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How to Start a Textile Business in Dubai - Complete Guide

August 26, 2022

The commercial centre of the UAE, Dubai, has developed into a well-known business hub for international entrepreneurs, investors, and professionals. Global investors are being drawn to the most corporate-friendly climate and establish their businesses in various profitable industries like tourism, medical equipment and above all textile industry. Are you also looking to start a textile business in Dubai? You have landed in the right place.

The guide provides you with comprehensive detail on how to start a textile business in Dubai and more. Let’s explore this in detail.

Textile Business in Dubai

Due to Dubai's status as the region's top commercial center, also last year’s data showed that high growth in textile and textile luxury goods.  starting a textile firm there makes sense for overseas investors. Given that, Dubai is a gateway to the Middle East and a highly profitable international market, the procedure of company formation in the emirate is ideal for textile enterprises. Foreign investors might establish their companies in Dubai and enjoy ultimate benefits including 100% ownership and more.

start textile business in Dubai

Textile Trading License in Dubai

In addition to having an emerging market, the textile sector in the UAE exports its products to more than 50 other nations. The government's strong backing, the ease of travel to every corner of the globe, the country's sturdy infrastructure, cheap taxes, etc., are all advantages for investors.

Potential investors looking to start a textile trading business in Dubai will have to conduct the necessary operations including getting a business license. The Department of Economic Development (DED) in Dubai grants the statutory authority after carefully examining the submitted legal documentation of the candidate.

Cost of Textile Trading License in Dubai

The cost of a textile trading license in Dubai ranges from 21,000 to 25,000 AED add on to this visa expenses and office rent.

However, various factors might contribute to the textile business license cost in Dubai including the size, type and nature of your company. In addition, the jurisdiction, type of license, and the size of the company might also add to the license costs. It is highly suggested to consult with a reliable business setup advisory in Dubai who can help you obtain a trade license easily.

Breakdown  of a Textile Business License Cost in Dubai

Government FeesFees in AED
Initial Approval120
Trade Name620
Tasheel Preapproval350
Tasheel MOA345
Trade License Cost11960
Foreign Trade Fees2000
Corporate PRO Services Fees6000
Total Cost of Textile License21 395

 

Benefits of Opening a Textile Business in Dubai

The benefits of establishing a textile business in Dubai are endless. Investors can enjoy benefits including 100% ownership of the business, an easy and smooth setup process, taxation benefits, and more.

  1. Mass Population

It is well known that both domestic and foreign tourists flock to Dubai. Expats from many ethnicities with varied tastes reside in the nation. Business owners and entrepreneurs may target diverse markets and boost their revenue by taking advantage of this cultural diversity.

  1. Strategic Location

Dubai, located in the middle of the nation, serves as a gateway to the other Emirates. Investors and company owners both benefit from easy business expansion. Additionally, it is beneficial to target nearby nations like Oman, Qatar, Saudi Arabia, etc. Setup a textile business in Dubai would always be a profitable decision for any investors.

  1. Tax Benefits

Setting up shop in Dubai relieves company owners of the burden of paying taxes because the nation has a complete income tax exemption. The UAE government has adopted VAT procedures, which are pegged at just 5%. Therefore, you may profit from these advantageous taxation policies by establishing a textile business in Dubai.

  1. Business Setup Process

The UAE government has always been making efforts to make it easier for foreign investors to start businesses in the country. With the assistance of business professionals, the process of incorporating a company in Dubai can be completed successfully.

  1. Easy License Obtaining Process

Investors who want to operate businesses in Dubai must obtain a business license. The Department of Economic Development (DED) in Dubai grants statutory authority to potential investors. You can also get your license for textile trading in Dubai.

Documents Required for Starting a Textile Business in Dubai

To acquire your trade license for textile business in Dubai, you need to submit the following documents to the Dubai DED

  • Initial approval certificate.
  • Trade name registration certificate.
  • Passport copies of the investor and shareholders.
  • Documents of each of your business partners' visas.
  • Attested MOA with proof of approval of company information.
  • If you are a UAE resident, submit a copy of your residence visa.
  • If you are a visitor, submit a copy of your passport to the DED.
  • Approval from relevant textile departments for manufacturing or selling products.
  • Submit copies of your UAE IDs if you and your business partners are UAE nationals.
  • Ejari and lease agreement as evidence of physical address of the company or shop (if required).

Steps to Start a Textile Business in Dubai

The procedure of establishing a textile business in UAE is simple, and with the government's assistance, one may do it quickly.

  • Pick a Trade Name

Pick a name for your company that must be concise, simple and catchy. It must reflect your brand and clearly relate to the goods and services being offered. However, there are certain rules when selecting the trade name. Your company’s names should not be blasphemous and do not reflect any negativity. Use proper and complete names rather than abbreviations.

  • Pick the Right Jurisdiction

To start a textile business in Dubai needs you to select a jurisdiction between the mainland and the free zone. Dubai Textile City is a free zone reserved for businesses engaged in the garments sector. However, you may start your business on the mainland to trade everywhere.

  • Select the Legal Structure

Depending on how many shareholders your company has, you must choose the legal structure. Keep in mind that DED and the free zone authorities both permit various legal forms. You may consult with company formation experts in Dubai to choose the best legal structure for your textile business.

  • Submit Documents for Approval

When you've decided on the business's legal framework and structure, provide the relevant legal documents to the relevant authorities. If everything checks out, the authorities will review the paperwork and grant you initial clearance to open a textile business in Dubai.

  • Get license registered in Immigration department and labour department.

As soon as you have a business license in Dubai, you have to register in the immigration department and labor department ( MOHRE) for getting investor/partner or employee visas under the company.

  •  Apply for Your Employees’ Visa

Before you bring in employees, it is important to have their visas prepared. Apply at least 30 days before your employees arrive as they would then have a visit visa in place already.

  • Set Up Your Corporate Bank Account

The last thing is to register with the bank. If you open a company, you need a corporate account, apply and get that!

How Avyanco Helps You Setup a Textile Business?

Avyanco is a well-known company setup advisory that works actively to assist investors in establishing their enterprises quickly, conveniently, and dependably in Dubai and around the UAE.

Team Avyanco makes it a priority to provide business setup and consultation services to startups and SMEs enabling them to streamline the whole process, from the acceptance of visa applications to documentation to acquiring a company license as well as the successful execution of a company.

Feel free to get in touch with us for any queries.

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