When you consider the fact that Dubai is a global tourist destination and hosts multiple international fashion weeks every year; the idea of how to start clothing business in Dubai sounds like gold. And for the most part, it is.
The Emirate is home to a plethora of global brands ranging from designer apparel to everyday wear. It is also the home of people from 200+ different nations, which makes a very diverse market to contend in.
That said, starting your clothing business in Dubai can lead to plenty of opportunities. Here is all you need to know about how to start clothing business in UAE, from the required licenses to the registration steps.
What License is Required to Start a Clothing Shop in Dubai?
If you want to setup a clothing business in Dubai, you would need to obtain a Dubai trade license. There is no need for any additional licenses or permits, which is a plus point.
The process of obtaining a trade license in Dubai is handled and supervised by the Department of Economic Development (DED). In order to commence the process, you will have to fulfill the set prerequisites and submit certain required documents.
How to Start Online Clothing Business in Dubai?
To start online clothing business in Dubai, you will need to fulfill the following requirements:
Legal Requirements
Prior to applying for a trade license, you will need to fulfill some legal requirements, including the following:
1. Draw Up a Business Plan
Your business plan must contain figures regarding your investment capital, vision, aim, and price range. It should also mention the activities you wish to carry out (10 activities are allowed per license).
Additionally, if you wish to set up an online store for your brand, you will have to mention it in your business plan as well. Details of the e-commerce process are mentioned in the later paragraphs.
2. Choose the Region
Dubai offers you two regions to set up your clothing business in;
- Mainland area
- Free Trade Zones (FTZs)
The second option is the popular one amongst expatriates. This is due to the fact that foreigners can own 100% of their company here, as opposed to giving a local sponsor 51% in the mainland area.
Free Trade Zones also offer special perks such as zero corporate and import/export taxes and the permission to repatriate 100% of your capital and profits to your country of origin.
On the other hand, however, setting up in a FTZ restricts you to operating within that jurisdiction. This is where mainland setup triumphs, as choosing this option allows you to open branches anywhere in the nation.
For a better recommendation on which region to pick, consider the services of a business set up consultant.
3. Narrow Down Supply Vendor
To establish a cloth business, you will need to narrow down a reliable vendor that will provide you with quality material at reasonable rates. This shouldn’t be too difficult considering Dubai’s geographical proximity to multiple cloth producing nations such as; Pakistan, India, China etc.
With that said, the importance of this step is a no brainer and should be one of your utmost priorities before trying to acquire a trade license in Dubai.
How to Obtain a General Trade License in Dubai
Once you have fulfilled the above-mentioned legal criteria, you may apply for initial approval from the DED. The steps that you need to take are as following.
- Pick a name for your company which is in accordance with the regulations laid out by the local government.
- Narrow down the business activities you wish to carry out.
- Select the region you wish to set up in. (Mainland or FTZ)
- Fill out the application and submit it to the Department of Economic Development for primary approval.
- Gather all documents relevant to the procedure.
- Rent a premise out to get a valid commercial address and tenancy contract.
- Get approval of your tenancy contract from Ejari (Land Department).
- Turn in your completed application form and required documents to the DED again.
- Wait for their final approval.
- Pay the trade license fee voucher that is provided upon approval.
Source: https://www.companysetup.ae/how-to-start-clothing-business-in-dubai/
