Open a Business Bank Account in UAE With Momentum
Getting a bank account for your business is one of the last steps for starting a company in the UAE. You can only start your business operations once your account has been activated. But how do you know which one is the right fit? The experts at Momentum can help in business bank account opening in UAE, handling the entire process from recommending an account to liaising with the bank until your application is approved.
What is a Business Bank Account?
Having a bank account that is solely for your business operations is an easy way to keep your personal and work expenses separate. It provides business owners a clear picture of their finances, allows them to conduct international transactions, and adds credibility to their company.
What is a Business Bank Account?
Having a bank account that is solely for your business operations is an easy way to keep your personal and work expenses separate. It provides business owners a clear picture of their finances, allows them to conduct international transactions, and adds credibility to their company.
The Business Bank Account Opening Process in UAE
Almost every bank offers a business account, but it is important to consider your business needs before committing to one. Working with a business consultant will save you from having to do all the research yourself.
Find a Business Location
You can set up a business on the mainland, free zone, or offshore in the UAE. The type of business location you choose will affect the type of bank account you have to apply for. We can help you choose a location by assessing your business needs and recommending the best fit.
Free zone businesses allow owners complete ownership, minimal tax obligations, no customs duties, and international market access. Businesses on the mainland can bid for government contracts, have access to the UAE customer base, and are permitted to carry out many more business activities.
Offshore companies can be established in UAE’s jurisdiction but must conduct their activities outside the country. These businesses have complete confidentiality when it comes to their shareholder information and business operations.
Free zone businesses allow owners complete ownership, minimal tax obligations, no customs duties, and international market access. Businesses on the mainland can bid for government contracts, have access to the UAE customer base, and are permitted to carry out many more business activities.
Offshore companies can be established in UAE’s jurisdiction but must conduct their activities outside the country. These businesses have complete confidentiality when it comes to their shareholder information and business operations.
Choose a Banking Institution
We’ve helped multiple businesses open bank accounts so we know how to find the best bank that matches your needs and budget. Every bank has different eligibility requirements for business accounts. Consider these factors before committing to an account:
- Maintenance fees
- Minimum balance
- Initial deposit
- Number of cheque books per quarter
- Ledger, debit card, and related fees
- Account processing duration
- Monthly withdrawal limit
Submit Your Application
Our business consultants maintain strong relationships with local banking service providers and can help you through the application process. After your application has been submitted, the bank will conduct a KYC (Know Your Customer) process to assess your business and owner details to make sure you are a legitimate operator.
Generally, the UAE business bank account opening can take anywhere from 1-4 weeks.
Once they approve you, you can officially start your company activities.
Generally, the UAE business bank account opening can take anywhere from 1-4 weeks.
Once they approve you, you can officially start your company activities.
Submit Your Application
Our business consultants maintain strong relationships with local banking service providers and can help you through the application process. After your application has been submitted, the bank will conduct a KYC (Know Your Customer) process to assess your business and owner details to make sure you are a legitimate operator.
Generally, the UAE business bank account opening can take anywhere from 1-4 weeks.
Once they approve you, you can officially start your company activities.
Generally, the UAE business bank account opening can take anywhere from 1-4 weeks.
Once they approve you, you can officially start your company activities.
Document List for UAE Business Account Opening
- Trade License
- Authorized Signatory(s) Passport copy
- Shareholder(s) Passport, Visa, Emirates ID copy
- Ejari or Lease Agreement
- Financial Statements
- Certificate of Incorporation
- Share Certificate
- Memorandum and Articles of Association
Document List for UAE Business Account Opening
- Trade License
- Authorized Signatory(s) Passport copy
- Shareholder(s) Passport, Visa, Emirates ID copy
- Ejari or Lease Agreement
- Financial Statements
- Certificate of Incorporation
- Share Certificate
- Memorandum and Articles of Association
What are the Best Banks For Business Account in UAE?
Almost every bank offers a business account, but it is important to consider your business needs before committing to one. Working with a business consultant will save you from having to do all the research yourself.
| Name of Bank | Minimum Monthly Avg Balance | Monthly Maintenance Fee | Best For |
|---|---|---|---|
| Emirates NBD | AED 0 – AED 3,500,000 | AED 0 – AED 249 | Emiratis, Startups, Sole Proprietor, Large Businesses |
| Mashreq | AED 0 – AED 50,000 | AED 0 – AED 200 | Freelancers, Startups, SMEs |
| RAKBANK | AED 0 – AED 500,000 | AED 0 – AED 104 | Startups, SMEs, Large Businesses |
| Wio Bank | AED 0 | AED 0 | Freelancers, SMEs |
| Dubai Islamic Bank | AED 0 – AED 500,000 | AED 0 – AED 630 | Startups, SMEs, Large Businesses |
| Emirates Islamic Bank | AED 3,000 – AED 3,500,000 | AED 52.50 – AED 2,100 | Emiratis, Startups, Sole Proprietor, Large Businesses |
Cost of Business Bank Account Opening in UAE
The cost of opening a business bank account is around AED 1,500 – AED 3,500 in the UAE. You may need to make an initial deposit with the service provider as part of your application. We will handle the entire process, from getting all the paperwork ready, preparing and submitting the application, to following up with the banking service provider in case of any issues.
Processing Time to Open a Business Bank Account
A Wio business account is one of the fastest to open in the UAE as it only takes a few days to review your application. Our consultants will also reach out to banks on your behalf to help speed up the process, regardless of what bank you choose.
Processing Time to Open a Business Bank Account
A Wio business account is one of the fastest to open in the UAE as it only takes a few days to review your application. Our consultants will also reach out to banks on your behalf to help speed up the process, regardless of what bank you choose.
Free Zone vs Mainland
Opening a Business Bank Account in the UAE
Part of the business bank account opening in UAE process is deciding between setting up a company on the free zone or mainland. While both locations offer their own advantages, there are certain considerations every entrepreneur should know:
| Free Zone | Mainland |
|---|---|
| Slower application process | Faster application process |
| More compliance regulations | Fewer compliance regulations |
| May need to provide business plan | No business plan required |
| Higher minimum account balance requirement | Lower minimum balance requirement |
Let Momentum Handle Your Business Account Opening Process
Working with an expert familiar with the local laws and regulations can be a simple way to expedite opening a business bank account in the UAE. Momentum consultants can help you make the best banking choice for your business, from helping you find a setup location, selecting the right bank, to submitting the application.
FAQ
Which Bank is Best for a Small Business Account in the UAE?
Small businesses can choose between Mashreq, Wio, RAKBANK, Emirates NBD, Dubai Islamic Bank, or Emirates Islamic Bank for opening a business bank account in the UAE.
How Much Do I Need to Open a Business Bank Account in the UAE?
It can cost around AED 1,500 – AED 3,500 to open a business bank account in the UAE with Momentum. Our consultants will guide you through the whole process, providing expert support.
What Happens If You Don’t Have a Business Bank Account?
Without a business bank account, your personal and business expenses will be mixed, causing you problems with staying tax compliant. You can also face legal issues if you’re operating a larger company.
Which is the Fastest Bank for Opening a Business Account?
In the UAE, Wio Bank is one of the best banks for business account in UAE as their application processing time is only a few days. Working with a business consultant who works with local banks can also speed up the process.
How Do I Choose a Business Account?
When choosing a business account, consider factors like monthly maintenance fees, ledger fees, account features, monthly balance requirement, and the application processing time to open the account.
Is it Allowed to Use Personal Bank Account for Business in UAE?
Using a personal bank account for your business operations isn’t really best practice, and can lead to legal issues down the road if you ever decide to expand your business. Having a separate bank account just for your business is always a good idea.
Can You Use Any Type of Bank Account for Business?
Generally, you should open a corporate bank account that is only for your business transactions. This makes it easy to manage your finances and stay compliant with the tax and legal laws.
What Documents Do You Need to Open a Business Bank Account in UAE?
For UAE Business Bank account opening, you will need to submit passport copies of the shareholders and authorized signatories, Ejari, financial statements, Memorandum and Articles of Association, and your trade license.
What Type of Business Account Should I Open?
A business consultant will be able to guide you on opening a business bank account in the UAE. Momentum can help you decide on the most appropriate account choice.
When Should I Open a Business Account in the UAE?
Ideally, you should open a business account before you start conducting your activities in the UAE. You can open a bank account after your trade license has been issued as you will need to submit it as part of your application.
