How to Start a Textile Business in Dubai?

The textile business in Dubai is among the lesser talked about sectors, especially when we have the technology, IT, and marketing sectors taking the front seat. But the textile industry in Dubai is nothing short of these trendy sectors; it is in itself a wonderland of tradition, culture, and rituals that tell the story of this land, its heritage, and its incredibility. While being less talked about, this sector still holds a lot of power when looked at from the lens of business. 

In this blog, we will be giving you an insight into the industry and helping you understand the process of setting it up in Dubai.

Understanding the textile business in Dubai

Dubai is the most attractive destination for people wanting a company formation in UAE. This becomes a fact given the technological advancement and global trading routes that the location offers. 

The same is true for the textile business in Dubai. Though the marketing is less (intriguing) innovative than the other trending sectors, the industry caters perfectly to the needs of the consumer. From child safety seats to trendy fashion, it covers all the requirements of the country’s residents. The industry is second after the oil industry when we discuss the nation’s economy. Thus, if you are considering setting up a textile business in Dubai, then here is all that you need to know. 

The benefits of getting into the textile industry in Dubai

Ranking second on the list of the country’s economy, the textile business in Dubai is among the most attractive options to get into the market. Several benefits are offered by the textile industry, which are all discussed in detail in this section of the blog. 

• Excellent location: The United Arab Emirates’ advantageous position as a shipping hub expands commercial prospects.
• Tax incentives: Businesses looking for tax breaks are drawn to expanding economies.
• Industry cooperation: Programs such as the ITF promote international recognition and alliances.
• African expansion: Taking use of central shipping routes and cheaper production costs boosts competitiveness.
• Social media influence: Popularity in fashion clothes is driven by social media and contemporary marketing.
• The boom of rapid fashion: The emergence of rapid fashion offers profitable investing prospects.
• Benefits of online stores: Investing in an online store gives you simple access to international markets and requires less capital.
• Effective logistics: International trade is facilitated by Dubai’s top-notch logistics and transportation network.
• International market access: Establishing a manufacturing and storage facility in Dubai offers simple access to international sales prospects.
• Online selling tools: For online textile sales, platforms such as Shopify provide marketing and brand-building tools.

Documents needed to start a textile business in UAE:

To start a new business in Dubai, there is a well-defined process requiring patience, knowledge and a stack of completed documents. Before delving into the whole process, let us start by understanding the document requirements.

1. Passport copies of the owner and shareholder.
2. Passport and CV of the manager.
3. The UAE Embassy authenticates the notarized Memorandum of Association and Articles of Association.
4. Physical address details.
5. Evidence of trade name reservation.
6. Initial approval documentation for business incorporation.
7. Proof of capital investment.
8. Board resolution from the parent company (for branch office setups).

For more details, contact Dubiz Business Setup.

How to start a textile business in Dubai, UAE?

If you have the above requirements met, then it is time for you to understand the steps that take place while opening a textile business in Dubai, UAE.

1. Select a Jurisdiction:

Considering the advantages and drawbacks, choose between the mainland and a free zone business setup in Dubai.

2. Choose a Legal Structure:

Think about limited liability companies, public/private holding companies, general partnerships, and sole proprietors.

3. Register a Trading Name:

Make sure your name is appropriate, distinctive, and compliant with UAE laws. Do this mindfully. 

4. Obtain Initial Approval:

Fill out an application and submit it to the Department of Economic Development to get approval.

5. Secure Business Space:

To purchase office, manufacturing, or warehouse space, get an EJARI and a lease agreement.

6. Obtain External Approvals:

Make sure you have the required clearances from the departments in charge of manufacturing and marketing textiles.

7. Submit Required Paperwork:

Send the Department of Economic Development the necessary paperwork to obtain your UAE trade license.

8. Collect Business Trade License:

After making the last payment, the license will be collected in a few days.

What is the cost of setting up a textile business in Dubai?

The cost to start a textile business in Dubai can range between AED 21,000* and AED 25,000*. However, this cost is subject to many factors ranging from your location to the firm you are hiring for business setup in Dubai, including other factors such as:

1. Fees for Getting a Business License: Charges for getting a permit and UAE trade licenses. 
2. Rent or Property Purchase: Expenses related to buying or renting a suitable location for a business.
3. Equipment and Machinery: Purchasing tools, machinery, and equipment for manufacturing.
4. Input: Costs associated with buying supplies and raw materials.
5. Labour costs: Employee wages and salaries.

For a more accurate estimate, it is suggested to get in touch with a business setup firm like Dubiz Business Setup. 

Strategies to ace textile business in Dubai

For you to enter the textile business in Dubai, there are several ways to enter the industry. Here are a few strategies and opportunities that might help you get a competitive edge for your business while helping you sustain it in the market.

• Online shopping benefit: Offering online platforms to shop from, even if you have retail stores for the same, will give a competitive advantage to you over the other brands. 
• Sustainability focus: Employing sustainable methods can enhance a brand’s reputation and draw more customers. Not only will you be fulfilling your corporate environment responsibility, but you will also attract customers. 
• Textile consultancy: Offering professional guidance on design and product development can be a profitable business. Instead of directly getting involved in the textiles business, this is another way to get into the industry. 
• Personalisation: Providing items that may be customised can help your company stand out and draw clients. However, the cost should be considered while doing so. 
• Acquiring pre-existing business: Buying an existing business needs research but might be quicker and more economically beneficial. Even a bit safer way to enter the market than others. 
• Franchising: Consists of stringent regulations yet offers proven brand awareness. But thorough market research is mandatory to decide on the location, so the business can flourish. 

Is the textile business profitable?

A textile company’s capacity to turn a profit in Dubai is contingent upon many variables, such as the calibre of its goods, its marketing tactics, its cost control capabilities, and the state of the market as a whole. Even though the textile sector might be extremely competitive, there are still ways for companies to thrive, such as by developing distinctive products, offering top-notch customer support, and grabbing hold of new trends.

How can Dubiz help?

Setting up a textile business in Dubai is no longer as complicated as it seems; instead, we have you covered. Dubiz Business Setup is an amalgamation of technology and experiences that helps people realise their dreams. Company formation in UAE is no longer a difficult dream; rather, our experts help you get the best experience of getting your business established in the UAE. 

Reach out to us: Call or WhatsApp us at +971 563695485, or email info@dubiz.co. 

FAQs

1. What is the cheapest textile business license in the UAE?

In addition to the cost of the visa and office rent, a textile trading license in Dubai, United Arab Emirates, can cost anywhere between AED 21,000* and AED 25,000*. However, some variables, such as the size, nature, and kind of your firm, may affect the cost of a textile business license in Dubai. The license charges may also be increased by the jurisdiction, license type, and firm size.

2. Can I start my textile business in Dubai without any business setup agency?

Yes, you can start a textile business in Dubai without any business setup agency. But the complexity of the process along with the insight of the process can be better understood by hiring a business setup consultancy, as they can break down each step for better comprehension. 

3. Is setting up a textile business in Dubai easier than in other Emirates?

Dubai being the hub of technology and a rising economy become the most attractive Emirate for any business to get established, but no, there is nothing like any Emirate that makes it easy to start a textile business. 

4. Can the price of a textile business license differ as per Emirates?

No, the license cost might differ as per the zones: free zone or mainland, but there is no direct cost differentiation between the Emirates. While the factors that we discussed might make the price difference. 

5. Is it wise to start a textile business in Dubai as an expatriate?

Given that Dubai is the region’s most important commercial centre, it makes sense for international investors to launch a textile company there. Since the emirate serves as a gateway to the Middle East and other profitable international markets, the business formation process in Dubai is ideal for textile enterprises.