Dubai has a long history as a global trading location. Before the days of oil, the emirate’s pearl divers sold their wares to merchants the world over. Today, there is very little that is not traded out here – from electronics and textiles to spices and precious stones.
This article looks at one of Dubai’s multimillion-dollar industries – garment trading. We’ll cover these areas:
- An overview of the garments business in Dubai
- Garments trading license in Dubai – Step by step
- Cost of starting a garments trading business in Dubai
- Advantages of starting a garments trading business in Dubai
- Is the clothing business profitable in Dubai?
- How can I sell my garments in Dubai?
- How Worldwide Formations can help
An overview of the garments business in Dubai
The UAE exports garments, fabrics and apparel to over 50 countries across Africa, Asia, the Middle East and Europe. Such reach makes the UAE one of the world’s most significant garment trading hubs.
Pre-pandemic, UAE clothing and textile exports totalled over USD 4bn. With recovery now underway, total revenues in the apparel industry are expected to hit USD 3.7bn by the end of the year and increase to USD 5.3bn by 2027.
Such is the UAE’s appetite for clothing that the country’s per capita spending, at around the USD 500 mark, is the second highest in the Middle East.
Garments trading license in Dubai – Step by Step
Dubai is built for business. But, that said, company formation requires an expert eye. So, before starting a garment company, it’s always beneficial to speak to a local expert such as Worldwide Formations.
Once we understand your business and its requirements, we’ll guide you through the entire process, handling applications and liaising with authorities on your behalf.
There are five basic steps to the process.
Step 1: Business activities
When starting a business in Dubai, you’ll need to be clear about the types of activities you wish to carry out. When starting a garment business, this may mean specifying whether you plan to import and export garments wholesale or sell directly to customers in the UAE.
Your business activities may dictate the most suitable license and setup type for your company, so once we understand your intentions, we can advise on the best way forward.
Step 2: Company name
Once you have outlined your activities, you’ll need to choose a name for your business. There are several stipulations to consider at this stage to ensure you adhere to UAE company naming conventions.
For example, your business name cannot be the same as one used by an existing business in the UAE. In addition, it should not contain any blasphemous or offensive language or have any religious connotations.
Step 3: Trade license
Next, we will help you apply for your garment business license. The process here differs slightly depending on whether you are setting up in a free zone or the mainland. If you choose the latter, you may also require additional permits and approvals before you can start trading.
Whatever your requirements, the team at Worldwide Formations will manage this process for you, liaising with all government bodies and relevant authorities on your behalf.
Step 4: Visas
As the owner of a Dubai business, you are eligible for a visa that allows you to live and work in the UAE. At this stage, you can also secure any other visas that may be required, such as your family’s or employees’.
The visa process comprises four stages, from obtaining an entry permit and passing a medical examination to submitting your ID registration and getting your visa stamp from Immigration. Once again, Worldwide Formations can guide you through this process.
Step 5: Corporate bank account
You will need a corporate bank account to make and take payments in the UAE. There are many institutions available, and once we understand your needs, we can advise on the most suited to your business.
Cost of starting a garments trading business in Dubai
The cost of starting a garment business depends on many factors, with the size, location and nature of your enterprise all playing a part.
For starters, a garment trading license costs in the region of AED 10,000 to AED 30,000. On top of this, you’ll also need to account for premises, staff, visas, equipment, materials, and more. If you plan to import goods from overseas, you will also have to pay customs tax unless you are set up in a free zone.
For a complete and personalised breakdown of the costs involved in starting your Dubai garment business, get in touch with the team at Worldwide Formations.
Advantages of starting a garments trading business in Dubai
One of the biggest advantages of starting any trading business in Dubai is the UAE’s strategic location. At the heart of the Middle East, it is perfectly placed to trade with Africa, Asia, Europe and further afield.
With direct links via air and sea to industry hubs around the world, there can be few better places from which to import and export garments, textiles and much more.
On top of this, there is Dubai’s welcoming and supportive business environment. There are many private and state-supported accelerator schemes and incubators designed to help small businesses grow and succeed. What’s more, the UAE’s tax rate still stands at 0% on corporate and personal income, while VAT is low and flat at 5%.
When it comes to garment trading, demand is another key factor. Not only are UAE residents keen clothing consumers, but the country has also garnered a reputation as a key exporter of all manner of apparel and materials.
The company incorporation process is fast and straightforward when you set up with experts at Worldwide Formations. Your dedicated contact will advise and guide you through the entire process, informing you as soon as you are ready to trade.
Is the clothing business profitable in Dubai?
It certainly can be. While revenues will differ depending on the types of clothing you are selling, garment trading in Dubai is a multibillion-dollar industry.
How can I sell my garments in Dubai?
There are several ways to sell garments in Dubai. You can sell online or in-person direct to consumers or export garments wholesale to markets around the world.
How Worldwide Formations can help
With the right guidance, setting up a garment trading company in Dubai, UAE, can be a highly profitable endeavour. However, the process of incorporating a business out here can be complex, particularly if you are new to this part of the world.
That’s where Worldwide Formations comes in. We’re the experts in all things relating to business setup in the UAE, and we’re on hand to manage the entire company formation process on your behalf.
Our expert team will take care of licenses, visas and everything else needed. Get in touch for more information and a personalised quote.
