Dubai is a one-of-a-kind place that serves as both a bustling business hub and a tourist haven, with more attractions, shopping, great eating, and high-quality hotels. A fabric store business could be excellent for you if you enjoy crafting or sewing and want to start your own business. The textile industry is a thriving business that has been quickly growing and is quite profitable. It has helped to establish the country’s economy by allowing it to transition from an oil-based economy to a more diverse, non-oil-based one. Aside from that, it has resulted in a tremendous increase in job prospects for the general public.
If you are an entrepreneur who wants to start a textile business in the emirate, this article is just for you! This guide will assist you in understanding the textile industry in the UAE region so that you can make informed decisions before investing.
Textile industry in the UAE
After the oil and gas sector, the manufacturing industry is the UAE‘s second most important economic sector. Overall, the UAE’s manufacturing industry contributed 9% to the country’s GDP, and it has been increasing year after year. The government has tried a variety of approaches to grow the non-oil sector in order to diversify the economy’s revenue sources. One of the motivating aspects for business experts to a company formation in UAE is the availability of free zones. Dubai Textile City (DTC), which is dedicated to the textile sector, is one such free zone.
How to Start a Textile Business Setup in Dubai?
The following procedures must be followed in order to start a textile business in Dubai:
Decide your trade name
You’ll need to come up with a catchy name for your business, one that clearly communicates the relationship between your services or products; this is necessary to comply with the UAE government’s trading name guidelines and regulations. The most important tip is to avoid using any controversial words in your company name. You are not allowed to use any religious names. If you choose to name your corporation after a person, make sure you use the full name as it appears on your passport. When you’ve decided on a business name, you’ll need to register it legally.
Choose a suitable location
Conducting company activities in the ideal place will enable you to swiftly and effectively capture the market. Make sure to pick a location that is appropriate for your target demographic to visit and shop at. If you choose a location where the target audience is completely unaware of your existence, it will be disastrous for you and result in significant losses.
Select the business structure
Every corporation must choose a certain organisational structure. The third stage is to decide how your firm will run and what legal entity it will have. This will direct you to the appropriate and necessary legal framework. You can form a limited liability company (LLC) with a single shareholder or numerous partners to sell textiles. With the introduction of the foreign ownership legislation, you no longer need an Emirati sponsor (local sponsor). In Dubai, you can now become the sole proprietor of your textile firm.
Submit documents for initial approval
After you’ve selected your company’s legal structure, submit all required documents to the appropriate legal authorities and departments. They will examine all of your documentation and, if everything appears to be in order, you will be given preliminary approval to open a textile business in Dubai. After that, you can apply for a trade licence to lawfully conduct business.
Obtain your business license
The final stage is to obtain a business licence in Dubai for your textile firm. The Dubai DED will provide your trade licence once the relevant authorities have approved your licensing application and all supporting paperwork. The only entity contracted by the UAE government to provide trade permits is the Department of Economic Development.
Documents Required in Dubai to Start a Textile Business
To present to the authorities, a business owner must have the following documents:
- Copies of the owners’ and stakeholders’ passports and visas
- Personal identification cards for all stakeholders
- Trade name reservation proof
- Initial approval proof
- Article of Association and Memorandum of Association
- Lease contract
- Paid-up capital
The Benefits of Starting a Textile-Related Business in Dubai
The business climate in Dubai is complicated, and it offers a wide range of opportunities for both international and domestic enterprises seeking to compete in the Arabian market. A textile-related business in Dubai could be a great opportunity to make a lot of money in a well-established environment. Another important issue is that the global textile sector has grown to the point that it now ranks second only to oil in terms of income and employment. Taking advantage of new business opportunities and maintaining an accessible economy have also been key accomplishments for the region.
The UAE is a great place to do business in the textile and fashion sectors due to its lack of export restrictions, competitive labour prices, comparatively cheap import taxes, and low corporation taxes. The country’s more positive textile climate is due to a large number of competent, motivated, and experienced employees, as well as a stable environment and a lack of additional costs. Dubai, for example, is a successful alternative due to its large number of international visitors. Small and medium-sized manufacturing enterprises are also encouraged to expand and start-up by the government.
Now that you’ve learned how profitable Dubai’s textile business is, you can start preparing to your textile business setup in Dubai. The country’s garment industry is booming, and demand for high-end and luxury goods in fashion retail is at an all-time high. Even if the procedure appears simple, it is always advisable to seek professional assistance.