Are you living in Dubai but not a resident? Do you want to open a bank account? If so, we have a guide that will be helpful. While residents can easily open a bank account, it is not so easy for non-residents.
You need to be aware of the procedures involved and requirements. If you are in Dubai and wish to open a bank account for whatever reason, then do go through this guide. It will help you to open a Dubai bank account seamlessly.
Why open a bank account?
Why should you open a bank account in Dubai if you are a non-resident? The answer is simple. You can carry out transactions on your account from Dubai by having a bank account. If you are staying for a few months and want to do international transactions, then opening a bank account is helpful.
The biggest reason to open a bank account is to avail of the no-tax benefit that Dubai offers. The UAE is one of the few countries in the world that does not tax people. If you earn any money in Dubai, it is tax-free, and you can open a bank account to save money.
How to open a bank account?
There are two situations to consider. One is that you want to open an account as an individual. In this case, you need to open a personal account. The other situation is that you operate a business and want to open a corporate account. Let’s look at the requirements in both these cases.
1) Opening a personal account
To open a personal account, first, choose a bank that is convenient for you and visit the branch. You need to talk to the manager or executive and let them know the purpose behind opening the account. You may be asked to mention the sources of your income.
A personal account would call for a minimum balance to be maintained. You may need to deposit this amount at the time of account opening. You would have to fill out an application form and share the following documents:
• Copy of your passport that has the immigration seal with the date of entry to Dubai.
• A reference letter from the bank in your country where you have an account.
• Bank statement for the last 6 months.
• Copy of the latest utility bill paid by you.
• A no objection letter from the employer or sponsor.
2) Opening a corporate account
To open a corporate account, you need to be running a business entity. The following details have to be provided:
• Proof of your ownership of the company.
• Documents providing information on company type and ownership structure.
• Articles of Association and Memorandum of Understanding of the company.
• License or certificate of incorporation.
• Details of shareholders (where applicable).
• Details of activities being carried out by your company.
• Source of funds for the company and details of investments.
Once you submit these documents, they may be forwarded to the Ministry of Foreign Affairs for further verification. If that is the case, then the account would be opened after clearance.
Corporate accounts can be of two types. One is offshore and the other onshore. Opening an offshore account is less expensive. Onshore accounts are useful when you want to become a resident of the UAE and get a resident visa. Onshore accounts have more benefits for the account holders.
Other general requirements
Apart from the above specific requirements for each type of account, there are other general requirements:
• The person opening the account must be staying in Dubai or the UAE at the time of opening.
• In the absence of the person, a representative may open the account on their behalf. Check with the bank if they would allow this.
• IBAN is compulsory to open any type of bank account. IBAN is the International Bank Account Number. This number needs to be used to open a bank account. This is for the account holder’s convenience since it makes international transactions easy.
Opening the account
Now that you know how to open an account, you can go ahead with the procedure. You can get in touch with a bank and start the process. There are also some organizations that can help you with this. These are financial companies that offer their services for various activities. They can help you open a bank account and guide you through the process. If you are planning to start a business in Dubai, such companies can help you with the same.