06 08 2020

How to close a bank account in the UAE?


The main reasons for closing a bank account are change of the service bank, liquidation of the company, or the account is simply no longer needed. In fact, there can be many reasons for performing such a procedure, and we have listed the most basic and common not only in the UAE, but throughout the world.

On the territory of the United Arab Emirates, one of the most important conditions regarding the liquidation of an onshore or offshore company is the closure of a company account in a bank.

To close an account, you need to submit an application to the serviced bank. This can be done at any time.

Now, let's take a closer look at the situation of closing an account by individuals.

The first step is to check if there are any debts to the bank, for example, for account maintenance and other operations. Further, the withdrawal of all funds, or transfer from the account to another account. Why is it better to do it by yourself? Because the bank has the right to return money from the account within 7 working days, it is easier and faster to do it by yourself.

The second step is to go to the nearest bank branch and apply to close an account. Do not forget to have a passport with you.

If there are no funds on the account, it will be closed the next day after the application is submitted. If there is money on the account, then it is necessary to wait for their debiting, and the closure will take place the next day. A common problem is the presence of debts to the bank and we recommend that you clarify this moment with your bank consultant.

Also, it is possible that the account can be closed by the bank. This is possible if the account has not been used for more than 2 years. The bank will send you a notification by mail, and if there is no response, the closure will take place within 2 months from the date of sending the notification.

The next situation of closing an account concerns legal entity.

The procedure is in many ways similar to closing an account for individuals. It should be noted that the conditions for closing an account for companies may differ depending on the bank itself. In the prevailing number of cases, the package of documents is as follows:

- application for closing;

- identity document;

- document for the company.

Further, you must personally appear at a banking institution and provide the required package of documents. The best option would be to clarify information on the type of required documentation from bank representatives by phone.

Of the additional possible costs, it is worth noting the condition when you close the account in the first year or six months. Banks often charge additional fees. For example, Emirates NBD will charge you 100 AED as a commission if you close your account in the first six months. And in some banks, the commission reaches 500 dirhams.