Starting a new foreign-owned business in the UAE? You’ll need a corporate bank account, too.
If you’re starting or planning to start a company in the UAE, you’re certainly in good company. Many foreign investors turn to the UAE for its many business opportunities and significant economic benefits. Setting up shop in a UAE Free Zone has never been easier, and the advantages of doing business in this region are numerous.
But in order to set your new company up for success, you’ll also need to have the right financial backing in place. To open a corporate bank account in the UAE isn’t just a good idea; in most cases, it’s actually a legal requirement for doing business here. Ready to learn more about how to open a business bank account in the UAE? Then keep reading!
What are the benefits of opening a bank account in the UAE?
You probably know that you need an open bank account in the UAE, but more specifically, you need to open business accounts in the UAE. Why? It’s a matter of security for you, and it’s also a matter of building trust with your clients.
Here are just a few benefits of having a business account in the UAE:
1. Ease of business fund access and sales monitoring
Keeping track of your cash flow and all your sales transactions can be difficult to manage on your own. It’s much easier for business owners to facilitate the process by taking advantage of their own business bank accounts.
2. Track your business expenses
Of course, money coming in (sales) isn’t the only thing you need to track. You also must keep up with all money that’s going out in the form of purchases and expenses. A business account can help you to manage your costs much more effectively.
3. Necessary tax calculations
It’s imperative for businesses to have a good system for staying on top of all applicable tax liabilities, too. A business account is one proven tool for helping to maintain tax payment calculations and transparency for all concerned parties.
4. Processing of card payments
We live in a world where fewer and fewer businesses and individuals pay in cash. You need the ability to accept cards for your products and services, and that’s something a business bank account can help to facilitate for you.
5. Foreign currency processing and exchange
If you do business inside the UAE, then you’ll need to accommodate the government’s requirement for you to be able to deal in UAE currency. At the same time, you may have some other preferred forms of foreign currency (such as that of your native country) as well. With a business bank account in the UAE, you can select which currencies you prefer, and can also take advantage of an automatic, effortless currency exchange system.
6. Business loan opportunities
Once you’ve established a business account in the UAE, that opens you up to gaining access to preferred business loan rates from your chosen financial institution. In addition, you can take advantage of obtaining a business credit card through your corporate bank account, as well.
7. Online banking
Doing business in the digital age means you also need to have easy access to your funds and banking services at the speed of mobile. With a user-friendly online banking platform like those provided by major banks in the UAE, you can access and manage your corporate account at any time, from any location.
8. Professionalism and client trust
Let’s face it, many customers and clients are hesitant about depositing funds into a personal account. It doesn’t look professional, and it can raise doubt about the validity of your business. You can eliminate that source of doubt and inspire more confidence in those who do business with you by maintaining a reputable corporate bank account.
Things to consider when opening a business bank account in the UAE
Another key advantage to opening a business bank account here is the UAE’s strong emphasis on personal privacy and security when it comes to financial matters. Even so, there are a few things you’ll want to keep in mind.
1. Balancing privacy and compliance
While the UAE is generally known to be one of the most private, secure places to do business in the world, the UAE has also had to negotiate some necessary agreements with other nations to help combat tax evasion. That being the case, UAE banks may be required to collaborate with foreign authorities in certain circumstances and situations.
2. Other considerations of note
- If you own a UAE corporation, a registered branch of a company, or a subsidiary company, then you are eligible to apply for a corporate banking account in the UAE.
- Your physical presence will be required as the bank signatory, and for submitting your application and having your passport verified.
- In terms of documents to start gathering, you’ll need a description of your company’s operations, a list of shareholders, information about the business background of your key leaders, and a UAE-approved business plan.
MSZ Consultancy can help with your UAE business setup process
Got questions about opening a corporate bank account in Dubai, or elsewhere in the UAE? MSZ Consultancy is here to help! We’re not a banking service, but rather a dedicated group of professionals with vast experience in helping entrepreneurs and foreign business investors like yourself to navigate all aspects of the UAE business setup process. We’re headquartered right here in Dubai, and we know all the tricks and strategies for getting your business approved and up and running.
Plus, we don’t stop at simply helping you to establish your company. We offer a complete suite of ongoing PRO business services, too. We’re about more than simply helping you to get your company set up. We’re here to continue walking with you along the way; we want to see your UAE business really thrive and grow!
Want to learn more? Ready to get started? Connect with MSZ Consultancy today to see how we can help your business dreams come true, both in Dubai and in the greater UAE. Reach out to us to book your free consultation now! You can give us a call at +971 52 544 1248, or you can also get the conversation started by sending us a message at info@mszconsultancy.com.
