Textile Business in Dubai

During the last few years, many types of industries and businesses have been able to succeed in the UAE. And the reason behind this is due to the facilities and advantages that they can get in this country. For example, the textile business in Dubai is one of the sectors that have had the opportunity to grow exponentially.

In this article, you will learn everything you need to know about the textile industry in Dubai and the UAE. And here you can also find the necessary information for setting up a textile company in this UAE emirate. Plus you can learn about the benefits and requirements for starting this kind of business in this city. Let’s observe:

  1. What do you need to know about the textile industry in Dubai and the UAE?
  2. Why should consider setting up a textile business in this popular city in the UAE?
  3. What is the most recommendable location to set up a textile company in Dubai?
  4. How many benefits can you obtain by opening a textile business in this location?
  5. What types of company structures can you set up in Dubai Textile City Free Zone?
  6. How can you complete the company formation process for setting up a textile business?
  7. What are the requirements you need to meet for starting a textile company in Dubai, UAE?
  8. How can Connectfz help you set up your textile company in the emirate of Dubai?

What do you need to know about the textile industry in Dubai and the UAE?

The textile industry in UAE has been able to thrive in a matter of time and attract many investors. And this business has become more profitable as the days pass and it gets more attractive for foreign investors too. However, the exact location in which this industry has succeeded the most is in Dubai.

This emirate itself has been a business hub for many local and foreign investors from all around the world. Nonetheless, it’s also becoming more popular among textile-related investors and entrepreneurs, inviting them to open more and more textile companies. Therefore, the textile industry is now the second most popular and largest industry in the UAE after the oil industry.

And now, the UAE exports textile products to over 50 countries, making this industry an important income source. Another reason why the textile industry is now vital in the UAE is that it is an employment opportunities creator. In other words, this business is essential for many people and it includes investors, customers, and also employees.

And if you want to establish a textile business in Dubai, you should know that this industry covers certain elements. For example, this business involves processes like the growing of natural materials, raw material creation, making fabric, and manufacturing end products. As for the finished products, you can find fabrics, woven, car seats, tents, curtains, home textile, ready-made cloth, and more and also for General Trading in the UAE.

Discover the reasons why the UAE is a favorable and strategic business location for the growth of the textile industry.

Why should consider setting up a textile business in this popular city in the UAE?

Starting a textile business in Dubai can bring you several advantages for creating a successful company in this location. For example, the business setup process is quite simple and does not require a lot of effort or time. In fact, the government provides investors with the facilities they need to make the process even easier.

In addition, there are many other reasons why setting up this kind of business is a profitable idea:

  • Since Dubai is home to many expats and it’s also popular among tourists, you can target multiple audiences and markets. Besides, this city is also famous for being the second largest import/export hub for textile and fashion globally. In other words, you can quickly succeed as an investor if you operate a textile company here.
  • Furthermore, this emirate is an excellent and strategic location on the map because it’s a gateway to other countries. And it also boasts efficient connectivity with the rest of the world, so it’s perfect for doing business internationally. Besides, it is easy to import, export, and re-export products from this city, allowing you to expand your business.
  • And depending on the exact jurisdiction you choose, you can enjoy several tax benefits while operating your textile company. However, there is a common tax benefit that all businesses enjoy in the UAE; the VAT rate is only 5%. Compared to other countries, this tax is very low and it is an advantage for companies and investors.

Here you can learn about the company formation process in free zones in the UAE like Ajman Free Zone.

What is the most recommendable location to set up a textile company in Dubai?

Although you’re free to set up your textile business in any location in Dubai, some places are better than others. And in this case, the most suitable location for operating textile manufacturing companies in UAE is Dubai Textile City. This is a free zone that you can find in the Al Awir Free Zone.

This special free zone is committed to boosting the Dubai textile market, which means it provides the necessary resources. And DTC is very popular for being precisely a hub for textile factories due to several benefits that it offers. For example, investors and entrepreneurs do not need to pay any kind of customs duty that other locations usually require.

Another remarkable fact about Dubai Textile City Free Zone is that it counts on the full support of other entities. For example, Dubai Ports and Customs Authorities provide the support that this location needs to operate. Besides, the terms of the lease and rents are quite accessible to DTC members who are also welcomed by TEXMAS.

In this free zone, there are many textile-related business activities that investors can carry out without restrictions. For instance, the most common activities that they can freely perform in Dubai Textile City are the following ones:

  • Fashion and couture.
  • Textile and fabric.
  • Trading merchandise.
  • Importing and exporting merchandise.

Learn everything you should know about the Establishment Card in the UAE and its benefits for foreign investors like you.

How many benefits can you obtain by opening a textile business in this location?

There are many reasons why opening a textile business in Dubai can be favorable for you as an investor. But if you establish your company in a free zone, you can obtain even more benefits than in other locations. Therefore, you should take a look at the advantages that you can enjoy by having your company in Dubai Textile City:

  • You can hold 100 percent of your company ownership.
  • Also, there is the advantage of full repatriation of profits and capital.
  • There is a full exemption from several taxes, including corporate and personal income taxes.
  • Besides, you can also enjoy total exemption from customs duties.
  • Operational expenses in this location are very low.
  • You have the option to sublease the premises as well.
  • Also, there is a long lease period and attractive rent too.

If you choose to set up in other free zones, you might get other additional benefits. Nonetheless, you should keep in mind that this free zone is the most suitable place for a textile-related company.

In case you want to operate a food truck business in a UAE free zone, here you’ll find useful information.

What types of company structures can you set up in Dubai Textile City Free Zone?

Dubai Textile City Free Zone allows investors to choose between three main options to open their textile business in Dubai. The first and most popular is the Free Zone Company structure, which requires 2 or more shareholders (individuals or corporates).

On the other hand, there is another popular option, which is the Free Zone Limited Liability Company structure. Unlike Free Zone Companies, a Free Zone Limited Liability Company requires is a separate entity. And this structure only has one owner or shareholder that can be an individual or a corporate entity.

And lastly, there is another option that is quite popular for those who want to expand their businesses. Investors who already possess companies can opt for opening branches in this free zone. And it is possible to open branches of foreign or local companies.

How can you complete the company formation process for setting up a textile business?

In order to set up your textile business in Dubai, you have to follow a few simple steps:

  • Firstly, you must decide on a trade name for your company. However, there are certain rules you must follow when selecting a name.
  • Secondly, it is essential to select a suitable business location. For example, you can choose one in which your target audience is.
  • Thirdly, make sure to choose a company structure that fulfills your needs.
  • After that, you must submit all necessary documents so you can obtain the approvals you need.
  • And lastly, obtaining your business license is the last thing you will need to start operating your business.

Find out the requirements you need to meet in order to complete the VAT registration process in the UAE.

What are the requirements you need to meet for starting a textile company in Dubai, UAE?

Setting up a textile business in Dubai will require you to meet certain requirements and submit some documents. However, you must take into consideration that it might be necessary some additional documents, depending on your chosen location. But certainly, you will need the following elements in order to set up your company:

  • Some copies of your passport and also a few passport copies of all your business partners.
  • A few visa copies of you and your business partners. It is a requirement to submit a UAE residency visa copy in case you are a UAE resident. But if you are a non-resident, you must submit a copy of your tourist visa.
  • A copy of your Emirates ID and copies of your partners’ Emirates ID as well (if applicable).
  • The initial approval certificate and the trade name registration certificate.
  • The attested Memorandum of Association along with proof of approval of the business information.
  • Approval from the concerned authorities and departments for textile selling and manufacturing.
  • And also the lease agreement and Ejari as proof of physical address of your factory or shop (if applicable).

Here you will get all the information you need for setting up a profitable business in Ajman Free Zone, UAE.

How can Connectfz help you set up your textile company in the emirate of Dubai?

A great advantage of working with a business setup specialist is that you can set up your business quickly and easily. And that is what you can do if you decide to work with Connectfz as your business partner. Besides, working with us can also allow you to get the guidance you need to manage your company efficiently.

Furthermore, our team will help you complete the setup process from the very beginning and help you make vital decisions. For example, we will help you decide which business location is the most favorable one for your type of business. And also, we offer you the packages you need to facilitate your setup process and get licenses and visas.

On the other hand, you can request different support services to make significant improvements in your company’s operations. For instance, you will be able to improve your HR department by requesting our HR consultancy services. And you can also get other useful services such as payroll, tax advisory, staff outsourcing, and many others.

Would you like to contact Connectfz to obtain more information about the business setup process of a textile business in the UAE? If you have any questions, call us on +97143316688. You can email us at info@connectfz.ae, and you will talk to one of our representatives who will answer your questions.

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