To maintain an accurate financial record of your business you must have a separate bank account to manage the funds. The corporate bank account must be used for tracking the money that is to be paid for creditors, to manage the cash balance, create profit and loss statements of the funds owed to the business and payrolls to pay the employees. These activities keep a track where all businesses need a separate bank account and an accounts department to guide you through the tedious process. Proper financial documentation files for your taxes and can apply for loans in the long run.

Usually, banks treat business accounts differently than personal accounts as they offer several benefits to open a business or a corporate account in their branch due to the high volume of money transactions happening. It is a mutually beneficial deal why banks nominate an employee from within for managing the business account. It doesn’t mean that without him you will not be able to operate the account.When having a nominated person from the bank help you bypass the tedious procedures.

You have to identify which bank account you need to open your business account in, this could be based on the rate of interest and profit offered by the bank. You have to consult a financial advisor or contact an agency for proper information.

The importance of business account

When you have a dedicated account you can make payments or receive them. You would develop a good credit history when going for new investment opportunities or apply for loans at good rates.

The need to track expenses

When your business scales, it is difficult to manage your expenses and keep a track of it. The financial team can give limited access to the account that could be the wise decision to have an official record. This can be tracked from home with the bank’s mobile application. This enables you to keep top of your finances without getting into too many details of the expenses.

Have the Cash Flow

When tracking the expenses, the cash flow makes you understand the ins and outs of the money that is maintained in the business account. This makes better business decisions to give a clear outlook on how much the expense, net income and profit happens. The records are obtained quarterly, monthly, annually or bi-yearly. It makes the business owners take full control of cash without understanding the depths of the finance.

Calculate the Tax

You can ask the business owner who has not maintained a good financial record, they will tell you filing the tax would be ten times harder. When you have a good financial team through the business account you can calculate the tax liabilities and maintain transparency to tax-related matters.

The Business Loan

Banks look at the financial background of organizations to apply for loans and when you have an account perfectly maintained and filed the taxes it becomes easier to successfully apply for the loan application. Banks have strict regulations where they can meet everything that is maintained with transparency.

Pay through card

Having a bank account accepting global payments could be a useful thing. You can be promoted as you have received a payment successfully without having to leave the comfort of your home or office. The corporate or business account has been highly underrated.

The Professional Approach

To create a brand image you must have a corporate account as a customer or client to make payments in the official name of the organisation rather than the owner’s account. This reinforces the professional approach and adds brand value.

Precise at the Book Keeping

When you choose for the personal account to be linked with your business you will have trouble between personal and business payments. This leads you to make a mistake on bank statements of payment confirmations. It is good to keep your personal and business accounts separate to help you with everything.

To open a business or a corporate account

You have to identify which business account you like to open depending on your business model and payment structure. This can be either merchant service, savings account, checking account or credit card account. The higher the business transactions are the more incentives you obtain from the parent bank.

Benefits of opening a business or a corporate account in the United Arab Emirates

• The personal and business-related funds are kept separate to allow the protection of the personal liability.
• Customers can deposit money directly to your bank account so you can monitor online.
• Nominate the employee who is legally allowed to handle the financial matters and track anytime you want.
• Credit-card accounts guide you in making start-up purchases.
• The organizations based on credit can purchase new equipment by not paying the money upfront.
• The United Arab Emirates offers competitive interest rates in the region. This slightly differs for Islamic Banking.
• The Corporate or Business account would make international remittances.
• Based on UAE Dirham you can open the account in the desired global currency.

The banks for business accounts in United Arab Emirates

Several UAE banks offer the opportunity to open a Business Account. The following banks are best in business and are primarily considered:

The Bank Name	Minimum Deposit
Abu Dhabi Islamic Bank	5,000 AED
Dubai Islamic Bank	5,000 AED
RAK Bank	25,000 AED
Mashreq Bank	50,000 AED
Commercial Bank of Dubai	15,000 AED

These banks offer competitive interest rates, option of selecting multiple currencies, the check book facility, e-statements, free debit card and more.When you are looking for additional answers contact us and we give you the best decision for your business progression.

Documents Needed for Business Bank Account

Banking sector in the United Arab Emirates is reliable as they complete their due diligence by screening the applications to open a business bank account. Though it can be a long process as granted what is at stake, this is completely understandable why the process can take time. 

Few requirements to fulfill when you are opening a corporate bank account in Dubai

The category	Documents
Address and Identity Proof	The copy of shareholders. Copies of directors valid passport and shareholders. The residence visa of all shareholder representatives.
Documents Needed for Business	The disclosure of funds source. The business plan. Certificate of Incorporation. The registry of shareholders. Certificate of good standing. The existing contracts. Potential clients list. The official company extract.
Extra Documents	Reference letter of the business partners. Information related to the business activities.

These basic documents are needed where the bank’s reserve the right for asking extra information like updated CVs of shareholders and nominated directors.

 The bank will ask for bank statements from one or more partners. To complete the registration process, you need all the required documents to be submitted to the bank for verification purposes.

• The bank needs business to maintain a minimum amount of money within the account on a daily basis.
• Few banks need businesses to have savings and checking accounts. 

Why Black Swan 

Black  Swan  consultancy gives you the best services and guides you through all procedures. The company makes aware of all challenges that every entrepreneur faces in the United Arab Emirates. We have qualified professionals to guide you from steps like company establishment to apply for different licenses to get your business off the ground.

You can contact us for more information and we are happy to guide you related to Bank Account Opening.