Opening a corporate bank account for your business

28-3-2018

When venturing out to the UAE to setup a new business, there are many tasks involved, one of which is the opening of a corporate bank account. There are numerous reputable financial institutions operating in the UAE, which offer a full range of services required to operate your business smoothly.

There have been some recent developments related to corporate account opening, so with that in mind, let’s have a look at all you need to know regarding corporate bank accounts:

Firstly, your UAE entity must be incorporated and the setup of your business must be finalized. Without the corporate documents, the bank cannot proceed with opening your account. If your UAE company is owned by a foreign corporate shareholder, you will be required to provide the same documents for this entity as well. These documents will need to be attested by the UAE embassy from the country of origin, as well as at the Ministry of Foreign Affairs (MOFA) in the UAE. We will provide you detailed advice on these requirements.

The recent developments in the banking sector have now made it compulsory for the authorised signatory of the company to have a Residence Visa. This means that prior to opening the corporate bank account, the visa application procedure must be finalized.

Choosing your bank: Once your documents are in place, you can approach one of the UAE’s many banks. Banks in the UAE require a continuous minimum balance which needs to be maintained every month. This can range from AED 10,000 up to AED 1m. We will discuss suitable options for your business with you and connect you with our contacts at the bank and accompany you at each stage of this process.

If the authorised signatory of the company isn’t one of the shareholders, a Board Resolution (attested) must be provided. The account opening must happen face-to-face at a bank branch. We have close relationships with the banks and will schedule the meeting and assist you during the meeting.

Please note that banks may also require additional supporting documents after signing the account opening forms: contracts or invoices, reference letters from business partners, company business plans, and information on the type of the activities on the account may be asked for at a later stage. Nowadays banks have to prove to their regulators that they know their customers well, including the nature of their business and source of funds, so you can expect them to ask you about these things as part of the account opening process.

The Watermill can ensure this process runs smoothly. For more information regarding business setups and corporate bank accounts, contact us today!

  • UAE 11:58
  • NL 9:58
  • AED 4,3090

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