Why UAE banks refuse to open corporate accounts - and how to prevent it?

1. No physical presence or actual business activity

What happens? The company is incorporated in a free zone or offshore jurisdiction but shows no active operations: no office, staff or contracts.

Why is this a problem? Banks must confirm that a business is genuinely operating. If there are no signs of real activity, the application looks like a “shell” and is rejected.

How RSBM helps? We ensure full compliance by arranging office premises, employees, contracts, a website and a business plan - everything that demonstrates business activity in the UAE.

2. Errors and inconsistencies in documents

What happens? Clients submit outdated licences, incomplete shareholder data, missing resolutions or incorporation documents with mistakes.

Why is this a problem? Accuracy is critical for banks. Even a single missing document is enough to trigger a refusal.

How RSBM helps? We carefully compile and verify the entire document set - from incorporation papers to passport copies. When required, we legalise, translate and notarise everything so that the bank has no additional questions.

3. Unsubstantiated source of funds

What happens? The client cannot clearly explain the origin of the initial capital, especially if it involves cash or transfers from third parties.

Why is this a problem? Banks must understand the source of every payment. Uncertainty poses significant risk, especially under stringent compliance rules.

How RSBM helps? We prepare a complete source-of-funds file with bank statements, contracts, accounting certificates and a clear explanation of the capital’s origin.

4. Complex or offshore ownership structure

What happens? The company is owned through multiple offshore entities, and the ultimate beneficial owner is unknown or located outside the UAE.

Why is this a problem? Banks increasingly refuse such clients because the risk level is too high.

How RSBM helps? We simplify and clarify the structure, ensuring transparency: establishing a local entity if needed and providing full UBO disclosure with passports, CVs and Emirates ID.

5. Choosing the wrong bank

What happens? A client applies to a bank that does not fit the business profile — for example, a start-up approaches a conservative international bank, or a free-zone company applies to a highly regulated domestic lender.

Why is this a problem? Each bank has its own risk appetite and requirements. What one bank accepts, another may decline.

How RSBM helps? We analyse the company profile and select a bank experienced with similar clients, greatly increasing the chances of approval.

A refusal is more than a delay. It is also:

• loss of time and money
• difficulties with hiring, payments and business launch
• potential problems with licensing and reputation
• risk of appearing on banks’ internal “black lists”

What RSBM does?

• conducts a preliminary audit of documents and structure
• prepares and legalises the full document package
• substantiates the source of funds
• assists with ownership structure and UBO disclosure
• selects the right bank for the business profile
• guides the application through compliance checks
• supports the client after the account is opened

Since 2024, UAE banks have tightened their requirements. New cases are increasingly reviewed manually, particularly for IT companies, international transactions and complex structures. If you have faced a refusal or simply want to avoid the risk, contact us. RSBM will help you open an account correctly, fully compliant with all banking requirements, giving your UAE business a solid foundation from day one.