Opening a bank account is one of the essential factors to start a business in the UAE, be it in the mainland or free trade zone. But, apart from its essentiality, opening a bank account for entrepreneurs and investors has many benefits. So, this blog will acquaint you with all the detail of opening a bank account in a free zone in Dubai and other emirates in the UAE.
How to Open a Free Zone Company Bank Account?
After acquiring your free zone company licence, opening a bank account is a crucial step to take in order to handle your business’ financial transactions efficiently. The banking system in the United Arab Emirates is very efficient and opening a bank account for free zone companies is very easy if you know the formalities. However, you might find it difficult if you are unaware of the process and intricacies. In such cases, you can always consult a business setup consultant to make the process easy for you.
- Can accept money from anywhere and spend locally
- Issued debit/credit cards
- Offered trade finance
- Exempted from VAT for the incoming funds and outgoing funds
Basic Documents for opening a free zone bank account
- Trade License
- Share certificate
- Memorandum Of Association/Article Of Association
- Passport, Visa & Emirates Id of all partners (if applicable)
- Office Tenancy (Physical office)
- 6 months bank statement (Personal/company from UAE/Home country.)
- Utility Bills as address proof
- Business Model/company profile/ Website
- Customer Profile (CV)
- Name of existing or prospective clients (suppliers/buyers)
- Invoices /Bill of Lading/Shipping documents/ Agreements/ Custom Clearance etc.
If any amendment is made in the original documents of the company, it will be notarized and attested by that particular free zone.
You may have to provide additional documents, depending on which bank you want to open your Account.
Proof of Physical Presence
UAE banks do not allow you to remotely open a free zone bank account. This is because the central bank requires you to be present physically while opening your free zone bank account.
What are the Benefits of Opening a Free Zone Bank Account?
Get Easy Loans
If your company is one year old and is making a good turnover, it will be easier for you to get business loans with a free zone bank account. You will require to submit proofs like your operations profits audit reports, etc.
Debit and Credit Card
When you open a bank account in the UAE, you will receive debit cards, but for the credit card, you will have to deposit some amount with the bank.
To run your business smoothly and efficiently in free zones or any other jurisdiction or legal company structure in UAE, you will require a bank account. UAE has one of the best banking systems in the world. However, to make your banking operations safer, UAE banks have introduced several strict measures and validations for customers, which you will need to clarify. You will have to submit many documents and will need many approvals too. This is very annoying and difficult to follow for people busy in business. This is when business setup consultants come as a great help. You can hire them to make your free zone bank account opening process simpler.