Avoid issues: Why freelancers need a business account in the UAE

“When opening a bank account in the UAE as a freelancer, it is important to ensure you have the correct documentation, which includes a freelance permit, passport and visa copy, proof of address, and your Emirates ID,” said David Walsh, business development manager at Connect Resources.

However, one of the key considerations is how you plan to use this bank account for your transactions and business needs.

“Some freelancers, such as personal trainers, hairdressers, and photographers, may have a different purpose than a freelancer working as a social media content creator or a marketing contractor,” he added.

Walsh explained that if your purpose for having a bank account involves little to no invoicing, such as in the case of a personal trainer—then a personal bank account may be more suitable. Some banks require a minimum balance for business accounts, and falling below this threshold could result in fines.

“On the other hand, if you are a social media content creator working remotely in the UAE and require invoicing support to bill multiple clients, then a business bank account would definitely be more suitable. These accounts offer more business-related support, and some banks may block business-related transactions on personal accounts,” he said.

All in all, there are multiple options for freelancers when it comes to opening a bank account. It’s recommended to shop around and see which one best supports your specific needs.

The type of freelance work you do will influence the type of bank account you need, as explained above. However, if your work involves fields such as social media, marketing, or design, there are certain legal considerations you must keep in mind.

Under UAE Commercial Law, anyone conducting business in the country must hold a valid trade licence, including freelancers. In line with UAE banking regulations, all business activities must be conducted through a business bank account. Using a personal account for commercial transactions is a clear violation.

“Despite this, many freelancers still mistakenly believe they can use their personal bank accounts for business purposes. This misconception can lead to serious consequences. As soon as a bank identifies business activity on a personal account, it is likely to shut it down and blacklist the individual, making future banking extremely difficult,” noted Maryia Vinahradava, director of corporate services at Virtuzone.

To stay compliant and protect themselves, freelancers must open a business bank account linked to their freelance permit. However, this can come with its own challenges. Most traditional UAE banks require high minimum balances and strict compliance documentation, which many freelancers struggle to meet.

“Fortunately, the financial ecosystem in the UAE is evolving. Today, there are at least five digital banking solutions that cater specifically to freelancers and solo entrepreneurs. These banks provide low entry barriers with no minimum balance and typically a Dh100 monthly maintenance fee, as well as a more flexible and understanding approach to compliance,” she highlighted.

Digital banks typically require the following:

“Unlike traditional banks, digital banks understand that freelancers are often one-person operations and are generally more accommodating in their onboarding process,” she said.

Even when opening a business account, just having a freelance permit or trade licence isn’t always enough, according to Sarah Negga, relationship manager at Luxe Incorporations.

“Banks will still conduct compliance checks to ensure your activity is legitimate and low-risk. The more transparent and straightforward your business setup, the smoother this process will be,” she added.

If you’re having trouble with your banking process as a freelancer, it is recommended to seek help from business setup experts. They can assist with paperwork, selecting the right business activity for your licence, and ensuring your freelance setup is seen as low-risk by banks—thereby speeding up the entire process.

“For instance, Wio Business is a great choice. It’s fully digital, straightforward to open, and doesn’t require a minimum balance, just a monthly subscription fee. With built-in tools like invoicing and payment links, it’s particularly friendly for solo professionals. Mashreq NeoBiz is another solid option, providing a smooth digital onboarding process, while RAKBANK is known for being flexible, especially for those just starting out. Emirates NBD also has SME account packages that work well for a variety of activities,” Negga explained.

However, regardless of the bank, you still have to go through compliance checks. This means ensuring your documents are in order, your licence is active, and your business activities are considered low-risk.

“Fintech options like YAP, XPence, and Zand also provide digital-first services, including virtual cards and real-time tracking, which are perfect for freelancers working with international clients or managing multiple streams of income,” she added.

Even though these fintech solutions are more modern, they still comply with UAE Central Bank regulations. This means they will still carry out checks to ensure your business activity is legitimate and low-risk.