How to Open Business Account in UAE?

Zaifin - Banking - How to Open Business Account in UAE?

Business Account is considered a basic requirement for any business for its smooth operations. One can argue that a limited liability company (llc) will need it more than a sole proprietor business because sole owner of the business can manage the business through his personal account too. But this is debatable.

Business Account Opening in UAE

How difficult it is to open a business account in UAE depends on different factors. Bank while assessing either to offer banking services to a business or not, will looking at the type of trade license, for example some banks will offer services to mainland companies easily but will be reluctant to offer the same to a Free Zone Company. They will also look at the activities of business included in the trade license. “General Trading” is a difficult activity to get business account in many banks. Nationality of shareholders will also be taken in to consideration by the banks. There are some nationalities who find it difficult to open a bank account in UAE.

Documents Required For Business Account Opening

When a business owner apply for a business account, documents required by the bank to process the application depends on the type of trade license of the business.

Limited Liability Company (LLC)

For Limited Liability Company (llc) most banks will require following documents:

Trade License
Memorandum of Association & Article of Association
Emirates ID, Passport and Visa Copies of All Partners
Power of Attorney (If any)
Six Months Personal Bank Statement of Major Partners
Rent Agreement of Business Premises

Sole Proprietorship

For Sole Proprietorship businesses, banks will require following documents:

Trade License
Emirates ID, Passport and Visa Copies of Owner
Local Service Agreement (if applicable)
Local Sponsor Emirates ID and Passport Copy (If applicable)
Six Months Personal Bank Statement of Owner
Rent Agreement of Business Premises

Free Zone Company

If you own a Free Zone Company in UAE, banks will ask for following documents to process your business account application:

Trade License
Memorandum of Association
Share Certificates
Emirates ID, Passport and Visa Copies of Partners
Six Months Personal Bank Statement of Major Shareholders
Rent Agreement of Business Premises

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Types of Accounts Offered

Banks offer different types of account types to business in UAE.

Zero Balance Account

This account does not require the business to maintain any balance in the account. The bank charges a fix fee every month for providing the service. At this time most of the banks charge AED 100 plus VAT for it.

Minimum Balance Account

The business has to maintain a certain amount of minimum balance in the account at all time. Falling below the required minimum balance will incur charges from the bank. The minimum balance requirement range from AED 3,000/- to AED 25,000/-. It again depends on what type of trade license and nationality of shareholders is to get an offer from the bank.

Merchant Account

This account is offered to business by Merchant Acquiring Banks to its merchants. This account is coupled with the Merchant Acquiring Services for the merchants. Most of the banks do not require any minimum balance in these accounts and also have no fix fee to operate it.

Digital Account

UAE is becoming a technology hub in the region and banks are working tirelessly to keep up with the ever changing technological demands of the financial sector and the customers. Many banks in UAE have started offering Digital Accounts to businesses where the need to visit a physical bank is not required. Everything from start till end is done over the internet. This reduces the cost of service for the banks and they try to pass on the benefit to the customers.

Apart from the conventional banks, now digital only banks are also placing their foot in the market. These banks are based on the technological innovations and are increasingly in demand because of the ease and convenience they offer to customers.

If you are looking for a business account for your company, contact us and our team will help you get the best service according to your requirements.