Dubai is one of the hottest global destinations for establishing the business process. Offshore company setup Dubai includes the opening of a bank account. Without a proper bank account, it would be impossible for a business to conduct routine operations. As a result of a lack of information about bank account opening procedures, many businesses end up with considerable delays. There are formalities, submission to be made, timelines for the approvals to be granted before a bank account can be opened. This all the more important considering the fact that stringent conditions have been introduced globally to ensure that banks carry out due diligence to prevent tax evasion. Here is a look at some of the formalities involved in bank account procedures.
The need for maintaining a minimum account balance
Globally there is a need for account holders to maintain an average minimum account balance. For offshore company setup Dubai, the average minimum account balance will typically depend on the bank where the account is being maintained. In certain banks, the minimum balance is around $5,500, whereas in other banks this minimum account balance could be as much as 1,30,000 dollars. An offshore company is mandated to maintain higher minimum account balance when compared with the requirement for an onshore company. This is necessary because of the ownership pattern of the offshore company and the nature of the transactions.
Documentation required for bank accounts
The opening of a bank account requires different documentation obligations. Businesses need to furnish documents in six different categories. For instance, the company memorandum of articles, the ownership pattern, details about investments and funds, license details, nature of business activities and the experience of the management in the business activities need to be submitted for bank account opening. These are the six different kinds of documents that need to be submitted at the time of opening a bank account. Additionally, the shareholder representative of the company needs to submit the passport and residency visa.
Timelines for completing formalities of bank account opening
Typically takes anywhere between one week to four weeks for bank account opening. This actually depends on the bank, with each bank having its own timelines for the conclusion of formalities. There are various KYC requirements and due diligence measures that need to be concluded by banks in light of the stringent regulations in place globally. The time taken for opening a bank account for an offshore company set up Dubai is generally more than the time taken for opening an account for an onshore entity. The number of formalities that are involved in both the account is different and this as an impact on the time taken for the verification of the formalities.
We are one of the most reliable and reputed service providers in business consulting, offering services for offshore company setup Dubai. Our services include bank account opening and all other formalities associated with business setup. Our expert resources ensure that at the formalities are concluded smoothly, allowing you to focus on business activities.
