UA E Bu sin e ss S e t u p G u i d e s Corporate Banking in the UAE www.vz.ae
Index 5 Phase 1: Required documents Phase 2: The process 3 6 Key facts Corporate banking in the UAE 2 1 Ready to get started?
Corporate banking in the UAE One of the final tasks on the checklist after having set up your new business is to get your corporate bank account. This is no more arduous here in the UAE than it is in the rest of the world, as the UAE is home to a large number of highly reputable national and international banking institutions. For example, Emirates NBD and Abu Dhabi Commercial Bank are the largest two in the region and have a network of branches throughout the UAE. They, along with Mashreq Bank, Abu Dhabi Islamic Bank, United Arab Bank, First Gulf Bank, and Commercial Bank of Dubai, offer all the services that you would expect from an international bank in 2016. On the international front, you ll recognise names such as Standard Chartered, HSBC, Citibank and Barclays all of which offer corporate bank account services for locally registered companies. There are of course a number of considerations to factor in, and you ll want to ensure you have your 'to do's' all checked off before approaching those banks. With that in mind, in this guide we walk you through some of the more important things you need to be aware of as you look to set up your corporate bank account in the UAE. 1
Key facts You must obtain your business licence in the UAE before opening your corporate bank account. Some banks require at least one shareholder who has a residency visa, while others do not have this requirement. Many bank accounts require a continuous minimum balance, anywhere from AED 10,000 all the way up to AED 1 million. The application process usually takes between one and two weeks, depending on your chosen bank. 2
Phase 1: Required documents Most corporate account applications will require information on your company activities, including in some cases proof of business such as examples of contracts, invoices, information about your clients and suppliers, etc. You will also be required to provide details such as your financial projections as well as information about the management team (if you have one). Legal documents you will be asked to sign or provide include: A corporate account opening form A board of directors' resolution sanctioning the opening of the account and the signatories to the account A copy of your company certificate of incorporation A copy of your trade license A copy of your share certificates A copy of the company s memorandum and articles of association Passport copies of all partners in the company A residency visa for at least one of the company shareholders (optional for some banks) 3
Phase 1: Required documents Finally, if your company is owned by another company, then your bank will require all the documents of that particular company as well. For example: If Company X is a shareholder in Company Y, then you will be required to provide documents of Company X and Company Y to open an account. If Company X is registered outside the UAE, then all of the documents will need to be attested by the UAE embassy from the country of origin, and following that they will also need to be attested by the Ministry of Foreign Affairs (MOFA) in the UAE. 4
Phase 2: The process Once you have all of the required paperwork in place, you must now book an appointment with a representative of your chosen bank. Virtuzone of course has relationships with a number of banks in the UAE and can advise on the best one to suit your needs. At some point during your appointment you will be asked to present the key documents as mentioned above. If all is in order, the bank representative will let you know that they can move forward with the setup process. While the meeting itself should take no more than 30-60 minutes, the entire application process takes anywhere from five to 10 working days. As for choosing which bank will be the best fit for your company, there are both personal preferences to take into account as well as restrictions that may make it impossible for you to go with a certain bank. On the latter, for example, as we mentioned at the outset some banks require a minimum balance or upfront paid capital, which you may be unable to maintain or provide. Personal preferences are of course very individual, and could include everything from how important the online banking experience is to the number of branches and ATMs and whether they are conveniently located, and so on. So do ask around within your contact network to find out as much as you can about what it is like to bank with the various institutions. 5
Ready to get started? Virtuzone has helped thousands register a free zone company in the UAE, and about 80% renew with us each year going forward. Find out why we are the UAE company setup experts of choice by getting in touch with us today. Phone : +971 4457 8200 Email : info@vz.ae Office 404, Building B, Al Saaha Offices Souk Al Bahar - Old Town Island Burj Khalifa District, Dubai United Arab Emirates Drop-in hours: 9:00 AM 6:00 PM www.vz.ae