How to Set Up a Textile Manufacturing Business in Dubai?

How to Set Up a Textile Manufacturing Business in Dubai?

Dubai, the commercial hub of UAE, has been evolving as a notable business destination for foreign investors, entrepreneurs, and business professionals. From manufacturing and production to trading, every business under the sun can find the city of Dubai as one of the most profitable investment grounds of the world. Setting up a business in Dubai has been made effortless thanks to the UAE government’s policy because of which the business incorporation and establishment has been rising every year. 

The textile sector is one of the flourishing industries that has been rapidly developing and is hugely profitable. It has played an active role in establishing the country’s economy by allowing it to break away from an oil-based economy to a non-oil, diverse economy. Besides that, it has created massive employment opportunities for the masses. 

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.

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

Necessary Paperwork Needed to Start a Textile Business in Dubai

An entrepreneur must have the following documents if they wish to start a textile business in Dubai. The necessary paperwork that should be given to the authorities are :

  • Owners and Stakeholders Passport and Visa copies
  • National Identity Card of all the Shareholders involved
  • Evidence of Trade Name reservation
  • Evidence of Initial Approval of Business Information
  • Notarized Memorandum Of Association and Article Of Association
  • Lease contract declaring the physical address of the office
  • Invested capital should also be declared

How to Start a Textile Business in Dubai?

To start a textile business, one has to go through the following steps:

1. Select a Strategic 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.

2. Select the 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 setup of a Foreign or local Company

3. Submit the Essentials

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.

4. Get the Required Approvals

Once the investigation process gets complete, the required license and permits will be issued by the RequisiteAuthority, which will allow you to carry out the business operations legally.

Benefits of Starting a Textile Business in Dubai

The main advantages of starting a textile business in Dubai are:

1. 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.

2. 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.

3. Tax Benefits

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.

4. Absolute Repatriation of Capital Invested and Profits Earned

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.

5. World Expo 2020

Much anticipated, World Expo 2020 is on the brink of the inauguration, which is touted to be a huge game changer for the corporate world. The mega event would hold tremendous investment opportunities for small and medium enterprises, as well as established ones. Over the six months period, the exhibition is expected to accumulate an impressive sum of Dh.122.6 billion, with the attendance of more than 25 million visitors. 

6. Easy Business Set-Up Process

The 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 incorporations experts as they provide multiple advantages.

7. Easy Attainability of Business License

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. 

Benefits of Availing Professional Business Setup Services

The moment you hire the professionals, all your worries will be at bay, the business incorporation experts will be able to assist you in the following ways.

  • Your business plan gets executed effectively
  • More excellent utilization of your precious time and resources
  • Tasks get finished on time
  •  Any Loopholes in your contracts or business plan get figured out at the earliest without incurring any losses
  • Professional guidance every step of the way
  • Can give you relevant market insights to boost your sales

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.

Contact us and book your commitment-free call with our exceptional team today!

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