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Business Setup in UAE/Dubai

How to setup a garment business in UAE?

April 01, 2021
Setting up a Garment Business in UAE

The Garment Industry of India is a Rs. one trillion industry. Almost 33 % of its knitwear production and about 20% of its woven-garment production, both by volume, enters export markets. Overall about 25 % of the volume of its garment production goes into export markets, leaving 75 % for domestic consumption. Export of garments and accessories from India are routed to all corners of the world. However, the USA, EU, and Canada together account for 70% of world exports. Markets in Asia, Africa, East Europe, Australia, New Zealand, and countries in the Pacific Ocean account for the rest.

UAE Textile Industry Is Second Largest Industry in UAE. Most Of Fashionable Luxury Apparel Clothing Has Made UAE And It Became Hub Of Textile Apparel Business In The World. UAE is also considered as the logistics hub of the Middle East connecting the East and the West and acts as the center for re-exporting the goods to the Middle East, Asia, Africa, and Europe. UAE is currently considered as the right jurisdiction for the Indian companies to establish their presence to cater to the huge market in the Middle East and also to act as a logistics hub to expand their operations to the East and the West.

How to setup a Garment Company in UAE?Once you decide to establish a company in UAE, the second question that comes to your mind is the objective for setting up the company. There are two available jurisdictions in UAE to establish a company in UAE. It is very important to identify the right jurisdiction to support and cater to your objectives. In this article, we will discuss how to establish a Garment Company in UAE.Identify the Right Jurisdiction

Depending on the objective of the business, the company can be incorporated either in a Free Zone or in Mainland.

In Free Zone, the expatriate partner or the corporate body can have 100% ownership of the company. Moreover, the corporate entity can establish its operations either as the Branch of Foreign Company or as a Subsidiary.

In Mainland, the expatriate partner or corporate body can establish the company with the legal structure Limited Liability. But the expatriate individual partner or body corporate cannot own 100% ownership over the business. There is a requirement that the UAE National has to hold a minimum of 51% share of the company and the expatriate can only own a maximum of 49% share.

Things to Keep in Mind before Setting up a Garment Business in UAE:

It is very important to study the market and understand the pros and cons of each jurisdiction before establishing the company in UAE. Secondly, the investor also should be aware of the expansion plan while selecting the Jurisdiction. Associating with the right consultant to provide 360-degree service is very crucial for establishing the company in UAE.

The required documents for incorporating the company depend on the Jurisdiction and also on the proposed legal structure. For the body corporate, some of the corporate documents need to get authenticated from the country of origin.

Also, stay updated with the latest trends, different styles, and unique designs of fabric and clothing lines to have a deep knowledge of your industry. Be customer-friendly always to get an edge over your competitors in the market.

Why UAE is the Right Jurisdiction?
  • Tax-Free Environment-No corporate or personal tax applicable
  • Easy set up process-ranked 16 in Ease of Doing Business
  • Logistics Hub of the Middle East
  • Lowest Value Added Tax in the world
  • Regulated jurisdiction acceptable across the world
Key Market Trends- Textile Industry in UAE:
  • The infrastructure development, transparency, paperwork, and tax exemptions ensure that the textile business in UAE thrives to its highest potential
  • Dubai has emerged as a fashion center by 2020 with the most recent and rapid growth of the textile industry
  • The launch of the Dubai Design and Fashion Council to encourage creativity and attract designers regionally and globally for designers and brands for a variety of events
  • The lack of restrictions on profit, competitive labor costs, deficient import duty, and low corporate taxes enhance the ever-blooming economy of luxury clothing
Why MBG?

UAE has a substantial range of textile products to offer from luxury designer outfits to home textiles, and from readymade garments to technical textiles. UAE is putting its best foot forward when it comes to the textile industry, only skimpily second to the oil industry.

Should you decide to set up a textile business in UAE/garment business in UAE, then MBG is your one-stop solution. We offer a complete suite of business setup services in UAE mainland, free zone, and offshore regions. What makes us different from other consultancies is that we offer UAE business setup services right from the initiation to the establishment of business and beyond. We are there for you throughout company formation in UAE until it is in its operational stage. With every business setup needs to be taken care of; you can focus on your business, while our Business Experts take charge of all the procedural requirements, documentation, and everything else in between.

Our Business Setup Services include:
  • Company Formation in UAE
  • Sponsorship Services
  • PRO Services
  • Liquidation Services
  • Trade Licensing & Business Registration
  • A Draft Memorandum Of Understanding
  • Get Approval From DED and Renting an Office
Other Value Added Services:

To know more about our Business Setup Services specific to UAE/ Dubai, click here

You can directly reach out to us for your query related to setting up a business in UAE/ Dubai:

Whatsapp+91 88601-90008

Email: communications@mbgcorp.com

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