Investor’s guide: how to open a bank account in UAE for a foreigner?

Thanks to the reputation of a tax-free country and a very simple process of opening a bank account, the UAE has become a popular destination for wealthy people who are looking to run a business overseas. The desert country attracts expats who want to take a promising position in a local company, start their own business or invest in residential and commercial property in Dubai or other popular economic zone. Zero income tax allows residents to earn more and lead a luxurious lifestyle.

While understanding the Emirati tax system can be a daunting task, opening a bank account is much simpler. Most of the country's financial institutions require only a passport, a visa and a letter from the employer indicating the amount of wages. But you need to keep in mind that many of them also require a high minimum deposit. Account holders can be fined if the balance falls below the allowable limit.

Find out what foreigners who are planning to open a bank account in the UAE need to know in this post.

Content:

• Reasons to open a bank account
• Can a foreigner open a bank account remotely?
• Types of financial institutions in UAE
• Terms for non-residents
• Terms for residents
• Opening a bank account for business
• Conclusion

Reasons to open a bank account

Individuals who have a bank account in the Emirates can manage their own funds and make transactions for their company. One of the main benefits a UAE account ensures is the absence of taxation. Most foreigners who want to open an Emirati bank account pay high taxes in their home country. A non-resident will be able to save significantly by directing their income to bank accounts in the UAE.

Can a foreigner open a bank account remotely?

Those who are not residents of the UAE cannot open an account remotely. According to the Emirati law, nationals of other countries are required to personally visit the bank in order to confirm their identity and sign documents.

The only way to open an account without being physically present is to complete the required banking transaction with a major international institution operating in the UAE, such as HSBC or CitiBank, and visit its branch in your home country.

Types of financial institutions in UAE

There are four types of financial institutions in the Emirates:

1. Commercial. Clients are individual entrepreneurs and enterprises.
2. Industrial. Customers are persons whose activities are related to the production of products.
3. Investment. Clients are individuals who buy and sell shares.
4. Islamic. Clients are persons who are looking for services that comply with Sharia law.

Terms for non-residents

According to UAE law, foreigners without a residence permit are only allowed to open savings accounts. On rare occasions, they may receive a checkbook. Most often, banks issue only deposit cards, which non-residents use until they issue a residence permit.

Requirements for non-residents vary from bank to bank. As a rule, they need to provide the following documents:

• passport with a stamp on entry into the territory of the UAE (original and copy);
• an application;
• confirmation that the application for a residence visa or identity card is being processed;
• a document indicating the name of the employer and information about wages;
• a letter of recommendation from the previous financial institution;
• a letter of no objection from the employer.

Terms for residents

Having received a residence permit, a foreigner can open a personal bank account (a current account) or an account in a commercial bank. To do this, you usually need to submit the following documents:

• a passport with a residence permit in the UAE (original and copy);
• a personal identification card (original and copy);
• documents confirming that the person lives in the UAE (this may be a lease agreement, utility bill or a letter from the place of work);
• a salary letter from the employer, an original trade license (if self-employed) or spouse's work ID (original and copy).

In addition to the above documents, banks also require the client to deposit a certain amount in order to open an account. On average, its size varies between AED 3,000-5,000.

Opening a bank account for business

Individuals planning to set up an onshore or offshore company can open a business account. But keep in mind that some banks require a high minimum balance and have a number of restrictions for non-residents.

To open a business account, you will need the following documents:

• passport details of the representative of the shareholder;
• a copy of the identity card of the representative of the shareholder;
• a copy of the passport of the head of the company;
• information on the type of company activity;
• information about the source of funds;
• concluded contracts;
• a full list of the certified constituent documentation;
• a memorandum and articles of association;
• a certificate of registration of the enterprise;
• the register of shareholders;
• a certificate of Good Standing.

The director of the company or a major shareholder must be personally visit a bank to open a bank account. In rare cases, a lawyer can do this on behalf of their client, but this option is not available in all banks.

Conclusion

Opening a bank account in the UAE provides many benefits for both entrepreneurs and ordinary people. Before submitting documents to a financial institution, foreigners are advised to obtain a resident visa. The easiest and fastest way to obtain a residence permit is to buy a house or an apartment in Dubai. To use it, please contact the highly qualified specialists at Emirates.Estate.