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Setting up a corporate bank account in the popular emirates such as Dubai, Abu Dhabi, Sharjah, Al Ain and other emirates involves specific procedures and requirements that can vary among different banks and free zones. Here’s a general outline of the process:
Choose a best Bank for corporate account: Research and select a bank that suits your business needs. Major banks in the UAE include Emirates NBD, Abu Dhabi Commercial Bank (ADCB), Dubai Islamic Bank, Rak Bank etc.
Typically, banks will ask for the following documents.
Trade license and business registration documents
Passport copies of shareholders, directors, and authorized signatories
Memorandum and Articles of Association
Proof of address for shareholders, directors, and authorized signatories
Business plan and details of the nature of your business activities
Personal and business bank statements (if applicable)
Residency visas (if available)
Schedule an appointment with the chosen bank and visit their branch in the UAE. Some banks might allow for the process to be completed online, but physical presence might be required in many cases.
Meet with the bank representative, present your documents, and fill out the application form. The bank may also conduct interviews with the company’s stakeholders.
Many banks mandate minimum balance requirements. Falling below this balance might result in fees or affect the account status.
In the United Arab Emirates (UAE), opening a corporate bank account for free zone companies typically involves specific procedures. Several banks offer expedited processes for account opening to cater to the needs of free zone businesses.
In the UAE, startups have several options for business accounts that cater to their specific needs. Considerations such as fees, features, ease of use, online banking capabilities, and additional benefits are crucial when choosing the right business account. Here are some of the best options for startups in the UAE:
Tailored for startups and SMEs, offering a digital-first banking experience with no minimum balance requirement, free transactions, and access to business tools and services.
Designed for small businesses and startups, providing a digital platform with various banking features, no minimum balance, and integration with accounting software.
RAKBANK, also known as the National Bank of Ras Al Khaimah, provides several savings account options tailored to meet the diverse needs of customers in the UAE. These accounts offer various features and benefits designed to encourage savings and provide convenient banking services.
The bank will conduct its due diligence procedures which might include background checks and verification of documents.
Several banks in the UAE offered relatively straightforward online processes for opening business accounts. However, the ease of opening a business bank account online can vary based on the specific requirements of your business and any changes in banking regulations.
In the United Arab Emirates (UAE), it’s a standard practice for banks to require a valid trade license or business registration as a prerequisite for opening a corporate bank account. The trade license demonstrates the legality of the business and provides essential details about the company’s operations.
However, some banks might offer alternatives or specific account types that do not mandate a trade license for corporate account opening, but these options might have limitations or different requirements:
Some banks might consider opening an account for non-trading companies or entities that do not require a trade license. These could include investment holding companies or special purpose vehicles (SPVs) that are not involved in commercial activities.
Offshore company accounts might be an option for businesses incorporated in free zones or offshore jurisdictions. Offshore entities often have different requirements and can operate without a UAE trade license.
Certain banks might offer limited services or accounts with restricted functionalities for entities without trade licenses. These accounts might not have access to the full suite of banking services.
Once the bank approves your application, your corporate account will be activated. You’ll receive account details, online banking access, and other relevant information.
Types of Accounts: Banks offer various types of accounts catering to different business needs like current accounts, savings accounts, multi-currency accounts, etc.
Many banks have minimum balance requirements, and falling below this balance might incur fees or affect the account status.
Be aware of the various fees associated with the account such as transaction fees, monthly maintenance fees, etc.
Ensure your business complies with local regulations and bank policies to avoid any issues.
Closing a corporation bank account in the UAE typically involves a structured process and might vary slightly among different banks. Here’s a general outline of steps to close a corporation bank account:
Notify the Bank: Contact your bank’s customer service or visit the branch to inform them about your intention to close the corporation bank account. They might guide you on the necessary steps or provide specific instructions for account closure.
Banks usually require certain documents to process the account closure.
These might include:
Account closure request form (provided by the bank)
Identification documents of authorized signatories
Original account opening documents
Corporate resolution or board resolution authorizing closure (if applicable)
Any unused checks or debit cards associated with the account
Ensure all outstanding balances, pending fees, and charges are settled before closing the account. Transfer or withdraw funds from the account to bring the balance to zero.
Complete the account closure request form provided by the bank and submit it along with the required documents to the bank branch or through their specified channels, if available online.
After submitting the closure request, follow up with the bank to confirm the status of the account closure. Some banks might take a few days to process the request.
Once the account closure is processed, the bank will provide confirmation either through email, mail, or in-person acknowledgment. Ensure to obtain written confirmation of the account closure for your records.
Safely dispose of any remaining checks or debit cards associated with the closed account to prevent misuse.
Some banks might levy account closure fees. Ensure you’re aware of any charges associated with closing the account.
If there are any direct debits or standing orders linked to the account, ensure they are cancelled or transferred to another account before closing.
Ensure all funds are transferred or withdrawn, leaving the account with a zero balance before initiating the closure process.
Ensure compliance with any legal or contractual obligations related to the closure of the business entity.
It’s crucial to directly contact the specific bank where the corporation account is held for their precise requirements and procedures regarding account closure. They can provide detailed instructions and guidance tailored to their processes for corporate bank account .
Consider hiring local experts or consultants who specialize in business setup and banking procedures in the UAE to facilitate the process.
Always check with the specific bank or financial institution for their detailed requirements and procedures, as they might have specific criteria or additional steps.
