How To Open Your First Escrow Account In Dubai
goldandlandsadmin October 13, 2022 No Comments
Today, I will discuss some importance of Escrow account Dubai in the interest of most serious Gold buyers from Dubai who want gold from Africa gold sellers, but always doubt the process of escrow services and, may also not understand how to open escrow account in uae
Some would even go to the extent to claim they were defraud using Escrow method or their colleague was a victim of using Escrow. I usually spot such as not truth! Because I know when a legitimate Escrow services is utilize, no one would feel sorry for no cause. For there are escrow account rules in Dubai. In essence these are just framed lies to cover face and waste your precious time or they do not have ideas of how escrow service function in person.
In this article, I will discuss; how to open government recognized Escrow account; Escrow benefit to buyers and sellers who tend to adopts Escrow service for purchasing Gold and, how to apply escrow account.
What is An Escrow Account?
Escrow Account is a kind of account which is usually serve as security measures to store funds and protect the interest of both parties involved in any transaction. An escrow account can be easily open in Dubai by following these steps:
What Are The Process Involved?
1). The first step is to register your company with the Ministry of Economy (MoE)
You cannot operate Escrow account service without having a legal business recognize by the Dubai government or in UAE.
The first step is to register your company with the Ministry of Economy. This is a relatively straightforward process. And you can get all the information you need on their website.
The registration process may sometimes take up to two weeks, but it usually takes around one week. The MoE will then issue a trade license that allow you to trade in Oman.
2). After registration, you will need to open a bank account with any bank in Dubai
Opening a bank account in Dubai is a straightforward process. The most important thing to be conscious about, is that you can open account with any bank in Dubai. It does not matter which bank you pick as long as it reside in Dubai.
3). Apply for an escrow license from MoE after opening your bank account
This section will provide you with the procedure to apply for an escrow license from MoE after opening a bank account. These step are note below:
a). The first step is to fill-out the form and submit it online. You will need to provide your full name, contact number, email address and other personal information.
b). The second step is to attach copies of your identification documents such as NRIC, passport or birth certificate. You will also need to include a copy of the bank account will connect to the escrow account.
You can then pay for your application through online banking or at any ATM machine and collect your receipt slip or print out your confirmation page from the website.
4). Fill up an application form for opening an escrow account with the bank
Finally, you can as-well submit all these documents in person at one of their offices or post them in a prepaid envelope with stamps affixed to: The Ministry Of Education (MoE), Level 2, Block 1, Jalan Sultan Azlan Shah 10200 Putrajaya.
You will be ask to provide the following information in order to open an escrow account with your bank. Such as:
- Your name
- Your address
- Your contact number
- The amount you want to deposit in the account.
- The name of the person who will be managing the account.
How Escrow Account Protect Buyers?
Escrow account is a reliable account in which funds are held by a third party, on behalf of two other parties. An escrow agent is the one who holds these funds and ensures that they are released to one or both of the two parties when specific conditions are complete.
Escrow account service can be in various types of transactions, such as mortgages, gold business, real estate business and cars purchases etc.
Escrow accounts have a specific function in Dubai Gold Business if the said seller chooses escrow procedure to deal with any interested buyers in Dubai. If a gold seller wants to sell gold using escrow service, they have to open this account before they can use escrow service.
For instance a gold seller who also is into real estate developing project is launching multiple projects, they have to open a different accounts for each project that is different from the first Gold escrow account. And the buyers of the gold have to deposit the amount in this account.
Many Gold buyers usually show reluctance when it comes to buying of gold using escrow services. Few of the reasons why they have reservations is that they believe that their invested money will go down the drain if the deal gets stalled or cancelled. However, this isn’t the case. If a deal has been officially declared cancelled by DLD, they can file a petition for compensation by submitting proof(s) of their ownership.
Once their claim is verified, they will be compensated for their funds. The amount is refund from this account opened.
3 Benefits of an Escrow Account?
An escrow account can prove to be beneficial in numerous ways. Some of its benefits are:
1). Escrow account service ensure that funds are not paid until goods or services have been confirm delivered to a customer.
2). Escrow account provide security in transactions where there is a high degree of risk – For example, when an overseas buyer makes payment to an overseas supplier.
3). As collateral in cases where one party defaults on their obligations.
In a nutshell, the escrow account certainly helps to make investing in the primary market a lot safer. So, ensure to verify the escrow account among other details of a project before making an investment and buying any products or pay for any services.
