With a stable economy, strategic location, business-friendly environment, and a range of investment opportunities, Dubai offers lucrative prospects for opening business bank accounts for entrepreneurs and investors. It is indeed a popular choice for offshore banking where the accounts are opened outside of the account holder’s home country. Additionally, there are many benefits to opening an offshore company bank account in Dubai such as increased privacy, asset protection, and potential tax savings.
Through this blog, we will get to these benefits one by one and also explore other aspects of setting up an offshore account in Dubai.
Benefits of opening an offshore bank account Dubai
A business can avail significant benefits from opening an offshore bank account Dubai. With the city being a major international financial center, companies can expand their operations and access new markets.
Let’s delve into some major advantages of opening an offshore company bank account in Dubai:
- Tax relief
By setting up an offshore bank account Dubai, you can take advantage of the city’s favorable tax laws. There are no personal income taxes, which makes it an attractive location for people wanting to reduce their tax burden. In addition, there are various tax relief schemes offered by the UAE government for foreign investors.
- Deal in multiple currencies
Having a bank account in Dubai allows foreign businesses and individuals to deal in multiple currencies. This facility is favorable for companies that operate in multiple countries and need to deal with their respective currencies.
- Handle foreign exchange currencies
Offshore accounts enable the handling of foreign exchange transactions due to which businesses can make payments or receive funds in different currencies.
- Secure storage of money and assets
Dubai has strict banking laws and regulations that offer a high level of security and privacy, especially in finance-related matters. Therefore, the government has implemented a strong legal framework to protect the assets of offshore bank account holders in Dubai.
- Get expert investment advice
Many banks in Dubai provide expert investment advice on how to manage and grow your assets efficiently. This particular feature can be beneficial for individuals and businesses that are planning for long-term investments.
- Confidentiality
Businesses seeking privacy can consider offshore banking as it provides a layer of confidentiality for financial activities.
- 24/7 availability
Many banks in Dubai operate on a 24×7 basis. This facilitates account holders in conducting transactions and accessing their account information at any time and from anywhere.
- Wealth management
From investment advisory to financial and real estate planning, offshore banking in Dubai offers extensive wealth management services that can help businesses in many ways.
Understanding the requirements for an offshore bank account
Before proceeding with the account opening process, it is necessary to meet certain requirements:
Establishing an offshore company
To open an offshore company bank account in Dubai, you need to first register an offshore company in the Emirate. You can work with a company formation agent from Shuraa who can guide you through the registration process.
Selecting the right bank
To enjoy a successful banking experience, it is crucial to choose the right offshore bank. You can consider the following factors while making your selection:-
- Reputation of the bank
- Range of banking services
- Online banking facilities and accessibility.
- Privacy and security measures
- Fees associated with the account.
Prepare the necessary documents
Opening an offshore bank account Dubai would require the submission of the following documents:-
- Client Profile – Comprehensive details outlining the background, financial activities, and objectives of the client
- Articles of Association – A legal document outlining the purpose, structure, and regulations governing the operations of the company.
- Certificate of Incumbency – A document verifying the current officials and directors of the company.
- Memorandum of Association – A formal document outlining the constitution, objectives, and scope of activities of the company.
- Company Brochure with Narrative – A promotional material detailing the history, products, and services of the company.
- Certificate of Good Standing – The company’s confirmation of compliance with regulatory requirements and its good standing in its jurisdiction.
- Bank statements for the past 6 to 12 Months – The banking transactions of the company to prove its financial stability and activity.
- Attestation by the Ministry of Foreign Affairs – Authorization from the Ministry of Foreign Affairs, validating the authenticity and legality of the documents.
Steps to open an offshore company bank account in Dubai
Starting an offshore account in Dubai is a straightforward process. However, it’s crucial to understand the steps and requirements associated with this process. So here’s a general outline of how to set up an offshore bank account in Dubai:
Complete your KYC
The first step in the process is completing your KYC (Know Your Customer). This involves providing personal information such as identification, proof of address, and other information to verify your identity. While some banks may also ask for additional documentation, such as a copy of the passport or a utility bill. The KYC process varies depending on the bank you choose and the type of account you are opening.
Read also: Build Your Business, Not Your Paperwork: Expert Bookkeeping Services for Contractors
Pay the initial deposit
Once you have successfully done the KYC, pay an initial deposit. Again, the amount of the deposit would vary depending on the bank and the type of account. Some banks may have a higher deposit requirement, while some may be relatively low.
Submit the required documents
After paying the initial deposit, submit the required documents to the bank. The entire process may take several weeks. Hence, it’s important to plan beforehand and be prepared with the necessary paperwork and information.
Complete the due diligence
The bank will carry out due diligence to verify the information submitted by the applicant. It will include background checks, anti-money laundering checks, verification of documents, and compliance checks.
Compliance and reporting
Offshore companies with an offshore bank account in Dubai are required to ensure ongoing compliance with local regulations and reporting requirements. They need to stay current with any updates or changes in the regulations that may affect their offshore account.
Fees associated with offshore bank account opening
The fees associated with establishing an offshore company bank account vary depending on several factors –
- Selected bank – Since different banks have different fee structures, it is essential to compare the rates and account features.
- Type of account – The type of account you choose will impact the fees. For example, a current account, an account with international transactions, etc.
- Minimum deposit – The initial deposit might be included in the account opening fee.
Best banks to open an offshore company bank account in Dubai
Investors in the UAE can access a wide selection of offshore banking institutions. Here we have listed some of the most notable options of banks available in Dubai –
- Noor Bank
- Emirates Islamic Bank
- Emirates NBD
- RAK Bank
- Commercial Bank International
- HSBC Middle East
- Citibank
- Habib Bank AG Zurich (HBZ)
- Royal Bank of Canada
- Standard Chartered Bank
Take your next step with Shuraa
Ready to set up your business in Dubai? Shuraa Business Setup specializes in providing expert assistance throughout the company formation process. They hold a proven track record of success in delivering comprehensive and top-notch services. Their knowledgeable professionals ensure that the clients enjoy a smooth and resourceful experience tailored to their needs.
So, if you are seeking a reliable partner to get started with your offshore banking experience in Dubai, contact Shuraa!
