The UK and the UAE have been enjoying strong trading partnerships for years with the two nations engaging in multiple economic projects. Some of the UK leaders have described the UAE as a ‘natural home’ for UK businesses (especially former International Trade Secretary Liam Fox). Also, Britain is expected to hold the Joint Economic Committee Meeting with the UAE at the Expo 2020 to be held in 2021.
In this background of the strong bond between the two nations, it makes business sense for a UK national to open a corporate bank account in Dubai. However, the process of bank account opening in Dubai or the UAE involves a series of steps that need careful consideration especially after the introduction of the Anti-Money Laundering (AML) / Combatting of Financing of Terrorism (CFT) Laws.
1. Get a Valid Business License
The very first step in opening a corporate bank account in Dubai is obtaining a valid business license from the relevant competent authority. The lack of a valid license would prevent you from being recognized as a business entity and the bank wouldn’t open an account for you. Consult with the best business setup consultants in Dubai to get a trade license from the Department of Economic Development (DED), Free Zones, or Offshore Licensing Authorities.
2. Get the Documents in Order
In the next step, you can gather all the documents required for opening a corporate bank account in Dubai. You can ask the respective banks about the documents required or consult with the best business consultants in Dubai for additional help regarding the documents. The documents required may vary from bank to bank but in general, the bank may ask for the following documents:
- Corporate account opening form
- A board of directors’ resolution sanctioning the opening of the account, and the signatories to the account
- A copy of your company’s certificate of incorporation
- A copy of the trade license
- A copy of share certificates
- A copy of the company’s MoA and Articles of Association
- Copies of passports for all partners in the company
Some banks may ask for additional supporting documents such as contracts or invoices, reference letters from business partners, company business plans, and information regarding the business you are planning to set up in Dubai.
3. Requirements Related to Visa
To proceed with the next step in the process of business bank account opening in Dubai, you need to check whether the bank requires the shareholder to have residency visas. This requirement varies from bank to bank as some lenders ask for the residency visa of at least one shareholder while others do not ask at all. To avoid the potential delays in the bank account opening process, you better check with the banks in the initial stage itself.
4. Choose Your Bank
After ensuring that your documents are in order, now it’s time for choosing the right bank for opening an account in Dubai. There are multiple local and international banks to choose from in the UAE. The big names are:
- Emirates NBD
- Noor Bank
- Emirates Islamic Bank
- Mashreq Bank
- First Abu Dhabi Bank
- RAK Bank
Choose the right bank as per your specific requirements. While choosing a bank in Dubai you must check the eligibility criteria. Many banks ask for a residency visa and banks also ask for your physical address as per the due diligence process in line with the AML/CFT Law. Another hurdle is the minimum balance requirement. Banks in the UAE will ask you to maintain a continuous minimum balance and it may go AED 1 million but the starting amount may start from AED 20,000 depending on the bank.
5. Application Process
Once you have finalized the bank, you can start the formal application procedure for opening a bank account in Dubai. Business setup consultants in Dubai recommend the entrepreneurs visit the bank in person and discuss the requirements and procedures with the concerned bank official. Book an appointment with customer service personnel at the bank and schedule the time for the face-to-face talk before the visit.
The banks may have different safety protocols for client visits in the wake of the COVID-19 pandemic and taking a prior appointment will give you a hint about the safety procedures.
The banks will scan your documents and will green signal the application if your records are proper and clean. In most cases, the account will be opened 10-15 days after the verification (depends on the bank’s processing time).
KYC Hurdles You May Encounter During Verification
The AML/CFT Laws have imposed severe compliance pressure on the banks and your efforts to open a bank account in Dubai may get delayed due to the following due diligence reasons.
- Lack of Financial Transparency
- Weak Business Plan
- Insufficient Information in the Application
- No Local Address or Lack of Residency Visa
- Bad Business History
- No Physical Office Space for the Proposed Company
Seek the Advice of Business Setup Consultants in Dubai
The process of bank account opening in Dubai is easy and be completed in a few steps. However, you need to present all the proper documents and submit all the necessary information the bank asks for. Since the introduction of the AML/ CFT Law, the verification process is a bit stringent and you need to exercise careful consideration while preparing the documents. Experienced Business Setup Consultants in Dubai such as Jitendra Business Consultants (JBC) provides all the necessary advice regarding the opening of a corporate bank account in Dubai, UAE. JBC’s business setup consultants assist you in the document regarding business license, MoA, certificate of incorporation which the banks may ask during the process.