Best Small Business Accounts to Open in the UAE

As a business owner, you must be an expert in managing your finances. It helps you save time and keep your business on track. One of the most effective ways that various companies implement to manage their finances is by opening a small business account as soon as the business launches. 

Even the small-scale businesses that do not legally need to create a bank account create one to keep their business records accurate. It helps them maintain their peace of mind and prevent headaches as their business grows. 

Here we will help you learn why you need a small business account for your start-up, followed by the best business accounts you can choose from depending upon your business needs.

Why SMEs Need to Open a Small Business Account?

Here are the significant reasons why small and medium-sized businesses need to open separate business account. 

1. To Keep Business Records Organized

A business account helps businesses differentiate business transactions from personal ones. A business must track its income to analyse the growth, which is quite tricky when there is a common account in use to meet business and personal expenses. 

Businesses need to open a bank account to keep their small business account records organized. It helps them track all their transactions and create a separate statement for the same. Also, with a different business bank account, the businesses can keep the accounting books organized and well-maintained. 

In addition, a dedicated business account makes it easier for a business to file taxes and get returns. It helps a company create an image of a separate legal identity. And the best part is opening a small business account can help the businesses avail additional benefits like unlimited transactions, multiple currencies, no monthly fees, etc. 

2. To Meet Legal Requirement for Incorporations

New businesses need to open a business account to meet the legal requirements. If they do not have any business bank account, they will not be able to receive any money from their customers and third-party clients. In the same way, they will not be able to issue any cheques or demand drafts to make payments.  Additionally, opening a small business account enables the start-ups to include an estimate of their total share value in their accounting books.

3. To Build a Credit Profile for a Business

Small or medium-sized businesses need to create a credit profile for their company. This helps them apply for a credit card, loans, mortgages, etc., in their business name and not their own. Creating a business account also allows businesses to keep the borrowing fees and interest charges separate for tax-filing and bookkeeping purposes.

4. To Present the Business More Professionally

A bank account helps businesses create a professional image and establish better relationships with their clients, suppliers, and competitors. For example, you need to accept payment from your client. If you have a business account, you can simply ask them to write a cheque on your business name or else you need to accept the payment under your name, which doesn’t sound professional.

5. To Save Time and Money When Paying Taxes

Using a small business account to keep track of personal transactions helps your accountant or bookkeeper find essential information while filing taxes. For example, your accountant spends more time finding the relevant transactions from your records than filing the taxes. When filing taxes, it must be easier to gather the required information. It can streamline the whole process and save your money spent on accounting and bookkeeping fees.

Now that you know the significant reasons why you must try opening a small business account for your start-up, let us go ahead and help you find the best bank account that you could open.

Top 7 Small Business Accounts to Open in the UAE

Banks in the UAE offer multiple small business account options for local and foreign individuals. Choosing a business account that meets all your business requirements can be a tedious task, but it is equally critical to choose the one that fits in.

So to help you pick one, we have listed here the top seven small business accounts available to open in the UAE. You can go through the features and benefits provided and pick the one based on your preferences. 

1. ADCB Standard Savings Account

ADCB Standard Savings Account is an excellent small business account with a convenient account opening process. Small businesses can open this bank account in AED and other major currencies based on their requirements. If all the documents are in place, it takes around three to five business days for the bank to activate the business account.

Features and Benefits

• Minimum balance requirement of AED 5,000
• Monthly fee of AED 25
• Available in multiple currencies, including AED and USD
• Charge of AED 25 per transaction for online local transfers
• Charge of AED 50 per transaction for online international transfers

Documents Required

• Application form
• Passport copy with residency visa page
• Address Proof
• Trade Licence
• Chamber of Commerce Certificate copy
• Memorandum of Association (MOA)
• Articles of Association (AOA)
• Board Resolution

2. ADIB Business Time Deposit

ADIB Business Time Deposit is a small business account that offers attractive rates on business finance for the account holders. Once all the documents are submitted correctly, the bank takes one working day to activate the business account.

Features and Benefits

• Sharia-compliant
• Minimum balance requirement of AED 10,000
• No transfers in deposit accounts
• Available in multiple currencies

Documents Required

• Original valid passport
• Trade License
• A Passport copy with residence visa for signatory
• Commercial registration documents
• Memorandum of association (MOA)
• Other subsequent amendments
• Power of attorney (POA)

Note: For joint accounts, the company needs to submit all valid company documents and the original passports of all the applicants

3. ADIB Business One

Business One is another small business account that ADIB offers. The bank account can be opened in multiple currencies and comes with a low minimum balance requirement. The best part about this small business account is that it applies no additional charges on the online local or international funds transfer. This bank account also takes one business day to get activated.

Features and Benefits

• Sharia-compliant
• Minimum balance requirement of AED 5,000
• Available in multiple currencies
• Charge of AED 75 per transaction on outward remittances within UAE and AGCC countries 
• Charge of AED 110 per transaction on outward remittances to other countries
• Free online fund transfers
• Monthly fee of AED 100

Documents Required

• Original valid passport
• Trade License
• A Passport copy with residence visa for signatory
• Power of attorney (POA)
• Memorandum of association (MOA)
• Commercial registration documents
• Other subsequent amendments

Note: In case of opening a joint account, the company needs to submit all valid professional documents and the original passports of all the applicants

4. Emirates Islamic Business Classic Account

Emirates Islamic Business Classic Account is one of the best small business accounts as it provides the account holders with free access to online portals. Once all the documents are submitted, the bank takes one to four business days to activate the account.

Features and Benefits

• Sharia-compliant
• Minimum balance requirement of AED 10,000
• Available in multiple currencies, including AED and USD
• Monthly fee of AED 100 if the minimum account balance is not maintained
• Cost of AED 25 per online transaction for local transfers
• Cost of AED 40 per online transaction for international transfers
• Free first 20 offline transactions per month and after that charge of AED 10 per transaction applicable
• Free access to online portals
• Free first chequebook

Documents Required

• Passport copies of all owners
• Commercial registration documents
• Trade license,
• Partnership documents
• Articles of association (AOA)
• In-house or audited financial statements for three years 
• Certificate from Chamber of Commerce
• Facilities request letter
• Bank statement of last 12 months

5. CBD My Business

CBD My Business provides account holders with a free online banking enquiry service. The bank account also enables the account holders to upgrade this enquiry service to an inclusive and collaborative online banking service. Other than this, the bank account offers a wide range of free services and benefits for the account holders. Here are a few. The bank takes around two working days to activate the account after all the documents have been submitted correctly.

Features and Benefits

• Minimum monthly balance requirement of AED 20,000
• Free first chequebook
• Free first ten branch teller transactions per month
• Complimentary business debit card
• Fast Track Business banking tellers
• Available in multiple currencies
• Convenient access to Business Banking Zones
• Free SMS transaction alerts
• Preferential rates on business finance
• Cost of AED 50 per online transaction for local transfers
• Cost of AED 75 per online transaction for international transfers
• Dedicated Business Banking call centre
• Free mobile banking service
• Dedicated self-service phone banking

Documents Required

• Original valid passport
• Application form
• Address Proof
• Trade License
• A Passport copy with residence visa for signatory
• Chamber of Commerce Certificate copy
• Board Resolution
• Memorandum of Association (MOA)
• Articles of Association (AOA)

6. Sharjah Islamic Bank Business Current Account

Sharjah Islamic Bank Business Current Account is a small business account with low minimum balance requirements and takes three to five working days to get activated for the account holders. Let us go through the features and benefits of the Sharjah Islamic Bank Business Current Account.

Features and Benefits

• Minimum monthly balance requirement of AED 5,000
• Available in multiple currencies
• Cost of AED 25 per online transaction for local transfers
• Cost of AED 50 per online transaction for international transfers
• Monthly fee of AED 150 if the minimum account balance is not maintained
• Free ATM Card
• Free chequebook
• Free SMS and mobile banking service

Documents Required

• Original valid passport
• Copy of passport with residency visa page
• Emirates ID for all the account holders
• Trade license
• Certificate from Chamber of Commerce

7. Ajman Bank Business Current Account

Ajman Bank Business Current Account is a leading small business account that gets activated in three business days. Unlike other business accounts, the Ajman Bank Business Current Account allows account holders to make unlimited free online transactions.

Features and Benefits

• Sharia-compliant
• Minimum account balance requirement of AED 10,000
• Free online local and international funds transfer
• The cost of Local funds transfer from a branch is AED 50 per transaction
• The cost of International funds transfer from a branch is AED 80 per transaction
• Free first chequebook
• Available in multiple currencies, including AED
• Preferential rates on business finance

Documents Required

• Original Valid Passport for all the applicants
• A copy of passport and visa for all the applicants
• A copy of passport with residency visa for at least one applicant
• Partnership agreement
• Trade license
• Certificate from Chamber of Commerce

The Bottom Line

Open a small business account today to keep your business transactions and tax documents organized. Other than the ones already mentioned, there are various other good reasons to open a small business account. It may take time to open a bank account, but it plays a critical role as your business grows. A bank account will enable you to establish good habits of managing your finances, making your bookkeeping simpler than ever.