In the UAE, there are various options available for residents and non-residents to open a bank account. For residents, the option of a resident bank account is more suitable, as it offers many banking facilities. On the other hand, non-residents who want to open a bank account in Dubai will need a residency visa.
With non-resident bank accounts come lots of advantages, like bank credit cards, e-banking, and the ability to transfer money around the globe. However, there are certain restrictions compared to resident bank accounts. In this article, we will discuss all the details of how to open a non-resident bank account.
Condition for Opening UAE Bank Accounts for Non Residents
In Dubai, any foreigner can apply for a non-resident account, although there are a few exceptions because of state laws. Foreigners applying for a non-resident account must visit the country and apply in person.
They must bring important documents like their passport and CV, etc. In some banks, non-resident account holders are required to maintain a monthly bank balance.
Steps for Opening an Account in Dubai for Non-Residents
To open an account in Dubai for non-residents, you’ll need to follow the steps mentioned.
- The primary step for non-residents Opening a Bank Account is to choose a suitable bank and account type. Make sure to select the bank based on its online banking services, low—or no-cost transfer accounts, and location.
- Non-residents are required to visit the bank personally to apply for account openings.
- Submit copies of previously mentioned documents along with a signed application letter.
- After acceptance, a confirmation email will be sent along with your account number and instructions.
- Your debit card will be provided within the next two to five days.
- Some banks will also allow you to choose a currency for the money in your account, either Dirham or other.
- After opening your non-resident account, you may be required to maintain a bank balance of AED 100,000.
Categories of Bank Accounts
Foreigners can open two types of bank accounts in Dubai, Personal and commercial. The documents required for a personal account are mentioned below.
Personal Account
To open a personal account in Dubai, you’ll need the following documents.
- Photocopy of passport with immigration stamp
- Photocopy of your utility bill
- Current bank statement
- Photocopy of your CV
- Photocopy of reference letter from your current bank account in your state.
In addition to these, you’ll need to provide the source of your income and expenditure.
Commercial Account
Non-residents applying for a commercial bank account will need the following document.
- Particulars of all company investors
- Company’s trade license or the certificate of incorporation
- Corporate setup of your company and business activities.
- Documents of financial resources of your company
- Documents of ownership
- Company’s MOA and AOA
Some of the previously mentioned documents may need verification stamps from the UAE’s Ministry of Foreign Affairs.
Advantages of Opening an Account in Dubai
Opening a non-resident account in Dubai has many advantages, including trouble-free cash withdrawals, international transactions, and the stability of the Emirati Dirham. We will now discuss these advantages in detail.
Smooth International Transactions
In the UAE, there are no legitimate restrictions on international cash withdrawals, which makes it easy for account holders to transfer money. The UAE banks also have IBAN systems, which facilitate account holders’ receiving cash from European countries.
Costless Maintenance of Account
The account holders who maintain their monthly bank balance and frequently deposit money in their accounts are maintained by the banks free of cost.
Reliable and Secure Banking System
The UAE banking system provides its customers with a reliable and secure banking system. It takes extra measures to ensure the funds are well-guarded and privacy is endorsed.
Tax Exemption
Another major advantage of opening a UAE bank account for non-residents is tax exemption. There is no income tax or wealth tax, therefore, the foreigners can save their entire salary by transferring it to their UAE bank accounts.
Time Frame for Opening a UAE Bank Account for Non Residents
Non-resident accounts are normally opened in less than one day. However, this procedure can take longer due to the applicant’s documents and the bank’s course of action. For a smooth account opening process, make sure to submit complete documents and have a conclusive and firm record.
Accessible Banking Services for Non-residents
For non-residents, the options for banking services are limited compared to those for a resident bank account. Some of the available services for non-residents are discussed below.
Savings Account
There are many options available for account opening in UAE, such as current and savings accounts. However, non-residents can only apply for a savings account, and if you want to open a current account, you’ll need to get a residency visa first.
Bank Debit Cards
A debit card is provided for savings account holders, which can be used to withdraw money anywhere in the world. The daily withdrawal limit of a savings account is AED 15,000. The bank cards are distributed in UAE dirhams. If anyone wants to deposit or withdraw a foreign currency, a fee of 1% of the amount deposited will be charged.
Online Banking Services
The majority of the UAE banks provide online banking services to their non-resident account holders. These services facilitate access to their accounts whenever and wherever. Through online banking, they can make money transactions and manage their finances smoothly.
Final Words!
At the end of this article, we hope you have a clear grasp of how to open bank account in UAE for non-residents and its benefits. By opening a non-resident account, you can smoothly transfer your money to any country in the world, enjoy tax exemption, and secure a deposit. Make sure to consult with your bank regularly to stay updated about bank policy.
Alriyady Auditing & Accounting is a certified company that deals with auditing and accounting in the UAE. Our services include auditing, taxation, accounting, preparing business assessments, using FTA-Approved Accounting Software, and providing other management consultant services for private and public firms in Dubai.
It is highly suggested that you refer to our professional team from aauditing.com, who have years of experience in auditing and other services to help with the smooth setup of your business in Dubai.
