What are the requirements of bank account opening in UAE?
Are you planning to open a bank account in UAE, particularly in Dubai? In this article, we will discuss the process of bank account opening in UAE, list of bank options and how to successfully open an account in Dubai. Essentially, as an international business hub, UAE has numerous options when it comes to local and international banks. Due to its global economic status, almost all reputable global banks operate here. On the other hand, the likelihood of opening a bank account for UAE registered companies are higher with big local banks, fully and/or partially owned by UAE government.
Moreover, it is almost unlikely for small medium enterprises SMEs to open a corporate account in an international bank based in the UAE, thus the majority of entrepreneurs opt to focus on local banks. Such small local banks common in the region are, Ajman Bank, National Bank of Umm Al Quwain, and National Bank of Fujairah.
Fundamentally, client’s security is a priority for all UAE banks and so all are governed under the Central Bank and must follow global standards and best practices. The latest standards mostly focus on anti-money laundering, “know your customer” procedures, and identifying and mitigating potential risks connected with on-boarding and maintaining the accounts.
Bank Account Opening Compliance Review
Normally, it takes 1 month to open a bank account as the bank needs to undergo approval procedure such as shareholder approval and other due diligence procedures. However, sometimes it takes longer than usual specifically because you did a mistake somewhere during your business setup services in UAE.
So, to ensure a smooth bank account opening process you need to partner with the experienced and efficient provider of business setup in UAE.
High-risk Factors
There are several factors that clients may face when applying for a business bank account, here are some of the factors:
- high-risk business activities
- high-risk nationalities and countries where the business is conducted
- enhanced KYC requirements
- unsuitable legal type of the company
For example, certain high-risk business activities, such as gold and oil trading, combined with the company’s risky legal form and unclear customer profile make account opening very difficult and likely to be refused. However, if the same company is registered with a low-risk authority and the client provides transparent background information, the account is expected to be approved without any issue.
The types of companies seeking for account opening in UAE include:
Offshore companies are considered by banks to be the riskiest business type and are are the most vulnerable. While mainland companies are the most conducive as they have UAE citizens as partners or agents which gains credibility. Meanwhile, free zone setups are the most flexible and best suited for expatriates as there are multiple ways to create a setup solution that will satisfy the bank compliance officers.
Aside from the correct business setup process, the client’s business and background should be transparent, and the client should be willing to answer questions from the bank and provide the necessary supporting documents. Thus, being responsive and cooperative with the bank gains the client more credibility.
How to Open a Bank Account in Dubai?
Choose a Bank
First step of bank account opening in UAE is to choose at least 2 to 3 banks of your preference. This way you have options in case you encounter any errors or account rejection by one of them.
Meet a Bank Representative
It is a must to meet the bank representative to apply for a UAE Bank Account. Some bank already begun to offer personal account opening online for UAE resident, however, it is not possible for a company as of this time. Once you meet with the bank officer, you will be following the steps below to open an account:
After the submission of application forms and providing the required documents, the bank officer will then submit everything to get approval from the legal, business and compliance departments. To get the approval, the client should expect to receive some questions and clarifications. And so, it is advised to be prepared to answer and provide whatever additional documents that the bank request.
Of course, the faster you fulfill all these requirements, the faster you will get your account opened. So, you completed the requirements, answered all the questions, now you will be approved by the bank. They will then generate your account number which the bank will be sharing in the email that your provided during the application process.
Finally, you can now fund your account. Normally, the bank expects to see at least a minimal balance deposited within 1-2 months from the day of your account opening. Clients can access online and mobile banking as soon as the account number is generated. However, while you don’t have access to your account online, the client may do transactions or check balances through their assigned bank representative.
Important Points to Note
- Ensure to fund the account once the account is opened.
- The deposited balance should match the account package to avoid getting charged of monthly service fees of about 250 to 500 AED.
- UAE local banks does not offer an account without minimum balance.
- Offshore companies may be charged for online banking or account maintenance.
Partner with the Best Local Agent
A well-prepared business setup solution is vital to bank account opening in UAE. Thus, Skwer Group’s bank account support agents will guide you all throughout the business setup and bank account opening process. This will enable clients to focus on their business development rather than bureaucracy and a guarantee to open the company and its bank account with no hassle. For any questions regarding our services, you may leave a chat message here or mail us at info@skwergroup.com.