As locations like Dubai and Sharjah continues to expand, it creates an environment for diverse investment. If you’re an ex-pat entrepreneur, you should have an interest in getting started with business banking in the UAE.
Types of Business Accounts Available in the UAE
Before you walk into a banking institution, you should know that not every business banking service is available for ex-pats. Some accounts are exclusively for nationals. With that out of the way, let’s look at some of the types of business banking accounts offered in the country.
Basic Business Accounts
Basic business accounts are checking accounts designed for the deposit and use of your business funds, with a lower minimum average monthly balance. They include basic amenities.
Premier Business Accounts
Premier business accounts are similar to basic business accounts, but they offer additional amenities like free cheques, relationship managers and require a higher minimum monthly balance.
Fixed-Term Deposit Accounts
This is a type of savings account designed for people who want to maximize their interest rate return. Choose an account with a variety of fixed-term options. These accounts mature at the end of the fixed-term period.
Business Call Accounts
A business call deposit account is designed for the allocation of investment funds. These types of accounts offer the dual advantages of savings and checking accounts. However, they often do not carry a fixed deposit period.
Opening the Right Type of Account
Before opening a business account, decide if you’re looking to facilitate your business funds usage, reporting and holding, or if you’re more interested in interest rate returns.
Also, ask yourself if your business large enough to warrant a premier account. Based on the amenities offered and minimum monthly deposit requirements, small businesses may need a basic account starting out.
How to Open a UAE Business Account
Before you can open a business account in the UAE, you should have your business documents certified at the Consulate of the Emirates of your home nation and by the UAE Ministry of Foreign Affairs ($2,000 AED).
After this, make sure the major shareholder or director of your company is present. Fill out the required application and provide the following documents:
- Company’s shareholder passport (with residency visa)
- Copy of shareholder’s Emirates ID card
- Copy of the company director’s passport
- Report on the type of activities on the account
- Fund source disclosure
- Existing contracts
- Reference letters from business partners
- Business plan
- Certified company incorporation documents
The bank will then gathers background information and conduct an interview. Afterward, your account will be established and you can begin moving funds over to your new account.
Why you should Separate Personal and Business Finances
Separating your business and personal finances will assist you in only spending on your company what its revenue can afford. It can also offer protection against the mishandling of funds.
What part of your business revenue are personal finances?
If you pay yourself a salary, that money is considered an expense to your business. It has to be deposited into your personal account, as keeping it in your business account will not reflect it as an expense.
Equipped with this information, you can begin planning your future as an entrepreneur, investor or contractor in the UAE the right way.