How To Start a Textile Business in Dubai?

Textile Business in Dubai

Dubai, the commercial hub of the United Arab Emirates, has grown to become a well-known business hub for professionals, investors, and businesspeople from around the world. Global investors are attracted to the most business-friendly environments and set up shops in a variety of lucrative areas like tourism, medical equipment, and most importantly, the textile industry. Do you intend to launch a textile business in Dubai as well? You’ve come to the correct place.

The guide gives you in-depth information on how to launch a textile company in Dubai and other topics. Let’s examine this in more depth.

Dubai’s Textile Industry

Due to Dubai’s prominence as the region’s leading commercial hub, textile and textile luxury items experienced significant development in 2022. For foreign investors, it makes sense to establish a textile business there. The process of company formation in the emirate is suitable for textile businesses given that Dubai is a gateway to the Middle East and a very lucrative international market. Foreign investors are welcome to establish their businesses in Dubai and get numerous perks, including 100% ownership.

Dubai Textile Trading License

The textile industry in the UAE exports its goods to more than 50 additional countries in addition to a rising market. The support of the government, ease of travel to all parts of the world, the country’s robust infrastructure, low taxes, etc. are all benefits for investors.

Potential investors who want to launch a textile trading company in Dubai must carry out the relevant procedures, which includes obtaining a business license. The statutory power is granted by Dubai’s Department of Economic Development (DED) following a comprehensive review of the candidate’s supplied legal papers.

Dubai Textile Trading License Cost

Add on to this immigration costs and office rent, and the cost of a textile trading license in Dubai ranges from 15,000 to 25,000 AED.

However, several variables, such as the size, nature, and kind of your firm, may affect the cost of a textile business license in Dubai. The size of the business, the type of license, and the jurisdiction may all affect the license fees. It is strongly advised that you speak with a reputable business setup advisor in Dubai who can assist you in quickly obtaining a trade license.

Advantages of starting a textile company in Dubai

There are countless advantages to starting a textile business in Dubai. One hundred percent ownership of the company, a simple and straightforward formation process, tax advantages, and other advantages are available to investors.

Mass Population

It is common knowledge that both domestic and international travelers swarm Dubai. The nation is home to expats of many ethnicities and tastes. By utilizing this cultural diversity, business owners and entrepreneurs can increase their revenue by targeting a variety of markets.

Strategic Positioning

Middle-of-the-country Dubai serves as a gateway to the other Emirates. Easy business expansion is advantageous to both investors and business owners. Targeting surrounding countries like Oman, Qatar, Saudi Arabia, etc. is also advantageous. For any investor, opening a textile business in Dubai would always be a wise choice.

Tax Advantages

Dubai provides a complete income tax exemption, therefore opening a business there relieves business owners of their tax obligations. The UAE government has enacted VAT regulations with a 5% cap. Therefore, by opening a textile firm in Dubai, you may benefit from these favorable tax rules.

Establishment of a Business

The UAE government has consistently worked to make it simpler for international entrepreneurs to establish operations there. The procedure of forming a company in Dubai can be successfully finished with the aid of business experts.

Simple Process for Getting a License

A business license is required of investors who wish to run firms in Dubai. Potential investors in Dubai are granted statutory authorization by the Department of Economic Development (DED). In Dubai, you can also obtain your license for textile dealing.

Documents Needed to Open a Textile Company in Dubai

You must submit the following paperwork to the Dubai DED in order to obtain your trade license for operating a textile business there.

  • Initial certification of approval.
  • Certificate of Trade Name Registration.
  • Copies of the shareholders’ and investor’s passports
  • Visa documentation for each of your business partners.
  • A MOA with an attested copy of the firm information’s approval.
  • Provide a copy of your residence visa if you reside in the United Arab Emirates.
  • Give the DED a copy of your passport if you are a tourist.
  • Approval from the appropriate textile departments for the production or sale of goods.
  • If you and your business partners are UAE citizens, please submit copies of your IDs.
  • Ejari and a leasing agreement serve as verification of physical address.

How to Launch a Textile Company in Dubai?

In the United Arab Emirates, starting a textile business is an easy process that can be completed swiftly with the help of the government.

Select a trade name

Choose a name for your business that must be succinct, straightforward, and memorable. It must accurately represent your brand and be related to the products and services you are offering. But there are some guidelines to follow when choosing a trade name. The titles of your businesses shouldn’t be offensive to religion or convey any bad feelings. Use full, proper names instead of abbreviations.

Choose the Proper Jurisdiction

You must decide between the mainland and the free zone as your jurisdiction if you want to launch a textile business in Dubai. Dubai Textile City is a free zone designated for companies operating in the apparel industry. On the other hand, you may launch your company on the mainland and trade anywhere.

Decide on a legal structure.

The legal form of your firm must be determined based on the number of shareholders. Remember that both the DED and the free zone authorities accept different legal forms. To select the ideal legal structure for your textile business, you can speak with professionals in company formation in Dubai.

Deliver documents for review

Provide the pertinent legal documents to the relevant authorities once the business’s legal framework and structure have been decided. If everything is in order, the authorities will examine the documentation and give you preliminary approval to start a textile business in Dubai.

Register your license with the labor and immigration departments.

As soon as you have a business license in Dubai, you must register with the MOHRE’s immigration and labor divisions in order to obtain employee or investor visas for the business.

Apply for a visa for your employees.

It’s crucial to have the employees’ visas ready before you bring them in. Apply at least 30 days prior to the arrival of your staff so they can arrive with a visit visa already in hand.

Create a business bank account.

Registering with the bank is the final step. If you want to start a business, you must apply for and obtain a corporate account.


For international investors starting a textiles business in Dubai, it’s crucial to understand the legal prerequisites for business setup. To operate your business successfully, you need to get off to the ideal start. UAE Expansion is one of the best business setup consultants in Dubai that can assist you.

Our staff of highly experienced professionals can provide you with information on immigration and labor legislation in the UAE. We can also guide you through the ESR, UBO, and VAT compliance needs.

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