How to set up a textile business in Dubai

Textile Business in Dubai

The textile business has significant potential in the commercial hub of UAE- Dubai, so you can expect substantial profit if you want to set up a textile business in Dubai. The best thing about this business setup is that it would allow you to own 100 percent of your business. At first, you can’t have 100 percent ownership of your business as a foreigner, but a recent announcement from the government has changed this situation. As a result, British and American entrepreneurs are more interested in setting up a textile business in a zero-tax city.

Prospr is here to offer you a comprehensive guide to starting a textile business in the UAE. 

How to set up a textile company in the UAE?

Here are some steps you need to follow.

Step 1-Choose Jurisdiction

There are two main jurisdiction options for you to choose from. One is the mainland, and the second is the free zone. Each jurisdiction has its advantages and disadvantages. So, here is a guide that explains the difference between the Mainland and the Freezone. Once you have read it all, picking the one suitable for your business idea will be easier.

Select company structure

Since you must set up a company and decide on its legal structure. Here are some options you can consider:

  • Public/Private Shareholding Company
  • Limited Liability Company (link LLC)
  • Sole Proprietorship 
  • General Partnership 

Step 2-Trade name registration 

Another essential step for company setup in Dubai is choosing a trade name. Make sure that this name meets the guidelines set by authorities. The UAE government has provided specific guidelines for business name selection. So, try to choose a name the government allows and then register it.

Step 3-Initial Approval

Since you are setting up a business in Dubai, you must seek initial approval from the Department of Economic Development. There is an application form you will pay for by providing all the business information. Submit this application to gain acceptance.

Step 4- Setup business office

As per your textile business requirement, you must either set up a head office or lease a factory or warehouse. Once you rent all the official places, you must sign a lease agreement and get an Ejari certificate.

Step 5- External approvals

Since you are going to start a textile business in Dubai, you will need external approvals from the Dubai manufacturing and textile selling departments.

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Step 6- License application

Once you have initial approval, external approval, a trade name certificate, an Ejari certificate, etc., you are ready to apply for a textile business license in Dubai. Pay the license fee, which is around AED 21,000 to 25000. Apply and wait for an approval email. 

How to set up a textile business in Dubai 2

Step 7-Collect the license

Once you apply, DED will process it, which may take one or two weeks. Once your license is ready, you will get an email about it. Collect your trade license.

Step 8- MOHRE registration

You can start conducting your business there as you have your business license in Dubai. You can’t do it all alone and need to hire your employees. Therefore, you need to register with the Immigration Department and Labor Department, which is named MOHRE. This registration is necessary if you issue an investor visa, partner visa, or employee visa under your company name.

Step 8- Corporate bank account

Once you start running a business, you must get involved in different financial transactions. You need to set up a corporate bank account. Thankfully, at this stage, you have all the required documents to continue with opening a corporate bank account in Dubai.

How much does it cost to get a textile trade license in Dubai?

If you want to run a textile trading business, you need to acquire a license from DED for 21,000 to 25,000 AED. 

You must know that the overall cost of your business setup depends on various factors. The first thing is your company’s size, location, and type. Small businesses or startups cost less than a multinational company.

When you have no clear idea about the exact cost estimate of your textile business in Dubai, it’s always a good idea to consult with expert business consultants at Prosper. We help you find the best textile trading niche and let you understand the UAE market. No matter what business idea you have in mind, we can offer a feasibility report so you will understand

Documents needed to start a textile business in Dubai

To obtain your textile business trade license in Dubai, you’ll have to provide the following documents to the Dubai Department of Economic Development (DED):

  • Trade name certificate
  • A Memorandum of Association (MoA) with proof of approved business details.
  • The lease agreement and Ejari are proof of the physical address of your shop or factory (if applicable).
  • Passport copy of you and all your business partners.
  • Visa coop of you and your partners. If you’re a UAE resident, submit a copy of your UAE residency visa; if not, provide a copy of your tourist visa.
  • Emirates ID copy for you and your partners if you’re UAE residents.
  • Initial approval certificate.
  • Approvals from relevant departments for textile selling and manufacturing.

Does Dubai have a textile industry?

Yes, the textile industry is booming in Dubai. If you plan to choose a specific niche in Dubai, you can select either textile trade or export. Both options are plentiful. Export policies are pretty favorable in Dubai, and given Dubai’s strategic position, you can easily export to the Asian and European regions. Textile manufacturing and trade on the regional side of the UAE are other profitable niches. You can even start a textile e-commerce business to enjoy substantial growth and profit.

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Let Prospr help you Set up a textile business 

Prosper has helped many foreigners and expats to set up their businesses successfully in the UAE, and thereby, we are always here to offer you assistance and guidance regarding your textile business setup. Feel free to send us inquiries at hello@prosprplus.ae

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Samad Ahmed

Samad is a tech enthusiast dedicated to delivering socially responsible, ethical, and transparent products in the MENA region. With over a decade of business experience, he continues to support the entrepreneurial community as the owner of Prospr, a company specializing in business setup services across the UAE, particularly in Dubai.

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