Starting a business in the UAE is something many entrepreneurs dream of. The highly business friendly environment and opportunities for growth make the UAE one of the most sought after business destinations in the world. One of the most important prerequisites of starting a business in the UAE is opening a business bank account. Having a bank account saves new businesses from a lot of trouble.
Benefits of business bank account in the UAE
Businesses require a bank account in its own name for a variety of reasons, but to be able to manage funds is one of the main privileges and benefits of having a business bank account. The initial capital investment as well as day to day earnings and expenses can be easily managed with the help of a business bank account.
Having a bank account helps businesses avail loans with ease. Businesses may be required to acquire loans, both short and long term, for various needs. They may not always have liquid cash available in hand to cover expenses. Moreover, it is also more prudent to make investments with borrowed funds than own funds. Banks in the UAE offer attractive interest rates as well. All this and more calls for the need to avail loans from banks.
Investments involve huge amounts of money. Having a business bank account enables businesses to have increased purchasing power which makes it easier for them to make investments from time to time. Any prospective entrepreneur looking to start a business in the UAE and undertake investment activities, you need to start a business bank account at the earliest.
Businesses can avail several banking services such as cheque book facility, ATM, bank transfer, mutual funds, multiple currency acceptance, internet banking, international transactions and more. Only by having a bank account in its own name can a business avail the benefits of all these services offered by banking institutions.
Security and protection
Most importantly, banks offer security and protection to their customers’ funds against personal and corporate liabilities. Your transactions and money will be safe and secure with banks than in any financial institution.
Entrepreneurs' Eligibility Criteria for Opening a Business Account in the UAE
For an entrepreneur to become eligible for opening a business account in the UAE, they need to satisfy certain requirements and criteria. Even though it may differ from bank to bank, there are certain general norms that are required to be satisfied by all entrepreneurs.
Minimum Initial Deposit - Entrepreneurs should maintain a minimum initial deposit criteria at banks for them to satisfy the eligibility requirements for opening a business account. The amount of the minimum initial deposit would differ from bank to bank.
Minimum Average Balance - Entrepreneurs are also required to maintain a minimum average balance throughout the period of having the said business bank account. This amount would also depend on the bank that they choose to open an account with.
Know Your Customer (KYC) - Entrepreneurs will be required to fill out a Know Your Customer or KYC form for easy processing of business bank account requests and compliance formalities.
Savings or Current Account - Businesses would also be required to open a savings or current account in order to become eligible for opening a business account with banks in the UAE.
How can I open a business bank account in the United Arab Emirates?
If you are a business owner looking to open a business bank account in the UAE, there are various options available to you:
Opening a Business account online - You need to submit an online application form, duly filled with all the requisite details, to the bank’s website. You would also be required to scan and attach necessary documents as well along with the online application form.
Opening a business account offline – You could also open a business bank account by directly visiting the nearest branch of the bank of your choice. You would be required to fill out an application form and submit certain documents and details and adhere to the instructions of the banking officials, to the satisfaction of which your business bank account would be opened.
Opening a bank account via a phone call - Alternatively, you can also open a business bank account via phone call wherein you can call the bank’s customer care number available on their website. The customer care representative of the bank would direct you to the procedures to be followed and guide you through the process of opening a business bank account.
If you wish to start a business bank account in the UAE for your business, you can get it done with ease with the help of an expert business setup service provider. Connect with Kiltons, the number one name in business setup services in the UAE for all your business bank account needs. Avail our consultancy services today.