How to Open an Offshore Bank Account in Dubai
Offshore Banking is defined as carrying out banking activities from remote locations. The most distinguishing feature of offshore banks is that they are built to facilitate flexibility. With offshore banks, funds can be transferred seamlessly around different banks in any type of currency. Investors who frequently make transactions worldwide prefer offshore banks due to their easy management and feasibility over the internet.
If you frequent other countries, or carry out frequent financial transactions overseas, then ensure that the bank you choose to have an account in offers you international debit card facilities, 24-hour banking, and the facility to accept cheques in different currencies.
Offshore Banking in Dubai
Because the market keeps evolving, offshore banks have to regularly keep up with the businesses and introduce policies to suit them. Dubai, for one, has been the pioneer in the Middle East in rolling out outstanding policies designed to flourish business setup in Dubai.
Owing to the plentiful of benefits that offshore banks offer, there are some prerequisites that one must fulfill in order to open an offshore bank account in Dubai. For example, you would need to hold a residence visa in order to enjoy the full benefits of offshore banking. One of the biggest advantages of offshore banking is that you can export and import funds for gratis.
Dubai has been the investors’ hub for many giant banking corporations worldwide. Some of the biggest banks that have headquartered in the Emirates are ABN Amro, Abbey National Offshore, Dresdner, Barclays and HSBC Offshore. With the opening of Dubai International Financial Centre, more offshore banks are expected to make Dubai their home.
Status Quo of Offshore Banking in UAE
All banks in the UAE come under the purview of the UAE Central Bank, which issues rules and regulations. One of the rules is that in order to open an offshore bank account, you must hold and maintain a minimum balance of $10,000. One must note before opening an offshore account in UAE that you will be mandated to pay taxes in your home country as well. This might sometimes require professional help from a business setup consultant. The account opening entails production of certain documents from your home country.
More often than not, expats in the UAE open an offshore account in Dubai to prevent their funds from being sealed in the UAE banks.
ALSO READ: How to Instantly Open a Bank Account in UAE
Offshore Bank Account in Dubai
The banking framework of Dubai has enabled many global banks to set up shop in Dubai. Some of the most promising features for offshore banks include stable local currencies against the USD, no limits on money transfer, online banking, etc.
Investors and businesspersons looking to carry out a new business setup in Dubai usually have an offshore bank account to ensure a smooth mobility of money transfer.
And those who don’t own a business generally do not deem it beneficial to use an offshore bank account for the following reasons:
- UAE banks deem international bank accounts as high-risk accounts, leading to the banks accumulating balances and carrying out excessive checks for your business.
- Opening an offshore bank account for a foreign company is not an easy task as many banks are disinclined to take the risks that come with it.
- Opening an offshore bank account entails legalizing and disclosing company documents; something which many companies do not prefer.
Benefits of Opening an Offshore Bank Account
- Diversified currencies
- Tax Benefits
- Plenty of investment opportunities
- Protection of assets
- 24/7 availability
- Secure and private
- Convenience
How to Open an Offshore Bank Account in Dubai
As mentioned, offshore bank accounts find fancy among entrepreneurs and businesspersons. Hence, most people who carry out a new business setup in Dubai open an offshore bank account as well; which is also the most common way of opening a bank account.
The first step would be getting in touch with a registration agent. After you get a free consultation and all the details required, you’d have to wait until the agent completed the business setup for you.
Some of the following local banks align well with RAK offshore company:
- RAK Bank
- Emirates Islamic Bank
- Mashreq Bank
However, if you do choose to set up your company in one of the many free zones, then the list of banks you can choose from become:
- ADIB
- Mashreq Bank
- Emirates Islamic Bank
- First Abu Dhabi Bank
- Noor Bank
- Emirates NBD
- RAK Bank
However, the fastest you can open an account is through mainland company registration. But then, mainland setup is comparatively costlier, and is suited more for corporations and large organizations.
You will have to pass the KYC to open an account. And for that, you will need to submit:
- Proof of wealth
- Proof of Identity
- Proof of Residency
Documents Required for Offshore Bank Account
Like mentioned before, opening an offshore bank account is no cinch, as it requires a number of documents. Hence, it is advised to apply for an offshore account in 3-4 banks.
- CV with relevant experience
- Entry stamp on your passport
- A letter of recommendation from the bank of the home country of the applicant.
- A 6-month extract detail from the bank account of the parent company of the applicant.
- The business plan for the company must details of forecasts, turnovers, customers, suppliers, distributors, etc.
- Documentary evidence of running a company for a period of at least 3 years in the UAE or any other country with approved financial statements.
- Details of the accounts that will be used as evidence for some transactions.
Corporate accounts have a different set of documents to be submitted:
- Company brochure and profile
- Certificate of incumbency
- Bank documents for the last 6 to 12 months
- A certificate of documents by the Ministry of Affairs
- Profile of the client
- Memorandum and Articles of Association
- An attested certificate of good-standing
Services Provided by an Offshore Bank
- Commercial and Personal loans
- Trade Finance
- Deposit-taking
- Savings account
- Fund management
- Corporate administration
- Trustee services
- Letters of credit and trade finance
- International ATM and debit cards
Start Here
Are you looking for professionals to fetch you all the documents required and open an offshore account in UAE? Well, we will do it all for you, while also setting up your company here in the UAE! You can reach out to us at + 971 4321 6631 / + 971 55 744 6445 or fill-in this form to get a free consultation from us.
