Best Small Business Bank Accounts in the UAE

Choosing the ideal small business bank account in the UAE is important for entrepreneurs to address a variety of business banking needs. Good banks offer low minimum average balance accounts, zero-balance accounts, and other services like savings, credit cards, loans, or checkbooks.

It’s a smart move to use different banks for things like payroll and emergency funds to keep your business more secure. This way, if something goes wrong, your business is less likely to be affected as you will have backup cash.

Plus, such accounts are helpful for those new or small startups and businesses who are new to the game. Here, we provide details about each one of our hand-picked choices for the best small business bank accounts in the UAE to help you make the right decisions for your funds.

Best Small Business Accounts in the UAE

The best-performing small business accounts in the United Arab Emirates are as follows:

Emirates NBD Fixed Deposit Account

Website: Emirates NBD

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

Contact Information: +971 600 54 0009

The account holder of an Emirates NBD Fixed Deposit Account can take advantage of variable deposit tenures ranging from seven days to five years. The bank offers a competitive interest rate that varies according to the deposit’s period and currency. In an emergency, the account holder can access their money by using the overdraft option. A 10,000 AED minimum deposit amount is required for this account which is affordable for small to medium businesses.

When you open an account with Emirates NBD for your business, a free international debit card is provided, even for sole proprietorships and single signatory accounts. To accommodate firms who transact in foreign currencies, the accounts are offered in GBP, USD, and EUR besides AED. This business account has a strong basis because of Emirates NBD’s reputation.

RAKstarter Account by RAKBANK

Website: RAKBANK

Location: RAK Operations Centre, Emirates Road, Ras Al Khaimah,5300, U.A.E.

Contact Information: +971600544049

RAKBANK has introduced a RAKstarter Account, a bank account with zero balance requirements in order to enable new & small startups and companies to maximize their financial efficiencies.

You can manage your money more effectively when you have more currency options. This is why the RAKbank provides this Account in AED, USD, EUR, and GBP. With this account, business owners can benefit from competitive interest rates, which range from 0.10% to 0.25% annually. The RAKstarter Account provides you with special business finance options to launch your small business, ranging from loans to real estate capital. Plus, you will get a chequebook for free every year.

Eligibility Criteria

• A firm must be in business for less than a year
• A firm must have a valid trade license to conduct business operations within the UAE

CBD Starter Business Account

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

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. The account is available in AED, USD, GBP, EURO, JPY, and CNY currency. You will get dedicated SME service desks as well as dedicated virtual relationship managers with this account. In addition to that, you will get a free business debit card with higher cash withdrawal limits per day.

ADCB Business Choice Current Account – Silver

Website: Abu Dhabi Commercial Bank (Silver)

Location: Zayed The First St – near ADNOC Distribution – Al Danah – Zone 1 – Abu Dhabi – United Arab Emirates

Contact Information: +971 600 502030

The Silver Business Choice Current Account is an option available at ADCB Bank for small startups and companies, offering unique benefits to businessmen, entrepreneurs, and investors. It allows transactions in AED only, with a minimum average balance requirement of AED 10,000 per month. Maintaining this minimum balance is crucial, as a monthly charge of AED 150 will be incurred should the account balance fall below this threshold.

Clients opting for E-statements within the statement cycle can enjoy the convenience of a fee-free service. Additionally, account holders benefit from receiving four complimentary chequebooks per year, further enhancing the flexibility and accessibility of their financial transactions. You will also get a globally accepted business choice debit card.

FAB Business Call Account

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

FAB has introduced local and foreign currency call accounts, providing clients with the advantage of appealing interest rates, an ideal fee structure, and a competitive tariff. With FAB’s commitment to providing attractive interest rates, these accounts are designed to meet the diverse needs of small businesses.

These accounts are open to both UAE residents and non-residents, offering a versatile financial solution. To maintain an account, a minimum balance of AED 10,000 or its equivalent amount in foreign currency equivalent is required. Non-resident SMEs also benefit from multi-currency options, enjoying flexibility in managing their finances.

How to Choose the Best Bank for Small Business Account in the UAE?

Selecting a bank account in the United Arab Emirates is an important choice, especially considering the sizeable expat community. The country’s banks serve a wide range of purposes for businesses, but there are a few things to keep in mind.

Have a look at the following criteria to ensure you choose the right bank to open a business account:

Minimum Balance Requirement:

See the minimum balance needed to maintain the account and evaluate whether it aligns with your monthly budget.

Withdrawal Limits:

Check the monthly withdrawal limits associated with the account to ensure you can easily get the required amount every day.

International Money Transfers:

For transactions outside the UAE, ensure that the bank permits such transfers and inquire about transaction timelines.

ATM Accessibility:

Consider the location of ATMs in relation to your home and office location, as international banks may have fewer branches. Choose a bank near your business office for emergencies. Opting for the bank with the nearest branches or ATMs can save you valuable time.

Friends Recommendations:

Gather insights from your friends who have opened bank accounts and learn from their experiences.

Enquire about the Charges:

Before choosing a bank for your business account, familiarize yourself with potential fees, such as:

• Fees for failing to maintain the required minimum balance.
• Transaction fees for exceeding the maximum permitted withdrawal amount.
• Fixed fees regardless of maintaining an average balance in the account.
• Annual service charges imposed by the bank.
• Additional charges for getting new ATM cards, checkbooks, or debit cards. You may get a checkbook, debit card, or ATM card for free for the first time.

Check Banking Benefits:

Banking benefits vary from bank to bank. Create a list of your firm’s needs and ensure the selected bank can meet them, both presently and as your business grows. Some of the banking advantages that you may get are:

• Access to online banking through a mobile application or website.
• Debit and credit card capabilities.
• Features of the chequebook.

Check the Banks’ Payment Options:

Evaluate the various payment services provided by banks, including online payment options for utility bills such as DEWA, SEWA, FEWA, telephone bills, and government-related bill payments. You should also check if the bank offers Payment Gateway Services for the clients.

Does the Bank provide WPS:

Companies can use the Wages Protection System (WPS), an electronic system to transfer salaries, to pay their workers. They can do this by using approved and registered agents like financial institutions, banks, and money exchanges that got approval from the UAE Central Bank. This service is mainly for mainland companies. You should check if the bank you want to choose provides this service.

Pursue a Banking Consultant if in Doubt:

Given the importance of choosing the right bank, especially for chequebooks, debit/credit cards, trade financing, and other services or products, taking help from a banking consultant like RIZ & MONA CONSULTANCY is the right move. Our banking experts can provide insights into a bank’s clientele, history, and size, and assist you in making an informed decision. Doing so will make things easy for you.

Required Documents for Business Bank Account in UAE

In order to open a business bank account in Dubai, some essential documents must be submitted. These documents usually contain information about your company’s suppliers and clients, contracts, invoices, and other proof of your business operations. It’s crucial to remember that different banks may request different paperwork.

Also, the majority of local and foreign banks in the United Arab Emirates require documentation of your identification and address. Furthermore, it could be necessary for company officials to be physically present in the UAE for setting up a commercial bank account.

When opening a bank account for a mainland, offshore, foreign entity, or Dubai free-zone, you will require the primary and secondary documents listed below. You might also be asked for additional documentation by a bank. Primary documents are compulsory while secondary documents could differ based on the applicant’s business profile.

Following 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.

Free Zone Account

Primary Documents

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

Secondary Documents

• Invoices or bills of shipment, agreements, customs clearance, shipping documents, etc.
• Business plan
• Names of existing or prospective clients (suppliers or buyers)
• Bank statement for the last six months
• Business model, company website, or profile
• Utility bills as proof of residence or address
• Business profile of shareholders or candidates

Mainland Account

Primary Documents

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

Secondary Documents

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

Foreign Entity Account

Primary Documents

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

Offshore or Non-Resident Account

Primary Documents

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

Secondary Documents

• Company Information and Brochure
• Applicant’s profile or CV
• Parent company’s legal documents
• Office tenancy of parent company as address proof
• Company website (if any)
• MOFA Document Certificate
• Last six months’ company bank statement from the home country
• Visa & Emirates ID (if required)
• Certificate of Good Standing (if required)
• Company profile or business model
• Certificate of Incumbency (if required)

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

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

Step 1. Select a Reputable Local or International Bank

Selecting the right bank for your business needs is a crucial decision that impacts your company’s future financial and transactional activities. You may open an account in one of the following well-reputed banks:

1. Emirates NBD
2. Mashreq Bank
3. Commercial Bank of Dubai
4. Dubai Islamic Bank
5. Abu Dhabi Commercial Bank
6. Rak Bank
7. United Arab Bank
8. First Gulf Bank

You should also review the eligibility requirements of different 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. Obtain a Business License

To register a business in Dubai and open a company bank account, obtaining a valid business license is important. Banks won’t recognize or permit you to open an account without a license. To make things easy, consult reputable business setup consultants, such as RIZ & MONA CONSULTANCY and you will be able to simplify this process.

Step 3. Submit the Required Documents

Collect the necessary documents required for the business bank account opening process.

Step 4. Have a Meeting with the Bank Representatives

Then, you need to arrange a meeting with the account opening staff at your chosen bank in Dubai.

Step 5. Submit the Bank Account Application

Submit the application along with the required documents 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. Your business account will be officially opened in the bank.

Eligibility Criteria for Opening a Business Account in the UAE

Before you can open a business bank account in the United Arab Emirates, your company must meet specific requirements set by the chosen bank. It’s very important to be aware of these requirements beforehand, as they can vary among different financial institutions. Here are some general criteria for you to fulfill:

Know Your Customer (KYC):

Following KYC protocols is a mandatory step. It involves creating a comprehensive profile of your potential buyers and clients. This information helps your banker or Relationship Manager develop a profile to present to the compliance team, making the approval process more efficient.

Minimum Initial Deposit:

Your startup or company is required to make a minimum initial deposit before the business account can be opened. It’s important to check the required amount of the initial deposit for your chosen bank.

Minimum Average Balance:

Managing a business account in the UAE may require maintaining a minimum average balance. The bank determines this amount, and it’s crucial to know the amount in advance.

Verification for Current or Savings Account:

In some banks, before opening a business account, they may ask the company to have an existing savings or current account. Additionally, you might need to provide existing bank statements from your accounts.

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

If you are starting a new company in the UAE, you must open a business account. However, recent restrictions have made the process more complex and long, including requiring both a commercial license and a UAE residency visa for certain accounts. This is where you will need the bank account opening services of RIZ & MONA CONSULTANCY. Our professional and experienced team consisting of PROs, tax experts, banking specialists, and legal consultants, simplifies this process and is committed to providing affordable solutions.

We offer free advice on setting up your business and opening a business bank account in Dubai and the rest of the UAE, ensuring a quick start for your venture. Contact us at info@rizmona.com, +971 4 5586339, or via WhatsApp at +971 54 582 1012.

FAQs

Should I use a local bank for a small business?

Yes, you should use a local bank for your small business in the UAE as you will be required to make transactions on a daily basis. These transactions and other financial activities are required to run the company operations smoothly.

Which bank is best for a small business account in the UAE?

The best banks for a small business in the UAE are:

1. Emirates NBD
2. RAKbank
3. Commercial Bank of Dubai
4. Abu Dhabi Commercial Bank
5. First Abu Dhabi Bank

How much does it cost to open a business bank account in UAE?

Local banks in the United Arab Emirates do not ask for an account opening fee, unlike the majority of banks in other countries. But every bank does have its own different minimum average monthly balance requirements. This amount can be anywhere from AED 5k to AED 500k for local banks in the UAE, depending on the bank you choose.

What is the minimum balance for an Emirates NBD business account?

The Emirates NBD fixed deposit business account requires a minimum balance of AED 10,000.