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People call Dubai the commercial hub of the UAE, especially when it comes to textile business setup in Dubai. The city is a thriving business venue for global entrepreneurs and investors. It welcomes all types of business activities, thereby strengthening its business foundation. To set up a business in Dubai is now very simple, especially since the announcement of 100% business ownership for foreign nationals. Hence, many people from across the world consider establishing a textile business in Dubai.

The textile industry is one of the most lucrative and rapidly developing industries in Dubai. This industry has played a crucial role in powering the country’s economy. Besides that, textile business setups in Dubai have created huge employment opportunities for people from around the globe.

If you are an entrepreneur interested in or having expertise in the textile industry, you can start a textile business in Dubai. But before that, you must educate yourself about the cost of setting up a textile business in Dubai, among other things. This blog will help you figure out how to start a textile business in the UAE and other related information.

What is the Process for Textile Business Setup in Dubai?

With the help of the supportive UAE government, forming a company in Dubai is now easier than ever before. The process for starting a textile business in the UAE is not that complicated either. To further simplify it for you, the steps for the process are mentioned below:

1. Decide Your Trade Name

You must pick a simple yet catchy name, something that directly connects with your product or service. It is important to follow the rules for trade name selection established by the UAE government. One of the most important rules is to not use any controversial words in your trade name. You should also avoid the mention of any religious names. If you decide to keep the name of your company after the name of a person, make sure to use the full name, as mentioned in passport. Once you have decided on the name, register it legally.

2. Pick a Suitable Location

Pick a location where you can attract the right audience that can help you take hold of the market from the get-go. If you choose a location where your target audience cannot easily find your shop or warehouse, it will backfire. Make sure the location meets all the requirements for your business. Once you decide the location, do not forget to register with the Dubai Land Department and get your Ejari.

The Ejari, also known as tenancy contract, will be provided to you by your landlord. The tenancy contract is one of the most important documents for starting a textile business in Dubai. However, an Ejari is only required if you decide to set up a retail store. In the case of a textile manufacturing business in Dubai, you will need to finalise a warehouse, which also requires an Ejari. But if you plan to start a textile import-export business or a wholesale textile business, the Ejari for your business’ physical space will be waived off for the first year.

3. Select the Structure of Your Business

Every business must select a specific structure for their company. The third step is to decide how you want your business to operate and its legal entity. This will point you towards the right and required legal framework. You can set up your textile selling business as an LLC with either a single shareholder or multiple partners. With the implementation of the regulation regarding foreign ownership, you no longer require an Emirati sponsor (local sponsor). You can now become 100% owner of your textile business in Dubai.

4. Submit Documents for Initial Approval

After you have decided the legal structure of your business, submit all the necessary documents with the respective legal authorities and departments. They will inspect all your documents and if all seems fine, you will get the initial approval for setting up a textile business in Dubai. You can then acquire your trade license to conduct business activities legally.

5. Obtain Your Business License

The last step is to acquire the trade license for your textile trading business in Dubai. Once the relevant authorities approve your applications and all your documents, the Department of Economic Development (DED) in Dubai will issue your business license. DED is the only agency appointed by the UAE government to issue business licenses in Dubai.

Why Start a Textile Business in Dubai?

There are various benefits of setting up a textile business in Dubai. Being one of the most profitable business industries, a textile business in Dubai can be life-changing for many aspiring entrepreneurs. Some prominent benefits of setting up a textile business in the UAE are as follows:

  • Target Diverse Audience and Markets

Dubai is home to a huge number of expats and is one of the hottest destinations for tourism. Entrepreneurs in Dubai get to cater to the needs of audiences with different preferences. This helps them to increase their business turnover. Moreover, Dubai is the second largest import-export hub for fashion and textile in the world. This further confirms why starting a textile business in Dubai is an excellent move.

  • Tax Benefits

When it comes to the payment of tax, entrepreneurs and investors enjoy much relief as the UAE offers total tax exemption. UAE is one of the most tax-friendly countries in the world, with 0% income, personal, and corporate taxes. So, if you plan to start a textile business in Dubai, you can reap these favourable tax benefits.

  • Repatriation of Profits and Capital

Many businesspeople are worried about the extra capital that needs to be paid at the time of either starting or liquidating their company. Well, when it comes to doing business in Dubai, you don’t have to worry about it. The city allows complete repatriation of profits earned and capital invested in the business.

  • Expo 2020 Dubai

With Expo 2020 Dubai just around the corner, now is the right time to start planning for your textile business setup in Dubai. The event is going to create ample opportunities for businesspersons from around the world looking to expand into the UAE market. It is expected to be a game-changer for various small and medium enterprises as it will open the city to newer business industries. With an expected attendance of 25 million visitors, the 6-month long event is just the networking and growth platform that any entrepreneur would look forward to.

  • Simple Business Set-Up Process

The government of Dubai is very cooperative when it comes to business setup. It provides various facilities to entrepreneurs, making it easy and interesting for them to conduct business in the city. The government has taken several initiatives to make the process of starting a business in Dubai seamless. This will increase the business opportunities in the country, ultimately strengthening the economy.

  • Excellent Location

When we talk about the location of Dubai, it is one of the foremost reasons why international entrepreneurs prefer the city. Thanks to its strategic location on the global map, the city acts as a gateway to other neighbouring countries and boasts excellent connectivity with the rest of the world. Because of this, Dubai never has to cut off the supply of any types of goods and products from countries nearby. Businessmen and women enjoy the easy import-export and re-export processes. Its location also provides opportunities for businesspersons to expand their business not just across the UAE but also other countries.

What Documents Must be Submitted 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:

  1. Passport copies of you and all your business partners
  2. Visa copies of you and all your business partners. Submit UAE residency visa copy if you are a resident of the UAE, or tourist visa copy if you are a non-resident
  3. Emirates ID copy of you and all your business partners, if residents of the UAE
  4. Initial approval certificate
  5. Trade name registration certificate
  6. Attested MoA with proof of approval of business information
  7. Lease agreement and Ejari as proof of physical address of the shop or factory (if applicable)
  8. Approval from relevant departments for textile selling and/or manufacturing

Plan for Your Textile Business Setup in Dubai

Now that you know how profitable the textile industry in Dubai is, you can easily start planning for setting up a textile business in Dubai. Even though the process to start one is quite easy, it is advised to take help from experts. You can reach out to our experienced corporate advisors at Shuraa Business Setup to help and guide you through your company formation in Dubai. If you would like to understand what the cost of setting up a textile business in Dubai is, all you have to do is call us and we will provide you with all the necessary information.

Connect with Shuraa today by calling us on +97144081900. For chat assistance, send us a WhatsApp message on +971507775554. You can also write to us at [email protected].

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