Perks of owning a UAE Business Bank AccountFREE Company UAE Customer Support
Government stability and favorable trade policies in the United Arab Emirates have made it easy for businesses to thrive. This is coupled with the fact that The UAE is connected to the other parts of the world by air, water, and land. This easy connection makes it a favorable place for international trade. As entrepreneurs start businesses in the UAE, they require a business bank account. Fair enough, as businesses cannot survive anywhere without solid and sustainable banking support. Lucky for entrepreneurs, banks in the UAE have made it easy to open personal and corporate accounts.
Read: How to Startup your Company in the UAE without Breaking Bank
Emirati Business Bank Accounts
If you want to start a business in the United Arab Emirates, you need to incorporate your business. After successful incorporation of the business, you get a license that permits you to operate in the country. When you get your license, you need to have a corporate bank account before you can start business operations. A corporate account allows you to make payments and manage other financial transactions for your business.
Opening a business bank account in the United Arab Emirates has been made convenient for entrepreneurs. In addition, these accounts allow businesses to perform several activities such as;
- Manage Transactions: Storing business funds in a bank account makes it easy to send and receive payments. Companies can also track their expenses with their business bank accounts.
- Investment and Asset Management: UAE banks offer a wide range of investment services and asset management services.
- Loans and Credit Facilities: Loans are one of the various ways that businesses use to generate funds to improve and expand their operations. The Emirati banks offer business loans, overdrafts, and other credit facilities. Many banks in the UAE offer interest-free loans to businesses according to Islamic precepts.
- Maintain Records: Businesses pay salaries, rent, and other expenses. The records of these transactions can be very bulky and pose a difficulty to sort and store. However, UAE business bank accounts allow businesses to maintain their records by providing detailed statements of transactions. On your request, some banks offer expense management services.
Opening A Business Bank Account in the UAE
Multiple banks offer corporate banking services to businesses in the UAE. Each of these banks has specific requirements that a business must meet before opening a corporate bank account.
- Spme Emirati Banks require that businesses provide a certain amount as an initial deposit before a corporate account is open.
- To run the corporate account, an average balance will also be required from the business.
- Before opening a business bank account, certain banks will require an entrepreneur to open a savings or current account with them.
If you have met the requirements of the bank of your choice, you can proceed to begin the account opening process. For this process, you will need three classes of documents. First, you need documents to prove your identity and residence. You will have to provide your visa, passport, and residence permit as the case may be.
The next set of documents that you need are your business documents. Contracts, certificate of incorporation, business plan, funding source(s), and other documents related to your business must be provided. Lastly, banks will require additional documents to finalize the account opening. These documents include a letter of reference and any other information about your business. You can open a business bank account in the UAE by visiting the bank. However, you can do it without ever stepping foot in the bank – thanks to Free Company.
Read: Five Advantages of Running your Business from a Free Trade Zone
Advantages of Owning A Business Bank Account in the UAE
There are a lot of perks associated with owning a business account in the United Arab Emirates. Some of these advantages include;
- Adequate Fund Protection: A business bank account in the UAE allows an entrepreneur to separate personal and business funds. This distinction helps to protect personal liability and keeps personal and business transactions as safe as possible.
- Credit Services: UAE banks give businesses credit scores that can be used to secure loans. The higher the credit score, the higher the loans that a company will be qualified to receive.
- Appealing Interest Rates: Non-Islamic Emirati banks give businesses interest on the money in their account. The interest rates are impressive and provide a means for businesses to earn extra income.
- Foreign Transactions: Businesses can make international transactions through their UAE business bank accounts with very little transaction cost.
- Instant Check Book: When you open a business bank account with UAE bank, you get a checkbook instantly. This allows you to issue payments as soon as you begin operations.
- Online Banking: You do not have to visit your UAE banks as a business owner whenever you need to make a transaction. With online and mobile banking, you can make any transaction from anywhere in the world by connecting to the bank.
Emirati business accounts can allow you to receive money in other foreign currencies. Some banks let businesses have a zero balance. However, other banks have minimum balance requirements.
Opening a business/corporate bank account is sacrosanct for your business. You may encounter some issues if you don’t have the right guidance and the know-how. Free Company offers subscription plans for opening businesses in the UAE. As part of their plans, they provide business account opening for their clients. All you need to do is to signup for a plan and watch them do the magic. Free Company will take care of everything for you within five days. No commitment whatsoever is required from you and you maintain full ownership of the incorporated business even when you cancel your plan. To get started, visit freecompany.ae now