Obtaining a trade license for your business in UAE is important. However, opening a business bank account is also equally important as it makes it easy to handle transactions and other money-related matters. UAE Banks are the most trusted institutions in terms of services and high-level client privacy, but a Free Zone company bank account opening can be a tedious task to achieve especially with the considerable charge of the paperwork it includes.
Nevertheless, if you have the best guidance and assistance from a credible business consultant in UAE, like UAE Expansion, you can execute this job smoothly, without any possible difficulties.
Types of Free zone Company bank accounts
While opening an account for your Freezone company, you can select from any of the below options –
Current Account
- Used for day-to-day money transfers or financial transactions
- Involves the issuance of a debit card, a credit card, and a checkbook for the company owner, which further facilitates them in obtaining a resident visa.
- Can be used to transfer wages
- Ability to hold in multiple currencies, like USD, Euro, GBP, AED, etc.
Savings Account
- Provides comparatively a higher rate of interest than current accounts
- May set limitations for cash withdrawals
- Can provide a variable or fixed rate of interest
- Multi-currency, facilitates US dollars, Dirhams, pounds, and euros.
Investment Account
- A higher rate of interest compared to savings or current accounts
- Accessibility to funds can be limited for a fixed period
- Inconvenient for regular access to funds
- Operates on the basis of the investment contract with the bank, which can range from 12 months to ten years or more.
- Once a fixed amount of money is transferred into the account, the bank manages the holder’s portfolio and further invests in different financial instruments. This way, the holder can earn 3 to 7% per year.
Why do companies need a business bank account?
There are numerous reasons why companies must consider a business bank account.
Track on expenses
Having separate accounts for both your professional and personal needs will help you sort out your expenses. Although, it is possible to use a single account for both kinds of transactions, identifying the taxes and sorting the expenditure would become a challenge in that case.
Card payments
Nowadays, credit cards and debit cards are the most preferred mode of payment. Hence, once your company starts growing, it becomes more important to ensure that your business accepts this mode of transaction. For instance, credit card payments by customers can only be possible if you have a business bank account. Hence, this is again one vital reason to opt for Free zone company bank account opening.
Business Credibility
If you want to make your company look more professional, then get a Freezone corporate account. This would make your business look more presentable and reliable, especially if customers are making payments through cards or cheques.
Identity protection
Businesses tend to make a large number of transactions. This eventually increases the chances of dealing with fraudulent activities. However, with a business bank account, you can not only protect your identity but also limit your potential liabilities.
Partnership
Oftentimes, business owners appoint another individual to take care of business transactions. In such a case, it is ideal to establish a separate bank account for it in order to protect your privacy and prevent your personal details from getting shared from your personal account. Besides, a separate business account would only help to track your business dealings effectively.
Multiple accounts and multi-currency facility
Several banks in UAE allow companies to open multiple freezone business accounts under a single business name. Additionally, the account holder can deposit or make transactions in any currency they want.
Safe and secure transactions
UAE banks ensure the safe transfer of funds within as well as outside the UAE, thereby avoiding the risk of getting the funds misplaced.
Zero taxation
One of the most enticing reasons for choosing a Freezone Company bank account is the absence of taxes. Companies making a transaction from a free zone business account are exempted from all kinds of taxes.
Benefits of Freezone Company Bank Account Opening
The advantages of opening a company account in Freezone include –
- Full confidentiality of personal data
- Easy access to international banking services
- Availability of various currency exchange facilities
- Access to varied loans, personal, business, and others
- Credit card facility with an unrestricted purchasing option
- Reasonable interest rate
- Availability of Joint account option
- ATM services
- Effective management of resources
- Enables productive growth of business
Requirements for Freezone Company Bank Account Opening
- All the partners/shareholders of the company must be physically present to submit and sign the documents.
- Foreign investors must certify all the necessary documents at the consulate of the emirate where their company is registered. They must also get their documents certified by the UAE Ministry of Foreign Affairs.
- Foreign applicants must also get a reference letter from the bank in their country where they have a personal account.
The documents required for Free Zone Company Bank Account Opening include –
- Company formation documents, that include original trade license, MOA/LSA or other partnership agreement, tenancy contract, etc.
- Residency visa and Emirates ID of the applicant
- Utility Bills
- Personal bank account statement of the applicant (for the last 6 months)
Before submitting the above documents, make sure to get them signed and attested by the relevant authorities. Once submitted, wait for compliance approval and get your business account established at your preferred bank.
Although, often it is assumed that opening a corporate bank account in UAE is a real challenge for foreign entities compared to the local companies. However, it would be much easier and cost-effective, if you have UAE Expansion Business Setup by your side. Their experienced professionals will help you get started with the process and fulfill all the requirements without any complications.
List of popular banks in Dubai, UAE
The criteria for opening a corporate account may differ from bank to bank. However, the requirement for a substantial shareholder or director for the process remains the same. UAE Expansion professionals will help you in forming your business bank account in UAE Freezone by carrying out all the steps methodically and responding devotedly to all the banking requirements as and when required.
Below given is a list of some of the best choices of banks you can consider for your Free Zone company bank account opening process –
- NBDA of the Emirate of Dubai
- Commercial Bank of Abu Dhabi
- RAK Bank
- Mashreq Bank
- First bank in Abu Dhabi
- Bank of the United Arab Emirates
- Gulf Bank
- Dubai Commercial Bank
- Standard Chartered Bank
- HSBC
- Citibank
- Barclays
Need help with your UAE corporate account establishment?
UAE Expansion is one of the top leading business setup companies operating in the UAE for the last two decades. They have been helping entrepreneurs with a smooth and cost-effective business setup in Dubai and also assisting them in a systematic Free zone Company Bank Account Opening in UAE.
UAE Expansion company advisors will guide you through the entire process and brief you on how you can achieve a corporate account in a trusted bank in UAE. So, get in touch with their team and learn more about Dubai Freezones and the company formation stages.
