The Dubai Emirate is an essential center for the apparel and textile business due to the presence of an ever-booming economy of luxury clothing. The manufacturers are showing an active interest and are aiming at the development of technical textiles and providing groundbreaking textile products. It will aid in delivering a timely shipment of orders and would increase the efficiency and quality of the product. However, there is no better place than Dubai when it comes to starting a new textile company. This blog details all the things that an individual needs to know about the textile industry in Dubai.
Textile Industry in Dubai
Over the last few decades, the textile industry in the United Arab Emirates has grown steadily. As Dubai has become the shopping capital of the world, this is true for both the retail and manufacturing sectors. For investors who wish to build factories to create textile products and retailers who wish to design and sell clothes, the textile sector in Dubai is quite valuable. The emirate is inviting entrepreneurs to open more and more textile companies making it become the second-largest and most popular industry in the UAE.
Due to its lack of restrictions on profit, low corporate taxes, competitive labor costs, and deficient import duty, the UAE is becoming a perfect destination for investment in the textile and apparel industries. The textile industry is an important income source for the emirate as it exports textile products to over many countries. It is also an employment opportunities creator as the business is essential for many people including customers, investors, and employees.
The retail sector has boomed in Dubai with over 16 million international visitors traveling to Dubai every year. Over the last few years, modern marketing and social media have grown the fashion apparel industry. With customers finding and making purchases online, fast fashion has taken over completely.
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Process of Textile Business Setup in Dubai
The process of starting a textile business in Dubai is easier with the help of the supportive UAE government. The following are the steps to set up a textile industry in Dubai:
Decide the Trade Name
For trade name selection, it is important to follow the rules and regulations established by the UAE government. Entrepreneurs must pick a simple name that is related to their products or services. They should not mention any religious names or use controversial words in their trade name. They must keep the full name of the person if they decide to name the company after a person. The name must be unique and must be available to register.
Select the Business Location
The entrepreneur can grab the audience and market quickly by doing the business at the right location. They must make sure that the location meets all the requirements and is for their target audience to pass by and enter their shop. They must get it registered with Dubai Land Department to avail of the Ejari once the business location is confirmed. One of the most important documents for starting a textile business in Dubai is the Ejari or the tenancy contract.
Choose the Business Structure
To define the full legal framework of the business, the entrepreneur must choose a suitable structure or formation. Moreover, an Indian investor can pick from a free zone company, mainland company, or branch office setup of a local or foreign company if they wish to open a textile business in Dubai. With either a single shareholder or multiple partners, they can also set up their textile-selling business as a Limited Liability Company.
Submit Documents for Initial Approval
Entrepreneurs must submit all the needed documents when their business legal structure is confirmed to the related legal departments. They would receive the initial approval for opening a textile company in Dubai after checking and verifying whether the documents submitted are correct. They can then conduct the work activities legally and apply for a trading license.
Obtain Business License
Acquiring the trade license for the textile trading business in Dubai is the final step. The Department of Economic Development in Dubai will issue the business license once the relevant authorities approve the application and the documents submitted.
Advantages of Textile Business in Dubai
Businessmen can enjoy several benefits by establishing a textile business in Dubai. The entrepreneur can target multiple audiences and markets since Dubai is home to many expatriates and is also popular among tourists. For fashion and textiles in the world, Dubai is the second largest import-export hub and this helps businessmen to increase their turnover.
Entrepreneurs and investors enjoy much relief as the UAE offers total tax exemption when it comes to the payment of taxes. With no income, personal, or corporate tax, UAE is one of the most tax-friendly countries in the world. This helps the investors to stay tension free as it offers complete relief from tax. Also, at the time of establishing or exiting the business, most entrepreneurs stress over the additional capital that they have to pay. However, when it is to the textile business setup in Dubai, the city offers full repatriation of capital invested and profits made.
When it comes to the business setup, the government of Dubai is very cooperative and provides several facilities to make it easy for entrepreneurs. To make the process seamless, several initiatives are taken by the government. This helps to strengthen the economy of Dubai and also increases business opportunities. It is perfect for doing business in Dubai as the emirate is an excellent and strategic location on the map offering efficient connectivity with the rest of the world.
The textile industry offers plenty of opportunities when it comes to what kind of business to invest in. The business setup consultants help the entrepreneur to establish a business setup in Dubai as it is one of the best places to start a business with its booming local economy and favorable tax regulations. They provide all the guidance for company formation in Dubai and make it run in a week or so.