May businesses registered outside the UAE open a corporate bank account in the country? Yes, it is quite possible, but you are facing a rocky road ahead. The chances of success are less than 10% if you try to do it on your own. However, if you have an offshore company (a non-resident of the UAE) registered in one of the UAE’s free zones and want to use it for this purpose, you will encounter fewer difficulties with setting up an account in a local bank.
Is it possible to open a company bank account in the UAE as a non-resident?
If the matter concerns a local bank in the United Arab Emirates, you can open a company bank account for various types of businesses there, including local (mainland) firms, offshore entities (registered in UAE free zones), and foreign or international offshore corporations. What is more, accounts can be established for companies conducting business abroad and managed elsewhere, if they are registered in countries other than the UAE.
However, there are several important considerations to take into account in this regard:
- Resident businesses can access banking services in local UAE banks with minimum requirements and without much hassle.
- Free zone companies and offshore entities face stricter requirements from UAE banks. The latter check the beneficiaries and businesses carefully for various criteria and may refuse to set up an account for your business if they discover any ties to sanctioned individuals or breaches of free zone registration rules, among other things. NB: Only a UAE resident manager is authorized to apply for account opening in these cases.
- Foreign firms with no direct ties to the United Arab Emirates may potentially open business accounts in the jurisdiction, but certain conditions must be met. These include maintaining a required minimum balance, establishing corporate connections with the UAE (here, we are referring to branch or representative offices), and founder residency, to name just a few.
Local UAE banks consider it a high-risk deal to open accounts for non-resident enterprises. This is true for both offshore companies formed in the UAE and firms that are about to set up accounts with UAE banks.
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How to open a business bank account in the UAE: steps to follow for non-residents
Here, we are talking about the companies that originally had no ties to the Emirates and were formed in a completely different jurisdiction.
This is what these entities need to do to become clients of a local UAE bank:
- Open a branch or a representative office in the UAE to prove they have interests in the jurisdiction or ties with the country.
- Redomicile their business to the Dubai Free Zone or another free zone in the UAE. This way, they can keep their offshore status and enjoy tax benefits as well as the UAE’s impeccable reputation.
- Set up a new company in the UAE that will operate in a Free Zone or the local market. It is not hard to open a corporate bank account in Dubai for this kind of company, and both the founder and employees can get residency visas.
- Register an offshore business in one of the emirates (think the Jebel Ali Free Zone Authority in Dubai, the RAK International Corporate Centre in Ras Al Khaimah, or the Ajman Free Zone in Ajman). To open an account for this structure, the company’s director does not need to be a UAE resident and the firm may be fully owned by foreigners and have a non-resident status in the UAE.
FYI: Please note that you can’t obtain a residency visa by registering an offshore company in the UAE.
Things you should know about opening company bank accounts in the UAE
- The manager of the company needs a UAE resident card (Emirates ID, abbreviated as EID) to start the process. This is one of the main requirements, but there are some exceptions. For instance, some forms allow a third party with an EID as a signatory. However, this requires a company resolution certified in the Free Zone where the company is incorporated. Therefore, showing business presence in some way is very important.
- The manager must apply in person. In the UAE, certain banks allow online verification but this is rather an exception than the rule.
- The company has to provide the required shareholder and beneficiary details, including their passport information, residential addresses, and bank statements for the last 6 months, showing the source of income.
- To set up a corporate account in the UAE, you will need a detailed business plan. This plan should be strong, showing your company’s expected turnover and strategic plans for the next few years.
- You should prepare contracts with your suppliers and clients and submit them to the bank in advance. This is especially important for established businesses. New entities may find it hard to meet this requirement though. For them, submitting a framework agreement between the parties may be a better option.
- The bank requires the applying company to have an office in the UAE, whether it is an offshore, onshore (incorporated in a free zone), or local business. To document the above, the company also has to provide a lease agreement, Ejari registration, and its office photos.
FYI: Some of these requirements may vary depending on the particular UAE bank that you are applying for a corporate account to.
Summary
Opening a company account in the UAE may take you anywhere from 10 days to 6 months, depending on the type of business you have, the origin country (especially if there is a parent company), and the residency of its shareholders and founders. Even if your company has any ties with jurisdictions blacklisted by the EU, you still have a decent chance of getting your application approved. However, for it to be possible, you need to fill in all the documents correctly and follow all the procedures to a tee.
Apart from company accounts, you are also welcome to open a personal bank account with a bank in the UAE. However, it is a different story, and to achieve this goal, you’ll have to follow different requirements and rules.
Need help with opening a bank account in the UAE or registering a company in the jurisdiction? Go ahead and contact the Q Wealth team of seasoned industry pros! With us, your road to business success is always much easier!
