UAE is attracting investors from various parts of the globe, with different industrial sectors choosing the UAE as a base to establish their businesses. Starting a company in the UAE is typically accompanied by opening a corporate bank account. Investors need to open a corporate account to maintain separate finances for their business and personal income. Setting up a business in the UAE always involves opening a business account, which helps streamline business operations.
Every business should have a corporate account because it offers significant benefits. A Corporate account is useful for tax filing, obtaining credits, securing business loans, automated payments, financial protection, and more. The transaction limit for a personal bank account is lower compared to a corporate account. Therefore, to carry out secure and streamlined transactions and to keep proper financial records, a corporate account is necessary for your business.
What is a corporate bank account and what are its benefits?
A corporate account is a bank account specifically used for business purposes. Since personal accounts come with several restrictions, opening a corporate account for your business operations is crucial. With a corporate account, investors can efficiently manage their daily banking needs, such as receiving payments from clients and paying employees. It can also serve as a useful tool for saving for future purchases and investments. By facilitating day-to-day business transactions, a corporate account enhances business operations. Moreover, it provides several benefits, including financial protection, improved credit ratings, simplified tax returns, and eligibility for business loans.
Some of the major banks in the UAE that are suitable for business operations include Emirates NBD, Abu Dhabi Commercial Bank (ADCB), Mashreq Bank, United Arab Bank, and Commercial Bank of Dubai (CBD).
Step by Step procedure to Open a bank account in UAE
Choose the right bank for your business
When selecting a bank for your business needs, it’s important to ensure that the chosen bank can cater to those needs. The UAE hosts many international and local banks. Conduct thorough research on each bank in the UAE to gather details such as foreign exchange rates, online banking services, minimum deposit requirements, and more. This will help you choose the best bank for your business operations.
Get a business license
This is the major step to open a corporate account. To open a business or corporate account in the UAE, you must have a business license. You can seek the advice of professional business setup consultants like Jitendra Business Consultants to get this done.
Document submission
Submit the relevant documents to obtain your corporate account.
- Company incorporation document
- Registration certificate
- ID proof (Passport copy and Emirates ID)
- Bank statement for the past 6 months
- Proof of residence address
- Memorandum of Association (MOA)
- Articles of Association (AOA)
Why investors should open a corporate account in the UAE?
Personnel and financial security
A corporate account in the UAE offers significant protection against personal liabilities. By making the organization a separate legal entity from its owner, a corporate account ensures that personal dealings are kept distinct from business operations. This separation protects private assets and provides a secure place to save your company’s additional revenue. In the event of financial risks, such as debts, having a corporate account shields you from personal liability, as the company itself will be held accountable for such risks.
Simplified Tax filing
Using a corporate account simplifies the tax filing process by keeping business transactions separate from personal ones, reducing confusion and making it easier to track business expenses and income. It also ensures that you have clear and organized bank statements to provide to authorities when needed.
Boosting the credit score and business growth
You can build your credit scores by timing your transactions and payments effectively. Maintaining proper reports of your bank statements can improve your company’s financial position. A corporate account becomes particularly useful when you plan to sell or expand your business, as it provides clear financial records and demonstrates your company’s credibility.
Is a Corporate account the same as a business account?
A corporate account differs from a business account in several ways. A corporate account is typically used by medium-sized and large companies, whereas a business account is more suited for smaller businesses. Individual business owners can apply for a business account, while a corporate account requires a board of directors to apply. Corporate accounts often come with lower transaction fees and better interest rates, while the terms and conditions of a business account can vary depending on the bank.
How Jitendra Business Consultants Can help you Open a corporate account in UAE?
Jitendra Business Consultants can assist you in overcoming the challenges of opening a corporate account in the UAE, where strict regulatory and compliance requirements are in place to prevent financial wrongdoings. Our team will guide you in selecting the right bank for your business operations and assist you throughout the documentation process. Additionally, we offer support with trademark registration, taxation, accounting, auditing, and other essential business services.
