Opening an offshore business bank account in the UAE offers several advantages, including:
No restrictions on money transfers
Convenient account management via online banking from anywhere in the world
Tax exemptions for your offshore company
To open an offshore business account in the UAE, the most efficient method is to first register an offshore company.
Offshore companies in the UAE are typically used by foreign businesses for holding purposes, trading operations outside the UAE, or by IT companies that do not need a physical presence in the Emirates. Offshore zones in the UAE, particularly Dubai offshore, provide an excellent platform for launching international businesses.
However, it’s important to note that offshore companies enjoy fewer benefits compared to those established on the mainland or in a free zone. These businesses face more restrictions, have a higher rejection rate for bank account openings, require more documentation, and come with higher costs. Additionally, the owners of these companies undergo a thorough compliance process.
While it is possible to open an offshore bank account, it can be challenging due to the following:
The bank may deem your activities as risky
Some banks may not open accounts for certain types of businesses
The required minimum balance could be high
Therefore, it’s crucial to understand the local regulations and banking system, and rely on professional expertise to navigate this process.
At Visakingsdubai, our business consultants can help you with:
Assessing your requirements and goals to find the best solution for setting up an offshore company in the UAE
Assisting with document preparation and offshore company registration with the relevant authorities
Recommending suitable banks for your business
Coordinating with reliable bankers and arranging personal meetings
Overseeing the account opening process until it’s successfully completed
To open an offshore bank account, you will need to provide a comprehensive set of documents, including:
Corporate documents (license, articles of association, memorandum of association)
Bank statements and supporting documents (contracts, invoices, bills of lading, etc.)
A board resolution to open a business account and appoint a signatory
Corporate statement and ownership proof if you have another company
Proof of residence (recent utility bill or any document confirming your address)
CVs of shareholders with relevant business experience
A detailed description of your business, including estimated annual turnover and initial deposit
Names of potential clients, product names, and countries where your business will operate
To establish an offshore company in the UAE, you can choose from the following registration authorities:
JAFZA (Jebel Ali Free Zone)
RAK ICC (Ras Al Khaimah International Corporate Centre)
Ajman offshore
The registration process typically takes at least one week.
Offshore companies in the UAE benefit from:
Low-cost licensing and the ability to start international business operations
Remote company registration (though a personal visit to the bank is required for account opening)
Tax advantages
No restrictions on money transfers
Remote account management via online banking
Offshore companies in the UAE face several limitations:
They cannot obtain a UAE resident visa
They cannot conduct business within the UAE or receive payments from local entities
They cannot provide financial, banking, or insurance services without a license
They cannot rent office space
Opening a bank account is more complex and takes longer
Banks conduct more thorough checks
Higher costs for document legalization (approximately $1,000 per document)
While companies from most countries can establish an offshore company and open an account in the UAE, those from countries on the UAE’s sanctions list (such as Iran and Syria) are excluded. Entrepreneurs from high-risk countries (like China, North Korea, and Russia) may face more stringent documentation requirements.
If you establish an offshore company in Ras Al Khaimah (RAK), you can apply for accounts with the following banks:
Mashreq Bank
RAKBANK
Emirates Islamic Bank
Emirates NBD
First Abu Dhabi Bank
For companies based in UAE free zones, you have more banking options, including:
Emirates NBD
First Abu Dhabi Bank
Mashreq Bank
RAKBANK
Emirates Islamic Bank
ADIB (Abu Dhabi Islamic Bank)
Once your account is opened, you’ll need to maintain a minimum deposit, which varies by bank. Typically, you’ll be required to maintain a balance of at least AED 500,000 (USD 137,000). If the balance falls below the minimum, monthly maintenance fees may apply, ranging from USD 10 to USD 100, depending on the bank and account type.
The time required to open an offshore bank account in the UAE can vary based on several factors, such as the type of your company, the nature of its operations, the nationality of the shareholders, and the business model. On average, it can take anywhere from 1 to 6 months to complete the process.
UAE banks offer online and mobile banking services, allowing you to manage your offshore account from anywhere in the world, providing you with full control and accessibility.
It is important to regularly monitor and maintain activity in your offshore account. Banks often “freeze” inactive accounts due to the lack of transactions. To avoid this, ensure that your account remains active with regular transactions.
The brand name Visa Kings Global is used under licence by Visa Success Limited. Visa Success Limited is not a firm of solicitors and is not regulated by the Solicitors Regulation Authority. Visa Success Limited does not give financial, legal or tax advice.
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