What are the benefits of having a Freezone Business Account?
The business account for the UAE free zone company was designed with business organizations in mind. The objective is to make it simpler for investors to track their business dealings.
It also lets the owner tell the difference between business and personal transactions.
If the investor had a free zone business account, it would be easier for them to keep track of their company’s spending, figure out their tax obligations, and control their cash flow.
Finding a bank that offers the services that best suit your business is critical.
This is done so that your bank can be your one-stop shop for all of your company’s financial needs and you won’t need any more assistance.
Why should you have a Free zone Business Account
Keeping your expenses under control
Having separate accounts for your personal and company costs will make it simpler to keep them apart. Although it is not advisable, it is possible to utilize your personal account for commercial purposes. It would be quite difficult to detect and arrange your expenditures in this way, though.
Increasing the Business’s Credibility
You and your company will undoubtedly appear more professional if you have a business account in a free zone. If a consumer wanted to use checks, it would be far more acceptable to have a business account rather than a personal account.
Partnerships
Think of a situation where you have chosen a different organization or person to manage your business affairs. It would be a good idea to maintain a different business account in this circumstance to protect your privacy and keep records of business transactions.
Protection of Identity
There is no doubt that your organization would do a significant number of transactions. This increases the possibility of having to deal with any fraudulent activity. Your liability exposure would be curbed and your identity would be protected with a free zone business account.
Transactions made with a card
Credit card & debit card purchases are the most popular forms of payment nowadays. As your company grows, it will be essential to confirm that your company can accept this form of payment. Only commercial company accounts are eligible to accept customer credit card payments; personal accounts are not. This is one of the main reasons why choosing a business account is the ideal choice for firms.
The criteria for opening a free zone business account
An organization from another country may open a business bank account in the UAE. However, it is typically easier and less expensive to incorporate in the UAE through a local company.
All stockholders shall be in person at the moment the signed documents are delivered.
Before international organizations can open a free zone business account in Dubai, the necessary papers must be certified by the consulate of the emirate where the company had been registered.
Eligibility requirements
- KYC for all partners
- Trade license
- Memorandum of Association (MOA)
- Certificate of incorporation
- Share certificate / Share resolution
- Office Tenancy (Physical office)
- Last 3 months personal bank account statement from UAE or home country
- Update resume
- Company profile
What characteristics does a Free zone Business Account have?
Accounts for businesses in the Freezone can accept local currency deposits.
Businesses in free zones can use debit and credit cards.
In a free zone, businesses are allowed to take payments from anywhere and spend the money locally.
Businesses that operate in free zones are not subject to the VAT fees that are payable during port-to-port transactions. However, if the goods are sold within the UAE, the company must register for VAT.