How to Set Up a Textile Manufacturing Business in Dubai?

by commitbizadmin 23, Mar 2020

How to Set Up a Textile Manufacturing Business in Dubai?

Dubai, the heart of UAE, has been evolving as a prominent business destination for the global investors and business professionals. From manufacturing to selling, every business can find the region of Dubai as one of the profitable investment grounds. Setting up a business in Dubai has been made too easy as the business establishment has been increasing every year. The textile industry is one of the booming industries that has been rapidly growing and has contributed significantly, along with massive employment opportunities. If you are a business owner who is inclined towards the textile industry, you can opt for the manufacturing part. This guide will help you to understand the textile business in the region of UAE so that you can choose wisely before making any investment.

Textile Industry in the UAE

The manufacturing industry is the second-most economic sector in the UAE after the oil and gas sector. Overall, the contribution made by the UAE’s manufacturing sector to the country’s GDP stood at 9% and has been leveraging every year. The government has been trying multiple ways to boost the non-oil industry to fetch out new revenue routes for the economy. Free zones have been one of the driving factors that drive business professionals to set up a company in the UAE. One such free zone is Dubai Textile City (DTC), dedicated to the textile industry.

Dubai Textile City

Incorporated as a Joint Venture between TEXMAS, Dubai Port & Customs Authority, the Dubai Textile City is one of the free zones that is dedicated to the textile industry. Situated at the Al Awir Free Zone, the city is a business destination for the textile fabrics. It offers the business owners to carry out the activities without the payment of customs, which is generally charged at the rate of 5%. The business activities that are allowed in Dubai Textile City (DTC) includes:

  • Textile
  • Fashion
  • Trading

By starting a business in Dubai Textile City (DTC), you get the following benefits:

  • Exemption from custom duty
  • Flexibility to sublease the premise
  • Free transfer of goods
  • Extensive lease period with affordable rent

Documents Required to Start a Textile Business in Dubai

A business owner needs to hold the following documents to present to the Authorities:

  • Owners/ Shareholders passport and visa copies
  • Personal identity card of each shareholder
  • Proof of trade name reservation
  • Proof of initial approval of business information
  • Notarized MOA and AOA
  • Lease agreement stating the physical address of the office
  • Paid-up capital

How to Start a Textile Business in Dubai?

To incorporate a textile business, one needs to go through the following process:

1.Select a Strategic Location

Performing business activities at the right location would help you to grab the market in the right way. Make sure to choose a location which would be suitable for your target market to come forward and enter your business premise. In case, if you end up picking a place where the target market is completely unaware about its existence, then it would turn up to huge losses.

2.Select the Business Structure

Every business needs to select a fixed structure that would define the complete legal framework. In Dubai Textile City, a business owner can choose from any of the following structures:

  • Free Zone Limited Liability Company (FZ-LLC)
  • Free Zone Company (FZCO)
  • Branch of a Foreign or UAE Company

3.Submit the Required Essentials

After the selection of the business structure, you need to make sure to submit the respective documents to the Government Authority to complete the investigation process.

4.Obtain the Required Approvals

Once the investigation process gets complete, the required permits will be issued by the Authority, which will act as a legal permit for you to carry out the business operations.

Benefits of Starting a Textile Business in Dubai

The core benefits of establishing a textile business in Dubai are:

1.Mass Population

It is well known that Dubai is one of the hot-bed for national and international tourist. The region is home to foreign ex-pats ranging from 200 nationalities with different taste. This serves to be a benefit for the business owners to target different market and increase the business turnover.

2.Strategic Location

Located at the heart of the UAE, Dubai serves to be a gateway to the other Emirates. The business owners and investors enjoy the benefits of business expansion at ease. Also, targeting the neighbouring countries like Oman, Qatar, Saudi etc. turns out to be feasible.

3.Tax Benefits

When it comes to tax payment, business owners experience a sense of relief by setting up their business in Dubai as the region holds complete exemption to income tax. Recently, the government has implemented the VAT proceedings that need to be borne by the business entities and is fixed at 5 per cent. So, by establishing a textile business in the region of Dubai, you can enjoy multiple tax benefits.

4.Complete Repatriation of Capital Invested and Profits Earned

Many at times the business owners get tensed regarding the tax and additional amount that needs to pay after company liquidation. Well, Dubai allows the flexibility to carry out the necessary process at ease as the business owner can take back the total capital invested and profits earned.

5.Expo 2020

Much awaited World Expo 2020 is on the edge of the inauguration, which would be a game-changer for the corporate world. The event would hold enormous opportunities for small and medium enterprises, as well as established ones. Over six months, the event is expected to gather a sum of Dh.122.6 billion, with the presence of more than 25 million visitors. To understand more about Dubai Expo 2020, click here.

6.Easy Company Set Up Process

The Government has been taking numerous steps to ease the company formation process for global investors. In Dubai, the company incorporation process can be done at an effective way with the help of business consultants. Business owners prefer to choose business experts as they provide numerous benefits, which you will get to know at the later part of this guide.

7.Easy Availability of Business License

A business license is a legal permit that needs to be held by any business to carry out the relevant activities. In Dubai, the legal permit is issued by the Department of Economic Development (DED) after verifying the legal documents presented. To have a look at the different business licenses available in the UAE, click here.

Benefits of Availing Professional Services

The moment you take the professional help, the experts will be able to help you in the following ways.

  • The business plan gets implemented effectively
  • Better utilization of time and resources
  • Tasks get completed on time
  • Loopholes get figured out at the earliest
  • Experts act as a guide
  • Can provide the relevant market insights

Commitbiz Consultants is one of the top ten business consultants in Dubai who has been helping multiple business entrepreneurs and owners to set up their business in Dubai. With a team of experienced professionals, our advisors hold in-depth knowledge about business incorporation proceedings and can guide you at every step, by providing customized solutions. Ranging from incorporation steps to infusing the main pillars like accounting, auditing, etc. we take care of the complete process. If you are planning to start your textile manufacturing business in Dubai and have any query, do speak to our advisors. Contact us today-we’d be glad to assist.