deira, behind Deira City Centre, Dubai, United Arab Emirates

Contact Information: +971 600 575 556

Business and standard banking requirements are combined in the Commercial Bank of Dubai’s business account packages. Their bank accounts are suitable for any type of business and include a maintenance balance requirement of AED 25,000. In addition, there is a 0% interest rate on it and a 150 AED fine if the required minimum balance is not maintained.

Although the account features are available to aspiring business owners, they lack flexibility and depth. Despite this, the bank—which is the seventh-biggest in the UAE—offers a few perks, such as a free Dubai Chamber of Commerce prepaid card and a complimentary checkbook.

Advantages:

• Comparatively lower required maintaining balance
• A lot of account benefits

Disadvantages:

• Depth and flexibility are missing from the account features

4. First Abu Dhabi Bank

Website: First Abu Dhabi Bank

Location: Khalifa Street, FAB One Tower, 14th Floor, Abu Dhabi, United Arab Emirates

Contact Information: +971 600 525 500, +971(2)6811511

First Abu Dhabi Bank offers business accounts for companies of all sizes and types, with a minimum balance requirement of AED 10,000. Despite being accessible, its features are somewhat weaker in comparison to other banks. However, it deals with various business needs, including insurance, foreign exchange solutions, mortgages, wealth management, and loans.

Advantages:

• Accessible and minimum rates
• Suitable for businesses of all sizes and types
• Run by the largest bank in the United Arab Emirates

Disadvantages:

• Limited range of business account features

5. Abu Dhabi Islamic Bank (ADIB)

Website: Abu Dhabi Islamic Bank

Location: Al Sultan Tower, Najda Street, PO Box 313, Abu Dhabi, United Arab Emirates

Contact Information: +971 4 2477777, +971 5 5526 7108

ADIB offers the Business Elite Account, personalized for high-end businessmen with a maintaining balance of AED 500,000. While not suitable for smaller business owners, the account offers unbeatable features, including a dedicated Relationship manager, personalized ADIB business platinum checkbooks, a business platinum debit card, and over 15 currency denominations.

Advantages:

• Offer unbeatable account features
• Suitable for large businesses

Disadvantages:

• Not suitable for small and medium-sized companies

Best Zero Balance Business Accounts in Dubai, UAE

The top-performing zero balance business accounts in the United Arab Emirates are listed below:

1. HSBC BSP Premium Account

HSBC bank offers a BSP Premium Account with zero balance requirements. Some of the benefits include preferential rates on Forex transactions, and supporting USD, GBP, EUR, or JPY currencies. Plus, you can choose from AED or other major foreign currencies for added convenience

2. RAKstarter Account by RAKBANK

In order to enable new startups and companies to maximize their financial efficiencies, RAKBANK has introduced this business account with zero balance requirements.

3. CBD Starter Business Account

CBD also offers a zero-balance business bank account in Dubai for all types of newly established start-ups and companies in the UAE. Entrepreneurs and businessmen only need to pay a small monthly fee for this account.

4. ADCB Business Choice Current Account – Silver

The Silver Business Choice Current Account is an option available at ADCB Bank, offering unique benefits to businessmen, entrepreneurs, and investors.

5. ADCB Business Choice Current Account – Gold

ADCB Gold Business Choice Current Account is a zero-balance business bank account with substantial advantages and low minimum balance requirements.

6. ADCB Business Choice Current Account – Platinum

ADCB also offers the Platinum Business Choice Current Account, renowned for its competitive interest rates on the maintained balance in the account.

Benefits of Opening a Business Bank Account in Dubai, UAE

When your company is up and running in the dynamic business landscape of the UAE, having a business bank account becomes something that you cannot ignore. In the bustling entrepreneurial scene of Dubai, a business account is not just a convenience; it’s a strategic necessity.

This account serves as the central hub for getting loans, managing financial transactions, sending and receiving funds, and facilitating various monetary activities.

Here are the benefits of opening a business bank account in Dubai, UAE:

Secure Financial Transactions:

UAE banks prioritize due diligence, ensuring the utmost security for your business funds. Opting for a UAE corporate bank account guarantees a level of confidence in the safety of your transactions. This security makes it the easiest and most secure avenue for handling financial exchanges in Dubai.

Efficient Payments:

Streamlining payment processes, a business account facilitates smooth transactions with buyers, suppliers, and other stakeholders.

Global Transaction Flexibility:

Many banks in the UAE offer multicurrency accounts, empowering you to conduct international transactions seamlessly. This global financial accessibility, without restrictions, is a distinct advantage for businesses engaged in international trade.

Additionally, having a UAE bank account often acts as a prerequisite for accessing various forms of credit.

Precise Record-Keeping:

UAE company accounts are engineered to handle diverse business transactions, facilitating meticulous record-keeping. This reliability proves invaluable for the timely distribution of salaries, payment of taxes, and other financial obligations.

Expense Management:

A UAE business bank account simplifies tracking expenses, aiding in the formulation of sound investment strategies aligned with the company’s current financial state.

Access to Business Funds:

A corporate account is not just a repository for funds; it is a tool for efficient fund management and transaction tracking.

Making Investments:

Entrepreneurs, investors, and businesspeople often need to make strategic investments. A corporate account streamlines this process with features like standing instructions and reminders.

Facilitates Business Loans:

Opening a business bank account enhances your eligibility for business loans and corporate credit cards. The account, registered in the company’s name, establishes a legitimate presence for obtaining loans smoothly.

Facilitates Trade Transactions:

A business account becomes a vital tool for executing trade deals efficiently between two or more parties inside and outside the country.

Comprehensive Banking Services:

A corporate bank account comes bundled with features that effortlessly track both incoming and outgoing transactions. It acts as a financial compass, reminding businesses of necessary expenditures.

Open a Business Bank Account in Dubai with RIZ & MONA CONSULTANCY

Starting a new business in the UAE? Opening a dedicated business account is vital, but recent regulations have lengthened the process, often requiring a trade license and a UAE residency visa. At RIZ & MONA CONSULTANCY, our skilled team—PROs, tax specialists, banking experts, and legal consultants—eases this journey, committed to cost-effective solutions.

Ensuring a swift start for your business, we provide free consultation on setting up your company and opening a business bank account in Dubai and the rest of the UAE. Contact us at +971 4 5586339, WhatsApp +971 54 582 1012, or info@rizmona.com to start a successful business venture with our expert guidance.

FAQs – Frequently Asked Questions

Is it difficult to open business bank account in Dubai?

It is not difficult to open a business bank account in Dubai but expert assistance and advice is recommended.

Can foreigners open bank account in Dubai?

Foreigners are allowed to open bank accounts in Dubai.

How much money do I need to open a bank account in Dubai?

The minimum maintaining balance for a business bank account in Dubai varies from bank to bank. You can expect the minimum required balance to start from AED 5000.

Can I open bank account in UAE without residency?

Yes, businessmen and entrepreneurs can open a bank account in UAE without residency.

What documents are required to open a business account in UAE?

The required documents depend on the bank, business activities, and the jurisdiction where you want to open the corporate bank account in Dubai or the UAE. Some basic documents include:

• Emirates ID
• Visa
• Passport
• MoA/AoA