Dubai, as a city, is high on fashion. It has everything, right from globally renowned brands to Arabic couture. The city has become the Middle East’s fashion oasis thanks to the retail development of the preceding decades. And UK investors, being no strangers to the ready-to-wear industry, can choose to carry the garment trading business in Dubai.
For the fashion and retail sector in the UAE, Statista Market Forecast predicted revenue of US $ 2,337 million in 2021, increasing annually by 11.88% by 2025 to reach a projected market volume of $3,662 million. Given the positive growth, a garment trading business will undoubtedly flourish in Dubai’s favourable business environment.
So if you want to start a garment trading business in Dubai, keep reading. This blog will explain all you need to set up a garment business in the UAE, including the benefits, documents, procedures, and costs.
What Are the Benefits of Starting a Garment Business in Dubai?
A businessperson may establish a company in the UAE for various reasons. The following are some of the benefits you can reap from a garment business in Dubai:
- Massive market to grab and a fantastic chance to enter local markets.
- International exposure to strengthen your brand’s visibility.
- Simple setup on the Mainland, free zone, and offshore
- There is no personal tax to be paid.
- Connectivity and a strong network that makes transit easier
- Excellent seaports
- 100% foreign possession
What Documents Do You Require to Start a Garment Business in Dubai?
All businesses in the UAE are required to adhere to the documentation requirements outlined by the governing agencies. The following documentation is necessary to launch a garment trading business in Dubai:
- A copy of your passport
- Passport-size photographs
- A copy of your entry visa
Additionally, your need for additional documentation is based on the chosen business activity, business structure, location, trade license of your clothing business in Dubai, and many more. Our setup specialists can provide you with a detailed document list based on the requirements of your garment business.
What is the Procedure to Start a Garment Business in Dubai?
To start a readymade Garment trading business in Dubai, follow these steps:
1. Recognise Dubai’s Framework for the Garment Industry
The apparel sector in the United Arab Emirates is growing. It makes up the bulk of the nation’s retail market. Consequently, you should know the regional apparel market to launch a readymade garments business in Dubai. Also, research and become familiar with regional trends. One of the best ways to avoid turning into just another unsuccessful clothes company is to acquire valuable tactics to assist your business in growing.
2. Identify Your Target Audience and Material Sourcing
Creating a fashion business without considering your target market will only harm you. Identify whom you want to serve and what you want to give them. Study the market, and see what’s trending. Search for a gap in the market and target. Furthermore, if possible, bring something new to the market to set a benchmark and carve your own niche. Additionally, you will have to decide what kind of material you want and where you want to source it from.
3. Choose a Name for Your Garment Business
You can choose and register a name for your clothing store with any of the UAE Registry Offices. The business’s name must comply with the UAE’s naming regulations. These regulations are extensive, and it will be best to have an expert opinion on your preferred names. Also, the name must be available to register. So ensure that your name is unique and speaks for you on your behalf.
4. Choose Company Structure
Dubai allows you to establish a company that follows one of the following legal structures – a limited liability company (LLC), a branch office, or a sole proprietorship. The structures can determine the right taxes for your company, the amount of control you have as a stakeholder, and more. Hence, choose it wisely.
5. Choose a Business Location
Dubai provides you with two options for where to start up your clothes business, the Mainland region and the Free zone region. Free Zones provide specific benefits, including the ability to repatriate 100% of your capital and profits.
However, establishing a Free trade zone limits your ability to operate outside that region. This is where mainland setup excels, as going with this option enables you to open branches across the country. Thus, consider your needs and expansion plans before choosing a location.
6. Apply for a License
After deciding your business’s legal structure, place of operation, and trading name, you may apply for the license. Garment trading requires a trading license. You must contact the respective free zone authority if you choose to set up your business in a free zone. However, you must contact the DED if you choose to set up on the Mainland. Carefully list the activities you will be performing since you are not allowed to carry out any operation that falls beyond the scope of your license.
7. Obtain a Trade License
After completing each stage, you may get your trade license. Your textile business in Dubai now has legal status. You can sponsor the visas of your employees and domestic staff. To manage all financial activities for your garment company, you will also have to open a corporate bank account.
8. Have an Omnipresence
Having an online presence allows you to connect with more people than you would if you only operated a physical firm. Choose the platform that offers the finest tools for maintaining and expanding your online business. For your brick-and-mortar store, you can select a selection of shopping centres, malls, kiosks, and stand-alone retail stores.
How Much Does It Cost to Start a Garment Business in Dubai?
In Dubai, the license fee for readymade garments is approximately AED 15,000, excluding trade name registration fees and company registration fees. Make sure your readymade clothing license covers your business’s activities.
Additionally, you can speak with the business specialists at Shuraa UK Branch. We offer free additional approval support as well as assistance after incorporation.
Start Your Garment Business with Shuraa
Shuraa UK Branch experts can make it straightforward to launch a garment trading business in Dubai. We will streamline the entire garment business process, location, business structure, trade license, and more for you.
We can also provide customised business formation solutions if your business has particular needs. By collaborating with us, you may benefit from the Dubai garment business. All you need to do is get in touch with us!
