Opening a c corporate bank account in the UAE is a bit of a process, but it's not too hard if you follow these steps. You'll need to gather a few documents, so make sure you have everything ready before you start. But where are some important details you should know. This guide will give you that information and help you avoid delays and problems.
Steps to open a corporate bank account
1. Collect the required documents
For Directors and Shareholders:
- Passport
- Visa
- Emirates ID (EID)
- Tenancy Contract/Ejari
- 6 Months Bank Statement
For the Company:
- License
- Memorandum of Association (MoA)
- Lease Agreement
- List of Potential Clients
- List of Potential Suppliers
- Presentation/Business Plan/Website
Make sure you've got all the documents in order and they're clear. Prepare a well-structured business plan that clearly explains what your company does is essential. Any mistakes or unclear points in documents could cause the bank to turn you down.
Some document specifics you should know
- Visa: You must be a resident for open bank account. You can download your visa via ICP app. Ensure you have the visa in hand and send a copy to the bank before providing the original for verification.
- Tenancy Contract: It must be validated by Ejari to confirm its authenticity. It’s a document that approve your contract registered in the Dubai Land Department.
- 6 Month bank Statement: The statement should show a high balance to demonstrate your business's financial capability. Importantly, this must be cash and not other assets.
- Lease Agreement: Coworking spaces or offices. Necessary for both Free Zones (standard contract) and mainland (validated by Ejari).
- Potential Clients and Suppliers: Banks use this to measure how reputable you are, so it's really important. If you don't have any current customers, provide a detailed list of potential customers, a list of some deals, invoices, contracts, or other documents to make it clear to the bank what you're going to do.
- Prepare a Business Plan: A concise business plan (a few pages) should outline your business model, activities, and hiring plans. Keep it short, but as detailed as possible.
A business plan is different from what entrepreneurs are used to preparing to present a business to investors. With a bank, it's all about the big picture of your business and how you're going to make some serious cash. We've put together a template for you to use when you submit your plan to the bank — give it a try!
Choosing the right bank: some important notes
After you've gathered all the necessary documents, it's time to choose a bank that's right for your business. Different banks have different risk assessments and serve different types of businesses. For example, some banks might not work with trading licenses or consultancy firms. You need to do some research to understand the market situation — this will help you choose the right one.
There are also some important details you should know before submission.
Banks prefer large customers
Many banks in the UAE prefer larger customers. The costs of onboarding and other processes are similar, but the profitability is higher, so if you have a small business, you might get turned down.
Minimum deposit
Some banks require a minimum deposit, usually between AED 20,000 and AED 50,000. It's a good idea to have these funds on hand in case you need them.
Your interaction with banks flow
Initial meeting
The business owner must be present at the initial meeting with the bank to discuss the business and go through all the necessary steps.
Office visit
A bank team might drop by your office to check out your operations. So be prepared for that.
Follow-up phase
If you're going through a post-visit process, there might be a lot of back-and-forth with the bank about additional documents or info. For example, during the complaint process, they may ask for an invoice from ten years ago. We recommend you find it and hand it over, explain everything clearly, and you'll be fine with the bank.
It's crucial to answer quickly and thoroughly to prevent any problems.
Timeline
The process can take anywhere from 2 months (optimistic scenario) to 6 months (pessimistic scenario). Patience and thorough preparation are key.
So, as you can see, opening a bank account in the UAE isn't too complicated, but a few pitfalls. Even at the document collection stage, you might run into some difficulties. It can be tough to get the lease agreement right, or the list of clients. Or maybe you'll have trouble choosing the right bank account statement.
We can help you eliminate all that paperwork hassle and make filing a breeze. Just fill out this form and we'll give you a call to talk about your issue and come up with a plan to fix it.
