How to Start a Textile Business in Dubai, UAE?

UAE is a famous destination for Indian businessmen and investors to start a textile business in Dubai. From manufacturing, producing, and selling, every business in Dubai is one of the best profit-making grounds in the world. Furthermore, starting a business in the UAE has become very easy after the announcement of full ownership for foreign investors and business owners. Moreover, the textile sector has been flourishing in recent years and is highly profitable.  

Dubai’s textile industry is the 2nd largest industry after the oil-based industry in UAE. With this, the textile business has opened many opportunities for local and international investors. So, if you are an Indian investor or entrepreneur having expertise in the textile sector, Textile Business Setup in Dubai is the perfect fit for you. In this blog, you will get details on the benefits, step-by-step process, documents needed, and cost of doing a textile business in Dubai.  

Benefits of Starting a Textile Business in Dubai

There are several benefits that Indian investors and businessmen can enjoy in establishing a textile-based business in Dubai. Have a look at the 6 key advantages of doing Textile Business Setup in Dubai.  

1. Mass Population

Dubai is one of the favorite tourist destinations among people all over the world. Furthermore, Dubai is home to foreign investors coming from varied nationalities with different tastes. Businessmen in Dubai enjoy catering to the needs of people with different choices. With a big audience, diverse markets, and increased business turnovers, the textile business in Dubai is an excellent option among Indian and foreign investors and businessmen.  

2. Attaining a Textile License is Easy 

A trade license is a legal necessity that has to be owned by any business set-up that wants to carry out its activities. The textile or any business license in Dubai is issued by the DED (Department of Economic Development) after complete verification of proposed documents.  

3. Absolute Repatriation of Capital & Profits 

Most entrepreneurs stress over the additional capital that they have to pay at the time of establishing or exiting their business. However, Dubai offers full repatriation of capital invested and profits made. So, when it is to the textile business setup in Dubai, you can be stress-free. 

4. Benefits in Taxation 

With 0% personal, business, or income taxation, the UAE serves as one of the most tax-friendly places around the globe. So, when it is about payment of textile business tax, Indian investors stay tension-free as Dubai offers complete tax relief.  

5. Easy Business Setup Procedure 

Dubai’s government has been taking several steps to make the business establishing process easy for its Indian and foreign investors. With help of business consultancy firms, you can ease the setting up of your textile business. Nowadays, many Indian investors prefer to choose business setup professionals as it is advantageous and time-effective.  

6. Excellent location on the World Map 

Dubai has one of the world’s best locations which makes global investors prefer this city. Furthermore, Dubai never cuts the supply of products or goods from the neighboring countries. All thanks to its ideal location on the world map, this city serves as a pathway to the surrounding countries and connects itself with the rest of the world. Business owners enjoy easy export-import processes. This further benefits textile businesses to not only grow in Dubai but also scale their business across other countries nearby. 

Documents Required to Start a Textile Business in Dubai 

Any businessman wishing to start a textile-based company in Dubai must have the given documents:  

• Passport copies of the shareholders.  
• Entry stamp or Visa page.  
• Passport-size photograph.  

How to Start a Textile Business in Dubai?

Starting a textile business in Dubai requires careful planning and adherence to legal requirements. Shuraa India, with over 25 years of experience, simplifies the process by handling documentation, licensing, and more. Follow these steps to establish your venture.

Step 1: Conduct Market Research

Understanding Dubai’s textile market is crucial for success. Assess consumer preferences, competitor strategies, and emerging trends. Focus on key areas like market size, growth projections, and demand for specific products such as luxury fabrics or technical textiles.

• Analyze Demand: Identify high-demand products like knitwear, home textiles, or readymade garments.
• Study Competitors: Examine established brands and niche players to find market gaps.
• Explore Trends: Stay updated on fashion trends and sustainable practices to differentiate your offerings.

Step 2: Define Your Business Activity

Decide the scope of your textile business. Options include manufacturing, trading, retailing, or e-commerce. Each activity requires specific licenses and approvals, which Shuraa India can help you secure.

• Manufacturing: Producing fabrics or garments for wholesale or private labels.
• Trading: Importing and exporting textiles or raw materials.
• Retail: Operating a physical boutique or online store.
• E-commerce: Selling textiles via platforms like Shopify or WooCommerce.

Step 3: Choose a Business Structure

Select a legal structure that aligns with your goals. Dubai offers several options, each with distinct benefits. Shuraa India’s experts can guide you in choosing the right structure.

• Sole Proprietorship: Ideal for small-scale businesses with a single owner.
• Limited Liability Company (LLC): Suitable for partnerships with shared liability.
• Free Zone Company: Offers 100% ownership and tax benefits but limits mainland trading.
• Offshore Company: Best for international trade with minimal UAE operations.

Step 4: Select a Jurisdiction

Decide whether to set up in Dubai’s mainland, a free zone, or offshore. Each jurisdiction has unique advantages, and Shuraa India can help you evaluate the best fit.

• Mainland: Allows unrestricted trading across the UAE and internationally. Requires a physical office.
• Free Zones: Zones like Dubai Textile City or IFZA offer tax exemptions and simplified setups. Ideal for export-focused businesses.
• Offshore: Suited for holding companies or international trading with no physical presence in the UAE.

Step 5: Register Your Business Name

Choose a unique and compliant trade name for your textile business. The UAE has strict naming guidelines, and Shuraa India ensures your name meets all requirements.

• Avoid offensive, religious, or political terms.
• Use full names if naming after a person (e.g., “Ahmed Textiles LLC” instead of “A.T. LLC”).
• Ensure the name is available and aligns with your brand identity.

Submit the name to the Department of Economic Development (DED) or relevant free zone authority for approval.

Step 6: Obtain a Trade License

A trade license is mandatory for operating a textile business in Dubai. The DED issues licenses for mainland businesses, while free zone authorities handle their respective zones. Shuraa India streamlines the licensing process.

• Commercial License: For trading or retailing textiles.
• Industrial License: For manufacturing fabrics or garments.
• E-commerce License: For online textile sales.

The license cost ranges from AED 21,000 to AED 25,000, depending on the jurisdiction, business size, and visa quotas. Additional approvals may be required for specific activities like importing or manufacturing.

Step 7: Secure Necessary Documents

Prepare and submit the required documents to the DED or free zone authority. Shuraa India ensures all paperwork is accurate and complete to avoid delays.

Additional documents may be needed based on your business activity or jurisdiction. Shuraa India’s consultants provide a tailored document checklist.

Step 8: Arrange Office or Warehouse Space

Secure a physical location for your business, such as an office, retail store, or warehouse. Mainland businesses require an EJARI (lease agreement), while free zones offer flexible options like virtual offices. Shuraa India assists in finding cost-effective spaces.

• Mainland: Rent office space in commercial hubs like Sheikh Zayed Road or Business Bay.
• Free Zones: Use shared facilities in zones like IFZA, RAKEZ, and Ajman.
• E-commerce: Opt for virtual offices to minimize costs.

Step 9: Apply for Visas

Obtain visas for yourself, partners, and employees. The number of visas depends on your license’s visa quota. Shuraa India handles visa applications through the Ministry of Human Resources and Emiratisation (MOHRE).

• Investor/Partner Visa: For business owners.
• Employee Visa: For staff, applied at least 30 days before their arrival.
• Family Visa: For dependents, available with long-term residency options like the Golden Visa.

Step 10: Open a Corporate Bank Account

A corporate bank account is essential for business transactions. Dubai offers numerous banks with tailored services for entrepreneurs. Shuraa India facilitates account opening with minimal hassle.

• Provide your trade license, passport copies, and business plan.
• Choose banks like Emirates NBD, Mashreq, or HSBC for business-friendly services.
• Ensure compliance with UAE banking regulations.

Step 11: Register for VAT (If Applicable)

If your annual taxable supplies exceed AED 375,000, register for VAT with the Federal Tax Authority. The standard VAT rate is 5%, applied to sales within the UAE. Shuraa India guides you through VAT registration and compliance.

Step 12: Build a Supply Chain

Establish a reliable supply chain to ensure smooth operations. Source materials from trusted suppliers and arrange efficient transportation. Shuraa India can connect you with regional suppliers and logistics partners.

• Suppliers: Partner with manufacturers in India, China, or Bangladesh for cost-effective materials.
• Quality Control: Implement strict quality checks to meet UAE standards.
• Logistics: Use Dubai’s world-class ports and airports for seamless distribution.

Cost to start a textile business in Dubai

Starting a textile business in Dubai typically costs between AED 21,000 and AED 25,000, depending on the business setup, location, and license type. This investment covers registration, initial approvals, and other essential requirements for launching your textile venture.

• Business name registration fee 
• Government fee 
• Private sponsor fee  
• Types of textile you wish to manufacture or trade (basic or luxury) 
• Tenancy security and lease cost.  

Why Choose Shuraa India for Your Textile Business Setup?

Shuraa India, with over 25+ years of experience and 100,000+ successful company setups, is your trusted partner for starting a textile business in Dubai. Their comprehensive services ensure a hassle-free process, allowing you to focus on growth.

• Expert Guidance: Tailored advice on jurisdiction, licensing, and business structure.
• Documentation Support: Accurate preparation and submission of all paperwork.
• Cost Optimization: Affordable packages and negotiation with service providers.
• Ongoing Assistance: PRO services, visa processing, and compliance management.
• Local Expertise: In-depth knowledge of UAE regulations and market dynamics.

Get your UAE Textile license With Shuraa India

Dubai’s garment sector is growing fast with high demand for luxury products in the market. With UAE’s strong purchasing power and immense affection for luxury, creates opportunities for Indian entrepreneurs and investors to set up textile companies in Dubai.

So, to get an estimate of your business setup needs, it is ideal to approach a professional business consultancy agent. By doing so, you will easily be able to set up a textile business in UAE from scratch and make it run in a week or so. 

Click here to book a free consultation with our experts at Shuraa India and know more about setting up your textile business in Dubai.