Both structures offer unique advantages – but when it comes to banking, the rules, timelines, and expectations can differ. At Luxe Incorporations, we help you navigate these distinctions seamlessly so your business can get operational, faster.

Mainland Companies: More Flexibility, Stricter Checks

Mainland companies – licensed by the Department of Economic Development (DED) – are generally seen by banks as more locally integrated. This often gives them an edge when opening accounts, but it also comes with stricter due diligence.

What banks look for:

• A physical office lease (Ejari)

• Clear business activity aligned with your trade licence

• Active UAE residency visa for the signatory

• Proof of business experience or contracts in the region

Typical timelines: 2 to 4 weeks (subject to compliance review)

Pros:

• Wider range of banking options

• Greater credibility with local institutions

• No restrictions on doing business within the UAE

Free Zone Companies: Speedy Setup, But More Scrutiny

Free zones are popular for foreign investors thanks to 100% ownership and streamlined licensing. However, some banks treat Free Zone setups with more caution, particularly if the business is purely online or doesn’t show economic substance within the UAE.

What banks look for:

• Office space or flexi-desk agreement

• Detailed business plan and source of funds

• Shareholder and UBO documentation

• Client or supplier contracts (if available)

Typical timelines: 3 to 6 weeks, depending on the free zone and the nature of the business

Challenges:

• Some banks may request a larger minimum balance

• More documentation may be required to prove legitimacy

• Businesses without local operations may be deprioritised

Opening a bank account in the UAE doesn’t have to be a hassle. With Luxe Incorporations by your side, you’ll have a trusted partner guiding you through every requirement, every form, and every follow-up – so you can focus on growing your business. Reach out today to get started.