Author: Ayushi Doegar
Published: December 6, 2022
Operating a business in the UAE is a fine choice for those interested in free zone company setup and want to know about payment options in the UAE. The UAE's free zone offers numerous benefits to entrepreneurs and business personnel. Not only does the UAE provide an expanded array of opportunities, but it also relieves them of taxation.
Once the company registration process has been followed through, the avenue of return on investment increases drastically. In this highly developmental and fast-paced country, small businesses need to keep up the pace.
This guide covers the following topics for small business owners in the UAE:
A business bank account is essential for franchise businesses and small sole proprietors. As per federal law, a business bank account provides protection in cases of disputes. Mixing personal assets with business assets may result in lawsuits and penalties.
Legal Separation: A business bank account allows the payments and expenses associated with a business to be kept separately from a personal bank account. A business bank account must be registered in the case of an LLC or corporation. An LLC or corporation is essentially a separate legal entity.
Simplified Accounting: A separate business bank account makes accounting easier for businesses. It provides clean, easy-to-understand financial records that can be used to obtain business loans or auditing.
Privacy Protection: A business bank account also ensures privacy for business owners.
Operating a small-scale business in the UAE requires thorough knowledge of the system's intricacies. Following are some major banking options in the UAE.
Mashreq Bank ensures the seamless provision of basic banking necessities for entrepreneurs. It allows customising business accounts according to clients' requirements. The bank has no minimum balance requirement and provides up to 12 free monthly local fund transfers in AED.
Mashreq bank offers five types of business bank account options:
Business Premium Account Benefits:
Local Transfer Fees:
Ideal for various business models and their needs, the Abu Dhabi Commercial Bank (ADCB) ensures to meet requirements. The bank provides an array of options in the form of six different business accounts.
Wio Bank offers value-based business banking services. The option of operating a business bank account is available to sole proprietors or individuals with sole authority to operate it at their company's discretion. Freelancers with permits issued by licensing authorities are also authorised to operate a business bank account at Wio Bank.
Account Opening:
Included Benefits:
Transaction Fees:
| Transaction Type | Fee |
|---|---|
| Local fund transfers | Free |
| International transfers | Wise fees apply |
| Foreign currency bank transaction | 1.00% |
| Cash withdrawals at non-FAB ATMs | AED 2.10 |
| Cash withdrawals at GCC ATMs | AED 6.30 |
Emirates NBD provides customised banking packages, and one of the major solutions is its business banking account. It provides basic banking necessities to entrepreneurs.
The Emirates NBD Business Bank provides three viable business account options:
Deposit Account:
Current Account:
The Commercial Bank of Dubai (CBD) offers value-based business bank account packages. These are designed to meet businesses' daily banking requirements. The "My Business" account package of CBD is ideal for clients who prefer maintaining low bank account balances.
Multi-Currency Options: The bank provides the option of choosing from 6 account currency denominations:
Additional Benefits:
The Sharjah Islamic Bank provides viable business banking options to entrepreneurs. SIB also provides its customers with digital banking options.
There are three major account types for businesses at SIB:
Customization Options: SIB provides customers with the option of customising their banking experience. In terms of business banking, there are various options to choose from, including changing financial goals to meet requirements or finding ways to invest.
SIB MaxPlus Deposit Account Profit Rates:
| Tenure | Profit Potential Rate |
|---|---|
| 36 months | Up to 14.25% |
| 18 months | 6.375% |
Establishing a business bank account may require a lot of paperwork. With an array of choices available to small-scale businesses in the UAE, SPC Free Zone can help make a choice easier.
At SPC Free Zone, we can assist entrepreneurs with the corporate bank account opening process.
With SPC Free Zone, businesses can be set up quickly and hassle-free. Moreover, SPC Free Zone also assists entrepreneurs in filing documents for submission and compliance requirements.
We offer different setup packages depending on business requirements. These include obtaining:
Visa Allocation: SPC Free Zone provides licenses that include up to 100 visas.
Ownership Structure:
License Types:
SPC Free Zone aims to give business owners the tools and knowledge they need to navigate their way. SPC Free Zone is here to help with your business setup in the UAE.
| Bank | Minimum Balance | Free Local Transfers | Multi-Currency | Online Banking | Special Features |
|---|---|---|---|---|---|
| Mashreq Bank | No minimum | Up to 12/month (AED) | Yes | Yes | 10% discount on trade fees, Quickremit service |
| ADCB | Not specified | Not specified | Yes (USD, EUR, AED, GBP) | Yes | Unlimited teller transactions |
| Wio Bank | Not specified | Unlimited (free) | Yes | Yes (app-based) | Free virtual cards, 10 free cheque leaves |
| Emirates NBD | Not specified | Not specified | Yes (USD, AED, JPY, Euro) | Yes | Extensive branch network |
| CBD | Low balance friendly | Not specified | Yes (6 currencies) | Yes | Free Dubai Chamber prepaid card |
| SIB | Not specified | Not specified | Not specified | Yes (digital) | MaxPlus profit rates up to 14.25% |
This guide provides information about payment options and business banking solutions available for small businesses operating in the UAE, with particular focus on free zone company setup benefits.