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Open SEPA IBAN Account For UAE Company [5 Easy Steps]

Updated: Apr 26

SEPA simplifies bank transfers denominated in euro and are provided by European banks. For UAE companies looking to use SEPA as means of money transfers and payments in Europe or with their European clients/suppliers, opening a SEPA account is a business necessity. Why a necessity? Because SEPA allows for easier, faster, and cost-effective transactions within the eurozone.

 

SEPA-IBAN-ACCOUNT-for-UAE-company

What Are SEPA Account Benefits For UAE Companies?

 

SEPA enhances the efficiency of EURO  payments and consolidates various national schemes into one integrated payment system for the currency. By acquiring a SEPA IBAN, UAE businesses can enjoy benefits such as:

 

- Simplified transactions: Conduct business across eurozone countries with fast and reliable payment system of SEPA. On top, create more trust within your business partners by demonstrating an European IBAN.

- Lower transaction fees: SEPA eliminates the premium charged for international transfers within the eurozone. Regardless of the amount of euros being transferred, SEPA is a fixed cost that is usually in single digits.

- Faster payments: Transfers within SEPA are usually completed within one business day as SEPA payments are being settled multiple times per day and SEPA Instant payments happen in seconds.

 

 

What Are The Requirements For UAE Company To Open SEPA Account?

 

Before a UAE company can open a SEPA account, it must meet specific criteria:

 

- Business registration: The company must be legally registered in the UAE. In addition, many EU banks will require certified company documents for the onboarding and in English language.

- Economic ties to the EU: The company should demonstrate business activities with the EU, such as trade partners, investment portfolio, supplier relations, founders or owners being form the region and similar.

- Compliance: Adherence to international anti-money laundering (AML) standards, accurate book keeping, contractual relations based on agreements and invoices and a digital presence is benefit. Many banks nowadays look at companies websites, check their office location on maps and ask for example invoices to cross-check the legitimacy of the business.

 

 

Step-by-Step Guide To Opening A SEPA IBAN Account

 

Step 1: Find The Right Bank

 

Start by selecting a bank that offers SEPA services to non-European entities. Consider factors such as:

 

- Reputation and reliability: Choose a bank that is licensed in the EU or UK, and is a participant of the SEPA scheme, which allows them to offer SEPA payments. Moreover, cross-check if the bank was not in trouble with the regulators and is not in a bad reputational setting.

- Services offered: Ensure the bank provides all needed services like banking platform, multi-currency capability, multiple payment methods (such as SWIFT besides SEPA) and customer support in English.

- Fee structure: Compare fees for account maintenance, transactions, and currency conversion.

 

If you would like us to send you an up to date list of best EU banks that can onboard UAE company, fill out our contact form and we will send it to you by email.

 

Step 2: Prepare Documents For Onboarding

 

Collect all required documents to fulfill the account opening process requirements. Typically, these include:

 

- Company registration documents: Certificate of Incorporation, Memorandum, and Articles of Association. All certified and in English.

- Proof of business activities: Contracts, invoices, or statements showing business dealings with EU companies.

- Identity verification: Passports of company directors and beneficial owners.

- Proof of address: Recent utility bills or bank statements or lease agreement.

 

Step 3: Work On Your Application

 

Most banks now offer online applications for opening business accounts. Upload the documents to the bank’s portal and fill out the application form. Ensure all information is accurate to avoid delays. If bank representatives come back with questions, make sure you work out the answers and they should be as detailed as possible.

 

Step 4: Account Set Up

 

Once your application is approved, the bank will create your SEPA account and unique account IBAN. You will receive these details and will have to set-up your account to be ready to use. Familiarize yourself with the online banking system and test the transfer processes with small transactions.

 

Step 5: Use Your Account

 

Use your SEPA account as planned. Even make sure that you can get API integration into your back office or accounting system to reduce hours spent on manual transactions. Maintain thorough records and be prepared to provide additional documentation if the bank requests it during annual reviews.

 

 

Conclusion

 

Opening a SEPA IBAN account is an important step for UAE companies. By following these steps outlined in the article, UAE company can get easily and quickly set-up and start making SEPA transfers in several weeks.

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