Introduction

Bank accounts are an extremely important aspect of any business. This is because such accounts allow companies to receive funds, invest them, as well as use them for future expenses

  • However, having a business bank account in your local country does not always serve the purpose
  • This is especially true for companies that are engaged in international activities
  • They must make the decision to open up offshore bank accounts so that they are able to manage their international activities in a better manner

In recent years, the UAE has emerged as an important destination for Indian businesses

  • The country has close ties with the Indian subcontinent, and it is home to a large number of Indian workers
  • Therefore, Indian companies that are looking to expand in the Middle East must consider the UAE as among the top business destinations
  • The firms that are looking to expand in the UAE must also look to open an offshore bank account in the country so that their business interests can be met

This blog discusses the procedure of opening an offshore bank account in the UAE 

How to Open an Offshore Bank Account in the UAE

A bank account is a vital tool for international businesses

  • In today’s world, opening an offshore bank account is no longer considered to be a complicated task

For businesses looking to open an offshore bank account in the UAE, there are five major steps that need to be followed

  • The first step is to furnish the documents related to the firm. This includes an extract from the domestic bank account of the firm or the personal bank account of the founder

This step is important because banks in the UAE use these documents to check the existing financial status of the firm

You may also need to attach permissions and legal documents related to your new business in the UAE

  • The next step is to obtain a letter of recommendation from your domestic bank

This letter of recommendation helps the UAE bank to verify the credentials of your business

  • Next, you also need to provide documentary evidence related to the running of your business as well as the business plan of the company. This helps the UAE authorities in assessing the state of your company
  • As part of the fourth step, you will also need to fill in an application form. This form includes certain details about the shareholders, areas of operation, as well as the legal side of things. Once these four steps have been completed, the bank will complete it’s Know Your Customer (KYC) formalities
  • The final step requires you to open the bank account and make an initial deposit in the account. The amount of the initial deposit varies according to the bank that you choose. Once the initial deposit has been made, then you are ready to go ahead with your business activities

  • To conclude, offshore bank accounts can prove to be highly beneficial for any business. In case your organisation is unclear about any aspects of business, you can always reach out to the experts. Institutions such as Euro Exim Bank offer customised support to traders in the form of financial instruments and bespoke trade advisory services. Euro Exim Bank offers financial instruments such as Bank Guarantees and Letters of Credit (LCs). Further information about Euro Exim Bank and its key product offerings is available here.