Offshore bank account in Dubai

Open a bank account for your offshore business in the UAE which comes with the following benefits:

• No restrictions on money transfers
• Manage your account through online banking from any part of the world
• Tax exemptions for your offshore company

If you need to open this type of account in a UAE bank, the best way is to register an offshore company.

What businesses an offshore company in the UAE is suitable for?

Typically, foreign companies seek to register an offshore company for holding purposes or for conducting trade operations outside the UAE, or such a form may be suitable for IT companies that do not require a physical presence in the Emirates and do not need to hire employees. The UAE offshore zones, in particular Dubai offshore, serve as an excellent launching platform for starting an international business.

Note: International companies have significantly fewer advantages compared to businesses established on the mainland or in a free trade zone. They face more restrictions, banks are reluctant to open accounts for such firms, the rejection rate is quite high, a substantial package of documents is required, and there are higher costs, of course. Additionally, the owners of the company will undergo a thorough compliance procedure.

If you want to open an offshore company and a bank account for it, we recommend consulting specialists. While you can gather and submit documents on your own, your efforts might be wasted. You face a number of risks:

• the bank might consider your activities risky,
• they might not open accounts for companies of your type, or
• the required minimum balance might be too high.

Thus, opening a bank account for an offshore company, although challenging, is possible if you consider the nuances of local legislation and the banking system and rely on the expertise of professionals in this field.

How can we help?

Our business consultants at Emirabiz can assist you with the following aspects of opening such a bank account:

1. We will carefully analyze your case, requirements, and goals to offer the best solution for setting up an offshore company in the UAE.
2. We will help to prepare the necessary documents and register the offshore company with the appropriate authority.
3. We will recommend the most suitable banks for your firm.
4. We will advise reliable bankers in several banks and arrange personal meetings.
5. We will monitor and oversee the account opening process until the desired result is achieved.

Documents required to open an offshore bank account

The list of documents for opening an offshore bank account is the most extensive compared to other types of accounts. You need to provide:

• Corporate documents (license, articles of association, memorandum of association).
• Bank statements and supporting documents (contracts, invoices, bills of lading, etc.) for transactions.
• A board resolution to open a business account, appointing a signatory.
• If you have another company, prepare a corporate statement and documents proving ownership. An existing business outside the UAE is always a big plus.
• Proof of residence—recent utility bill or any document from the municipality confirming your address.
• Cv of shareholders with relevant business experience.
• Detailed description of your business.
• Estimated annual turnover and initial deposit for the account.
• Names of potential clients, product names, and countries where business will be conducted.

How to set up a company for an offshore account?

Registering authorities

To open an offshore company in the UAE, you can choose JAFZA or RAK ICC. Also there is an option to register an Ajman offshore company.

Timeline

The registration process will take no less than 1 week.

Essential documents for offshore company formation

• Passports of shareholders
• CVs of shareholders with the relevant business experience
• Original proof of residence
• Memorandum of Association
• Setup application

Advantages of offshore bank accounts in the UAE

A foreign company with an offshore bank account in the UAE enjoys several benefits:

• It is an inexpensive way to obtain a license and start conducting international business.
• The company can be registered remotely. However, to open a bank account, a personal visit to the bank is necessary.
• The company benefits from tax advantages.
• There are no restrictions on transferring funds from the account.
• The account can be managed remotely through online banking.

Limitations of offshore companies that need bank accounts in Dubai

However, offshore companies face several limitations to consider:

• It is not possible to obtain a resident visa in the UAE.
• They cannot conduct commercial activities within the UAE or receive payments from local entities.
• They cannot provide financial, banking services, or insurance services without a license.
• They cannot rent office space.
• The process of opening a bank account is longer and more complex.
• Banks conduct more thorough checks.
• The costs of opening are higher. All documents must be legalized, with each document costing around $1,000.

Countries under risk

Any international company can register an offshore company and open an offshore company bank account in Dubai, except for companies from countries on the UAE's sanctions list, such as Iran and Syria.

Entrepreneurs from high-risk countries like China, North Korea, and Russia will face more challenges in the documentation stage.

The list of such countries is constantly changing, but business consultants have up-to-date information and can help minimize risks and difficulties.

Where to open an offshore bank account

For offshore companies in RAK:

If you establish an offshore company in Ras Al Khaimah (RAK), you can apply to open an account with the following local banks:

• Mashreq Bank
• RAKBANK
• Emirates Islamic Bank
• Emirates NBD
• First Abu Dhabi Bank

For companies in UAE free zones:

If you choose one of the UAE free zones, you will have even more banking options:

• Emirates NBD
• First Abu Dhabi Bank
• Mashreq Bank
• RAKBANK
• Emirates Islamic Bank
• ADIB (Abu Dhabi Islamic Bank)

Offshore bank account management

Once your bank account is opened, you will need to deposit a minimum amount to activate it. The size of the deposit varies depending on the bank and is usually discussed during your initial meeting with your personal account manager. Business consultants are also typically aware of this requirement.

Given the complexities and stringent compliance requirements of opening an offshore account, bankers generally require maintaining a balance of at least AED 500,000 (USD 137,000). If the average monthly balance falls below the required minimum, the bank will charge monthly maintenance fees. These fees can range from USD 10 to USD 100, depending on the bank and type of account.