Hi, I'm David Chen from Singapore. I'm setting up a holding company in the UAE to own shares in other businesses and investments. The company won't have any day-to-day trading or active operations. Which bank is usually the best choice for this type of company?
I’m Shilpa from DhanGuard Consultancy. Holding companies are assessed a little differently by UAE banks because they usually don't generate regular sales or trading activity. As a result, banks tend to focus more on ownership structure, source of funds, and the purpose of the company rather than transaction history.
For this type of business, these are some of the commonly considered banking options:
|
Bank |
Why It May Be Suitable |
|
Wio Business |
A digital-first platform with quick onboarding, multi-currency features, and flexible account options without rigid minimum balance requirements. |
|
Mashreq NeoBiz |
Offers digital banking with zero minimum balance options on eligible plans, making it suitable for newly established or holding entities. |
|
RAKBANK |
Provides SME-focused banking solutions and is often considered by Free Zone companies looking for a straightforward banking relationship. |
One thing to keep in mind is that having no active operations doesn't mean the account will be easier to open. In fact, banks usually carry out more detailed compliance checks because they want to understand why the company is being established and how funds will move through the account.
During the application process, you should be prepared to provide:
- Details of the Ultimate Beneficial Owners (UBOs).
- Information about the subsidiaries or investments the holding company will own.
- Evidence showing the source of funds or capital being invested.
- A clear business plan explaining the purpose of the holding structure.
I've seen many applications delayed simply because the bank couldn't understand the role of the holding company. A well-prepared explanation of your investment strategy and ownership structure often makes the compliance review much smoother.
If your holding company is part of a larger international group, it's also worth discussing your structure with a banking specialist before applying. Selecting a business bank account that is comfortable with investment and holding entities can save significant time and reduce the chances of additional document requests later.
