To maintain a proper financial record for your business in the UAE, you need a separate business account to manage funds. A business bank account will help you track money paid to creditors, manage cash balances, create profit, and recapture lost statements.
Dubai offers a great business environment because the United Arab Emirates (UAE) has stable governance as well as easy-to-follow policies for trade. The current market trends and statistics for Dubai have opened a great opportunity for foreign investors. Nevertheless, every stable business requires a strong foundation for its cash flow and balance. For you to maintain a proper financial record for your business in the UAE, you need a separate business account to manage funds. A business bank account will help you with tracking money paid to creditors, managing cash balances, creating profit, and recapturing lost statements. Here are the benefits of a business bank account and how to open one in Dubai.
Benefits of Opening a Business Bank Account
Here are some of the benefits of opening a business bank account:
1. Legal Business Activities
It's illegal to run a company or an official business with just a personal account. Opening a business bank account in Dubai gives you a legal advantage in carrying out your business throughout the region. Opening a business bank account requires some legal documents from other departments. This helps you to ensure that you've obtained all the documents and certificates required for running the business.
2. Allows You to Accept Credit Card Payments
Most people trade using credit cards, and you'll have to accept them for your business to run smoothly. You may not be able to accept credit cards with a personal account, and this can only happen with a business bank account. Business bank accounts are usually set up to facilitate transactions with credit cards and other modes of payment from your suppliers, customers, and other business partners.
3. Simplified Tax Preparation
When it's time to prepare for your taxes, separating your business from your personal expenses can be a challenge if you're just using a personal bank account. A business bank account makes it easy for your accountants to easily prepare taxes.
The Process of Opening a Bank Account in Dubai
You need to submit the required information and documents for the process to go on successfully. One of the most common reasons for account rejection is usually the provision of wrong information and documents. Here is the information required for opening a bank account in Dubai:
A complete and signed account application form.
A signed document by the business directors authorizing the opening of the account.
Copies of signatories' passports and Emirates IDs.
Proof of residence visa
Certified company or business documents, which should also include share certificates, certificates of incorporation, as well as articles of association.
A business plan and company's profile
Previous bank statements for three to six months.
Certified company documents for the parent organization (in case your company or business is an association)
Meet With the Bank Representatives
Once you have all the required information and documents, it's time to meet with the bank representatives. Here, you will just go to your preferred bank and provide the required documents.
Submit Your Application
The bank staff and representatives will double-check your documents and information to determine whether you have fulfilled all the requirements. If everything is as required, the application will be submitted to the relevant department for approval.
Account Approval
Once everything is checked by the relevant bank departments and found to be correct and compliant, your business account will be approved. You will receive account documents, including any requested cards and checkbooks.
Which Bank is Best for Business Accounts in Dubai?
The best bank for your business account depends on your business needs and interests. Each business has its own conditions and factors to consider. Some banks will offer your checkbooks for transactions, others will incorporate apps. Consider your business needs and determine the bank that best suits your interests.
At Sentinel Business Centres, we have years of market knowledge and experience working with clients across diverse sectors in Dubai. Our team can help with everything you need to get your business set up and running in Dubai. Contact us to learn more and get started.