Requirements to open a local bank account
Requirements to open a local bank account
The UAE boasts a large number of local and foreign banks due to its status as an international commercial hub. Almost all of the world’s most well-known banks are represented here.
Companies registered in the UAE, on the other hand, will have a higher chance of opening bank accounts with large local banks that are completely or partially controlled by the UAE government:
ADIB (Abu Dhabi Islamic Bank), Mashreq (a semi-government bank), Dubai Islamic Bank, Sharjah Islamic Bank, RAK Bank, FAB (First Abu Dhabi Bank), Emirates NBD, Emirates Islamic Bank, ADIB (Abu Dhabi Islamic Bank), Mashreq (a semi-government bank), Dubai Islamic Bank, Sharjah Islamic Bank, RAK Bank.
Ajman Bank, National Bank of Umm Al Quwain, and National Bank of Fujairah are examples of smaller UAE banks.
Opening a corporate account with an international bank based in the UAE is nearly difficult if you are not a major multinational corporation. As a result, the bulk of company owners concentrate on UAE-based banks.
The Central Bank of the United Arab Emirates regulates all banks in the UAE. The central bank must adhere to international standards and best practices established by organizations such as the FATF, the Basel Committee, and other standard-setters.
The most recent standards laid out the laws and regulations, which primarily concern anti-money laundering, “know your customer” procedures, and detecting and mitigating possible risks associated with account onboarding and maintenance.
Under compliance review…
Opening a bank account generally takes at least a month. Within this time frame, the bank must complete company approval, shareholder approval, and other due diligence requirements. Account opening might take a lengthy time, especially if your first company setup solution in the UAE was incorrect.
To summarise, a successful bank account opening requires the proper company structure. How do you come up with the best solution? At the very least, consider the following:
- your company activity
- Place where you operate
- nationality and place of residency
- the jurisdiction of the firm
- Expectations Account Turnover
- your customers and suppliers
- the account’s initial funding source
Various reasons, to mention a few, provide obstacles to clients when applying for a business bank account:
- High-risk business operations
- KYC standards were tightened for high-risk nationalities and countries where business is done.
- The company’s legal structure is inappropriate.
Certain high-risk business operations, such as gold or petroleum trading, when combined with a high-risk legal structure and an ambiguous client profile, make account creation exceedingly complex and raise the odds of rejection. The account should be readily authorized if the same business is registered with a low-risk authority and the customer provides accessible background information.
The following categories of businesses are looking to create an account in the UAE:
- Offshore firms
- Free zone company
- Mainland firm
Offshore firms are particularly vulnerable these days, as banks regard them as a high-risk form of business. The mainland firms are the most advantageous since they have a UAE citizen as a partner or agent, which provides banks trust. Due to the numerous options to create a setup solution that would meet the bank’s compliance officials, free zone setups are the most flexible and ideal for expatriates.
Apart from the proper setup, the customer’s company and history should be visible, and the client should be prepared to answer questions.
How to open a bank account in Dubai
First and foremost, pick two or three banks that you favor. It is preferable to apply to a few banks to prevent problems and additional applications if one of them rejects your account.
It is necessary to meet with a bank representative in person to apply for a UAE bank account. It is now difficult for a business to create a bank account online.
On the other hand, some banks have begun to provide personal account opening online to UAE citizens.
The following are the procedures you must take to apply for a business account:
- Meet the bank officer
- Choose the account type
- Sign application forms
- Provide your personal documents: passport, Emirates ID, and passport visa page (if you have UAE residence visa), utility bill, past 6 months bank statement
- Provide corporate documents
- If you have other businesses abroad, provide evidence and bank statements
Your bank manager will submit the case for approval to a few departments when the forms are signed and documentation is submitted.
They’ll almost certainly all have questions or need an explanation from you. Be prepared to respond and offer supporting documentation. The earlier you complete it, the sooner you will receive your account.
After all of the permissions have been granted, the bank will produce your account number and send it to you via the email address you supplied when you submitted your application.
It’s time to put money into your account. The bank usually requires a minimum sum to be deposited within 1-2 months of the account being opened.
After the account number is generated, online banking and mobile banking are made available, however, this may take some time as it is handled by a different department of the bank. While you don’t have online access to your account, you may use your relationship manager to make transactions and check balances. When the account is opened, he is allocated to you.
How can Radiantbiz help?
In matters like business setup, people tend to get confused and get in chaos due to several rules, regulations, and multiple requirements. This is the time when people tend to look for an expert. A lot of chaos can be avoided if guidance is taken from the initial state of the commencement of the business. Every venture may have unique requirements like location, customer convenience, logistical feasibility, and banking services.
The experts at Radiant Biz are ex bankers who have high knowledge and experience in the field of banking. We understand your banking needs and all the current policies that may be relevant to you according to your needs. We understand the risk factors, sanctions and all the challenges related to banking . We take everything into account and guide the clients accordingly. We help you choose the right bank for you according to your needs and your business model. We are the number one experts for all your banking needs.
We at Radiant Biz strive to understand these unique precepts and provide expert and reliable consultation to our clients with updated laws and governing regulations, awareness of their rights, and cost-effective business solutions tailor-made to their business needs and budget.