Author: Melban Mascarenhas
Published: December 16, 2021
Category: Entrepreneurship
When starting up your dream business, it is crucial for all documentation and legal procedures to be in order, to ensure the smooth flow of operations. One of the major requirements every business must follow is opening a business bank account. This business bank account will not be in the name of the entrepreneur but rather in the name of the company itself. The business bank account will handle all bank related transactions the business may deal in.
Growing a business in the UAE without a corporate bank account is nearly impossible, and having one proves itself to be a stable medium through which cash flow and other balances can be observed. In this article, we explore how you can open a business bank account for your business easily.
Having a business bank account is crucial to running a business for a multitude of reasons:
Enhanced Financial Accessibility: It boosts your business' overall accessibility to funds and helps the business create and maintain a system where transactions can be tracked effectively.
Access to Business Financing: A growing business may require long-term investments for which a substantial amount of money may be needed. Acquiring this money through means of a loan is impossible without creating and maintaining a business bank account.
Additional Banking Services: Business bank accounts come with a multitude of services like checkbooks, international transaction availability, and added purchasing power that can aid your business in its management of finances.
Transaction Tracking: Enables effective monitoring and management of cash flow and other balances.
There are a few criteria involved in determining whether a business is eligible to create a business bank account:
Before creating a corporate bank account, you will have to deposit a certain amount of money as an initial deposit. This is done to show banks that your business has the adequate amount of funds needed to start and run operations smoothly. Each bank has different requirements regarding the amount to be deposited and can even vary depending on whether your company is a mainland business, or one set up in a free zone business. Sharjah Publishing City Free Zone provides assistance with setting up business bank accounts along with a zero-paid-up capital policy.
In order to maintain a business bank account, you will need to show consistent bank balances to banks. The average balance is generally determined by the bank you are working with.
You must provide your bank with an accurate profile of your existing and potential customers and clients. This aids the bank in understanding your business better and can result in your application process for various bank services being streamlined onto a fast track.
The process of opening a business bank account can be done online as well as in person at the bank. For both, you'll be required to follow the same procedure and submit the following basic documents:
| Document Type | Description |
|---|---|
| Company Trade License | Official business license |
| Memorandum of Association | Company formation document |
| Passport, Visa, and Emirates ID | Required for all partners |
| Office Tenancy or Ejari Contract | For physical office (if applicable) |
These are the most basic documents that you will be mandated to submit along with your application. The requirements may slightly vary depending on whether your business is in a free zone, is a foreign entity, or is an offshore entity.
Starting a business bank account can be intimidating, especially if you are new to the field of business. Sharjah Publishing City Free Zone offers expert consultation services to help entrepreneurs navigate the business bank account opening process.
Contact Information:
The consultants can break down what your business needs to do to start a business bank account with ease.
This guide is provided by Sharjah Publishing City Free Zone (SPCFZ), a free zone authority in the UAE offering business setup and support services for entrepreneurs.