Suppose you have a business outside the UAE. Can you open a corporate bank account in the country? Theoretically, this is possible. In practice, however, 90% of attempts fail because entrepreneurs venture on their own and make many mistakes. Expert assistance solves the problem, though, as specialists know all the ins and outs. If you have a company that is registered in one of the UAE’s free zones, you will have fewer problems. Anyway, let’s look at the details.
Opening a Non-Resident Bank Account in the UAE: Mission Possible?
If we are talking about a local bank in the UAE, you can open an account there no matter what kind of company you have: a local entity registered in the mainland, a company incorporated in one of the UAE’s free zones, or an international corporation registered outside the country. However, you need to be aware of important nuances that will help you avoid mistakes:
- If you have a resident company, the local UAE banks will set minimum requirements, and you will be able to receive a full range of services without much hassle.
- A company registered in a free zone or an offshore entity will have to comply with more stringent requirements. The beneficiaries and the businesses themselves will be checked for various criteria, and the bank will turn down your application if its officials discover that you have any connections with sanctioned persons, have a history of breaching free zone regulations, and so on. Also, keep in mind that in these cases, an application for a corporate bank account can only be submitted by a manager who resides locally.
- If your company is in no way connected to the UAE, you can also set up a corporate account with a local bank on the condition that you meet certain requirements. These include the residency of the company founder, establishing corporate ties with the United Arab Emirates (which practically means opening branches or representative offices), maintaining a minimum balance, and so on.
Accounts for non-resident companies are considered high-risk for the local banks, so there are more stringent requirements to meet.
Opening a Corporate Bank Account in the UAE: Steps for Non-Resident Applicants
We are going to provide an algorithm for companies that had no original ties to the UAE and were set up in a different country. Here are the steps this company will have to take to receive services from a local bank:
- Set up a representative office or a branch in the UAE, which will prove that it has ties with the country or certain interests in the jurisdiction.
- Re-domicile the business in any free zone in the UAE (the largest and best-known one is the Dubai Free Zone).
- Establish a new company in the Emirates that will work on the local market or in a free zone. Opening a business account in the UAE for this kind of company is not very difficult, and it will give the employee and the founder the right to obtain residency visas.
- Set up an offshore business in the emirate of your choice (you may have heard of the Ajman Free Zone, the Jebel Ali Zone Authority, or the RAK International Corporate Center, all of which are highly recommendable). This structure does not require its director to be a local resident, and it can have 100% foreign ownership and a non-resident status in the Emirates.
Keep in mind that if you want to obtain a UAE residency visa, you cannot do so by setting up a local offshore company.
Important Considerations about UAE Corporate Bank Accounts
- The company manager will need to get a local resident card (EID or Emirates ID) before the process can be started. This is one of the most important requirements, but exceptions do exist. For example, some company forms allow having a third party that possesses an EID as a signatory. You will need to certify a company resolution in the free zone where the company is registered to use the above option, though. Simply put, it’s essential to show your business presence in the country somehow.
- The manager’s personal presence will be required to submit an application. Though online verification is possible in certain UAE banks, this is usually an exception.
- The company will need to provide all the required details of its shareholders and beneficiaries, including addresses of residence, passport information, and bank statements for the past half-year to show the source of their income.
- You will also be required to submit a detailed business plan to open a business account with a UAE bank. This plan should be impressive and show the company’s expected turnover and development strategy for years to come.
- Prepare the agreements you have concluded with your customers and suppliers in advance to provide them to the bank. Of course, this is a recommendation for businesses that have a history. If you are establishing a new entity, it will be impossible to meet this requirement, so you will need to submit a framework agreement between the parties.
- No matter whether you have a local company, an onshore entity registered in one of the free zones, or an offshore company, you will be required to have an office in the Emirates. This fact has to be proved by providing photos of your office, Ejari registration, and a lease agreement.
The above requirements show an approximate plan you will need to fulfill, as exact requirements may vary from bank to bank. You can follow this link to get updated information on any bank you have selected or address any other trustworthy experts.
Conclusion
How long does it take to set up a business account in the UAE? The term may vary between 10 days and six months, depending on the residency of founders and shareholders, the country of origin (especially if you have a parent company elsewhere), and the type of your business operations. The chances of approval are quite high, even if you have ties with EU-blacklisted jurisdictions! However, in this case, you have to follow all the intricacies of the procedure carefully and fill out all the documents and forms without mistakes.
If you need help opening a personal or corporate account in the UAE, do not hesitate to follow the link above to discuss your situation with a seasoned expert at no charge. We will also help you select the best bank to cater to your business needs.
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