In the Emirates, you can open bank accounts for various types of companies. These can be offshore companies, on the mainland, or in the free trade zone. In practice, we observe that in 50% of cases, companies are denied opening a corporate bank account in the Emirates. It doesn’t matter if you contact your local or international bank.
There are several options that will quickly solve the problem. Each of them has its pros and cons.
- Buy a ready-made company with an existing bank account;
- Prepare documents for the bank in such a way as to minimize issues and meet the requirements.
If in the first case, you will carry out the verification, in the second case, you will be checked.
Bank Accounts in UAE:
All types of companies are eligible to open their bank account in the UAE but most of the businesses are facing difficulties in getting their account due to lack of documentation or eligibility criteria. Banks will check for source of income if it is a new business. If it is an existing business, then banks will try to check their economic substance and business reality. Banks also need your physical office location because sometimes banks send their employees for verifying the office.
Banks Rejecting the Accounts:
Banks in UAE are very strict with their policies because they are all regulated by relevant inspection bodies. The UAE is doing its best to fulfill the requirements of the European Union and withdraw from the black sanctions list of jurisdictions not cooperating on tax matters. In other words, If a Bank in UAE finds out that a company approaches for a bank account for tax optimization, then there is a higher chance of rejection for opening the bank account.
Moreover, providing service to a customer who is not maintaining a required balance in the bank account is a difficult task, hence banks try to narrow down the approval to customers who are most likely to maintain the healthy balance.
WHAT IS the foremost DIFFICULT THING IN NEGOTIATING WITH UAE BANKS?
The most difficult thing to deal with the banks during negotiations, is that banks are laconic when dealing with customers. This is because of the actual fact that banks, by their own internal rules, cannot advise clients on how best to provide information. Bankers can request a standard list of documents. You will never get comments on these documents. You will never know the reason for the refusal to open a bank account in the UAE.
WHAT DO I DO IF THE BANK REFUSED TO OPEN AN ACCOUNT IN DUBAI, UAE?
It is necessary to research the documents that you simply show the bank, and if you have already got repeated failures, it's recommended contacting companies that operate within the local market to understand the specifics and internal requirements of banks. Get your account opened through them. Those companies have their own trusted specialists, connections, and best practices. Together, this allows you to deal with each specific case, understand causation, eliminate weak points in the submission of documents, and, ultimately, to achieve what you want - to open a bank account in the UAE.
FINPRO financial intermediary with an exclusive focus on Business Loans, Vehicle Loans, Home Loans, Machinery Finance, and Business Bank accounts.
FINPRO is a team consisting of experienced financial advisors with decades of experience In Business Financing Products.