BANK ACCOUNT OPENING IN THE UAE
Bank account in the UAE provides access to the most attractive banking system in the world. Our team works closely with the top banks in the UAE to ensure that our clients have access to the best banking options available.
Free Zone Bazaar can assist you with opening both corporate and private accounts, whether you prefer a traditional or digital bank.
Why is a UAE bank account so great for investors?
The UAE banking system doesn’t report financial data to international institutions.
Many other offshore jurisdictions face challenges due to the Common Reporting Standard (CRS) requiring the reporting of financial data to the country of tax residence, while UAE banks do not have to report this data, ensuring a higher level of privacy. Furthermore, UAE banks boast strong economic performance and operate independently from international financial institutions, making them an appealing choice for foreign businessmen and investors.
Benefits of opening a UAE bank account:
Some of the banks we work with:
Personal bank accounts in UAE based banks
Opening a personal bank account in United Arab Emirates banks can be a straightforward process with the right assistance. UAE banks offer a range of account options, including savings, current, and fixed deposit accounts, each designed to cater to different financial needs. With the support of a reputable corporate service provider like Free Zone Bazaar, individuals can benefit from expert guidance on selecting the right bank and account type, as well as assistance with the account opening process.
Traditional vs Digital banks
Traditional banks offer physical branches, personalized service, and lower fees, adhering to strict government regulations for enhanced security. Digital banks operate solely online, typically charging higher fees for various services but offering faster transactions, with potentially less regulatory oversight, which may pose risks during crises.
| Traditional Banks in UAE | Digital Banks in UAE | |
|---|---|---|
| Bank account opening | Expensive and complex | Cheaper and easy |
| Bank account fees | Chepaer | Expensive |
| In person support | Yes | No |
| Call center | Yes | No |
| Mobile App | Yes | Yes |
| Daily transaction limits | No | Yes |
| Bank products | Huge variety | Only basic |
| Security and stability | Higher | Lower |
Traditional banks have physical branches where customers complete transactions and speak with a representative. Digital banks, on the other hand, operate solely online, and customers can access their accounts and complete transactions through a mobile app or website.
There is often a difference in fees and business models between traditional and digital banks. Digital banks usually offer higher fees (payment, credit cards, accounts, etc), charge clients each additional service, no call centres, no over-the-counter branches, limits on daily payments, etc. Furthermore, digital banks are usually faster in processing your requests compared to traditional banks. Traditional banks have lower fees and offer more personalized service. These types of banks, as the name says, offer various classic banking services with no limitations, better client support and banking support in terms of projects or any funding clients may request (loans, mortgages, access to capital markets, insurance policies, etc).
Traditional banks are often seen as more secure for their clients due to their strict adherence to government and central bank regulations on capital, deposits, loans, and other factors. In contrast, digital banks may not need to meet the same level of regulation or have more flexible requirements. However, this lack of strict requirements could potentially lead to defaults or business disruptions in the event of non-standard business environments, banking crises, or national crises.
Banks outside of UAE
Free Zone Bazaar has established partnerships with over 50 banks globally, these can serve as an alternative to UAE-based banks. The majority of these banks do not require a physical presence or a UAE residence permit to open an account
However, these banks generally charge a higher account opening fee and maintenance costs compared to the UAE banks. It is important to note that if you do not have a residence permit, the bank may be required to gather information on your tax status in your home country. Additionally, such banks may need to disclose your information to the tax authorities in your home country.
Get a cost estimate for bank account opening.
How can Free Zone Bazaar help you with bank account opening?
Free Zone Bazaar can help you where others can’t.
Our team of experts has operated for over 10 years in this field and over this period it was able to develop an impressive network in UAE’s tight-knit banking system. This allows us to do what others can’t, and we do it for your benefit. Opening a bank account can be extremely stressful with a high rejection rate, but with Free Zone Bazaar on your side, you have the edge and success is guaranteed.
- 10+ years of experience
- More than 20 UAE banks in our portfolio to choose from
- On top of that, we offer over 50 international banks to choose from and apply for their services
- An onsite agent present to assist you
- We can help you acquire UAE residential address
- Preparation of required documents
- Full assistance during the application and interview
- Regular updates on the status of your application
- We can connect you with the bank officials directly, no intermediary agencies involved
Use our network to your advantage.
FAQ
Owners don’t need to be present in the UAE to incorporate in the Free Zone, whereas presence is required for mainland licenses.
Popular company structures are Free Zone Company FZC (more than one owner), Free Zone Establishment FZE (Single Owner), Mainland Limited Liability Company (LLC), Mainland Civil Company for Professional Services, and Offshore Company.
The timespan to incorporate varies from each Authority; generally, it’s 3 to 5 days.
Free Zone companies are Onshore Resident companies that can do business within the UAE & internationally whereas Offshore companies are No-resident companies that cannot do business within UAE. Moreover, Offshore companies cannot have separate Office premises or Visa quotas under the company.
Mainland companies are resident companies that can be incorporated in the Mainland. investor can set up their office or warehouse in the Mainland. Free Zone company license is issued by the respective Free Zone Authority. Furnished offices and warehouses are available for investors.
UAE is blessed with more than 40 Free Zones and each Free Zone has its advantages and disadvantages. The ideal Free Zone can be identified only after getting the requirements from investors.
Company Formation in the UAE could be used as a method to save and lower taxes in the home country. There is no personal Income tax in the UAE, while the maximum applicable corporate tax is 9% (on specific types of companies and businesses). Hence, business profits, personal income, investments, etc, are either not taxable or bear significantly low tax rates in the UAE. Resident investors in the UAE coming from high tax-paying regions and countries could leverage the Double Taxation Avoidance Agreement (DTAA) and save taxes.
Yes, the UAE is a Tax Haven. Tax charged by the UAE Government is the Value-added-tax (VAT) of 5% on almost all consumer transactions in the UAE. Apart from the VAT, there is no other personal tax in the UAE.
Another type of tax in the UAE is corporate tax on profits. The maximum applicable corporate profit tax rate for Free Zone companies is 9%. Usually, it’s closer to 0,00%, depending on the type of business, clients, vendors and area of business for a specific company.
Not every company needs to pay VAT. Companies with taxable supplies and imports exceeding AED 375,000 per year need to register for VAT and are subject to pay VAT (5%) in UAE. For more information on VAT, contact us to get guidance based on UAE VAT laws and regulations.
Since obtaining a resident visa is not mandatory for shareholders or directors, it is possible to establish a company in UAE without a resident Visa,
It depends on the type of business you’re setting up. If you’re establishing a Mainland company, you’ll need a physical office space as per the regulations of the DED. However, if you’re setting up a Free Zone company, many Free Zones allow for flexi-desk options, which is a more cost-efficient alternative to a full-time office space. Alternatively, there’s the option of a virtual office. A virtual office in Dubai allows entrepreneurs to conduct business without needing physical premises.
Yes, the presence of the signatory is mandatory to apply for a bank account opening in UAE. The banker should verify the original passport and meet the signatory personally. This rule is valid for all UAE bank accounts: Resident, Non-Resident and offshore bank accounts in the UAE.
There is no minimum amount of money required to open a bank account or the initial deposit in order to open the Bank Account, like in other countries. However, UAE banks might require you to maintain a monthly average balance for the bank account. While applying for a bank account opening in the UAE, the specific package will be chosen based on your needs.
