Online banking is growing rapidly in recent years because of the convenience it has as the user can open the account on their fingertips. Online banking is very convenient and easy to use as the access is provided round the clock. Make online transactions, manage funds, make receipts and payments, payroll management everything on the go.
Online banking provides ease of doing business better and promotes a digital economy where there is less cashflow in the market and high online payments. Business concerns are using digital banking for their day to day transactions.
Need for Opening online banking account
Fast and efficient ways of business is the modern business requirement. Opening online banking is fast and efficient. You can do the following with an online banking account.
- Quick account opening and access to funds
- Save time and you can focus on business
- Easy business management and efficient investment
- Efficient trade activities
- Prompt Receipts and payments transactions
- Real time business Tracking
Once the online process is complete a corporate bank account will be created. The business account can be opened and maintained by the partners of the firm. Day to day transactions will be activated such as receiving money, sending money, setting up standing instructions and others.
How to open an online business bank account?
Before opening an account you need to choose which bank account you want, get the business licence document, have all the necessary documents handy and these are discussed in detail below.
1. Select the right bank
Before you set up your account, choose the right bank which serves you the best according to your business needs. Your business bank account plays a major role in the success of your business. Getting the payments done on time, providing overdraft facilities, business loans and others, choose the right bank. Also check for the minimum balance requirement before deciding on your bank account.
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2. Business License
Once the company or a business is set up an license is provided this license is required for opening an online business bank account. A valid business license is required during the registration process. If you do not have a license, a bank account cannot be opened.
3. Documentation
For opening an online business bank account certain documents must be provided such as business license, registration documents, business contracts, trade license, invoices, supplier documents and others. Every bank has their own requirements and it will differ from bank to bank. The following documents are required for opening an online business account.
- Emirates ID card
- Company Trade License
- Company Memorandum & Articles of Association
- Certificate of Registration
- Lease Agreement
- Passport copies for shareholders and authorized signatories
- Bank statements of shareholders, buyers name, supplier details
- Any other documents as requested by the bank
How to Open an Online Business Bank Account in the UAE
There are various ways in which you can open a bank account digitally.
Step 1- Choose the bank which you want to open
Step 2- Select Open bank account from their official website
Step 3- Enter the details on the page with complete accuracy
Step 4- Once you enter details the read all the features, terms and conditions
Step 5- Upload the documents on the page where it is requested
Step 7- An experienced company account or business account setting up specialist will call you to verify the documents and details that you have entered. Some banks may visit for verification of documents and site visit if required.
Step 8- Once the verification is completed your account will be opened.
What is provided after opening an online business bank account?
The following documents are provided after opening an online business bank account.
- An International Debit card/domestic debit card as per your requirements.
- Cheque book
- Access to mobile banking and internet banking
- Get free e-Statements
- Online setting up Standing instructions for payments
- Domestic remittances
- Online Teller services
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How much is the cost for an online bank account?
The cost of opening an online bank account varies from bank to bank. Some banks charge upfront fees and some charge a minimum balance requirement. A monthly maintenance fee, transactions fees, specific banking services fees, account maintenance fees and other fees. Different banks have different charges and services, check with the bank and choose the best which suits your business requirements.
Check these fees and compare from bank to bank before you decide on banking
- Transaction fees
- Discount rate
- ACH fees
- Cheque book charges
- Account maintenance fees
- Address verification service fees
- Monthly maintenance fees
- Debit card/credit card/overdraft fee
- Any other banking fees
Take away
To open a bank account is a strategic move in business. A strong foundation should be set up with the bank and the business entity so choosing the right bank is very important. Select the bank by checking their growth, fees, types of facilities and services offered. Once you finalize then setting up an online business bank account is just on your finger tips.
About the author
Vinay Kumar Goguru is a finance professional with more than 8 years of diverse experience as a researcher, instructor and Industry work experience with both public and private entities. Prior to MyMoneySouq, he spent 6 years in Berkadia, It's a commercial mortgage banking company. He has a "Doctoral Degree in Commerce" and two master's degrees with a specialization in Finance, one as Master of Commerce and other as Master of Business Administration. He has written several articles on personal finance, published by different International journals. He loves traveling, reading and writing is his passion. He has a dream of writing a book on his favorite finance topics.
