The establishment of a company in the United

The United Arab Emirates (UAE) is an attractive destination for establishing a corporate presence, thanks to its strong financial system, featuring a stable currency, unrestricted currency movement, and reliable credit institutions. Additionally, managing accounts from anywhere in the world is seamless and convenient.

In this article, we will explore the process of opening a corporate bank account in the UAE and discuss the advantages it offers for both foreign companies and individual entrepreneurs.

Benefits of opening a corporate bank account in the UAE

• Economic stability: a stable banking system, making it a reliable choice for businesses. The country’s absence from the blacklists of the Organization for Economic Cooperation and Development (OECD) and the Financial Action Task Force (FATF) ensures that transactions in local currency are processed with ease. This also leads to a simplified know-your-customer (KYC) process, making the onboarding process more straightforward. Banks conduct due diligence with minimal restrictions when dealing with counterparties in Dirhams, the UAE’s national currency.
  
  
• Integration into the global financial system: the United Arab Emirates has a strong presence in the global financial landscape, with branches of some of the largest financial institutions in the world, ensuring that their banks are well represented globally. This integration into the international financial system offers numerous opportunities for businesses operating in the UAE.
  
  
• No restrictions on offsetting transactions: in the course of daily business, companies often need to make payments to third parties. These transactions are seen as legitimate by UAE banks under local financial regulations, and are not subject to suspicion. UAE banks offer flexibility in conducting transactions in any global currency, eliminating the need for currency conversion. 
• The ability to make payments in any world currency without conversion. The banking services in the UAE provide convenience and accessibility for international transactions within and outside the country, whether it is dollars, euros, British pounds, Chinese yuan, or any other currency.

Types of accounts offered by UAE banks 

UAE banks offer various types of corporate accounts, depending on the resident status of the account holder:

• The resident’s bank account: a complete list of banking services, including a cheque book, debit and credit cards, and loans. 
• Non-resident bank account: the process of opening a non-resident bank account can be time-consuming and comes with a limited range of banking services and restrictions on internet banking. To open such an account, you need to meet strict requirements, such as having a significant deposit or proving that your company’s annual turnover exceeds one million dollars.

To establish a corporate bank account in the UAE, you will need to provide the following documents:

1. Corporate documents of the company. 
2. Valid office lease agreement.
3. Confirmation of the resident status from the manager of the bank account (passport, visa, emirates ID). 
4. Confirmation of the shareholder’s personal address in the UAE (lease agreement). 
5. A mandatory set of supporting documents for the KYC procedure.

Establishing a corporate presence in the United Arab Emirates (UAE) offers numerous advantages. These include access to a stable currency, and reliable banking institutions. Additionally, it provides convenient account management options from anywhere in the world.

For expert help setting up a bank account in the UAE, consult KAIDZEN BIZ. We’ll guide you through the document collection, KYC process, and even accompany you to bank meetings for a seamless experience.

Got questions? Reach out to our team—we’re here to help!

Arab Emirates is an increasingly popular choice among foreign entrepreneurs, particularly in the context of free zones. These special economic areas provide favorable conditions for business operations, offering a range of advantages, such as 100% ownership by foreigners and streamlined registration and licensing procedures. There are currently over 40 free zones operating across the UAE, each designed around specific industry categories to cater to diverse business needs.

It’s essential to consider several critical factors (type of business, location, costs) while selecting a free zone. The UAE boasts several prominent free zones with unique offerings:

• Jebel Ali Free Zone (JAFZA): one of the largest and most developed free zones, focusing on logistics and manufacturing. 
• The Dubai Multi Commodities Centre (DMCC): provides a specialized platform for commodity trading
• The Sharjah Publishing City Free Zone (SPCZ): offers low levels of government fees. 
• The International Free Zone Authority (IFZA): allows the integration of professional, commercial and industrial operations under a single license. 
• Meydan: located close to key commercial and financial hubs, providing easy access to Dubai International Airport and essential infrastructure.
• Dubai International Financial Centre (DIFC): the first financial and economic zone of the UAE.
• Umm Al Quwain Free Trade zone (UAQFTZ): known for its cost-effective setup options, ideal for startups and SMEs.
• Ras Al Khaimah Economic Zone (RAKEZ): offers a diverse range of industrial and business activities with flexible packages.

When selecting a free economic zone, it is crucial to take into account several critical aspects:

• The nature of the business: certain free zones are specialized in specific industries, such as technology, logistics, media, diamonds, precious metals (silver, gold, etc.)
• Location: the geographical location of a free zone can significantly impact logistics and market access. 
• Costs: various free zones require different levels of initial investment, with some offering incentives for startups.

The registration process includes several crucial stages, starting with submitting an application and acquiring a license. These stages include:

1. License Type Selection: determining the type of business activity, such as trading, production, or services.
2. Application Submission: completing the required forms and documentation. Providing essential documents, including a passport, proof of office rental and a business plan. 
3. Fee Payment: paying registration and licensing 
4. Approval process: verifying of documents by respective Government Authorities, approval and issuance of License.

The documentation required for registration includes: 

• A copy of the owner’s passport
  • Office lease agreement
  • Confirmation of personal place of residence (payment of utilities, bank statements with address, etc.)

Financial and legal considerations

Financial and legal considerations are crucial during this process. However, there are other fees to be considered, such as those associated with registration and license renewals. 

The Free Zones have their own regulations governing business operations. Companies must adhere to UAE labor laws as well as regulations on data protection and intellectual property. 

With KAIDZEN BIZ, you can set up a company in a Free Zone quickly and effortlessly, leaving the details to us.

Got questions? Reach out to our team—we’re here to help!