Even though your company may be just getting started, it’s crucial to develop good business practices right away. Starting off with sound financial management will save you time and aggravation as your company expands. Opening a business bank account as soon as your company opens is a great way to start your business off, and there are many reasons why it is important to do so.
- Legal Obligation for Businesses
Legally, newly formed corporations must open a new bank account in their corporate name. Companies won’t be able to accept money from clients or third parties if they don’t have a business bank account since they won’t be able to write cheques or send money to your company.
- Easier Expense Tracking
It may be simpler to keep track of business costs if you separate your personal and business accounts. If you pay for business expenses from a personal account, you must carefully examine each monthly statement to separate personal expenses from business-related ones.
By consolidating your company’s financial records and tax data, opening a business bank account can also help you save time. For instance, it can be simpler to locate deductions if you don’t have to look through every line item in your personal banking statements. Any charges associated with a company bank account may be written off as an expense.
- More Professional
You want to appear professional when conducting commercial transactions, although this should go without saying. It may appear that your company is not genuine if you utilize your personal bank account for commercial transactions. However, opening a company bank account communicates your commitment to running a successful small business as well as your professionalism and organization. Similar to a professional email account, it subtly increases credibility with clients and business associates.
Summary
Opening a bank account in the Emirates is a comparatively easy process for free zone and mainland company establishments, subject to the size and structure of each company. However, the paperwork and documentation needed to open a corporate bank account often require the services of firms that specialize in bank account opening in the UAE. Zone 4 offers businesses corporate bank account assistance and will ensure that you set-up your corporate bank account hassle-free!
