How to Establish a Clothing Business in Dubai?

by Zaara 05, May 2020

How to Establish a Clothing Business in Dubai?

The fashion industry one of the leading industries worldwide and with a growing population, there is no surprise that it will be reaching new statures for sure. Based on the data, it has been found that the online stores have become an $80 billion industry and it is by far one of the most popular eCommerce niches. If you are an artistic entrepreneur with a vision and if your passion lies in both business and clothes, then it will be a rewarding experience to start a clothing line business.

The start-up scene for clothing brands in the United Arab Emirates is getting bigger and bigger, with regional and independent retailers delivering unique and innovative designs that challenge the offerings of well-known, international brands. However, setting up a fashion business in the UAE is not a simple task. Not only do designers face fierce competition from the local designers but also international brands with substantial market shares. While many designers in the Emirate have the skill and passion to create beautiful clothing, they mostly lack the business knowledge and support networks to execute their plans and make their fashion brands a success.

An Outline of the Fashion Industry

Fashion has now become a symbol of personality, as people wear them consequently to represent themselves. Thus, it has unlocked many opportunities for passionate people to set up their own clothing business. If you want to start a business in a clothing line, you need to possess organisational skills along with creativity. Your business will be successful if you inculcate these skills.

How to Start a Clothing Business in Dubai?

Starting a clothing store is a great way to debut a legitimate business in Dubai. Here’s how you can incorporate this business.

1.License

To start a clothing business, the first step is to get a permit. Dubai offers a variety of eCommerce licenses in different jurisdictions from the mainland to free zone. Selecting a business license depends on the availability of capital and a specific legal structure. Having a trade license will allow the business to legally operate in the region with access to government facilities and other incentives.

2.Documents

Next step involves submitting necessary documents to the Dubai Department of Economic Development (DED) which includes passport copies and IDs of shareholders and directors, files and attested online application form, proof of residential address, business plan, and lease agreement

3.Office Space

Getting an office space entirely depends on brands operational preferences, jurisdictions and budget. If you are setting up a fashion store in Dubai mainland, then this step is compulsory. The free zones do not have the compulsion of having an office space. But since it’s a clothing business, you need a shop space or in case of wholesale garment business, finalise a business centre in Dubai.

4.Logistics Support

Well-developed infrastructure, an extensive network of superhighways, and access to international markets make Dubai an excellent location for almost all types of industries. As a part of the brand’s logistics approach, it is vital to partner with a consistent shipping company that can deliver bought items safely on time to the buyer’s address. Shipping firms in Dubai offer a range of corporate packages for e-commerce stores based on the specific needs of the brand.

Once you pay the fees for license, you will get the business license as well as the Certificate of Incorporation. Now you can import, export, and sell your clothes to different customers.

How is Dubai Adapting to the Rise of the Fashion Industry?

It appears as though Dubai has taken note of the rise of startup fashion businesses in other countries like the United Kingdom and the United States by bringing in new initiatives to drive up the revenue of this sector.

A prime example is the construction of Dubai Design District. The D3 free zone is a site that houses fashion, design, and luxury brands. The inkling behind the district is that it will make Dubai a global destination for fashion designers like Paris, New York, and Milan. The initiative is backed by Dubai Design and Fashion Council whose purpose is to nurture native talent and support start-ups by creating mentorships, scholarships, and collaborations for local designers to use to carve their futures in the fashion industry.

EndNote

Dubai is quickly evolving like a fashion hub in the UAE due to the support that upcoming designers are getting from the international fashion enterprises as well as the local government and consumers. Should you decide to start your clothing line in Dubai, UAE then we at Commitbiz can help you with it. Our consultants have years of experience in this field and can make the process hassle-free. Contact us today – we’d be happy to help you.

FAQs

1. In which regions can a garment company in Dubai be incorporated?

A garment company can be started in the mainland, free zones, or the offshore region in the city.

2. Do we get 100% ownership of a garment business in Dubai?

Yes, you do get 100% ownership of your clothing company in the Emirate.

3. Which license is required for clothing manufacturers in Dubai?

An e-commerce license must be obtained for starting a cloth-producing company in the city.

4. Which free zone is preferable for the Dubai fashion industry?

The Dubai Design District free zone is preferred for the fashion industry.

5. What is the purpose of the Dubai Design and Fashion Council?

The Dubai Design and Fashion Council aims to create mentorships, scholarships, and partnerships for local designers to use as they sculpt their futures to develop domestic talent and encourage start-ups.

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