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Starting a textiles Business in the UAE : Some Important Insights

August 03, 2022

Be it oil & gas, manufacturing or trading, Dubai, the UAE’s commercial hub, remains the best place to invest in. The UAE’s recent 100% ownership policy for FDI gives foreign investors full control over any business they set up in the country.

The textile Industry in the UAE is not limited to trading. The UAE also supports manufacturing as well as import and export of textiles. Designing and consultancy in this field is also a popular and booming business today like other advanced countries. Even as apparel consumer trends, supply availability and e-commerce develop rapidly in Arab countries, the UAE has successfully established itself as an ideal destination for investments in the textile and apparel industries. The absence of any restrictions on profit, competitive labor costs, extremely low import duty, and low corporate taxes (to be effective from 01st of June 2023) further enhance the attractiveness of the UAE markets for textile businesses.

The availability of highly skilled and productive workers, a stable economy, and the absence of hidden costs are additional factors that attract the sector’s businesses to the country. Dedicated zones such as Dubai Textile City exist to support the growth of textile business with all necessary amenities. As a textile business owner or investor, you can opt for a jurisdiction of your choice amongst many after doing appropriate market studies and feasibility checks.

Our highly skilled and experienced experts at MBG Corporate Services provide these services.

The following types of business activities are permitted in the UAE:

  • Manufacture of knitted and woven textiles
  • Manufacture of fabrics
  • Manufacture of advanced textiles
  • Manufacture of equipment for clothing companies
  • Textile processing plant
  • Garments manufacturing and processing unit
  • Trading of textile
  • Import and export of clothing

There are several corporate structures to pick from when forming your company:

  • Free Zone Limited Liability Company.
  • Free Zone Company.
  • Branch of a Foreign or UAE Company.

How to start a Textile business in the UAE

Business setup is not complicated if you know the right departments and all the legal procedures on which you must concentrate. The combination of a legal and a PRO team plus a good consultant helps ensure the process is smooth and error-free.

Basic steps involved in this category are as follows:

  • Applying for initial approval for the activity
  • Finalizing the name for the proposed entity
  • Finding an office, showroom or storage facility in the right location and applying for the license
  • Once the incorporation is complete, proceeding with the application for post-registration services like emigration card and labor card and, upon receiving these, for visa services.

It may take around one week to start your business.  You may apply for external approvals based on the activity. An expert consultant’s advice ensures the right selection.

MBG provides all these services.

The necessary documents/details are as follows:

  • Shareholders’ passport and visa copies , or documents of the parent company
  • Evidence of the reserved trade name
  • Evidence of initial business information validation
  • Duly signed Memorandum and Articles of Association (carefully prepared)
  • Lease contract stating the office’s physical address
  • Capital amount decided upon

Advantages of Starting a Textile Business in Dubai

  • 100% full foreign ownership
  • 100% full profit repatriation
  • Full exemption from corporate taxes
  • Long-term lease and affordable rent
  • Option of subleasing the space
  • Low operating costs
  • Mass population
  • Tax benefits
  • Excellent geo-location and the best world connectivity

Cost of Setup

Costs may vary depending on the activity type, e.g., manufacturing, trading, or design. The cost for setup also varies depending on the jurisdiction where you establish your business. Incorrect or suboptimal setup may affect your future and result in substantial fines and other financial penalties. In the current market, it is possible for the investors to establish a textile trading business for as low as AED 7,000/-.

How MBG can help?

Our team of experts has over 20 years of experience in this field and will guide you to ensure the best possible business setup. Contact us at MBG Corporate Services for assistance. Write to us on uae@mbgcorp.com or Call us/ WhatsApp +971-52-6406240


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