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Bank account in the UAE - financial instrument and a means of assets protection

In the conditions of the modern market, when it is overfilled, and when it exerts an enormous pressure on the business in the form of increasing the competition, a certain wish to protect your own assets arises among the entrepreneurs. Today, private business is seeking jurisdictions where there are no restrictions on depositing and withdrawal of the financial and other assets, where the information about the ultimate beneficiaries is not available to the third parties, and where the financial and currency exchange regulation of the country is reduced to the required minimum.

It is not a secret that such opportunities are opened in the jurisdictions with special economic status and loyal tax climate. Today we will talk about the jurisdiction of the United Arab Emirates, where the provisions of the law provide a number of advantages and opportunities for private business.

Main advantages of the bank account in Dubai,the UAE

According to the international financial analysts, several key factors, that influence the choice of jurisdiction, can be singled out among the main advantages of the banking system of the United Arab Emirates. In particular these are:

  • Protection and safety of the information about the owner of the bank account;
  • Relatively low tariffs policy of the banks;
  • No restrictions on depositing and withdrawal of the financial assets;
  • Availability of the modern financial system and appropriate banking infrastructure;
  • Great prospects of the development of the banking system and cooperation with the leading financial institutions;
  • Excellent indicators of capitalization of the banks, which are represented on the local market.

In terms of service and the level of clients servicing, banking system of the United Arab Emirates meets the highest international standards, and has already gained respect in the international financial market. The Dubai banking system is based on a stable economy and is ready to offer a full range of financial instruments for private business.

It should be noted that the leading international banking groups, which are interested in spreading their branch networks around the world, are represented on the territory of the UAE. Statistics show that in recent years foreign investors are showing an unprecedented interest in such transactions as keeping abroad and investment of the assets.

Opening of a bank account on the territory of the United Arab Emirates involves certain procedures, and therefore requires a serious approach. Let’s try to understand the process of opening various bank accounts in the UAE.

Opening a bank account in the UAE without personal presence

Current legislation of the country provides the possibility to open personal accounts in Dubai for foreign citizens only under the condition of personal presence. It is important to understand that opening an account in the absence of the owner, may cause annulment of the account, and in some situations is even linked with serious consequences.

Opening a bank account for foreigners in the UAE

The legislation of the United Arab Emirates provides the possibility of opening a bank account for foreign citizens. However, such accounts may have ыщьу minor restrictions. In particular:

  • A cheque book is not issued for the foreign account owner;
  • A credit card is issued only under the condition of the availability of a certain deposit.

In principle, these limitations are not an obstacle for the effective and full-fledged management of the financial assets.

Chequebooks in the  UAE – conditions for obtaining

First of all, it should be noted that the settlements via chequebooks are quite popular in the Emirates and they are actively used by the private persons and business. Both physical and legal persons can be the holders of a chequebook. The main condition of obtaining a chequebook is the availability of the permanent resident status in the UAE.

The procedure and conditions of using the cheque books in the payments settlement and in the other payment transactions are governed by the Rules of the Central Bank and the applicable legislation. It is recommended to familiarize oneself in detail with the terms and tariffs of the servicing financial institution in order to avoid unpleasant surprises.

Issuance of the debit bank cards in the UAE

Debit bank cards in the UAE – it is the standard instrument, which is used for withdrawing cash via ATMs and various terminal payments. The debit card is issued by default when opening a bank account, regardless of the tax residence and the citizenship of the client. Terms of using and restrictions may depend on the internal rules of the banking institution and the type of debit card.

Additional possibilities, or Internet Banking

The main requirement to the modern financial instruments – is the promptness and mobility of account management. This situation is due to the fact that the remote management of the bank account remains the most effective and demanded tool. The banking system the United Arab Emirates provides a wide range of the financial transactions available online.

International experts have noted a high degree of protecting in the banking software, what allows one to manage own bank account in Dubai from any point of the globe without running a risk to become a victim of swindlers and network tricksters.

Requirements when opening a bank account in the UAE

Speaking about the requirements and conditions of opening bank account, it should be noted that such largely dependent on the domestic policy of the banking institution itself and type of the opened account. However it is possible to identify a standard set of the requirements, in particular to the submitted documentation:

  • Valid foreign passport of the applicant (with the appropriate visa stamp);
  • Statement of the account of the another financial institution or a letter of recommendation on the applicant's name;
  • CV of the applicant with information on education and professional activities;
  • Invoice or receipt of paying utilities with the name of the applicant (to confirm the actual place of residence);
  • Identity card (Emirates ID) – for persons with the status of a tax resident;
  • Letter of consent for opening an account – for holders a visa, which is sponsored by employer.

The following standard set of documents is required for opening a corporate bank account in the UAE:

  • Copy of the foreign passport of the shareholders (with the appropriate visa stamp);
  • Copy of the identity card of shareholders (Emirates ID) – if it is applicable;
  • Copy of the foreign passport of the head of the company;
  • Incorporation documents of the legal entity;
  • Statement of a corporate bank account of the another financial institution or a letter of recommendation on the applicant's name;
  • Statement of a company of the appropriate registration authority.

Conclusion

The banking system of the United Arab Emirates and the financial institutions, which represent it, are already for a long time known to the world community for its financial stability and impeccable reputation. Not for the first year banks of Dubai and other Emirates of the UAE occupy leading positions in the international rankings. The bankers themselves consider their main competitive advantage a maximally simplified system of financial reporting and relatively low tariffs for maintaining bank accounts. The banking system of Dubai is armed with the most advanced technologies, which allow not only to establish effective dialogue with the client, but also to ensure maximum safety and protection of assets.

Opening a bank account in the UAE is a great opportunity to carry out all the financial transactions from the territory of the jurisdiction, where there is the world’s best financial system and the most favorable tax and business climate.


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