Owners of companies registered outside the UAE often wonder if it is possible for them to open a corporate bank account there. International Wealth experts are here to clear up the uncertainty. The thing is, you can do the trick, but be prepared for a challenging journey. Going it alone, your chances of success are less than 10%. However, if you have an offshore company registered in one of the UAE’s free zones, everything becomes significantly smoother. In this case, it is much easier for you to set up an account for your company with a local bank.
Banking in the UAE: main requirements for local, free zone, and international businesses
Businesses of all kinds, including local (mainland) firms, offshore entities in UAE free zones, and international offshore corporations, do open company bank accounts in the United Arab Emirates. Even companies that conduct business abroad and are managed from other countries have the right to establish accounts if they are registered outside the UAE.
However, there are several important things to keep in mind:
- Resident Businesses: These can access banking services in local UAE banks with minimal requirements and relatively little hassle.
- Free Zone and Offshore Entities: Companies of this kind face stricter scrutiny from UAE banks. The latter carefully check the beneficiaries and businesses against various criteria and may refuse to set up an account if they find any ties to sanctioned individuals or breaches of free zone registration rules. Note that only a UAE resident manager is authorized to apply for account opening.
- Foreign Firms: Businesses with no direct ties to the UAE can potentially open corporate accounts, but certain conditions must be met. Among other things, be prepared to maintain a required minimum balance and establish corporate connections with the UAE (for example, you may have branch or representative offices in the jurisdiction). It also helps if the company’s founder is a UAE resident.
It pays to remember that local UAE banks consider it a high-risk deal to open accounts for non-resident enterprises. This applies to both offshore companies formed in the UAE and firms looking to set up accounts with UAE banks.
How to set up a UAE bank account as a foreign company? Simply follow these steps!
For companies originally formed outside the Emirates with no prior ties to the UAE, here are the steps to become clients of a local UAE bank:
- Open a Representative Office or a Branch: Establish a presence in the UAE to demonstrate your business interests and connections in the country.
- Redomicile to a UAE Free Zone: As a next step, move your business to a Dubai Free Zone or another free zone in the UAE. By doing this, you will easily maintain offshore status and enjoy significant tax benefits. The UAE’s stellar reputation comes as a bonus.
- Set Up a New Company in the UAE: Create a brand new entity that operates within a Free Zone or the local market. It is pretty easy to open a corporate bank account in Dubai for such a company, let alone both founders and employees can obtain residency visas.
- Register an Offshore Business in a UAE Emirate: You have multiple incorporation options. Consider the Jebel Ali Free Zone Authority in Dubai, the RAK International Corporate Centre in Ras Al Khaimah, or the Ajman Free Zone in Ajman. For these structures, the company’s director does not need to be a UAE resident, and the firm may be fully foreign-owned with non-resident status in the UAE.
Here’s how you secure a corporate bank account in the UAE
To kick things off, the company manager needs a UAE resident card (Emirates ID or EID). This is a primary requirement, though there are exceptions. In some cases, a third party with an EID may act as a signatory, provided there is a corresponding company resolution certified in the Free Zone where the company is incorporated. Demonstrating a business presence is crucial.
The manager must apply in person because most UAE banks do not offer online verification. This is more of an exception than a rule.
The company is obliged to provide information about its shareholders and beneficiaries, including their passport details, residential addresses, and bank statements for the last six months to show its source of income.
A detailed business plan is a must if you want to set up a corporate account in the UAE. This plan should clearly show the company’s expected turnover and long-term plans for the next few years.
Contracts with suppliers and clients should be prepared and filed with the bank in advance. This is especially important for established businesses. New companies, however, might find it hard to meet this requirement. In this situation, submitting a framework agreement between the parties might be a better choice.
The bank requires the applying company to have an office in the UAE, and it does not matter whether it is offshore, onshore (incorporated in a free zone), or a local business. A lease agreement, Ejari registration, and photos of the office are used as proof that the company meets the above requirement.
Please note that some of these requirements may vary depending on the specific UAE bank you are applying to for a corporate account.
UAE corporate bank accounts made easy with International Wealth
It may take you from 10 days to 6 months to establish a corporate bank account in the UAE. The exact time depends on your business type and country of origin (especially if there is a parent company). The residency status of the entity’s shareholders and founders also matters. Even if your company is linked to countries blacklisted by the EU, you still have a good chance of approval. The key here is to fill out all documents correctly and carefully follow all the required steps.
With International Wealth, you also have a wonderful opportunity to open a personal bank account in the UAE should you require one. This process is different and has its own rules and requirements.
Still have questions about opening a bank account or registering a company in the UAE after reading this guide? Contact the International Wealth team of experts without further delay! With our help, your path to business success is guaranteed to be much smoother.
