How to Execute a Corporate Bank Account Opening in UAE?
Corporate bank account openings in UAE are an important step to avoid friction in establishing transactions, salary payments, and vendor management, which can be done via bank accounts.
However, the checks and balances put in place by the various regulatory bodies make it a tough exercise and vary depending on business activity, ownership structure, and compliance of the respective bank.
Understanding Eligibility and Bank Preferences
Firstly, your company must be able to meet the eligibility criteria which are set forth by the banks in the UAE. However, banks have been increasingly selective with the account-opening procedure as they restrict new entities.
A company with a veritable business model and a concrete commercial activity usually gets approval soon after the application submission. Some banks look for companies that will have an existing office space in the UAE. Multiple banks also check if the business has an active website or some other digital footprint to prove the legitimacy of the account holder itself.
Choosing the Right Bank
There are widely varied procedures for opening accounts and multiple requirements regarding the minimum balances that you must keep. There are also multiple preferences for various sectors of business which are chosen among banks.
For example, a start-up company may tend to favour opening a Free Zone bank account with flexible requirements. Meanwhile, an established trading company may favour a bank for its outstanding capacity for international remittances.
Providing the Required Documents
The corporate bank account opening in the UAE goes along with quite a lengthy list of documentation that is needed. Those documents consist of the following:
- Trade licence and certificate of incorporation
- Shareholders and manager
- Passport copies of visa pages
- Memorandum and articles of association
- Office lease agreement (Ejari or free zone lease certificate)
- Company profile and business plan
- Proof of address for shareholders
- Board resolution authorising the account opening
Other requirements, including invoices and/or contracts, may be required at some banks before granting an application.
Consulting.AE makes sure that all these documents of yours are in order, updated, and personalised to meet the specific expectations of each bank.
Attend an Interview with the Bank
Most banks in the UAE will require that at least one of the authorised signatories or shareholders present for a personal interview, either face-to-face or virtual.
Sources of funding, accounts, nature of business, and jurisdictions would be analysed in such interviews. However, the questions are not always fixed, and questions may vary as per the bank’s demands or needs.
Account Approval and Activation
Normally, the application for opening an account would be approved within one to three weeks, with a subsequent release of details for the corporate account, chequebook, if applicable, and access to online banking.
Once everything has been submitted and compliance checks are successfully passed, your account is opened.
Conclusion
Opening a corporate bank account in the UAE requires strategic planning, an exhaustive list of documentation, and the complete know-how of bank requirements.
Given all the added regulatory scrutiny, opening a bank account is going to be even tougher. Having proper help that eases these processes and seamlessly opens a corporate bank account is highly needed.
Consulting.AE is your trusted partner to un-clutter the process. Contact them today for a seamless corporate bank account opening.
