Freelancing is one of the most trending job in UAE and most of the other parts of the world most of the youth is engaged in doing freelancing.
When you become your boss when you work as a freelancer in the UAE, you also may deal with some common problems, and the most common problem related to freelancing is getting paid on time. One can not ensure that when will be you paid it is really confusing becuse you can not reach the client and cant ask him pay you on time you just can send a message to him .You send an invoice to the client and then chase the client for the payment, and after many reminders, you finally receive the money in your bank account.
But if you dont have a bank account in UAE you dont have to worry though it is challenging but here we have some tips and information for you to get your payment on time through bank account and also without bank account.
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How to open Freelancer Bank Account UAE
It is really challenging for freelncers to open a bank account because they may dont have much income at first to open a bank account.
So here we are with a hassel free blog which will allow you to get your payment on time.
Difficulty in opening bank account:
Freelancing may sound exciting and one of the most easy ways to earn money, but it also brings many challenges along the way, and the worst is getting paid.
Freelancers are the solopreneurs that provide services to clients on a project basis. For example, suppose you are an article writer providing article services to number of clients. In that case, you may have a fixed monthly remuneration from your clients or get paid on a project-by-project basis.
No gurantee of clients:
One of the most frustrating parts of freelancing is that you may not have clients for the long term, as your current clients may no longer require your services after a few months. Thus, you do not have a regular or consistent source of income that you regularly receive in your bank accounts.
Unlike salaried employees, since you get paid on an assignment basis, you have first to send invoices to your clients, and once the invoice is sent, you also need to follow up with your client to get yourself paid.
But, to get paid, you need a bank account, and opening a bank account is quite difficult in the UAE if you don’t receive a minimum monthly income.
Requirements of bank Account In UAE
• To open a bank account in the UAE, you must earn a minimum monthly salary of AED 5,000 this amount differs from bank to bank.
• Present a No-objection Certificate (NOC) from your employer. Now the problem is that freelancers don’t get employed, so they can’t show the NOC and also don’t get a fixed monthly salary.
• However, you can register your business and open a business account. Still, at the early stage of your freelancing business, getting a business license may also be quite expensive.You may not be able to beae that expenses.
• Thus, it becomes a headache for freelancers to get paid in the UAE, especially those who receive less than AED 5,000 per month.
• With all these things you will also need :
Emirates ID Card
your original passport
plus a copy of your visa
and a salary certificate which the company will assist you with.
BENIFITS OF BUSSINESS ACCOUNT IN UAE:
Here is a list of some benifits that you can enjoy by making business acount.
1- Protection Of Personal And Financial Obligations:
An organization is considered a legal entity separate from its owners. Therefore, your business bank account will helps to keep business transactions separate from your personal ones and provides an additional layer of protection for your private funds and assets.
It is also a safe place to park your company’s additional income that you can hold or invest in the future. In addition, it also saves you from personal liability in case your business is exposed to any financial risk, such as debt, as in such scenarios, the company is liable instead of the individual.
2- Simplification Of Tax-Related Processes
If you are using your personal bank account for your bussiness transactions will lead to confusion when you need to file your tax returns because you need a clear overview of your business’s income and expenses.
Sometimes you may also be asked to provide your bank statements to certain authorities. So it is very beneficial to keep your business financial information separate, in one place, for accurate summaries.This will help you to maintain your bank account.
3– Increasing The Company’s Credit Score
Credit scores are one of the most critical rating factors on both a personal and business level, as these ratings help secure loans. A credit score is created based on your company’s past transactions, including the timeliness of payments, etc.
4- Business Growth And Expansion
Keeping clear bank reports and statements reflects your company’s financial situation when you are pitching to investors or potential business partners. A business bank account will facilitate smooth transitions when you expand or even decide to sell your company.
Starting a freelance business bank account in the UAE has become increasingly difficult in recent years. Banks are increasingly reluctant to welcome new customers because it poses additional risks. Indeed, the United Arab Emirates is an important location for money laundering in the world. Given the complexity of a freelance business bank account in the UAE, it is relatively easy to understand that professionals with a freelance business bank account in the UAE are “lucky”.
5- Using Payment Systems
Many freelancers when unable to open a business bank account, do business with their personal bank account, which is prohibited and may be objectionable by law.
Merchant accounts such as Stripe allow e-commerce businesses to accept payments online. These solutions are often only compatible with corporate bank accounts.
Best banks for freelancing account in UAE:
1- Emirates NBD Business Banking
2- Abu Dhabi Commercial Bank (ADCB) Premium Current Account
3- Commercial Bank Of Dubai (CBD) Business Account.
4- FAB Business Advantage Account
5-Business Elite Account Of Abu Dhabi Islamic Bank (ADIB).
This was a short peice of information about the freelancing account I hope this will prove helpful for you.