Starting a company in the UAE is often accompanied by opening a business bank account in UAE. It is important for company owners to maintain separate accounts for their business and personal incomes. Although, as a new entrepreneur, it may seem that using your personal bank account is easier and more cost-effective, there are several reasons you should have a company bank account to streamline and keep track of all your business transactions. What is a corporate bank account? In simple terms, a corporate account is a type of bank account dedicated for businesses. While personal accounts may have certain restrictions, company accounts can be used to record business expenses, store and manage your company’s funds. Moreover, a corporate account also presents a more professional image of your company. The main purpose of having a corporate account is to manage daily banking needs such as accepting payments from clients or paying your employees and vendors, save for future purchases and invest money for generating extra revenue. This not only helps you maintain your company’s day-to-day financial transactions, but also improves your business operations. Why do you need to open business bank account in UAE? Some of the key benefits of having a business bank account in UAE for your company include: Protecting personal and financial liabilities An organisation is considered to be a separate legal entity from its owners. Therefore, your corporate bank account in UAE helps keep business dealings apart from your personal ones, providing an added layer of protection to your private funds and assets. It is also a safe place for you to park your company’s additional revenue, which you may hold or invest in future. Moreover, it also saves you from being personally liable in case your business is at any financial risk such as debt because in such scenarios, the company is held accountable instead of an individual. Simplifying tax-related processes Using your personal account for your company’s transactions will lead to confusions when you need to file tax returns as you need to keep a clear track of your business’ income and expenses. At times, you may also be required to furnish your bank statements to some authorities. So, it is highly convenient to keep the financial information of your business separately, in one place for accurate summaries. Boosting company’s credit scores Credit scores are one of the most important evaluation factors at both personal and company levels as these ratings help secure loans. A credit score is built based on your company’s past transactions, including timeliness of payments, etc. Business growth and expansion Maintaining clear bank reports and statements reflect your company’s financial position when you pitch to investors or potential business partners. A business bank account in UAE will facilitate smooth transitions when you expand or even decide to sell your company. How to open a business bank account for your UAE business? Eligibility First, you need to know if and when you are eligible for business bank account opening in the UAE. Then you can prepare the required documents and get started with the process. Eligibility All businesses, regardless of the size or corporate structure, can apply for a corporate bank account in the UAE. The most common requirement for bank account opening is to first obtain your business license, which proves that you own a legal enterprise. Documents required Listed below are the mandatory documents required by the UAE banks for business account opening: Certified company incorporation documents Company profile Valid passport copies of all shareholders Personal profiles (CVs) of all shareholders Six months personal bank statements of all shareholders Emirates ID and residence visa copy of the primary signatory Steps for account opening Assessment: Based on your company’s activities, operations and financial status, you can choose the most appropriate bank for your business account. Another factor to consider before starting your process is the primary purpose of your company’s account – saving or investment or day-to-day financial operations. You may also be asked to submit some additional documents during the assessment process. Application If you cannot be in the UAE for any reason, you can start the application for a UAE corporate bank account online as well. However, you will have to be physically present in the bank to sign the documents once your application is approved. Facilitating your business bank account in the UAE With RAKEZ, you can get an expert’s support and guidance on the step-by-step application process and documentation to open your business bank account. Simply call on +971 7 2041111 or drop an email to info@rakez.com to get started now!
Starting a company in the UAE is often accompanied by opening a business bank account in UAE. It is important for company owners to maintain separate accounts for their business and personal incomes. Although, as a new entrepreneur, it may seem that using your personal bank account is easier and more cost-effective, there are several reasons you should have a company bank account to streamline and keep track of all your business transactions.
In simple terms, a corporate account is a type of bank account dedicated for businesses. While personal accounts may have certain restrictions, company accounts can be used to record business expenses, store and manage your company’s funds. Moreover, a corporate account also presents a more professional image of your company.
The main purpose of having a corporate account is to manage daily banking needs such as accepting payments from clients or paying your employees and vendors, save for future purchases and invest money for generating extra revenue. This not only helps you maintain your company’s day-to-day financial transactions, but also improves your business operations.
Some of the key benefits of having a business bank account in UAE for your company include:
An organisation is considered to be a separate legal entity from its owners. Therefore, your corporate bank account in UAE helps keep business dealings apart from your personal ones, providing an added layer of protection to your private funds and assets. It is also a safe place for you to park your company’s additional revenue, which you may hold or invest in future. Moreover, it also saves you from being personally liable in case your business is at any financial risk such as debt because in such scenarios, the company is held accountable instead of an individual.
Using your personal account for your company’s transactions will lead to confusions when you need to file tax returns as you need to keep a clear track of your business’ income and expenses. At times, you may also be required to furnish your bank statements to some authorities. So, it is highly convenient to keep the financial information of your business separately, in one place for accurate summaries.
Credit scores are one of the most important evaluation factors at both personal and company levels as these ratings help secure loans. A credit score is built based on your company’s past transactions, including timeliness of payments, etc.
Maintaining clear bank reports and statements reflect your company’s financial position when you pitch to investors or potential business partners. A business bank account in UAE will facilitate smooth transitions when you expand or even decide to sell your company.
First, you need to know if and when you are eligible for business bank account opening in the UAE. Then you can prepare the required documents and get started with the process.
All businesses, regardless of the size or corporate structure, can apply for a corporate bank account in the UAE. The most common requirement for bank account opening is to first obtain your business license, which proves that you own a legal enterprise.
Listed below are the mandatory documents required by the UAE banks for business account opening:
Assessment: Based on your company’s activities, operations and financial status, you can choose the most appropriate bank for your business account. Another factor to consider before starting your process is the primary purpose of your company’s account – saving or investment or day-to-day financial operations. You may also be asked to submit some additional documents during the assessment process.
If you cannot be in the UAE for any reason, you can start the application for a UAE corporate bank account online as well. However, you will have to be physically present in the bank to sign the documents once your application is approved.
With RAKEZ, you can get an expert’s support and guidance on the step-by-step application process and documentation to open your business bank account. Simply call on +971 7 2041111 or drop an email to info@rakez.com to get started now!
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