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Opening UK Bank Account For Dubai Company (FZ, DMCC, RAK ICC) | Complete Guide

If you are wondering how to open a bank account for Dubai offshore company, then keep reading on. We are going to discuss steps of account opening in the UK.


In case you will have any questions from this article, you may contact us for more details or clarifications.


Why Having Dubai Offshore Company Makes Sense?


Dubai offshore companies can make sense for international entrepreneurs for several reasons, primarily due to the favorable business environment and legal framework offered by the Dubai International Financial Centre (DIFC) and the Jebel Ali Free Zone (JAFZA).


Taxation is one of the most significant reasons why businesses choose Dubai. In the DIFC and JAFZA, offshore companies enjoy tax exemptions for a specific period, typically 15 to 50 years. There is no corporate tax, personal income tax, or capital gains tax in these free zones, making it an attractive destination for businesses seeking to minimize their tax liability.


Moreover, Dubai offshore offers strong asset protection and confidentiality. Business owners can maintain anonymity as shareholder information is not publicly disclosed. Combine that with easy and relatively straightforward set-up process which usually involves minimal paperwork and red tape, and there is a perfect storm. That is why Dubai is buzzing with legal offices and corporate services providers ready to help to set-up companies in the offshore and free zones.


Interestingly, Dubai has robust and well-regulated banking sector with numerous local and international banks. However, for free zone and offshore companies it is very hard to open a local bank account, especially if the company doesn’t have a local office or operations.


Why It Is Hard To Open A Local Bank Account In Dubai?


Opening a local bank account in Dubai for offshore or free zone company can be challenging for a variety of reasons, even though Dubai is known for its business-friendly environment.


In general, Dubai banks have a strict KYC and AML requirements that typically require a substantial amount of documentation, including passport copies, visa details, proof of address, and various legal and financial documents. Also, many banks in Dubai require applicants to provide proof of a stable source of income, such as employment or business income.


Another common requirement is minimum deposit. Minimum deposit requirements for certain types of accounts, especially business accounts. Meeting these requirements can be a barrier for smaller companies that have limited available capital.


Moreover, banks in Dubai may have different policies and requirements based on an individual's nationality and country of origin. Certain nationalities may face more stringent requirements due to regulatory and compliance considerations.


Lastly, the account opening process in Dubai can be time consuming, with multiple rounds of document submissions and verifications. It takes months to get an account fully operational. Even worse, if the company is newly established, application can be fully rejected after months of waiting!


How To Open UK or EU Bank Account For Dubai Company? 6 Simple Steps.


Opening UK or EU bank account for a Dubai company involves navigating complex international banking regulations and requirements. Where are going to share practical step by step guide with. In case of any questions, you may contact us for more details.


1. Choosing the right banking provider. Research and select a bank in the UK or EU that is open to working with international companies, particularly those from the UAE or Dubai. Consider factors such as the bank's reputation, services, and fees. We have a full article on this topic here. Moreover, you may contact us and we will provide you with a list of banks that are friendly to UAE/Dubai companies, or in some instances we may connect you with the banks representatives directly.


2. Entity type. Ensure that your Dubai company is appropriately structured for international banking. In the UAE, Free Zone companies are often preferred due to their clear legal status. Your business structure should align with the requirements of the target bank, as they might ask to fully identify ultimate beneficiaries.


3. Prepare Documentation. Gather the necessary documentation. Requirements may vary by bank, but generally, you will need certified documents as per below:

· Company registration documents from Dubai.

· Business plan or description of your business activities.

· Passport copies and proof of residence for company directors and signatories.

· Reasons for Dubai incorporation, such as proof of local operation, office or explanation why this particular jurisdiction was chosen.

· Proof of source of funds for the company.

· Proof of Address.

· Share certificates.

· And other documents specified in the banks onboarding procedure.


4. Responding to Due Diligence questions. Be prepared to meet regulatory and compliance requirements, compliance checks and questions about your company and its owners. Opening an international bank account can be a challenge. Be prepared for the possibility of waiting for several weeks as the banks compliance department is performing its checks.


5. Activation. Get access to online banking and other services provided by the bank for managing the account.


6. Maintain communication and reporting duties. Do not forget to continuously monitor and maintain compliance with the bank's requirements and any ongoing reporting obligations.


It's crucial to be aware that the specific requirements and procedures for opening a bank account for a Dubai company in the UK or EU can vary significantly between banks and countries. If you wish to get a quick list of banks that are ready to consider account opening for UAE, Dubai Free Zone, RAK ICC company, get in touch with us and we will send you a refined and up to date list via email.


Conclusion


In conclusion, Dubai's offshore companies offer a compelling option for international entrepreneurs seeking a favorable business environment with enticing tax benefits, robust asset protection, and easy access to global markets. However, the process of opening a bank account for a Dubai-based company in the UK or EU can be a challenge.

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