IBC Bank account declined despite all recent regulations fulfilled

[mickey]

Hello, I heard recently, that an IBC (Dubai) was declined by a Dubai Bank despite its beneficial owner lives in Dubai.
Some days later I watched a YT-Video where this was mentioned between the lines:
"The Banking is not so great"

Why could be banking for an IBC "not so great" which kind of problems can occur?

Pleas remember, the following requirements are fulfilled:
+ Substance requirements due office in the same country as entity
+ Beneficial owner lives in the same country as entity
+ Bank in the same country as entity

Is this applicable to other IBC/LLC entities located in other jurisdictions?

Last edited: Feb 8, 2022

 

[Fred]

mickey said:
Hello, I heard recently, that an IBC (Dubai) was declined by a Dubai Bank despite its beneficial owner lives in Dubai.
Some days later I watched a YT-Video where this was mentioned between the lines:
"The Banking is not so great"

Why could be banking for an IBC "not so great" which kind of problems can occur?

Pleas remember, the following requirements are fulfilled:
+ Substance requirements due office in the same country as entity
+ Beneficial owner lives in the same country as entity
+ Bank in the same country as entity

Is this applicable to other IBC/LLC entities located in other jurisdictions?
Click to expand...

You need to have a Residence Visa and an existing Relationship with a Bank - the only usage someone can think of is using a RAK ICC as a Holding company while you are already living in Dubai with Visa and existing Bank Relationship - per definition the Offshore Company is High Risk and only a few banks onboards it with the mentioned requirements and even then the limitations are pretty high.

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[mickey]

Fred said:
You need to have a Residence Visa and an existing Relationship with a Bank - the only usage someone can think of is using a RAK ICC as a Holding company while you are already living in Dubai with Visa and existing Bank Relationship - per definition the Offshore Company is High Risk and only a few banks onboards it with the mentioned requirements and even then the limitations are pretty high.
Click to expand...

So IBCs are generally a little bit different treated by Banks. It there a specific reason?

As far as I know, IBC has to meet the same accounting requirements as other types of companies? Or am I wrong?

 

[Fred]

mickey said:
So IBCs are generally a little bit different treated by Banks. It there a specific reason?

As far as I know, IBC has to meet the same accounting requirements as other types of companies? Or am I wrong?
Click to expand...

Ye they are treaded different due to there Offshore Status - RAK ICC is following the DIFC Regulation and DIFC follows the British Common Law.

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