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How to Start a Garments Trading Company in Dubai?

Start a Garments Trading Company in Dubai

How to Start a Garments Trading Company in Dubai?

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Dubai is known for its bustling trade and business-friendly environment, making it an ideal location for entrepreneurs looking to venture into the garments trading sector. The city serves as a gateway between the East and the West, attracting international buyers and offering a wide range of opportunities for those in the fashion industry. 

The garments trading industry in Dubai is highly competitive, but it also offers numerous benefits for aspiring business owners. This means that starting a garments trading company in Dubai can offer significant financial advantages. 

Let’s understand the process of starting a garments trading company in Dubai, benefits, garments trading license cost, and more. 

Garments Trading Industry in Dubai 

The garment trading industry in Dubai is a rapidly growing sector that plays a significant role in the emirate's economy. Dubai's strategic location at the crossroads of Europe, Asia, and Africa, coupled with its well-developed infrastructure and business-friendly policies, has made it a major hub for garment trading and re-export. 

Dubai imports garments from all over the world and then re-exports them to other countries in the region. Dubai also has a growing garment manufacturing industry, which produces garments for both the domestic and export markets. 

The garment trading industry in Dubai is expected to continue growing in the coming years, driven by factors such as rising disposable incomes, increasing tourism, and the growing popularity of e-commerce. 

The industry is also witnessing a shift towards more sustainable and ethical practices, with consumers becoming increasingly conscious of the environmental and social impact of their clothing choices. 

Benefits of Starting a Garment Trading Company in Dubai

Starting a garment trading company in Dubai comes with several potential benefits, making it an attractive option for entrepreneurs. Here are some key advantages: 

  • Dubai sits at the crossroads of Europe, Asia, and Africa, facilitating easy access to a vast consumer base and diverse markets. 
  • World-class ports, airports, and logistics networks ensure efficient import, export, and re-export of garments. 
  • Dubai serves as a major re-export centre, allowing you to reach even wider markets beyond the immediate region. 
  • Many free zones offer benefits like 100% foreign ownership, relaxed regulations, and ease of company setup. 
  • Dubai offers a highly attractive tax environment for businesses that helps in boosting profitability. 
  • Dubai hosts prestigious fashion events, attracting international designers and brands, and offering potential networking and collaboration opportunities. 
  • The region's rising e-commerce adoption creates new avenues for online sales and market reach. 

Documents Required for Business Setup in Dubai

  • Completed application form (provided by the relevant authority) 
  • Business plan outlining your goals, operations, and financial projections 
  • Passport copies of all shareholders, directors, and managers 
  • Passport-size photos of shareholders and directors 
  • Approvals from other government entities based on your specific business activity 
  • Trade name reservation certificate 
  • No Objection Certificate (NOC) from the sponsor (if applicable) 
  • Bank reference letter 

Please remember that this list is not exhaustive, and additional documents may be required depending on your specific circumstances. We highly recommend seeking professional advice from one of our business setup experts at Shuraa. 

How to Start a Garment Trading Company in Dubai?

Starting a garment trading company in Dubai involves several steps. Here is a step-by-step process for establishing your business in Dubai: 

Step 1: Define your Business Model

Choose between operating on the mainland (direct access to the local market) or within a free zone (benefits like 100% foreign ownership). Consider factors like target market, desired flexibility, and budget. 

Step 2: Choose a Trade Name and Legal Structure

Select a unique and relevant trade name following naming regulations. Decide on the legal structure such as LLC based on your ownership and liability preferences. 

Step 3: Apply for Business License and Register Your Company

Apply through the Department of Economic Development (DED) and obtain a trade license. If you're establishing a business in Freezone, apply through the chosen free zone authority. Submit required documents (passport copies, 2 passport-size photographs MOA, business plan, etc.). Pay license fees and secure required approvals. 

Step 4: Open a Corporate Bank Account

Open a local bank account for business transactions and financial management. 

Step 5: Secure an Office Space and Warehouse (Optional)

Depending on your model, secure an office and/or warehouse space that meets regulations and your operational needs. 

Step 6: Sourcing and Supply Chain

Identify reliable garment suppliers, both locally and internationally. Establish relationships with manufacturers for a steady supply. Develop a robust and efficient supply chain to ensure timely deliveries. 

Step 7: Additional Considerations

Secure necessary visas and work permits for employees as needed. Comply with labour laws, health and safety regulations, and environmental standards. 

What is the Garments Trading License Cost in Dubai

The cost of a garment trading license in Dubai generally starts from AED 14,999* but can vary depending on several factors, including: 

  • Location (mainland or free zone) 
  • Business activities (General trading license or Specific garment categories) 
  • Company size and structure 
  • Visa requirements 
  • Office space 

These are estimated costs and can vary depending on specific circumstances. It's crucial to consult with business setup specialists in Dubai such as Shuraa Business Setup for accurate cost assessments tailored to your specific situation. 

Start with Shuraa

Don't let the initial steps deter you. By understanding the process, its potential challenges, and the estimated costs involved, you can approach your business venture with informed confidence. Remember, you're not alone in this journey. Shuraa is here to empower your garment trading aspirations in Dubai.  

From company registration and licensing to documentation, office space, visa assistance, and ongoing PRO services, we provide comprehensive support every step of the way. Contact Shuraa today and schedule a free consultation! 

Book a Free Consultation

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