The commercial hub of the UAE is evolving as a notable fashion destination for foreign investors, entrepreneurs, and business professionals. From apparel production to trading, every business under the sun finds Dubai among the most profitable cities of the world. Start a textile manufacturing business in Dubai to fulfill the luxury clothing demand of people in the UAE and abroad.
Textile sector is one of the flourishing industries which are rapidly developing and are hugely profitable. It is playing an active role in diversifying the country’s economy. Besides that, it is allowing the UAE to break away from an oil-based economy to a non-oil economy.
The inclusive policy of the UAE government is building an open business and industrial culture. Therefore, the number of business units and manufacturing plants are growing in Dubai, Abu Dhabi, and Sharjah. Setting up a business in Dubai has become much effortless thanks to the government’s initiatives.
If you are an entrepreneur or business owner who is interested in or has expertise in the textile industry, then you can opt for a business setup in its manufacturing division. The given below guide will advise you on how to set up a textile business in the UAE so that you can be well-informed before making any hasty investment.
Process to register a textile business in Dubai
You have to go through the following step-by-step procedure of registering a textile manufacturing business in Dubai.
- Choose suitable location
- Finalize business structure
- Submit essential legal paperwork
- Get regulatory approvals
Now, we briefly look upon these steps to begin a textile manufacturing business in Dubai.
Choose suitable location
Conducting business activities at the appropriate location would help you to grab the market quickly and right away. Make sure to choose a site that would be fitting for your target market to come forth and enter your store. In the event, of you end up picking a spot where the target audience is entirely unaware of its presence, then it would be bad for you and will be a cause of huge losses for you.
Finalize business structure
Every business needs to select a suitable fixed formation or structure that would define its complete legal framework. In Dubai Textile City, a business owner or an entrepreneur can pick from any of the following structures.
- Free zone limited liability company
- Free zone company
- Branch office setup of a foreign or local company
Submit essential legal paperwork
After the selection of the appropriate business structure, you need to submit the required documents to the Concerned Authority to complete the initial investigation process.
Get regulatory approvals
Once the investigation process gets complete, the required license and permits will be issued by the requisite authority, which will allow you to carry out the business operations legally.
Necessary documents to establish textile company in Dubai
You need to submit the following legal paperwork to form a textile manufacturing business in Dubai.
- Copies of passport and UAE visa of owners and shareholders
- National identity cards of all the stakeholders
- Evidence of trade name reservation
- NOC to indicate initial approval of business information
- Declaration of the capital investment
- Notarized Memorandum Of Association and Article Of Association
- Lease contract for the physical premises of the office
Textile industry in the UAE
The manufacturing industry is the most lucrative sector in the UAE, second only to the oil and gas sector. Overall, the contribution made by the country’s manufacturing division to its GDP stood at an impressive 9% and has been growing every year. The Government has been trying various ways to raise its non-oil industry to carve out new revenue-generating routes for its non-oil dependent economy.
Free zones have been one of the most critical factors that lure business owners from all corners of the world to form a company in the UAE. One such free trade zone in Dubai Textile City (DTC), dedicated to the textile industry.
Dubai Textile City
Consolidated as a Joint Venture between TEXMAS, Dubai Port, and Customs Authorities, the Dubai Textile City is one of the free economic zones that is committed exclusively to the textile industry. Established at the Al Awir Free Zone, the city is a business hub for textile fabrics. It offers the entrepreneurs to carry out the business activities without paying any sort of customs, which is usually charged at a rate of 5%. The business activities that are permitted in Dubai Textile City (DTC) covers.
- Textile and Fabric
- Fashion and couture
- Trading and import-export of merchandise
By establishing a business in Dubai Textile City (DTC), you get the following advantages.
- Immunity from custom duty
- Flexibility to sublease the premises
- Free transference of goods
- Extended lease period with low and affordable rent
Advantages of incorporating a textile firm in Dubai
The main benefits of launching a textile business in Dubai are the following.
- Mass population: It is widely known that Dubai is a hot-bed for national and international tourists. The country is home to expats coming from different nationalities with diverse tastes. This cultural variety serves to be quite beneficial for business owners and entrepreneurs to target different markets and increase their business turnover.
- Strategic location: Positioned at the heart of the country, Dubai acts as a gateway to the other Emirates. Both entrepreneurs and investors enjoy the perks of business augmentation at ease. Also, targeting the neighboring countries like Oman, Qatar, Saudi, etc. turns out to be worthwhile.
- Easy business formation: The UAE government has been taking various steps to ease the business setup process for its global investors. In Dubai, the business incorporation process can be done effectively with the guidance of business consultants. The entrepreneurs prefer to select business incorporation experts as they provide multiple advantages.
- Simple business license acquiring: A business license is a legal authorization that needs to be owned by any company that wishes to carry out the relevant activities. In Dubai, the statutory permission is issued by the Department of Economic Development (DED) after thoroughly verifying the legal documents proffered.
- Tax incentives: When it comes to tax payment, entrepreneurs experience a sense of relief by setting up their business in Dubai as the country holds total exemption on income tax. Recently, the UAE Government has implemented the VAT proceedings that require to be borne by the business entities and are fixed at a mere 5 percent. So, by starting a textile business in the city of Dubai, you can enjoy these favorable tax benefits.
- Full repatriation of capital and profits: Many a time, the entrepreneurs get tensed about the tax and additional expenses that need to be paid after company liquidation. Well, Dubai enables its foreign investors the flexibility to carry out the necessary process at ease and allows them to take back the total capital invested and profits earned to their native country.
Conclusion
In case of any queries regarding the business setup in Dubai, feel free to talk with us. At KWS Middle East, we give complete care to all our clients and provide top-tier business setup services in Dubai and UAE. Contact us and book your commitment-free call with our exceptional team today.
Author Bio
