Dubai has become a business hub. Investors around the world are interested in investing in Dubai. Dubai is also one of the top-rated tourist destinations in the world. With scintillating malls, sky kissing towers, excellent infrastructure facilities, high-end technology, and likewise. It’s a global destination that no one would want to miss. The financial stability of Dubai is also quite strong. Management of the funds is a task in itself. The Banks in Dubai make this task easy. They offer best in class services for opening an account and managing the funds. A company can easily open a business bank account in Dubai once the required documents are furnished.
What is a Business Bank Account?
Management of funds is an important task for every business. A business bank account helps to keep the record of cash flow, credit and debit payments, payroll for employees, and likewise. However, these accounts are only for businesses purposes. The business account is separate from personal account. But, there are some conditions to be fulfilled for opening of the account.
Reasons for Opening a Business Bank account:
Opening a business bank account is necessary for the following reasons:
- Firstly, a business account helps to differentiate between personal and company accounts.
- Secondly, a bank manages the cash flow, tracks the business expenses, and accounts of the business.
- Thirdly, the bank helps in calculating the tax incurred by the business.
- Moreover, card payments and taking a business loan can be made easy with the help of business accounts.
- Most importantly, a business account helps to protect personal data and personal funds.
- It helps to make payments and draw cheques from business accounts
- Many banks provide low or zero balance accounts.
- International remittance of funds is possible with the help of a business account.
- Multiple currencies can be used for transacting the business account.
There are many local and foreign banks in Dubai. The Central Bank of UAE controls these banks An onshore or offshore company can open a business account.
Some of the banks in Dubai are following:
- Emirates NBD
- Mashreq Bank
- First Abu Dhabi Bank
- Commercial Bank of Dubai
- Abu Dhabi Commercial Bank
- Standard Chartered Bank
- Citi Bank
Steps to be Followed to Open a Business Bank Account in Dubai:
- Filling the application form correctly
- Verification of passport, IDs Company documents, registration, license, and other documents by the bank.
- Face to face meeting of the owner and the banker.
It will take around 2 to 4 weeks to open a business account.
- Company trade license.
- Certificate of registration.
- Share certificate.
- Memorandum of Association and Articles of Association.
- Passport and visa copies of shareholders.
- Documents related to legal structure, company formation, financial details, and shareholders details.
- Emirates ID of the shareholder.
- Board resolution empowering the company officer to open the account.
To sum up, most importantly a business requires a trade license and also shareholders certificates to open a business bank account in Dubai.