Corporate Bank Accounts in the UAE

If you're looking to open a bank account in the UAE, both residents and non-residents have the opportunity to do so. For UAE residents, it's possible to open a current account or a savings account, depending on the bank's policies. Non-residents, however, are limited to cumulative accounts, deposit accounts, or call accounts.

Despite these options, it’s common for UAE banks to refuse current accounts, even for residents. This refusal often stems from the bank's attempt to avoid riskier clients, especially those from high-risk countries. Each UAE bank has an internal rating of nationalities, and it's highly recommended to submit applications to several banks at once to improve your chances of success.

Corporate Bank Accounts in the UAE

Opening a corporate bank account in the UAE is possible for businesses across various categories, including offshore companies, mainland companies, and those within the free trade zones. However, around 50% of corporate applications are rejected, regardless of whether the bank is local or international.

There are two main solutions to avoid issues when opening a corporate account:

1. Buy a ready-made company that already has an existing bank account.

2. Prepare your documents carefully to align with the bank’s strict requirements.

In the first scenario, you’ll be conducting the verification process; in the second, the bank will be checking you.

What UAE Banks Check When Opening Accounts

UAE banks are thorough in verifying the legitimacy of businesses by checking their economic substance. This means the bank will ensure your company has a real office, legitimate business expenses, and proper documentation. Banks may send representatives to confirm the office’s existence and review information about employees, rent, and wages, to gauge the company’s economic activity.

Additionally, banks often request audited financial reports, biographies of the founders, financial plans, and details about your suppliers and customers. All this helps the bank assess the economic substance of your business.

Why UAE Banks Reject Corporate Account Applications

Banks in the UAE are under strict scrutiny from regulatory bodies, especially as the UAE strives to meet European Union standards and remain compliant with international tax laws. If a bank suspects that a corporate account is being opened for tax optimization, there’s a high likelihood the application will be rejected. This is because banks risk losing their license if they are found engaging in risky practices.

The Biggest Challenge of Negotiating with UAE Banks

One of the toughest aspects of dealing with UAE banks is their lack of communication. Due to internal policies, banks often won’t provide clients with advice or feedback on how to prepare their documents. You’ll receive a standard list of requirements, but you won’t get specific comments on why a document may have been rejected or why an account application was denied.

What to Do if Your UAE Bank Account Application is Rejected

If you’ve been rejected multiple times, it's essential to reassess your documentation. Consider reaching out to local experts who understand the specific requirements of UAE banks. These professionals can conduct an internal review of your documents, provide detailed analysis, and offer recommendations for improvement.

Working with specialists who have connections and expertise in the UAE banking system can help you understand the reasons behind rejections, correct weak points in your application, and increase your chances of successfully opening a bank account in the UAE.