RAK business banking is a challenge for non-resident foreigners who have registered offshore entities in this corner of the UAE.
So, we’re going to explain these challenges and offer three options that non-resident foreigners can consider to successfully open accounts.
This article is part of our free series on business banking, including how to find the best bank to open a business account in top jurisdictions around the world.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- RAK Business Banking
- How to Open a Business Bank Account With RAK BANK
- Frequently Asked Questions
- Ready to Explore Your Options?
RAK Business Banking
RAK business banking options depend on the type of entity, the owners, and company operations. While this is true for most entities, RAK businesses have a more difficult time opening accounts, both in RAK and abroad. This opening difficulty is due to a lack of familiarity among international banks and frequent use by non-residents as offshore structures.Â
Not surprisingly, non-resident and offshore entities struggle to open accounts in most countries. For this reason, bank selection is critical to a successful account opening.
Likewise, while it is possible to open accounts in the UAE for a RAK business, in most cases the owner of the business will need to visit banks in person. However, most people forming RAK entities tend to be doing so as offshore businesses, with limited ties to RAK (or the broader UAE), and have no intention in visiting.
That said, registering a company and never visiting the country is not uncommon. In fact, the British Virgin Islands has approximately 950,000 registered entities. And of the BVI company owners that we assist with their banking needs, the vast majority have never stepped foot on the island
However, BVI companies have a wide range of bank account opening options in some of the most popular banking hubs available. On the other hand, RAK business banking options are far more limited. We’ll explore why this is and share how to start opening accounts in the next section of the article.
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How to Open a Business Bank Account With a RAK Business?
To open a business bank account with a RAK business, owners will need to consider one of the following options: (1) travel to the UAE in person and provide the necessary documents with a suitable bank, (2) find a bank that is familiar with RAK entities and meet their deposit requirements, or (3) open with one of the few digital banking platforms that accept RAK entities.
Not surprisingly, we receive many questions about opening accounts for RAK businesses. In most cases, the three options mentioned above are the options business owners need to consider.
To help explain why here is a further comparison of BVI entities and RAK entities from a banking perspective.
BVI vs RAK Business Banking Options
There are several major reasons why it is easier to open bank accounts for a BVI entity than a RAK entity, including:
- Banker familiarity
- Compliance acceptance
- Company purpose
- And more
As mentioned there are 950,000 companies in BVI while RAK only has 15,000 registered entities. That means bankers and compliance teams see 63 times more BVI companies than RAK companies, which means they will be much more comfortable reviewing and onboarding BVI than RAK.
Additionally, most (though not all) BVI companies are used as holding companies for investment and wealth management purposes. On the other hand, most RAK companies that we encounter are being used as operating entities. In most cases, banks prefer to avoid operating entities registered in offshore jurisdictions with no local presence.
Frequently Asked Questions
Below is the most common question that we receive from people looking into RAK business banking. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Which Bank Is Best for Business Account in UAE?
Which bank is best for a business account in the UAE will ultimately depend on whether you have a locally operating business or an offshore entity with no local ties. If you have an offshore entity and require remote opening, the best business bank account will likely be found outside of the UAE.
Ready to Explore Your Options?
If you would like assistance navigating your banking options at home or abroad, we can help.
You can access GlobalBanks IQ, our international banking intelligence platform, in just a few clicks. Unlock our bank database, individual bank profiles, account opening strategies and reports, banker scripts, and more.
But, if you want a 100% personalized account opening service that taps into our team’s expertise and provides direct banker introductions, you can get started with GlobalBanks Insider.
Of course, if you have any questions, please contact us directly.
