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Bank Account Opening in UAE

If you’re planning to start a business in the UAE, having a bank account in Dubai is a crucial step. Whether your business is onshore or offshore, securing Bank Account Opening Assistance in Dubai is important. For mainland companies, the process of opening a bank account in the UAE is generally straightforward, whereas offshore companies often face additional complexities.

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Major Obstacles in opening a new bank account

1. Physical Office

UAE banks require that a company must have a physical address. A process called Contact Point Verification (CPV) is carried out by the banks through third party agents wherein a third party physically goes and verify the actual presence of the address mentioned in the documents. A field visit report submitted in relation to the CPV helps banks to validate the information.

The Nationality of the key persons of the company has a vital role while applying for a bank account. Citizens from high risk countries, countries falling in the sanction list, politically instable nations generally face difficulties in opening a bank account as well as carrying out bank transfers.
Similarly if your business primarily has transactions with high risk countries or sanction list countries, it may be challenging to register a bank account. Financial institutions (FIs) are expected to abide by the relevant rules and regulations including the anti-money laundering laws to address the risk of money laundering and terrorism financing. As determined by the National Committee for Combating Money Laundering, Terrorism Financing, and Illegal Organizations, FIs must also enforce all pertinent policies and procedures pertaining to high risk nations, including those pertaining to the implementation of Financial Action Task Force and UN Security Council resolutions (FATF). Cuba, Myanmar, Iran, North Korea, the Ukraine (Crimea), Sudan, and Syria are among the list of sanctioned nations. Nigeria, Somalia, Ethiopia, Serbia, Yemen, Kenya, Uganda, Saint Kitts and Nevis, Anguilla, Malta, Cyprus, Zimbabwe, China, and Libya are prominent high-risk nations when opening a company bank account in the UAE.
The absence of an official company website is also a key concern for banks. A website that gives the basic information about the business, the services/products it offers, the key stakeholders, contact details helps the bank to do a reality check of the business.
In case any existing bank account was closed, the new bank to which the application is made investigates the reasons for the closure of the previous account. The banks want to establish whether the previous account closure was a forced closure from the banks end due to the non-compliance by the holder in relations to carrying out transactions as well as adhering to various bank policies. Non-compliant transactions: Following transactions are considered to be non-compliant based on which banks can take actions on the account holder including rejection of transactions and forced account closure:
  • The transactions reflected in the account does not equate to the nature of the business.
  • Adhoc transfers of Huge amount of money from and to the account.
  • Payments or receipts without supporting documents.
The majority of the banks in UAE demand a residency visa. Some banks also require the proof of local address in the UAE. Having a residency permit for the owners enhances the credibility of the business and its intention to do the actual business in UAE.
When a person applies for a business account, the banks always check if the person has an in-depth understanding of the business he intends to operate. Prior business experience, qualification, previous debt history are all factors considered with this regards.
In case of companies with free zone licenses, banks also consider the reputation of the free zone authority under which the company is registered. Due to the low barrier in entering the market, banks may regard owners of free zone business with more suspicion. Free zones which are highly regulated and whose licenses are expensive always have an easy walk through over the ones that operate on a low profile. The licensing authority that the entity has chosen also shows how genuinely it intends to conduct its business.
Accounting System Analysis

Documents required for Corporate Bank Account Opening in Dubai

  • Copy of trade license
  • Copy of MOA/AOA
  • Copy of the share certificate(s)
  • Copy of Incorporation Certificate/Registration Certificate
  • Copy of Emirates ID of shareholders (if the shareholders have UAE residency)
  • Copy of the Visa page of shareholders (if the shareholders have UAE residency)
  • List of few prospective clients / or existing clients (suppliers/buyers)
  • Copy of the last 6 months' bank statement of the shareholders
  • Copy of the utility bill of the shareholders showing the proof of address
  • Copy of corporate legal documents and bank statements (if the shareholder having company outside UAE)

How Can You Benefit from Litrix UAE Bank Account Opening Services?

We provide professional, hassle-free assistance in opening a bank account in Dubai, UAE. Despite the UAE’s strict and evolving regulatory requirements, we ensure a smooth and efficient process for our clients. As industry experts, we understand the importance of creating a secure and stable environment for businesses to thrive. While new or unfamiliar business owners may face some delays in entering the UAE market, we conduct thorough assessments and prepare all necessary documentation to ensure a successful bank account application.

With no exclusive ties to any particular bank, we are able to choose the most suitable banking solution tailored to your business needs. Our expertise ensures that you can confidently navigate the complexities of the UAE banking system and benefit from having a registered bank account in this dynamic and growing market.

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To date we are providing Accounting Services for more than 250 clients
across the UAE in Trading, Construction, Real estate, Healthcare,
Logistics and other services.
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