Board resolution for opening bank account in the UAE is an important strategic step that requires careful evaluation of many factors, such as facilitating business transactions and different types of bank accounts, so in the following lines, POA&More experts explain to us a comprehensive guide on opening a bank account in the UAE.
What is the board resolution for opening bank account?
Board resolution for opening bank account in the Emirates is an official decision issued by the board of directors of a company or institution, and aims to approve the opening of a new bank account in the name of the company or institution. This decision is an essential step to start the company’s financial dealings with banks. In the following lines, we explain the importance of board resolution for opening bank account:
- Legal basis: This decision is considered the legal basis that allows the company to deal with the bank in its name, and facilitates various financial transactions such as deposits, withdrawals and transfers.
- Financial organization: This decision helps organize the company’s financial affairs, and allows financial movements to be tracked accurately.
- Corporate reputation: This decision enhances the company’s reputation and shows its seriousness in managing its financial affairs.
What to include in a board resolution for opening bank account?
When making a board resolution for opening bank account for a company in the UAE, the resolution must include a set of basic points to ensure that the decision is made correctly and transparently, including:
The purpose of opening the account:
- Determine the main purpose of opening the account, whether it is to manage employee salaries, conduct business transactions, invest, or for other purposes.
- Determine the currencies that will be used in the account.
The chosen bank:
- Determine the bank in which the account will be opened, stating the reasons for choosing this particular bank, such as the bank’s reputation, the services it provides, bank fees, and others.
- Determine the type of account required (current, savings, investment, and others).
Granted authorities:
- Determine the persons authorized to sign checks, withdraw from the account, and conduct financial transactions.
- Determine the limits of financial powers for each person.
Accounting procedures:
Determine the accounting procedures that must be followed to manage the account, such as recording transactions, periodic review of the account, and preparing the budget.
Agreement to terms and conditions:
Agreement to the terms and conditions imposed by the bank on opening the account, including fees and commissions.
Legal Obligations:
Emphasizing the necessity of adhering to all UAE banking laws and regulations.
Signature of Board Members:
Signature of all Board members on board resolution for opening bank account who participated in the meeting and approved the decision.
Do I need a directors’ resolution to open a bank account opening?
Yes, opening a corporate bank account in the UAE often requires a board resolution for opening bank account. But why?
- Official authorization: The board of directors resolution is an official authorization from the highest authority in the company to open the bank account in the name of the company.
- Legal protection: This resolution protects the bank from any legal liability that may arise from transactions made through this account.
- Compliance with regulations: Banking regulations in the UAE require the submission of such documents to ensure that the person opening the account is legally authorized to do so.
How to Draft a Resolution for Opening a Bank Account?
When the board resolution for opening bank account, several documents must be available, which are as follows:
- A valid trade license: The license must be issued by one of the emirates and cover the company’s commercial activity.
- The company’s articles of association: The contract must be certified by the competent authorities.
- Memorandum of Association: This memorandum explains the terms of establishing the company and its objectives.
- Commercial register: An official document proving the company’s registration with government entities.
- Valid passports: For all shareholders in the company.
- Valid proof of address: Such as utility bills (electricity, water, telephone) for each shareholder.
- Emirati IDs (if the shareholder is a resident of the Emirates).
- Account opening application form: Provided by the bank and must be filled out accurately.
- Proof of company activity: Such as supplier or customer invoices.
- A letter of introduction to the company: In which the company’s agent provides details about the company’s activity and objectives.
Read more: Legal Documents Drafting and Notarization in Dubai
Advantages of POA&More in board resolution for opening bank account in the UAE
POA&More POA Dubai is a company specialized in providing various services including opening bank accounts for companies in the UAE after the board resolution for opening bank account. This company has several advantages that make it an attractive option for many companies wishing to establish a bank account in the UAE, the most prominent of which are:
- Extensive experience and knowledge: The company has extensive experience in the field of financial services and companies, which enables it to provide accurate advice on the best options available for opening a bank account for the company, and to provide the necessary support throughout the registration process.
- Strong relationships with banks: The company has strong relationships with many banks operating in the UAE, which facilitates the process of opening a bank account and provides various options for bank accounts that suit the company’s needs after the board resolution for bank account signatory.
- Comprehensive services: The company’s services are not limited to opening a bank account only, but also include other services such as obtaining commercial licenses, registering companies, and providing legal and tax advice.
- Speed and efficiency: The company seeks to provide its services as quickly as possible and with the highest level of efficiency and quality, which saves customers time and effort.
- Transparency and reliability: The company is characterized by transparency in dealing with customers, and providing clear information about all services provided and the costs associated with them.
- Save time and effort: You will benefit from the company’s experience and extensive relationships to speed up the process of opening a bank account and avoid administrative complications.
- Ensure choosing the best option: You will receive specialized advice to help you choose the bank account that suits your company’s needs and goals.
- Obtain comprehensive services: You will be able to obtain all the services you need to start your business in the UAE in one place.
- Comfort and reassurance: You will deal with a professional and reliable team that provides you with the necessary support throughout the process of opening a bank account and afterwards.
Frequently asked questions
What is the resolution of Directors to open a bank account?
Board resolution for opening bank account in the UAE is an official document issued by the board of directors of a company or institution, granting the authority to open a bank account in the name of the company in one of the banks operating in the United Arab Emirates. This resolution is considered an official authorization for the company’s management to conduct all financial transactions related to this account.
What is a board resolution to activate the bank account?
Procedures for activating a bank account after the board resolution for opening bank account. Activating a new or inactive bank account requires visiting the branch and submitting the required documents, which may include:
- Identity: Valid passport or Emirates ID.
- Proof of residence: Valid residence visa (for expatriates).
- Proof of income: Salary certificate or bank statement.
- Other documents: Some banks may request additional documents depending on the type of account and services required.