The investors and business owners in India understand the garments industry inside out. Therefore, setting up a garments trading company in Dubai makes complete sense, thanks to your knowledge and field experience.
You get diverse business opportunities when you incorporate such a venture in this region. Be it a sewing/crafting business, selling readymade clothes, or garments trading – you can easily set up any of these businesses in Dubai.
In addition, the company formation experts at the UAE Expansion India branch are there to guide you at each incorporation step. Therefore, get in touch with us to enjoy a risk-free and cost-effective company formation in the UAE.
What is a garments trading business in Dubai?
You can enter Dubai’s garments trading market as a wholesaler and as a retailer. Entrepreneurs can deal in modern fabrics, design funky outfits, or trade raw materials for wholesale buy orders. Furthermore, readymade garments trading is also very popular in the Emirates.
Note that you’ll need to apply for a business licence before you can conduct your operational activities in the UAE. In addition, you might also need external approvals from government trading authorities, economic departments, etc.
How to launch a garments business in Dubai?
India’s entrepreneurs can follow the steps mentioned to set up a textile company in the Emirates:
1. Understand the UAE’s garments industry
How well do you know the local fabrics industry to start a garments business in Dubai? Also, do you have any understanding or engagement with local clothing trends?
One efficient way to prevent becoming just another struggling apparel company is to acquire practical business techniques to assist your business thrive in Dubai’s apparel sector.
Working in a store similar to the one you’d like to open in one of the city’s many malls is an excellent way to do it. In addition, learning fashion merchandising through groups like Dubai Design District (D3) also helps you comprehend the textile industry.
The apparel industry is worth $15 billion in the United Arab Emirates and growing exponentially. Furthermore, it controls the majority of the country’s retail sector too.
2. Target audience segmentation
It’s imperative to understand what’s the ideal buyer’s persona for your apparel brand. Do you plan to open a luxury clothing line, or sportswears, or readymade garments for weddings? Based on what you offer, you can segment your target audience and their demographics.
You can’t create marketing campaigns, advertising strategies, and sales funnel unless you have defined your addressable market. Therefore, discuss with your business partners and finalise your target audience.
This’ll help you to formulate optimised business strategies that’ll ensure that your products find their way into your audiences’ lifestyle.
3. Finalise fabric sourcing
The accessibility to some of the world’s finest fabric manufacturing industries is one of the benefits of living in Dubai, India, and Ethiopia are among the largest textile traders globally.
Additionally, it’s beneficial to educate yourself on the materials used in outfits while looking for a textile manufacturer. Furthermore, instead of counting just on your supplier’s guidance, you would be able to make informed design and pricing selections when you have sufficient information.
Whether you can offer your product in the premium segment or budget segment will depend on its final quality. Many Dubai clothing distributors buy in bulk from Asia and sell to markets all over the world.
4. Obtain a textile trading licence
The next step to open a garments trading company in Dubai is obtaining a trading licence. Free zone establishments need to connect with their respective jurisdictions for such a licence. On the other hand, mainland companies can communicate directly with the DED for the same.
Note that India’s investors and other business owners must renew this licence year on year. Remember, you’re not allowed to conduct a business activity that’s not permitted under your textile trading licence.
However, you don’t need to worry about these things when you collaborate with the licensing experts at the UAE Expansion. We take care of all the legalities and ensure that your licence is renewed one month before expiry.
5. Market your products
Having a strong social media presence for your business will aid in the marketing of your products. Moreover, It’ll also help you to build your customer relationships. Customers can provide valuable feedback on your products and services.
Furthermore, they are the ones who tell their friends and relatives about your new products. Quality of service and word-of-mouth publicity are crucial in the garment sector. Hence, if you don’t provide excellent customer service, your firm will suffer due to negative marketing.
Make procedures like product returns as simple as possible for your customers. Additionally, hire people that are bilingual (Arabic and English) to avoid communication barriers.
Benefits of opening a garments trading company in the UAE
Listed below are a few of the many benefits of opening a garments trading company in Dubai:
- There are no personal or company taxes to pay in Dubai. Furthermore, the cost of a garment licence trading is reasonable, and the VAT rate is a low 5%. You can also repatriate 100 percent of your profits.
- To establish Dubai as a leading business hub, the UAE’s administration continues to implement business-friendly policies, particularly for Indian and foreign companies. As a result, you can explore risk-free investing alternatives with significant yields.
- Expatriates can enjoy 100% forigen ownership of their garments company, whether it’s on the mainland or in a free zone. Hence, all you need is a dependable local service agent to assist you in obtaining a garment licence in Dubai.
Cost of setting up a garments company in Dubai
The garment trading licence cost in the UAE is around AED 29,500. Moreover, India’s investors also need to book a brand name and settle the charges for business registration too. Ensure that all the operational activities are mentioned in your clothing & apparel licence.
Furthermore, you can easily obtain additional approvals by communicating with UAE Expansion legal experts. We assist in securing external permits at no extra cost and offer post-formation support too.
Documents required to establish a clothing business in the UAE
Following is a basic list of documents required to establish a clothing business in the UAE
- Passport copies of shareholders.
- page or Entry stamp.
- Passport size Photograph.
To know more details about other documents required, reach out to our expert business consultants at UAE Expansion.
Start your garments trading company in Dubai!
You open a world of business opportunities when you start a garments trading company in Dubai. It’s the second-most traded industry in the UAE and continues to reap rich dividends for all the investors in the marketplace.
You can connect with the business experts at the UAE Expansion to know more about company formation in the Emirates. Simply book a free consultation with us and we’ll manage the rest!