International Bank Accounts are the Best Solution for Opening Bank Accounts in Dubai

Foreign business owners and entrepreneurs who wish to establish their business in Dubai are mandated to open a corporate bank account. The bank account opening in Dubai might appear as an easy or smooth process; however, it’s quite challenging. The UAE government’s strict compliance and anti-money laundering (AML) process are the obstacles that make the bank opening for foreign investors difficult. 

However, opening a bank account in international banks in Dubai is relatively easy and less complicated than in national banks. In this blog, we’ll discuss the challenges and benefits of international banking for foreign investors, business owners, and entrepreneurs in the city. Let’s start this discussion by understanding why opening a corporate bank is essential for businesses. 

The Need for Corporate Bank Accounts by Businesses:

It is essential for businesses that wish to conduct their operations legally in Dubai to have a corporate bank account. The following reasons justify the necessity of a corporate bank account for a business:

1. Separating Personal and Business Finance: A business bank account assists in keeping personal and business finances separate, which is essential for accurate bookkeeping, tax filing, building credit, etc. 

2. Establishing Credibility: Corporate bank accounts can be considered the best banking solutions in Dubai for foreign businesses that assist in establishing the personal identity of the business. Businesses can make transactions and receive payments under their name account, which helps to earn trust from investors and customers.

3. Simplifying Accounting and Tax Filing: A corporate bank account eliminates the risk of mixing personal and business finance, which simplifies accounting and tax filing. 

4. Improve Credit Rating: A strong history of on-time payments and low credit scores improves the credit rating of the businesses. The improved credit rating helps businesses get financial assistance, such as loans and investments. 

5. Transaction Limits: A personal bank account offers lower transaction limits as compared to a business bank account. 

6. Proof of Legitimacy: A business bank account serves as proof of business legitimacy by ensuring compliance with the UAE’s strict rules and regulations.

Difficulties in Opening a Bank Account in Dubai:

The government of the UAE has imposed the decree-law on banks to ensure they perform a thorough verification and assessment while adding new customers. The following challenges in Dubai Banking make it difficult for expatriates to open a bank account: 

1. High-risk Activities: 

The nature of a company’s business activity significantly affects bank account opening in Dubai. The bank may refuse your application to open a corporate bank account if your business indulges in high-risk activities like insolvency services, and general trading services rather than trading on a specific product, payroll services, investment services, etc. Companies need to provide clear and precise descriptions of their business activities in these cases.

2. High-Risk Countries: 

Another reason that could make bank account openings for foreign investors in Dubai difficult is their business relations with high-risk countries. A bank might refuse your request for a corporate bank opening to ensure compliance and mitigate the potential risks of money laundering.

3. Economic Substance: 

Banks might reject your application for business bank account opening if you fail to provide the economic substance. Banks want to ensure that the businesses have a physical presence in Dubai, for which they ask for information related to the physical addresses of businesses, financial plans, list of employees, shareholders details, office rents, potential customers, etc. 

4. Residency Requirements: 

Non-GCC foreign nationals in Dubai need to provide residency proof to banks for opening a bank account. The banks generally ask for the Emirates ID of the business owners and shareholders, which is only issued after they have a valid UAE residency or investor visa. 

5. Politically Exposed Persons: 

Another reason why banks reject the business bank account opening application of businesses is if they’re identified as PEPs or work with PEPs. A politically exposed person has a record of being involved in bribery or corruption acts.

6. Background History:

Banks in Dubai do a thorough assessment by doing background verification of business owners and shareholders to confirm their financial stability. If you fail to prove your trustworthiness at the time of documentation, the bank will reject your bank account opening application.

How Can International Bank Accounts Help With These Challenges? 

The following are the benefits of international banking for foreign businesses in Dubai:

1. Foreign businesses operating in any jurisdiction, be it mainland, free zone, or offshore can open corporate international bank accounts.

2. International banks in Dubai offer the facility of online KYC verification, which eliminates the need to verify the physical presence of shareholders in the UAE.

3. One of the major benefits of international banking is that it helps businesses make transactions and payments in different currencies using one account. 

4. Through easier linkage with e-commerce platforms and payment gateways, international bank accounts facilitate faster payment processing.

5. With international banking, businesses can make payments with their personal and corporate accounts. Also, they offer online support in different languages.

Taskmaster Gulf Offers Hassle-free Bank Opening Solutions for Businesses in Dubai:

The anti-money laundering laws and lack of transparency of the internal policies of banks in Dubai make it challenging for foreign investors to open a bank account in Dubai. Taskmaster Gulf, with over 10 years of experience, can assist you in making your bank opening process easy and fast.

Our professionals offer the best expert banking solutions in the UAE through expert consultancy, guidance, and assistance. With a strong track record of providing expert solutions to over 300 customers, we guarantee specialization for opening bank accounts for businesses operating in any jurisdiction in Dubai.

Also read – UAE Corporate Tax Implications for Free Zone Companies or Business