How to open a Bank Account in Dubai?

How to open a Bank Account in Dubai?

Dubai has emerged as a global city and business hub of the Middle East. Dubai is the largest and most populous city in the United Arab Emirates providing enormous opportunities to residents and non-residents earn money.

The population of the UAE is comprised almost entirely of foreigners, which means there’s a clear path to opening a bank account as a new resident or even just as a visitor. There are also plenty of advantages to having a bank account in Dubai with the emirate’s secure government and extensive financial resources.

How to open a Bank Account in Dubai? What documents will I need to open an account?

Opening a bank account in Dubai is very easy, although requirements vary from bank to bank. To open a current you have to be a resident. However, some banks allow non-UAE residents to open saving accounts. Some banks set a minimum account/balance limit.

To start, you’ll need a few documents (and a few extra copies of each) on hand. When you go to meet with your banker to open your account, you should have:

• Your passport, along with some copies and extra passport pictures
• A letter of no-objection from either your sponsor or employer

Depending on which bank you choose, you may also need:

• A copy of your visa if you’re a new resident of the UAE
• A document showing your employer’s name and the amount of your salary (your HR department should be able to provide you with one)
• An Emirates ID card, or a copy of the application you submit to get one
• A recent utility payment receipt or signed rental contract to confirm your address
• A letter of recommendation from another bank, like the one you use in your home country

Whether you’ll need some or all of the above depends on what type of account you’re opening, whether you’re a resident or non-resident, and what bank you’re opening an account with. If you have access to all of the listed documents, bring them. If you’re still not sure what you need or whether you’re qualified to open an account

How to open a Bank Account in Dubai? Key Consideration before opening the Bank Account. Ascertain which below of these category suits you.

1. Are you a resident and do you work for a company as an employee?
2. Are you a resident and do you have your own business?
3. Are you not a resident?

Once you have identified which of these three categories you fall into, proceed to the relevant section below.

Resident working for a company as an employee – Salary Transfer

Ask your company which bank they work with. It’s often better to bank with your company bank so that your salary will hit your bank the same day as it is credited. Other banks will take at least two working days for your salary to reflect in your account.

As with any vaguely bureaucratic procedure in the UAE, our advice is to have every document you possess with copies in a file to have with you (including multiple passport pictures) when the agent visits you. This way if there are any surprises, you have all the required documents with you.

The basic Document requirements for opening a Savings or Current account are:

• Your original passport plus a copy
• A copy of your visa page proving you are a resident of the UAE
• A salary certificate (you need to ask your office HR department for this)
• Certain banks may ask for your Emirates ID card, but since getting an Emirates ID takes time, many don’t insist on this. They will just ask you for a copy of your Emirates ID registration form that you filled in when applying for it.

How to open a Bank Account in Dubai?Resident working for a company as an employee – No Salary Transfer

Certain banks require that you have an opening balance and keep a minimum amount in your account. Shop around, because not all banks do this. Unless there is a reason you desperately want to use a particular bank, minimum balances can be avoided.

Some banks will require you to maintain a minimum balance of up to Dh3000. If they try to set this amount higher, you should refer them to UAE Central Bank rules. Banks used to have their own charges for falling below this minimum amount, but the UAE Central Bank has since set an across-the-board charge of Dh25.

The basic Document requirements for opening a Savings or Current account are:

• Your original passport plus a copy
• A copy of your visa page proving you are a resident of the UAE
• A salary certificate (you need to ask your company HR department for this
• Certain banks may ask for your Emirates ID card, but since getting an Emirates ID takes time, many don’t insist on this. They will just ask you for a copy of your Emirates ID registration form that you filled in when applying for it.

How to open a Bank Account in Dubai?Non-Resident account

Most banks in the UAE allow non-residents to open only a Savings Account and not a Current Account. So you won’t be able to ask for a cheque book however, you will be given a debit card to withdraw money. As a non-resident, you will be subject to a minimum and/or maximum balance. It is possible that a bank will decide to run background checks before allowing you to open a bank account.

The basic Document requirement for opening a Savings account is:

• Your original passport plus a copy

Services you can expect when you open an account

Upon opening a bank account this is what you will get:

• A savings or current account in UAE dirhams
• Interest rate (some offer an interest rate from 0.25% pa on balances)
• Free international ATM/debit card
• 24-hour ATM access to your account, over the phone (landline or mobile) and online
• Access to branch and ATM network and bill payment facilities – phone, Dewa, Salik, traffic fines and other bills

Bank account charges

In February 2011, the UAE Central Bank issued certain restrictions and standardised fees that banks across the country can charge customers.

   How to open a Bank Account in Dubai?

Online Bank Account

With local banks based in the UAE, your presence will be required at the time of opening your account. This is also true for most UAE-based accounts, even if you choose an international bank.

However, if you’re planning to remain a citizen of your home country and wish to apply for an account with a major online bank like Charles Schwab or Bank of Internet USA, you’ll still be eligible to open an account online. If you do choose to use a web-based bank, it’s important to be aware that you won’t have access to bank tellers or on-site customer service, and ordering things like checks can take longer than usual. With both companies, your account will still be based in the U.S., however, with waived ATM fees and flat currency conversion rates, this won’t be much of a problem.

Most major international financial institutions like Citibank will allow you to open an account online even from the UAE, provided you still have an address and residency in the United States. Your account will still be U.S. based, but you’ll have access to branches, fee-less ATMs, and bank tellers in Dubai. The same can be said for HSBC, provided you are a U.S. or UK resident.

   How to open a Bank Account in Dubai?Choice Of Bank

A lot of the time, expats feel that it’s safer and easier to open an account with a larger bank that they’re already familiar with. Standard Chartered, Royal Bank of Canada, Habib Bank, HSBC and Citibank are all major international banks that operate in the UAE, any of which could be a good choice to open account in Dubai.

However, the rise of these larger international institutions has caused many local banks to offer great services at competitive rates. Emirates NBD, for example, has been well reviewed by expats and locals alike, and may be better equipped to deal with the tightly regulated UAE Central Bank than some of their foreign competitors.

How to open a Bank Account in Dubai? Feasibility of Chosen Bank

• Which bank your employer uses.Choosing the same bank one may facilitate more efficient direct deposits.

• Proximity of ATMs to your office or home. You’ll save yourself time if you don’t have to go out of your way to withdraw cash.
• Availability and ease of online banking and apps.
• Minimum balance requirements. Because a lot of offshore banking is done in Dubai by investors with lots of money, some banks have established hefty minimums and exorbitant fees to go with them when you don’t maintain your balance.

Here’s a list some of the popular banks in Dubai, along with the standard features of a basic current account to help you choose where to open yours.

National Banks

Emirates NBD (National Bank of Dubai)

Emirates NBD has more than 250 ATMs and bank branches in Dubai. Their standard current account includes:

• Free international Debit/ATM card (AED only)
• Can be opened in an approved foreign currency

NBAD (National Bank of Abu Dhabi)

They have 50 ATM and branch locations in Dubai. NBAD not only offers extensive credit card options, but their personal current account includes:

• Free cash withdrawals at NBAD ATMs in the UAE
• MasterCard Platinum Debit Card

ADCB (Abu Dhabi Commercial Bank)

ADCB offers 11 ATMs and branch locations in Dubai. Their current account includes:

• Availability in AED and all other major currencies
• Free teller withdrawals and deposits
• Free Debit/ATM card

FGB (First Gulf Bank)

They have 14 ATMs and 8 branch locations in Dubai. FGB’s current account includes:

• Minimum balance of 3000 AED
• Free Debit/ATM card (if the account is in AED)

Dubai Islamic Bank

Dubai Islamic Bank is known for their highly personalized service and offers 10 ATMs and branch locations in Dubai. Their Al Islami current account includes:

• Free ATM and teller withdrawals/deposits
• Opening balance of 3000 AED
• Monthly maintenance fee of 25 AED

ADIB (Abu Dhabi Islamic Bank)

ADIB offered hundreds of ATMs in Dubai alone, along with 24/7 banking services. Their current account offers:

• Free ATM withdrawals and teller services
• Easy to use mobile banking app

Major International Banks operating in Dubai

HSBC

HSBC includes 67 ATMs and 10 branch locations in Dubai. Their Current Account includes:

• Choice between USD, GBP, AED or CNY
• Minimum balance of 3000 AED
• Buy-1-Get-1-Free movie tickets at all VOX Cinemas in the UAE
• 6 free AED transactions via teller each month
• Free international Visa Debit/ATM card
• HSBC Visa Cashback Credit Card

Standard Chartered Bank

They have 14 ATMs and 5 branch locations in Dubai alone. Standard Chartered’s Current Account includes:

• Ability to open in multiple currencies
• Free ATM/Debit card

Citibank

Citibank has 48 ATMs and 2 branch locations in Dubai. Their Current Account includes:

• Choice between AED, USD, EUR, GBP, JPY, NZD, CHF, AUD or CAD
• Free Citibank ATM transactions all around the globe
• Free international ATM/Debit card

All of the above banks offer online banking, a free cheque book, and many other types of current, savings and deposit accounts for you to choose from – often with premium features. Before you make your decision, though, double check the full spectrum of fees the bank will charge. Many have monthly fees, minimum balance requirements, charges for sending/receiving bank transfers as well as for withdrawals from tellers or ATMs.

What bank fees are involved?

There are many types of fees that are common to banks internationally. Banks all over the world are known to charge account servicing fees, overdraft fees, statement fees, foreign transaction charges and inactivity fees among others. Banks in the UAE are no exception.

Minimum Balance Fees

In Dubai, many expats have noted the importance of thoroughly understanding your bank’s minimum balance policy. Not only do the minimums in Dubai tend to be quite high, but the fees that are incurred when you dip under it can be quite large.

Routine Transfer Fees

It’s also a good idea to check whether setting up routine transfers, like your Internet bill or rent, incurs a fee. Most banks in Dubai charge around 50 AED to initiate them. Emirates NBD, for example, charges 35 AED for each new standing instruction. If you’re setting up automatic payments, it’s even more important to keep an eye on your minimum balance as insufficient funds fees can be exorbitant. The payments themselves are typically free, however some banks will charge you a fee every time you perform an electronic transfer. If you’re planning to set up a lot of bills on auto-payment, it’s worth making sure your bank is not going to charge you.

ATM Fees

In order to avoid bank fees at ATMs, it’s important to visit your chosen bank’s ATM or an ATM group that your bank is affiliated with. If you happen to be dealing with a bank account full of foreign currency, the exchange rates offered by ATMs in Dubai are usually better than the ones you’ll find at actual currency exchange offices.

Foreign Purchase Fees

That being said, foreign exchange fees are rampant if you’re making purchases overseas or in a different currency, and can range between 1-3%. If you’re a frequent traveler, you may want to consider setting up your account with a larger international bank instead of a local Dubai institution.

Foreign Transfer Fees

Another advantage to choosing an international bank is that they’re usually able to provide you with better rates for international transfers between bank accounts, and somewhat lower fees on wire transfers. Emirates NBD, for instance, lists their cross-currency transfer fee somewhere between 60-90 AED, whereas  HSBC’s worldpay offers international transfers at a lower standard fee of around 42 AED. That being said, regardless of which bank you choose foreign transaction, wire transfer, and currency conversion fees are likely to exist.

However, if you’re transferring money overseas or receiving it from a foreign bank account, there are almost always additional fees charged by your sending bank and several intermediary banks, as well. Though many of those fees are fixed, sending a single transfer, especially if it’s a smaller amount, can get quite costly.

Need to upgrade to Reach online VAT Accounting Software :

   How to open a Bank Account in Dubai?

Reach accountant software is properly designed to fit all of the desires for a success running of the enterprise. The software may be used in industries ,buyers ,producers, outlets,  workshop ,commercial enterprise projects and so forth. It’s an accounting software program which can routinely manage your ebook of accounts, taxes, inventory, sales, purchases and many more  online speedy and securely

Top Features of the Reach Online VAT Accounting Software are:

• Accounting Management: All functions relating to accounts are inbuilt with the software. You can manage your Accounting Ledgers, Bank & Cash Operations, Purchase & Sales Estimates, Warehouse Allocations, Expense Recording, Expense Grouping, Payments – Part or Full, Journal Entries, Income and loss a/c, Balance sheets, Receipts – Part or Full, Contra Entries, Financial Reports, Day book.

• Tax Management: Our accounting Software automatically calculates the taxes relevant for every bill created. The Software is designed as per the government norms for calculation of VAT. It also has the option to add any number of taxes relevant to the business. In case of change in tax percentages a change it in the software on your own. All you have to do is add your tax percentage and our software will calculate the taxes automatically. This multiple tax scheme can also be applied to multiple products on a single purchase.

• Income Management: The Company can create Quotations then the same can be converted as a Sales order or Pro-forma invoice or Invoice. From Invoice you can create Receipts as well. Accountants will be able to know what payments have been received and what are pending in the reports. You can also set reminders for receiving payments.

• Expense Management: You can create Purchase Orders then the same can be converted as bill or payments. You can also create Debit notes for purchase returns. Accountants will be able to know which purchase bills have been paid and which are pending in the reports. You can also set reminders for making payments.
• Invoicing: Generates VAT compliant invoice of the company in the specified design as requested by the client or can choose from the available templates in the software. It also converts quotes to invoice .One of the features is the software can convert the Foreign currency invoices to base currency and further calculating the VAT at UAE standard rate.

·         Print Tax Invoice In Arabic: Reach software lets you print invoices in Arabic, English or both, as per the mandated guidelines of GAZT and FTA.

• Auditor View: Full-fledged Financial reports, Tax reports VAT reports, read process by auditor, with e-filing options, PF & ESI Reports, Tax Consulting Modules are some to be named.
• Check Post for VAT returns: As the software has been designed exclusively to aid individuals and entities to be VAT compliant in UAE, the set of rules and regulation laid by FTA (Federal Tax Authority) of UAE are embedded in the software. Hence any process error will be popped up by the application can be viewed .For instance wrong Tax Registration Number, incorrect taxable figure, wrong taxation period.
• Automatic Update on Tax legal Sections: As the Reach software are cloud computed software gets upgraded to update any revised tax laws and section if any in future.
• Computation Of VAT Returns: The software is inbuilt with all the detailed crucial information  on tax computation Tax Assesee can  fetch all the details of all the taxable transactions It lists down transactions which are included and excluded in the VAT return  calculate input tax, reverse charge and output tax to avail claim if any 

• Filing Of VAT Returns: The registered businesses in UAE are required to generate the VAT return File from their accounting software, login to the FTA’s e-tax portal and upload the return file. On the basis of the uploaded return file, the e-tax portal will validate the file and accordingly the details from the file will be auto-populated in the online return form. Reach VAT software is designed to ease the process of filing returns and comes under the purview of FTA prescribed set of rules and regulations.

• * VAT Reports etc.
• Calculate VAT automatically.
• VAT support in Sales, Purchase, Sales and Purchase returns, Journal entries.
• Generate Federal Tax Authority compatible tax reports.
• VAT Paid (charged by suppliers) and Vat Collection (Charged to customers) Analysis.
• Transaction wise details of VAT paid and VAT collected.
• Attach every Vendors/Customers VAT number and other details.
• VAT supported for Goods (stocked) and Service (non-stocked) items.
• Online application accounting.
• VAT Account Reconciliation, VAT Collection & VAT Paid analysis report.
• Report export to excel and other standard formats.
• VAT returns statement compatible with Federal Tax Authority standards.

Online accounting VAT software enables you to file vat returns, manage accounts and other business operations from any geographical area be it at the comfort of the house.

• Receipt: Receipts can either be manually entered or imported it in excel format easily.
• Payments: Payments can either be manually entered or imported it in excel format easily.
• Multi Company: Manage business through comfort of the smart phone.
• Tally Import: Tally files can be easily imported to Reach Software of various periods and manage business easily.
• Auditor’s Report: Full Financial Report are available,Read process by Auditor,Tax Reports,VAT Report with e-filing options,PF & ESI Reports,Tax Consulting Modules are some featuress mentioned.
• Mobile Application: Access business information through tabs and android smart phones, pick photos of expense vouchers and attach to expenses, daily profitability and other key reports can be viewed on phone.

         ·            Business Automation: Leads from all sources,Leads extractions via mail server,Converting leads to appointments,Quotes,Converting quotes to Invoices,Email-SMS update,Delivery status update,Work pending strategye.

• Business Intelligence Dashboard: The software has a feature of providing you key statistics of the business at any given point of time.The dashboard displays work status, profit and loss, expenses graphically.It also features  best Selling Executive, Highest Selling product, Largest value customer for the month. Every night the client gets a SMS summing up the entire sales , expenses ,case production ,and stock value for the day.

• Bank Synchronization: Bank Statements can be imported in to Reach software through excel files.

• Security: There is complete security of data stored in the hard disk. Data can be accessed and control by creating access restriction. One time password facilities also ensures a check in the log in to the website.

• Run Business from anywhere: The business can be run access data from anywhere at your comfort. Just like checking mails from the laptop or systems.

• Free and Automatic Upgrades: At Reach Accountant you will be provided free services of upgrading the software frequently with new features and use it absolutely free.

• No investment in expensive hardware: The software is browser based. It just requires internet connection which can be connected to multi computers without using LAN and servers.

• API: The client can integrate the existing software with Reach accounting application ,

• Automatic Data Backup: Reach stores all the data in servers offsite with regular backups. Hence business information is safe and secure

·         User Interface & Complexity: The software is designed to make its use friendly and easy,no cumbersome process to operate the application and software.

• Scalability: It is an VAT accounting software which can scale with your business needs. . Some software companies offer only one version of the product and some have progressive versions depending the business type or size. Reach Accounting software offers both integrated an entry level version as well as a feature rich version which you might not need for the current business processing but will definitely need in future for business development.

Top Two Features of the Reach Accounting Software

• Outsourced Accounting: The software enables to finish the outsourced accounts in less than 30 minutes.

• Real Time Accounting: Allows client to record sales and purchases online, while finalizing accounts that is checking the Audit trail, providing MIS reports, checking Tax reports, printing financial reports and filing taxes.

Technology Used

Reach has implemented the latest technology Cloud Computing to handle  day to day business transactions just  a click away from your browser from any part of the world.

Cloud Computing is a concept through which organizations can manage their data centres, processes and applications online via internet on the scheme of pay for use basis. Many of today’s small businesses find great advantages when adopting a virtual office environment. Rather than maintaining one centralized business location, employees are given the opportunity to work from home and connect via computer. Virtual offices can stretch across the country, or even exist within a small geographic area while still providing benefits to both employees and employers. Yet certain business functions need to be managed differently in a virtual environment. When it comes to accounting, a cloud system can improve virtual office management, especially for tasks such as expense tracking and financial report consolidation.

Benefits of Cloud Accounting

1. Spread the cost of the software by making payments by monthly subscription instead of one lump sum.
2. All the upgrades for cloud accounting software are carried out by the supplier at no extra cost, so you are always on the latest version.
3. You can access cloud accounting software anywhere that has an internet connection, so no need to use a particular computer or be stuck in the office.
4. As the name suggests, all the data is stored securely in “the cloud” which means on the supplier’s bank of servers, continually backed up, so you never have to worry again about using up your own hard-drive or taking regular backups.

Best of all, with cloud accounting software, your accountant can share your data, so they can help you if you are stuck on recording certain transactions in your accounts, like the purchase of a new laptop.  They can post their year-end journals directly, so your data is always up to date, but more importantly we can be more help to you.  For example if you would like your accountant to check the figures for your VAT Return or even file it,or prepare some management