Banking in Dubai UAE for Free Zone and Offshore Companies

Executive Summary

• Emirates I.D. (residency visa) is required to open a Dubai Bank Account for your Dubai Company.

• Residency Visa is not a complicated process, but a 2 weeks visit to Dubai is required.

• The Dubai Offshore Company can open offshore traditional bank accounts in other offshore jurisdictions and foreign digital banks.

  
  

Having a Bank Account in Dubai for your newly formed Offshore Company in Dubai is necessary, nonetheless, it is necessary that you fully understand what is banking like in the U.A.E.

Banking in the U.A.E. for companies formed in Dubai Free Zones is a particular situation, as banking in Dubai is not like in most Tax Haven and other Offshore Jurisdictions. This is because to open a bank account in the U.A.E. for a Dubai Free Zone or Offshore Company it is required that the Company have at least a shareholder o its manager that has a U.A.E. Residency Visa, as the Emirates I.D. of the shareholder or manager is necessary to open the account.

Depending on the bank in Dubai, you can open the account with just the Emirates I.D. (Residency Visa required), but some banks might even require you to have a proof of address in the U.A.E. like a lease agreement, or for the company to be at least 2 years old.

In contrast, if you form a company in the British Virgin Islands, you can open a bank account in the BVI without having a residency visa in the BVI, and can even be done remotely.

This Dubai Offshore Company has the following banking options:

1- Open a bank account in the U.A.E., but a residency visa is required.

2- Open a bank account in a foreign jurisdiction like the British Virgin Islands, Seychelles, Cayman Islands, Belize, etc.

3- Open a bank account in foreign digital or fintech banks.

Documents and requirements to open business bank Bank Account in Dubai in most banks

1- Emirates ID (Residency Visa)

2- Utility bill or lease agreement in the U.A.E.

3- Personal visit.

Residency Visa in Dubai

Obtaining a residency visa in Dubai is not a complicated process, but the applicant must visit Dubai for about 2 weeks to finalize some paperwork like have their Biometrics Taken, medical test, and waiting for the Emirates ID card to arrive.

Dubai Offshore Company with a Dubai Bank Account

If you want or need the bank of your Dubai Offshore Company to have a bank account in Dubai, we must get a residency visa and Emirates ID, which is a very easy and straight forward process, nonetheless, without the personal residency visa it will be extremely complicated to get a bank account in Dubai.

Some banks might even request you a lease agreement from Dubai, and you might not be able to get that without an Emirates ID.

Wio Bank, the Commercial Bank of Dubai, and Mashreq are some of the popular banking options for those clients who just recently received a residency visa in Dubai as their bank account opening requirements are more flexible. For example, Wio Bank can be opened remotely and would only ask for your Emirates ID (which we get once we get your Residency Visa).

Some of the most popular banks in Dubai for Free Zone companies

• Wio Bank

• Emirates National Bank of Dubai (NBD)

• Mashreq Bank

• Standard Chartered UAE

• Commercial Bank of Dubai

Wio Bank

Documents required:

1- Emirates ID (Residency Visa)

2- Account opening is done remotely. No visit required.

The applicant can open both a Personal and Business Bank Account.

Wio Bank is a highly popular banking option for those who just opened a Dubai Residency visa as the only requirement is the Emirates ID, plus your company details like license number, establishment card number, etc. It will not ask you for a lease agreement in the U.A.E. or utility bill

Other banks require the company owner to have a lease agreement, a minimum residency visa holding time, among other requirements, in addition to having a residency visa and Emirates ID. Some banks can open the bank account but only in AED and you would need to wait for about 6 months after having the AED account to apply for a foreign currency account.

That is why banking options like Wio can be a great initial banking solution for your recently formed Dubai Offshore Company.

Dubai Offshore Company with an Offshore Bank Account (A bank account located outside of Dubai)

A Dubai Offshore Company can open an offshore bank account in other jurisdictions, just like a company formed in the British Virgin Islands or the Cayman Islands would open a foreign bank account.

Traditional banks

We will not dig a lot into all these options, but a Dubai Offshore Company can surely open a bank account in any foreign jurisdiction in a traditional bank in the BVI, Cayman Islands, Singapore etc.

Digital Banks (Fintech Banks)

Digital banks in several jurisdictions can also open bank accounts for companies formed in the U.A.E., like Mercury, Airwallex, Payoneer, etc.

For example, Mercury, a financial technology company (Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC) in the USA opens bank accounts for businesses and start-ups incorporated in Dubai.