How to Open a Corporate Bank Account in the UAE

Posted on August 22, 2025
by SEO_user

Introduction

In the UAE, a corporate bank account is necessary for conducting business effectively and lawfully. Banks will need a compliant account for invoicing, payroll, supplier payments, and VAT, regardless of whether you are a mainland business, a free zone entity, or a foreign investor building a branch. In addition to everyday transactions, a good bank offers you corporate cards, trade finance, online banking, and multi-currency support, all of which are subject to strict UAE rules.

This guide outlines eligibility requirements, necessary paperwork, the detailed procedure, how to pick the best bank, typical problems and how to resolve them, as well as deadlines, expenses, and helpful advice to expedite account approval.

Benefits of Opening a Corporate Bank Account in the UAE

Credibility & compliance: UAE banks are regulated and require strict KYC/AML compliance, which enhances your company’s professional image with clients and authorities.
Seamless payments: Send/receive domestic AED transfers via the UAE’s real-time payment rails and international SWIFT transfers in major currencies.
Multi-currency support: Hold and transact in AED, USD, EUR, GBP, and more—useful for import/export, e-commerce, and cross-border projects.
Digital banking: Feature-rich online banking and corporate mobile apps, beneficiary controls, user permissions, and real-time statements.
Trade finance tools: Letters of credit (LCs), bank guarantees, trust receipts, invoice discounting, and merchant services for POS/e-commerce.
Corporate cards & payroll: Expense control with debit/credit cards, WPS payroll compatibility for mainland companies, and simplified reimbursements.

Eligibility Criteria: Who Can Open a Corporate Account?

Most UAE banks accept applications from:

Mainland LLCs and sole establishments

Registered with DET/DED in the respective emirate, holding a valid trade license.

Free zone companies

Entities formed in zones like IFZA, Meydan, RAKEZ, DMCC, DAFZA, etc. Banks assess the activity, office presence, and substance.

Branches and subsidiaries of foreign companies

Require board resolutions and parent company documents legalized for the UAE.

Partnerships & civil companies

Depending on the structure, banks may request partnership agreements and professional licenses.

Holding/Special Purpose Vehicles (SPVs)

Often accepted when tied to real commercial activity and a clear source of funds.

Note: Each bank has a risk appetite. Startups and high-risk sectors may face additional scrutiny or need stronger business justification.

Required Documents (Checklist)

Below is a typical list; banks may ask for more depending on the industry, nationality, and company structure.

Company documents

Valid Trade License (mainland or free zone)
Memorandum & Articles (MOA/AOA) or Shareholder Agreement
Incorporation certificate / Establishment card (if applicable)
Tenancy contract/Ejari or flexi-desk/office lease confirmation
Company stamp

Shareholder & manager documents

Passport copies and UAE entry stamps/Emirates IDs (where applicable)
UAE residence visas for signatories (some banks accept non-resident signatories, but resident managers improve approval odds)
Proof of residential address (utility bill/bank statement)

Business profile

Business plan (activities, target markets, suppliers/clients, revenue model)
Expected monthly volumes (incoming/outgoing transactions; currencies)
Sample contracts, invoices, or intent letters (if available)
Existing bank statements (3–6 months) from the owners or a related company (helps demonstrate source of funds and activity)

For branches/subsidiaries

Parent company documents (license, MOA/AOA, certificate of incumbency, board resolution to open account)
Legalization through the UAE embassy/consulate and MOFA, where required

Step-by-Step Process to Open a Corporate Bank Account

Step 1 — Select the bank and account type

Shortlist local (UAE-based) and international banks. Decide whether you need current, savings, call, or multi-currency accounts and any merchant/trade finance add-ons.

Step 2 — Pre-assessment

Discuss your activities, ownership, visas, and office with a banker or consultant. A 15-minute pre-screen can prevent unnecessary rejections.

Step 3 — Prepare the KYC pack

Compile the document checklist above. Ensure consistency across your license, MOA, website, invoices, and contracts (same activities, addresses, and names).

Step 4 — Submit application & schedule a banker interview

The relationship manager (RM) may meet the UAE-based signatory to understand the business model, source of funds, and transaction flows.

Step 5 — Compliance review

The bank’s KYC/AML team verifies shareholders, screens sanctions/PEP lists, and validates your business profile. They may ask for extra documents.

Step 6 — Account approval & activation

On approval, you’ll receive the IBAN, set up online banking, and order debit cards/cheque books (where available). Trade finance and merchant services may be activated after initial usage review.

Step 7 — Ongoing compliance

Respond to periodic KYC refresh requests, update the bank on ownership changes, renewed licenses, or office moves, and maintain transparent transactions to avoid holds.

Choosing the Right Bank: What to Consider

Business activity & risk level: Some activities (e.g., consulting, trading, logistics, tech) are straightforward; others (crypto-related, sanctioned geographies) face higher scrutiny.
Residency & substance: Banks prefer at least one UAE-resident signatory/director and a verifiable office (flexi-desk or physical).
Minimum balance & fees: Monthly average balance requirements vary widely. Check fall-below fees, incoming/outgoing transfer fees, and FX margins.
Currencies & corridors: If you transact in USD/EUR/GBP, ensure the bank supports your payment corridors and correspondent banks.
Digital tools: Review online banking UX, multi-user permissions, bulk payments, and API options if you automate payouts.
Service model: Do you need a dedicated RM, swift response times, and trade finance? Larger banks may be better for complex needs; digital-first banks can be faster for standard usage.
Reputation & onboarding speed: Ask about typical approval timelines for your profile and industry.

Local vs International Banks (at a glance)

Bank Type	Pros	Considerations
UAE Local Banks	Familiar with local structures, strong AED rails, and often faster onboarding	May have higher minimum balances for SMEs; product scope varies
International Banks	Global reach, strong multi-currency support, premium trade finance	Stricter eligibility; prefer larger turnovers and seasoned entities

Common Challenges & How to Overcome Them

1) Providing substance for free zone companies

Solution: Provide an office lease (even a flexi-desk), UAE mobile/landline, website with UAE contact details, and resident signatory where possible.

2) No operating history

Solution: Submit personal bank statements of owners or statements from a related business, plus invoices/LOIs from prospective clients.

3) Complex ownership

Solution: Share a clear ownership chart, legalized corporate documents, and board resolutions. Keep the shareholding straightforward if you can.

4) High-risk jurisdictions or industries

Solution: Expect enhanced due diligence. Prepare contracts, shipping docs, and compliance narratives that demonstrate licit trade flows.

5) Delays in compliance queries

Solution: Assign a single point of contact to reply quickly. Keep scanned copies ready, labelled consistently.

6) Account freezes due to unclear transactions

Solution: Use matching descriptions, invoice numbers, and keep a paper trail. Avoid cash deposits unless essential.

Timeline for Account Opening

Timelines vary by bank, sector, nationality, and document readiness. Typical ranges:

Simple profiles: 1–2 weeks from complete submission to IBAN.
Standard SMEs: 2–4 weeks, especially if the manager isn’t resident yet.
Complex cases (multi-layer ownership / high-risk industries): 4–8+ weeks.

Tip: Time the application to coincide with trade license issuance, establishment card, and visa milestones so the RM has all data in one go.

Costs & Minimum Balance Requirements

Account opening fee: Often nil; some banks charge a nominal setup fee.
Minimum average balance: Can range from AED 10,000 to AED 500,000+, depending on bank tier and products. Falling below triggers a monthly fall-below fee.
Transaction fees: Domestic transfers are low-cost; international SWIFT transfers incur a fixed + FX margin.
Cards & cheque book: Generally modest issuance fees.
Trade finance: LCs/guarantees have issuance and amendment fees; discounting/financing attracts a margin + processing.

Always confirm renewal/maintenance fees and negotiate bundles if you expect higher volumes.

Tips for Faster Approval (What Banks Like to See)

Resident decision-maker: Having a UAE-resident manager/signatory who attends the banker meeting is a strong positive.
Clear business narrative: A concise business plan (1–2 pages) with sources of funds, suppliers/clients, and expected monthly volumes.
Real contracts/LOIs: Even 1–2 intent letters or sample purchase orders help demonstrate genuine trade.
Clean KYC: High-quality scans, consistent spellings, and addresses that match the license and website.
Professional web presence: A simple website, domain email, and UAE phone add credibility.
Transparent money flows: Avoid third-party payments that don’t match invoices. Keep descriptions precise.
Right bank, right profile: Apply where your industry and turnover match the bank’s sweet spot; don’t shotgun multiple banks at once.
Engage a specialist: A bank account consultant/PRO can pre-screen your case and route it to the bank most likely to approve it.

Sample Step-by-Step Checklist (Copy & Use)

Choose the bank (local vs international) and account type
Prepare a business plan (1–2 pages) with volume forecasts
Compile company docs (license, MOA, lease/Ejari, establishment card)
Gather shareholder KYC (passport, visa/Emirates ID, address proof)
Collect supporting evidence (contracts, invoices, statements)
Complete application forms; sign board resolutions (if needed)
Attend banker interview; answer KYC clearly
Activate online banking, cards, and merchant/trade finance
Maintain minimum balance; respond to KYC refresh on time

Conclusion

In the United Arab Emirates, opening a corporate bank account is as simple as long as you select the appropriate bank, produce a clean KYC pack, and match the bank’s requirements with your business profile. In most typical situations, allow a window of two to four weeks; if you have high-risk activities or foreign ownership layers, offer more time; and maintain transparent transaction flows to prevent problems after activation.

From bank selection to KYC preparation and relationship maintenance, our staff can help you with every step of the process and ensure that everything runs well until your IBAN is active.