Best Minimum Balance Business Bank Accounts in the UAE

Best Minimum Balance Business Bank Accounts in the UAE.

Discovering the best minimum balance business bank accounts in the UAE is essential for businesses seeking efficient financial management, particularly when considering external investment options.

If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (advice@adamfayed.com) or WhatsApp (+44-7393-450-837).

Introduction

Let us have a look at the business banking scenario in Dubai to have a better understanding of business banking in the UAE.

How to Open a Business Bank Account in Dubai

The UAE economy is thriving, making it an attractive destination for foreign businesses looking to shop or open offshore bank accounts.

While banking in Dubai is generally secure, international companies face some challenges when trying to open a bank account.

However, it’s not impossible; many foreign businesses successfully navigate the process.

Types of Corporate Entities in Dubai

Under UAE law, there are five pathways for foreign companies to establish a formal presence in Dubai:
⁃ Creating a permanent establishment
⁃ Establishing a branch office
⁃ Creating an entity in a UAE free zone
⁃ Creating a civil company
⁃ Entering a commercial agency agreement

Companies in Dubai must usually have at least one UAE national partner holding a minimum of 51% of the company’s capital.

However, some exceptions exist for specific industries.

Free zone companies are exempt from the 51% rule, provided the zone has its regulations.

Creating a permanent establishment includes various options, such as general partnerships, limited partnerships, and more.

Can a Foreign Entity Open a Business Bank Account?

While it’s possible for a foreign entity to open a bank account, the UAE doesn’t recognize Apostille, a method of document authentication.

So, foreign companies must first certify their necessary documents at the Consulate of the Emirates in their home country.

Afterward, these documents must be certified by the Ministry of Foreign Affairs, which can be costly and time-consuming.

Opening a Corporate Account

The prerequisites for opening a corporate bank account can vary by bank, but typically, a significant shareholder or director is necessary.

The application process involves providing detailed company records, including:
⁃ Proof of business activities
⁃ Information about clients and suppliers
⁃ Existing contracts
⁃ Business plans

Additionally, background information about the management team, financial projections, and interviews with applicants are often required.

Choosing a Bank

Dubai boasts several international and local banks where you can open a corporate account.

Some notable local options include:
⁃ Emirates NBD
⁃ Abu Dhabi Commercial Bank
⁃ Mashreq Bank
⁃ United Arab Bank
⁃ First Gulf Bank
⁃ Commercial Bank of Dubai

Several foreign banks also open accounts for UAE-registered companies, including:
⁃ Standard Chartered Bank
⁃ HSBC
⁃ Citibank
⁃ Barclays

Banking Fees

Banking in Dubai can be fee-intensive, so it’s crucial to understand potential charges before choosing a bank.

Fees vary widely between institutions and can apply to services like international money transfers.

Consider using Wise to fund your Dubai business account to avoid excessive international transfer fees.

Wise offers real mid-market exchange rates and cuts out international fees using local bank transfers in the UAE and your home country.

Let us have a detailed view of the UAE’s best minimum balance business banking accounts.

Best Minimum Balance Business Bank Account:

ADCB e-Business

Minimum Balance – AED 0

Islamic Banking – No

Annual Fee – AED 1,800

Features:

• Phone Banking.
• The e-Business Account is available in AED only.
• The e-Business Account is exclusively for Emiratis and GCC Nationals.
• A valid e-Trader license is mandatory.
• An upfront yearly fee of AED 1,800 is required.
• International debit card.
• Cheque book.
• Access to mobile banking and internet banking.
• Free e-Statements.
• Utility bill payment facility.
• No minimum balance requirement.
• Auto sweep facility.
• Free domestic remittances (unlimited).
• Free teller transactions (unlimited).

ADCB Business Choice Current Account – Gold

Minimum Balance – AED 50,000

What’s included? – Checkbook, Debit Card, Internet Banking, Mobile Banking App, etc.

Transaction Charges in UAE
⁃ ATM: 0
⁃ Non-Bank ATM: 0

Transaction Charges abroad
⁃ ATM: 0
⁃ Non-Bank ATM: 0

Features:

• Globally accepted Business Choice Debit Card.
• One free checkbook per month.
• Thirty free teller transactions each month.
• Low minimum balance requirements.
• Free e-statements.
• Access to ADCB Phone Banking, Mobile Banking, and Personal Internet Banking services

ADCB Business Choice Special Savings Account

Minimum Balance – AED 10,000

What’s included? – Checkbook, Debit Card, Internet Banking, Mobile Banking App, etc.

Transaction Charges in UAE
⁃ ATM: 0
⁃ Non-Bank ATM: AED 2

Transaction Charges abroad
⁃ ATM: AED 2
⁃ Non-Bank ATM: AED 21

Features:

• Globally accepted Business Choice Debit Card.
• One free checkbook per month.
• Low minimum balance requirements.
• Free e-statements.
• Access to ADCB Mobile Banking and Personal Internet Banking services

Emirates Islamic

Minimum Balance – AED 10,000

Features:

• Corporate Debit Card with a daily Cash Withdrawal Limit of AED 20,000.
• Assigned Relationship Manager for personalized assistance.
• Up to 20 complimentary counter transactions per month.
• Competitive pricing.

Required Documentation

• Company overview and valid legal papers, which include passport copies of owners, registration, business, license, trade license, articles of association or partnership agreements, and chamber of commerce certificate.
• Audited or in-house financial statements for a period of 3 years.
• Bank statements spanning 12 months.
• Letter of request for facilities.
• Any additional documents (as specified by the Bank)

Please be aware that original copies of all documents will be necessary for verification purposes.

ADIB Business One

Minimum Balance – AED 5,000

Annual Fee – AED 1,200

Features

• Business Classic Debit Card.
• ADIB Business Classic Checkbooks.
• Ability to choose from over 15 different currencies to open your account (including USD, EUR, GBP, JPY, CNY, etc.).
• Access convenient banking services on the go and benefit from free telex transfers through ADIB Business Internet Banking.

This account operates based on the Islamic principle of Qard Hasan, and your deposits are considered a non-profit bearing loan to ADIB.

The bank is obligated to repay the borrowed amount upon the customer’s request.

You also have the option to maintain your account in any of the following: AED, EURO, USD, JPY, and GBP.

Eligibility

Maintain a Minimum Monthly Average Relationship Balance of AED 5,000 and a monthly maintenance fee of AED 100.

Required Documents

• If applicable, Trade License, Commercial Registration, Chamber of Commerce Membership Certificate, Memorandum of Association, and any subsequent amendments and Power of Attorney (POA).
• Valid passport and passport copies of all Partners, which includes residence visa for signatories.
• Valid passport and Emirates ID for the signer(s).
• Additional documents may be requested as needed.

ADIB Business Premium

Minimum Balance – 25,000

Annual Fee – AED 900

Features:

• Personal Relationship Manager.
• Business Gold Debit Card with generous ATM and POS transaction limits.
• Exclusive ADIB Business Gold Checkbooks.
• Ability to choose from over 15 currencies to establish your account, including USD, EUR, GBP, JPY, CNY, and more.
• Access convenient banking services on the move and benefit from complimentary telex transfers via ADIB Business Internet Banking.

This account operates following the Islamic principle of Qard Hasan, in which your deposits are treated as a non-profit bearing loan to ADIB.

The bank is obligated to repay the borrowed amount upon the customer’s request.

You also have the option to maintain your account in any of the following: AED, EURO, USD, JPY, and GBP.

Eligibility

Maintain a Minimum Monthly Average Relationship Balance of AED 25,000 and a monthly maintenance fee of AED 75.

Required Documents

• If applicable, Trade License, Commercial Registration, Chamber of Commerce Membership Certificate, Memorandum of Association, and any subsequent amendments and Power of Attorney (POA).
• Original passport and passport copies of all Partners, which include signatories’ residence visas.
• Valid passport and Emirates ID for the signer(s).
• Additional documents may be requested as needed.

Noor Business Accounts

Minimum Balance – AED 10,000

Annual Fee – AED 0

Features:

• No monthly fee applies as long as the minimum balance is maintained.
• A charge of AED 100 will be imposed if the monthly balance falls below the minimum requirement.
• Access to electronic statements (e-statements).
• Debit card facility for authorized signatories, enabling 24×7 business management.
• Online banking services.
• Assigned Personal Relationship Manager.
• Foreign exchange counters offering currency exchange services for major GCC and global currencies, including UAE Dirham, Saudi Riyal, Kuwaiti Dinar, US Dollar, Euro, British Pound Sterling, and Japanese Yen, at competitive market rates.

Required Documentation

• Completed application form.
• Duly attested constitutional documents (such as trade license, Power of Attorney, Memorandum of Association).
• Passport copies of all partners and signatories, including the sponsor.

HSBC Business Call Deposit Account

Minimum Balance – AED 25,000

Annual Fee – AED 0

Islamic Banking – No

Features:

• A competitive interest rate is calculated daily and deposited monthly.
• There is no requirement for a fixed deposit duration.
• Unlimited freedom for deposits and withdrawals without any limitations.
• A modest monthly service fee for balances falling below the average – AED 150 or its equivalent in foreign currency.
• A minimum balance of AED 25,000 must be maintained.
• The Current Account is offered in UAE Dirham, US Dollars, Euro, and Pound Sterling.
• Complimentary monthly account statements.
• Free access to Phone Banking services.

HSBC BSP Basic Account

Minimum Balance – AED 5,000

Annual Fee – AED 0

Islamic Banking – No

Features:

• Low minimum account balance requirements apply to all Current Accounts, providing you with flexibility.
• Enjoy favorable rates for Forex transactions when dealing in USD, GBP, EUR, or JPY currencies.
• Available in AED as well as significant foreign currencies.
• Benefit from free cash and cheque transactions at business HSBC ATMs and cash and cheque deposit machines.
• Access free Phone Banking services with ease.
• Visit Business Customer Service Centres for free banking during extended hours at our locations throughout the UAE.
• Unlimited Cheque Transaction Limit for Cheque Deposit Machines.
• Unlimited processing for Inward Clearing Cheques.
• Unlimited processing for House Cheques.
• 10 Credits are allowed for Cheque Transactions over the branch counter.
• Free Cash Transactions at Cash Deposit Machines/ATM Withdrawals.
• 10 Credits and 10 Debits are allowed for Cash Transactions over the branch counter.
• Free Transaction Charges for Deposit Machines/ATM Withdrawals.
• AED 20 charge for Transaction Charges exceeding the threshold over the branch counter.
• Complimentary Business Telephone Banking subscription and maintenance.
• AED 90 fee for Outward FCY TT (Manual).
• AED 65 fee for Outward Local TT (Manual).
• AED 30 fee for Outward FCY/Local TT (Electronic).
• AED 10 charge for Inward SWIFT TT (not involving FX conversion).
• A monthly fee of AED 300 for monthly Maintenance, with an additional AED 100 fee for failing to maintain the required balance.
• Currency Types: USD, GBP, EUR, or JPY.
• Minimum Balance: AED 5,000 (or equivalent) per account (Relationship Level).

Preferential rates for USD, EUR, JPY, and GBP:
⁃ Fex Margin (GBP) (Buy/Sell) – 0.0210/0.0213
⁃ Fex Margin (EUR) (Buy/Sell) – 0.0130/0.0133
⁃ Fex Margin (JPY) (Buy/Sell) – 0.00011/0.00014
⁃ Fex Margin (USD) (Buy/Sell) – 0.0160/0.0165

HSBC Standard Corporate Current Account

Minimum Balance – AED 20,000

Annual Fee – AED 0

Islamic Banking – No

Features:

• Benefit from a low minimum account balance requirement for all Current Accounts, providing you with the flexibility to meet your needs.
• Enjoy preferential rates on Forex transactions when dealing in USD, GBP, EUR, or JPY currencies.
• Choose from AED and other major foreign currencies for your account.
• Conduct free cash and cheque transactions using business HSBC ATMs, cash and cheque deposit machines.
• Access free Phone Banking services with just a touch of a button.
• Make use of our Business Customer Service Centres at no cost, offering extended banking hours across our UAE locations.
• There are no monthly maintenance fees.
• Experience a monthly service charge that is below the average balance, set at AED 150 or its equivalent in foreign currency.
• Currency Type: USD, GBP, EUR, or JPY.
• Maintain a minimum balance of AED 20,000 (or equivalent) in each account OR AED 100,000 as a relationship level balance in one account.
• Unlimited Cheque Transaction Limit for Cheque Deposit Machines.
• Unlimited processing for Inward Clearing Cheques.
• Unlimited processing for House Cheques.
• There is a limit of 5 Credits for Cheque Transactions over the branch counter.
• Enjoy free Cash Transactions at Cash Deposit Machines/ATM Withdrawals.
• Conduct 5 Credits and 5 Debits for Cash Transactions over the branch counter.
• Free Transaction Charges for Deposit Machines/ATM Withdrawals.
• A charge of AED 20 for Transaction Charges exceeding the threshold over the branch counter.
• Complimentary Business Telephone Banking subscription and maintenance.
• AED 100 fee for Outward FCY TT (Manual).
• AED 75 fee for Outward Local TT (Manual).
• AED 40 fee for Outward FCY/Local TT (Electronic).
• AED 22 charge for Inward SWIFT TT (not involving FX conversion).

RakBank Business Banking Current Account

Minimum Balance – AED 25,000

Features:

• Dedicated Relationship Manager.
• Earn attractive interest on our Business Current Account.
• Accounts denominated in Dirham, US Dollar, Pound Sterling, or Euro.
• Monthly current account statements detailing all transactions.
• Access to our array of business financing products.
• Unlimited Cheque book facility.
• Attractive Foreign Exchange and Trade Finance rates.
• Competitive rate of interest on Fixed Deposits.
• 24-hour Phone banking service.

Things to Consider

The success of the UAE’s business banking sector in recent years is attributed to its efficiency and security.

The UAE has entered into agreements with various nations to combat tax evasion, requiring banks to cooperate with foreign authorities while preserving privacy.

You can apply for a corporate account if you have a UAE-based corporation, a registered branch, or a subsidiary company.

Your presence as the bank signatory is essential for application submission and passport verification.

Documentation must assess company operations, shareholder count, management’s business background, and the new entity’s UAE business plan.

Required Documents

Mandatory documents are essential for opening a business account.

The specific requirements can vary based on your business scope and the bank’s criteria:

— Identity Card

Shareholder representatives and company directors must provide copies of their Emirates ID cards and valid passports.

The shareholder representative’s residence visa is also necessary.

— Comprehensive CV

Five to seven years of professional and business experience are required.

Ensure your technical expertise aligns with the company’s commercial activity.

— Utility Bill

A copy of a utility bill issued within the last three months serves as proof of your current address.

— Company Business Documents

Your company’s business documents are crucial for account opening.

— Corporate Bank Statement

The last six months of bank statements from the shareholder’s current company (if applicable) are needed.

— Personal Bank Statement

Each shareholder should provide their personal bank statement for the previous six months.

— Corporate Document for Proof of Ownership

Provide a document that serves as evidence of ownership for your current business, such as a Certificate of Incumbency or similar document issued within the last six months.

— Business Plan

Include comprehensive information about:
⁃ Your company’s activities
⁃ Potential clients
⁃ Business development plan
⁃ Financial plan
⁃ Suppliers (for trading firms)
⁃ Partners
⁃ The management team’s background

— Board Resolution

A Board Resolution authorizing a Company Officer to open the account is necessary.

Please note that additional documents may be required at the bank’s discretion.

Eligibility Criteria

To open one of the best business bank accounts in the UAE, your corporation must meet specific eligibility standards determined by the bank.

Each bank has its own criteria, including maintaining a specific minimum monthly balance in the bank account.

Some banks require the organization to hold a savings or current account to qualify for a business account.

Additional eligibility criteria may apply at the bank’s discretion.

Costs

Local banks in the UAE typically do not charge fees for opening bank accounts.

However, each bank sets its minimum average monthly balance requirements, ranging from AED 50,000 to AED 500,000.

Failure to maintain this balance can result in a monthly penalty, typically around AED 250.

For instance, Emirates NBD requires a minimum average monthly balance of AED 50,000.

Benefits of a Business Account in the UAE

There are several advantages to having a business account in the UAE. Let’s take a look.

— Cash Flow

Monitoring cash flows and transactions becomes easier for business owners through a business bank account.

— Tracking of Expenses

A business account allows business owners to keep track of their spending and manage costs more effectively.

— Tax Calculation

Organizations can assess their tax liabilities transparently with a business account, aiding in accurate tax calculations.

— Professionalism

Many clients prefer depositing funds into a business account rather than a personal one, as it conveys professionalism and confidence in potential customers.

— Access to Business Loans

Business owners seeking loans for their companies or business credit cards can benefit from having a corporate account.

— Card Payments

A business bank account enables the company to accept customer credit card payments.

— Foreign Currency Account

When you open a business bank account in the UAE, you can also select from various foreign currencies, simplifying currency exchange.

Bottom Line

Although the typical costs associated with a business bank account in the UAE are around AED 50,000 to AED 5,000, this list is different.

I created this list with banks with a minimum balance requirement of less than AED 50,000.

Pay attention to various aspects mentioned in the article before proceeding to open a business bank account.

At the same time, consider aspects such as fees and features to choose the best possible option.

By conducting some research, you may be able to find alternative business bank accounts that suit your needs.

I strongly hope that the information in this article was helpful in finding the details of the best minimum balance business bank accounts in the UAE.

You are in the right place if you are an expat or a HNWI looking for expert wealth management services.

Feel free to contact me to find out whether you can benefit from the specialized investment solutions I offer.

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Adam is an internationally recognised author on financial matters, with over 760.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.