Opening a Non-Resident Corporate Account in the UAE

The UAE is an amazing country for business, and banking is just as excellent here. However, it is not very easy to set up an account in the country, especially if you do it on your own and you don’t have sufficient expertise. It is much easier to cooperate with local banks, though, if you establish a company in one of the country’s numerous free economic zones.

What are the Chances of Non-Resident Bank Account Opening in the UAE?

If we are talking about a UAE’s local bank, you can open an account for different business types here, no matter whether you are a foreign legal entity, a company registered in mainland UAE, or a FEZ company (registered in one of the UAE’s free economic zones). In addition, you can set up a bank account for a company that carries out business activities abroad and is managed from another country.

Anyway, possible challenges are not the reason to give up an opportunity to take advantage of top-notch banking services, so we highly recommend reading more on corporate banking in the UAE. If you follow the link, you will be able to ask any questions to a specialist using live chat during business hours or any other communication channels that are convenient to you.

However, let’s look at the main considerations that should not be overlooked:

If you have an offshore company or a FEZ company, the UAE banks will impose more stringent requirements on you. The beneficiaries and the business will be meticulously checked for compliance with different criteria, and if they discover any connections with individuals under sanctions or the fact of violating rules set in free zones, they will deny the services to you. Keep in mind that only a manager who is a UAE resident can apply to the bank in these cases.
Resident companies can take advantage of banking services in local institutions with minimum requirements to be met and without many barriers to overcome.
If you have a foreign company that does not have any direct ties with the Emirates, the account may be opened to you subject to certain requirements. These include founder residency, establishing corporate ties with the country (opening a branch or a representative office here), ensuring a required minimum balance on the account, and so on.

UAE banks estimate opening an account for a non-resident company as a high-risk move, and this relates to offshore entities established in the UAE and companies that are about to open accounts with UAE banks.

Step-by-Step Procedure for Corporate Bank Account Opening in the UAE

In this section, we will be talking about entities that initially had no connections with the Emirates and were established in a different jurisdiction.

Here are the steps they are required to take:

Set up a representative office or a branch in the UAE to evidence their connections with the jurisdiction or interests in the country.
Re-domicile their existing company to one of the free economic zones in Dubai or in another emirate. It will help them take advantage of the offshore status and tax incentives, as well as the high business reputation of the Emirates.
Establish a new legal entity in the UAE that will operate in the local market or in the free zone. Opening an account for this kind of company is not complicated at all, and residency visas will be available to both the founder and the employees.
Establish an offshore business in the emirate of your choice (Ajman Free Zone in Ajman, International Corporate Center in Ras Al Khaimah, Jebel Ali Free Zone Authority in Dubai, as well as many other free zones. We strongly recommend following the above link and exploring the portal where you will find a lot of information on the local free zones and their peculiarities). In this case, there is no need for a resident director to set up an account with a local bank, so the company can have 100% foreign ownership and take advantage of a non-resident status in the Emirates.

If obtaining a residency visa in the UAE is one of your goals, keep in mind that an offshore company will not give you the right to obtain it.

Corporate Bank Account Opening in the UAE: Peculiarities

The manager is typically required to apply in person. Some banks allow online verification, but there are very few of these.
The company’s manager will need an Emirates ID (a UAE resident card) to submit an application. This is an important requirement, but there are some exceptions. Some forms allow using a third party with an ID holder as a signatory.
The company is required to provide details on the shareholder(s) and beneficiary: proof of residence address, passport information, as well as bank statements for the past 6 months that show the source of income.
Make sure to elaborate a business plan with sufficient details to open a corporate account in the Emirates. The plan should demonstrate your company’s strategic plans for a couple of years and expected turnover.
The bank will also need to receive contracts with your customers and suppliers, which is especially important for businesses that have been operating for some time. If you have a newly established business, it will be better for you to submit a framework agreement between the parties.
No matter whether you have a local, offshore, or onshore business (established in one of the UAE’s free zones), you are required to have an office in the UAE to submit an application to the bank. You will need to provide photos of your office, Ejari registration, and a lease agreement.

The requirements listed above may vary from bank to bank, so you’d better study the institution’s demands carefully or contact an expert for help.

Conclusion

If you decide to open a corporate account with a UAE bank, it will take from 10 days to 6 months. The term largely depends on the residency of founders and shareholders, the country of origin, and the type of business. Even if you have some connections with the jurisdictions that are on the EU blacklist, you still have a chance of being approved.