Start-Up Insights: Opening a Business Bank Account in the UAE

Live the Dream – Dubai Start-Up Advice Series by Alpha Pro Partners

Opening a business bank account is one of the most important steps when setting up a company in the UAE. However, this process has become more detailed over recent years, as banks now require a trade license and, in many cases, a residence visa before processing applications.

Due to increased global compliance requirements, including strict due diligence, sanctions checks, and anti-money laundering measures, UAE banks have become more cautious and selective when onboarding new business clients.

Below, we explore what start-ups should know about the process, documentation, and top banks to consider when opening a business bank account in the UAE.

Here we discuss the options a start-up should consider when opening a business bank account. 

The UAE is home to many of the region’s largest and most reputable banks, offering diverse business account options for start-ups, SMEs, and large corporations. Below is a quick overview of leading UAE banks by total assets:

• First Abu Dhabi Bank - $182bn

• Emirates NBD – $128bn

• Abu Dhabi Commercial Bank - $72bn

• Dubai Islamic Bank - $56bn

• Mashreq bank - $34bn

• Abu Dhabi Islamic Bank - $33.5bn

• Union National Bank - $29bn

• Commercial Bank of Dubai - $19bn

• RAK Bank - $13bn

Other alternatives include many internationally recognized banks operating in the UAE such as Standard Chartered, HSBC, and Citibank which also offer corporate bank account services.

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Application Process

To open a UAE business bank account, you’ll first need to have your trade license, residence visa, and Emirates ID. Most banks will not proceed with your application until these are ready.

The process typically takes 2 weeks to 2 months, depending on the bank, your business structure, and documentation.

Keep in mind that banks usually require maintaining a minimum balance between AED 10,000 and AED 1 million, depending on the account type.

The following is a list of documents to be prepared before the application process:

• Business activity information including possible disclosure of contracts, invoices, and clients.
  
  
• Business plans and financial projections for the short to medium term
  
  
• Information about management and shareholders
  
  
• Board of directors’ resolution approving the opening of the bank account and the signatories
  
  
• Company documents such as the certificate of incorporation, trade license, share certificates, memorandum, and articles of association
  
  
• Passport, residence visa, and Emirates ID copies of all directors, signatories, and possible shareholders.
  
  

For companies that are owned by another parent company, banks will usually request official documentation of that company as stated above. If the parent company is based overseas, then banks will expect their official documents to be legalized in the home country, attested by the UAE embassy in that home country, and then attested by the Ministry of Foreign Affairs (MOFA) in the UAE. There can also be significant fees in this process depending on the country of origin. Banks will also require periodic updates of expired documents such as trade licenses, passports, and visas to ensure that your service is not interrupted.

For smoother financial operations, start-ups can integrate business accounting software to manage transactions and maintain accurate records once their accounts are active. This complements any bookkeeping service you might use later.

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Which bank to choose for your business?

As mentioned above, there are many banks in the UAE that are also some of the largest in the region. All UAE banks are regulated by the UAE Central Bank and therefore must adhere to capital adequacy limits which are set by the Basel III international rules. The following is a selection of the available banks and services at the time of writing:

Emirates NBD

Emirates NBD offers flexible business banking packages with minimum balance requirements ranging from AED 50,000 to AED 300,000. Account holders benefit from a dedicated relationship manager, competitive foreign exchange rates, and preferential deposit terms.

Many startups also integrate bookkeeping software or use outsourced bookkeeping services to simplify expense tracking and payroll management alongside their business accounts.

Abu Dhabi Commercial Bank (ADCB)

ADCB’s five account options with minimum balance requirements range from AED 25,000 to AED 1,000,000. Accounts feature multi-currency flexibility, preferential pricing on payment transactions, and a dedicated relationship manager. Entrepreneurs can sync these accounts with business accounting software to maintain financial clarity and compliance.

Mashreq Bank

Mashreq Bank has two business account options which require minimum balances of AED 25,000 and AED 150,000. Accounts come with discounted remittances, discounted foreign exchange rates, and a preferential tariff on the bank’s business financing product. Integrating bookkeeping software for small businesses can make reconciliation easier and more transparent.

RAK Bank

RAK Bank requires a minimum balance of AED 25,000 and benefits include a dedicated relationship manager, accounts denominated in foreign currency such as GBP, EUR, and USD. For those businesses using Xero as an Accounting software, it is currently the only bank in the UAE where automated bank feeds are functioning. Pairing this with business accounting software ensures complete automation of reporting and cash flow management.

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What is an Islamic Bank?

When choosing a bank in the UAE, the availability of Islamic banks is as widespread as conventional ones. Islamic banks operate under Sharia-compliant principles, which prohibit interest (riba). Instead, they earn profits through trade and investment-based models.

These banks have grown significantly in the UAE, offering ethical financing and savings products for businesses that prefer interest-free solutions. They have also recently become more common in the UAE with an increased penetration from 52% to 55% as reported by the Khaleej Times.

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What are the typical bank fees expected?

Bank fees and minimum balance requirements vary depending on the bank and account type. If the balance falls below the required minimum, banks will charge a maintenance fee.

Additional costs may include international transfer fees (AED 25–60), electronic payment fees, cash withdrawal charges, card replacement fees, and WPS payroll processing fees.

Using bookkeeping software for small businesses can help you track these expenses and manage reconciliations efficiently.

When making international transfers, fees can vary with some banks charging up to AED 60 per transaction and others AED 25. Other fees to consider include making and receiving payments electronically, cash withdrawal fees, card replacement fees, and WPS processing.

Using bookkeeping software for small business or a trusted bookkeeping service can help track these costs accurately and manage monthly reconciliations efficiently.

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What about International Fund transfers?

Given the fact that approximately 80% of the UAE population is made up of ex-pats, sending money to home countries is a necessity for some. Many residents do not choose to remit cash from their banks due to perceived fees and time delays. Other alternatives to consider aside from the local currency exchanges such as Ansari Exchange and UAE Exchange include TransferWise and Money Corp. Both provide competitive rates and low fees.

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WPS Payroll processing

If you intend to employ staff for your business, when opening a bank account you will need to ensure that you can process the WPS via your chosen bank. The Wages Protection System (WPS) is an electronic payroll system regulated by the UAE Central Bank and the Ministry of Labour. It ensures that employee wages are paid accurately and on time through approved banks and financial institutions.

Businesses can simplify this process using accounting software or outsourced bookkeeping services, which ensure accurate WPS reports and compliance with UAE labour laws.

 The system was created by the Ministry of Labour and the Central Bank of the UAE to ensure wages are paid on time and in full. The process involves entering the payroll information into a specific template and then submitting it to the bank or financial organization to pay employees. If your bank cannot accommodate this for you then the alternative is to visit a money exchange such as Ansari Exchange and submit this WPS information in person along with the cash.

A bookkeeping service or reliable business accounting software can simplify payroll reporting and compliance under WPS.

Corporate Credit Cards

Most banks also offer corporate credit cards to be used when traveling or paying for online subscriptions. However, keep in mind that many banks require credit cards to be pre-loaded with the credit limit before they can be utilized.

Other considerations

Some banks may have different rules for opening business bank accounts for free zones and mainland entities. Also, different licensed activities will require extra disclosure requirements. For example, many UAE banks may not open a bank account for a free zone with a general trading license unless they have a mainland license and a warehouse. Another new requirement certain banks have is that they request the company to have a physical office rather than a Flexi desk or a smart office. The process of opening a business bank account has become a stringent process in recent times due to the increased global banking regulations. With this in mind processing times and ensuring the correct documents are key when going through this process. However, once your account is open, you can look forward to growing and expanding your new exciting venture.

To maintain healthy financial records post-setup, using bookkeeping software for small business or outsourcing to a bookkeeping service ensures compliance and clear financial insight.

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Call to Action: Get Expert Help for Your UAE Business Setup

Setting up a business bank account in the UAE can be a complex process, but you don’t have to handle it alone.

At Alpha Pro Partners, we help entrepreneurs simplify bank account setup, accounting, and compliance. Whether you need help with bookkeeping services, business accounting software, or bookkeeping software integration, our experts are ready to assist.

Whether you need bookkeeping service, business accounting software setup, or bookkeeping software for small business integration our experts can guide you every step of the way.

Get in touch today to schedule a free consultation and make your UAE start-up journey seamless.

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FAQs 

1. How long does it take to open a business bank account in the UAE?

The process usually takes 2 to 8 weeks, depending on your bank, business activity, and document readiness. Having your trade license, Emirates ID, and residence visa ready helps speed up approval.

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2. Can I open a UAE business bank account without being a resident?

Some banks may allow non-resident business accounts, but most require at least one shareholder or director to hold a UAE residence visa. Non-resident accounts usually involve stricter requirements, higher minimum balances, and longer approval times.

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3. What are the minimum balance requirements for UAE business bank accounts?

Minimum balance requirements vary by bank and account type. Typically, UAE banks require maintaining a minimum balance ranging from AED 10,000 to AED 300,000. Some premium business accounts, however, may require up to AED 1 million. Falling below this balance often incurs maintenance fees.

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4. Which bank is best for startups in the UAE?

Banks like RAK Bank, Emirates NBD, and Mashreq Bank are highly preferred by startups due to their flexibility, dedicated relationship managers, and online banking features. RAK Bank, for example, integrates well with business accounting software like Xero, making it ideal for small businesses and those using bookkeeping software for small business.

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5. What documents are required to open a business bank account in the UAE?

You’ll need key documents such as your trade license, certificate of incorporation, share certificates, passport and visa copies, and Emirates ID for all shareholders and signatories. Banks may also request a business plan, proof of office address, and board resolution approving the account opening. Using a bookkeeping service helps ensure that all your company documents and financial records are well organized before submission.

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DISCLAIMER

This article is written in general terms and therefore cannot be relied on to cover specific situations; application of the principles set out will depend upon the particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from acting on any of its contents.