Dubai Textile City

by Zaara 27, Aug 2020

Dubai Textile City

The presence of an ever-booming economy of luxury clothing has made the Dubai Emirate an essential center for the apparel and textile business. Increased labor costs have led to computerization in the textile and apparel businesses. 

Development of technical textiles and providing ground-breaking textile products is what the manufacturers are aiming at and are showing an active interest in. It will increase the efficiency and quality of the product and aid in delivering timely shipments of orders. 

The UAE is becoming a perfect destination for investment in the textile and apparel industries due to its lack of restrictions on profit, competitive labor costs, low corporate taxes, and deficient import duty.

The government is also inspiring the growth and development of small and medium-scale manufacturing enterprises. A separate free zone is established to help this sector reach greater heights.

Textile City Dubai

Dubai Textile City (DTC) is a joint scheme between TEXMAS and Dubai Port and Customs Authority to enable textile traders in Dubai and other parts of the globe. This free zone facilitates packing textile fabrics for long periods without appealing customs duty. 

It is supposed to help traders who are mainly in the re-export business. DTC also has full support from Dubai Ports and Customs; the Customs Authority will help process the visa requirements of the members.

TEXMAS thinks that DTC will help to bring discipline into the trade. It is also likely that the universal publicity and promotion of the Textile City will bring new markets and customers to the traders in Dubai.

It should be known that Dubai and the other cities must follow the International System of Units which levies for the capacities of textile materials to be made in the metric system. The vendor must also make sure the sold products fulfill the national standard safety rules. 

Not complying with the rules and regulations of the business can be a huge hindrance to the growth and development of the business.

Types of Corporate Structures

Free Zone Limited Liability Company

This is a separate legal entity with only one owner or shareholder. The owner or shareholder can either be an individual or a corporate entity. 

In this, the stakeholders will have a limited liability which will benefit them, and the shareholders will incur less risk. However, the risk-to-reward ratio will also be less.

Free Zone Company 

This is a corporate entity with two or more shareholders. Like FZ-LLC, they can be either individuals or corporate structures. This is the most common form of the company formation structure used in the free zone.

Branch of a UAE or Foreign Company

A branch is an entity under the name of its parent company. It is representative of an existing company. The parent company may be either situated in a different part of the country or can be in a different jurisdiction altogether.

After choosing the type of business entity, let’s look at the types of business activities.

Types of Business Activities Allowed

Like any other free zone in Dubai, this also has its list of business activities they allow in their location. This means that there are many opportunities for companies in different sectors to take advantage of the features and benefits here. 

The various activities are company related to the following industries:

How to Set up an Establishment in the Dubai Textile Village?

If you decide to set up a textile business in the DTC-free zone, follow the below steps.

Register a Trade name

A trade name must be registered, and proof of the registered trade name must be presented.

Obtain the Initial Approval

Before starting a business formation, the applicant must receive initial approval.

Complete the Personal Information Sheet

Personal information sheets must be completed for each shareholder and manager.

Prepare the Documents Required

  • Passport copy of the owner and the shareholder
  • Passport and CV of the manager
  • Drafted Memorandum of Association and Articles of Association notarized by the UAE Embassy
  • The physical address
  • Proof of trade name reservation
  • Proof of initial approval for the business incorporation
  • Proof of capital
  • Board resolution of the parent company (this is for the branch office).

Find an Office Space

Suitable office space for rent in Dubai is essential for the business, and documents for the same are provided.

Get Your License

After your application is approved, the DTC free zone authorities will provide you with a Certificate of Incorporation and a Business License.

UAE has an extensive range of textile products, from luxury and designer outfits to home textiles, from technical materials to ready-to-wear garments. As long as fabrics are concerned, this oil-producing nation is putting its best foot forward and marching ahead with advancements.

So, our consultants have years of experience in this field and can make the company incorporation process hassle-free. Contact us today to know more.

FAQs

Which Freezone is for the textile industry?

Dubai Textile City is the freezone designated for the garment industry.

How to start a garment company in Dubai?

In a nutshell, first, choose your location and submit all your documents to get your license and also register your business with approvals from the respective authorities.

Who issues a business license in Dubai?

After you get approval from the respective authorities, the Department of Economic Development will issue you the license.

To sell clothes online in the UAE, what license is required?

To sell clothes online or through any social media you require an E-trade license.

What is the cost of opening a textile company in the UAE?

It depends upon where you want to start and what type of activity you do.

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