Bank Account Opening
All businesses require a legitimate bank account to operate in the UAE and receive payments from their customers either within the UAE or internationally.
This has been made all the more necessary by the introduction of taxes on businesses such as the VAT (Value Added Tax) and CT (Corporate Tax). In order to file your tax returns, it’s necessary to have a business bank account from which you can show receipt of customer payments and pay for any taxes levied against your business.
In the UAE, there are 2 types of business bank accounts, namely, digital and traditional. Digital banks are fully functional banks licensed by the Central Bank of the UAE and provide a full suite of financial products and services to its customers with the sole exception of having a physical bank that customers can visit and carry out transactions. Some examples of digital banks are Liv (by Emirates NBD); Wio Bank (by FAB); Neo (by Mashreq).
While the KYC (know your customer) process and onboarding for a traditional bank are very tedious, time consuming, and require the signatory’s physical presence for document verification, digital banks on the other hand have simplified their entire process by facilitating application submission, KYC, and signatory validation, all completely online from their mobile application.
Although, digital banks are newer in comparison to traditional banks and have restrictions on the types of businesses they are ‘authorised’ to onboard. For example, trading in gold, bullion, cryptocurrencies, and precious metals are activities not supported by many digital banks and for such high-risk activities, one would have to turn to the traditional banks.
Quikly has the expertise to facilitate bank account applications and the necessary documentation for our clients and help them navigate the process whether they choose digital or traditional banks. Although, it is important to remember that all banks carry out some form of background checks on the signatories, the business activities conducted, and its credit scores (in case of existing businesses). Some verifications are more stringent and time-consuming than others and the decision of the bank to accept or reject the application is entirely up to the banks themselves. No bank(s) or service provider(s) can guarantee a bank account and any claims to be able to do that should be eyed with caution. Some accounts may be opened within a week, while some others may require even a month or two at the discretion of the banks themselves.
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Frequently Asked Questions
Absolutely, yes! Any business license issued by any licensing authority in the UAE allows you to open a company bank account. However, there are a few factors to note.
- The primary account holder MUST have a UAE Emirates ID card meaning that at least one person in the company MUST have a UAE residency visa (visit visa/tourist visa NOT included)
- All company bank accounts carry a certain ‘monthly-maintenance fee’. There are no exceptions to this.
- There are several ‘digital-only’ banks licensed by the UAE central bank where the entire application process and banking operations are done online and your physical presence is NOT required.
- Some traditional banks such as Emirates NBD and Mashreq also have a digital-banking solution, and facilitate online applications, however, some of these may require an in-person visit to the bank or verification of your office premises by a bank representative to complete the verification process.
- The time taken to open a bank account depends on the nature and risk level of the business activity and shareholder credibility. The process could take anywhere between 1 week to a few months.