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How to start a Textile Business Industry in Dubai

How to Start a Textile Business Industry in Dubai

The UAE has become a top destination for entrepreneurs and investors that want to conduct businesses and get outstanding results. There are several rapidly developing industries in this place, and of them is to start a textile business in Dubai.

Since the textile industry is one of the most robust in the country, it has strengthened the UAE’s economy tremendously. For this reason, if you’re considering starting a business in Dubai you have to consider establishing a corporation in the textile area.

The UAE government has developed a series of advantages for foreign investors that want to set up a business in any of its jurisdiction. In addition, the process for establishing a company is pretty straightforward and you can get 100% ownership even if you’re not an UAE national.

Therefore, if you want to get all the benefits of entering this flourishing and thriving market, you have to know how you can incorporate your textile business in the UAE. It’s important to learn everything you can about this process so you can be prepared.

What is the procedure for establishing a textile business in Dubai?

What is the procedure for establishing a textile business in Dubai?

To establish a textile business in Dubai you have to follow a few stages. However, you don’t have to worry about forming your company because thanks to the UAE Government supporting initiatives, you can do it easier than ever before.

Although it’s not so complicated, you must be careful to go through each step because you have to do things properly if you want to get an outstanding outcome.

Here we have the simplified process to incorporate your company in the UAE:

– Decide Your Trade Name

The first step to start your textile business in Dubai is deciding your trade name. Your trade name is the identification of your business, so you have to choose one that suits your activity and connects with your customers as well.

It’s important to note that the UAE has some regulations regarding the trade name for businesses. You must follow them if you want to stay in compliance with the law and get the approval for your company. Here we have the rules regarding the trade name selection:

  • Don’t use controversial words
  • Avoid mentioning any religious name since this is not allowed
  • If you’re considering naming your company after the name of a person, you have to use the full name.

It’s advisable to think about two or three trade names just in case the one that you want is already taken by another business. Once you have decided, you have to register your trade name legally.

Here you can learn about how to open a general trading company in Dubai.

– Choose an Appropriate Location

The next step for having your textile business setup in Dubai is choosing your company’s location. It’s important to find a place that can be easily located by your target audience. If you want to open a shop but you look for a location that doesn’t reach your customers, you’re not going to get any success with it. Another aspect you should consider in this matter is the size of your physical space.

When you have decided the perfect location for your company, you have to get your tenancy contract. Then, you have to register it with the Dubai Land Department to get an Ejari, which is the official document for your registration. In some cases, the Ejari is mandatory for incorporating your company.

In this regard, there are some things you have to consider first regarding the nature of your business.

See all the steps to start your business in Dubai in 2021.

Retail store business


If you want to set up a retail store you must choose an office in a place where your clients can go to easily. In this case, you must get your tenancy contract because it’s a requirement for incorporating your company.

Once you get your tenancy contract or lease agreement, you can get your Ejari. In this case, the Ejari is mandatory for establishing your business.

Textile manufacturing business

If you’re thinking about having a textile manufacturing business, you don’t have to look for an office. You have to look for a warehouse. Then, you have to get your tenancy contract and get your Ejari.

Textile import-export business

When you’re planning having a wholesale textile business or an import-export one, you get a waived off for the Ejari of your business’ physical space for the first year. So, this kind of business could be an advantage if you’re trying to test the market.

– Choose your business structure

Choosing the proper location for your textile business in Dubai can help you get more clients. Once you have done this, you have to select the structure of your business.

This refers to the legal entity of your business and how you want to operate. Therefore, this is related to the legal framework of your company, and this is a crucial step.

You have several options for your textile business, but one of the most common ones is the LLC. Many business owners choose this legal structure because it has several benefits.

Since the UAE Government announced that LLCs no longer require a local sponsor, you can have 100% ownership of your business. This is a great advantage if you want to incorporate your company with a single shareholder.

Find out how you can get your ecommerce license in Dubai.

– Submit documents for initial approval

After deciding the legal structure of textile business in Dubai, you have to gather the necessary documentation and get your initial approval.

Keep in mind that the documentation will vary depending on the kind of legal structure you have chosen. Submit the application along with the documents to the respective legal authorities.

Once the authorities have reviewed your documents and if everything’s fine you can the initial approval. This will allow you to apply for the business license so you can start your operations in the UAE.

– Get You Business License


The final step for incorporating your textile business in Dubai is to get the business license. With this document you’re allowed to conduct business in the UAE legally. It’s important to note that you’ll have to pay a fee and it will vary depending on your business legal structure. In addition, in some Free Zones the fee may be lower or higher.

After getting your initial approval, the DED (Department of Economic Development) will issue the license for your business. Keep in mind that this is the only agency appointed by the UAE authorities to issue trade licenses.

Once you have your business license you’re able to start your textile operations in the UAE. However, although this is the last step for incorporating a business, you must know that there are a few stages you have to go through before starting such as opening a bank account, hire employees and so on.

Learn more about how to set up your business in JAFZA.

What are the Benefits of Starting a Textile Business in Dubai?

You may be wondering if it’s worth to start a textile industry in Dubai. The truth is that you can get several benefits by incurring in the textile industry since it’s one of the most profitable ones in the UAE.

Whether you’re an aspiring entrepreneur or a foreign investor looking for starting a textile manufacturing business, you can get outstanding benefits of setting up a textile business in the UAE.

Access to a diverse market

Since Dubai is a hot destination for tourism and for employment as well, many people come to this place. Therefore, if you own a textile business you can target a diverse audience. And, everyone needs to buy clothes or any other item that you sell, so it’s a product that aims a diverse audience.

In addition, Dubai has been recognized as the second largest hub for imports and exports of textile goods and fashion. So, as you can see it’s very smart to own a business in this industry that reaches thousands of people.

Expo 2020

The Expo 2020 is one of the largest events that will be hosted in the UAE. It expected that more than 25 million people attend it, and since it’s a 6-month long event it will be the perfect opportunity for you to stand out your business.

It’s the perfect place for networking and make your company to get attention. Therefore, if you’re looking for getting outstanding revenues, it’s best to start incorporating your business as soon as possible. This way, you’re able to get to the Dubai Expo 2020 and start taking your new business in the road to success.


The UAE is known as a place that offers several benefits for business owners regarding taxes. Although the Authorities have changed the regulations regarding the VAT, you still get 0% income taxes as well as for personal and corporate taxes.

Simple process

Setting up a textile industry business in Dubai is pretty straightforward and quite simple. In addition, the UAE Government is highly cooperative with investors in this matter. This means that you won’t face any troubles or processes that take too long time and involve thousands of paperwork.

Also, the UAE has put in place several initiatives to make the process seamless. As a business owner, you can get several benefits and you can start conducting businesses once you get your license.

Strategic location

The UAE is located strategically, being the connection for people who come from the West and the East. And Dubai is the preferred city for international entrepreneurs and investors that want to take advantage of this perfect location.

Since it’s a place that connects the world, you have to take advantage of it. Therefore, you have to start a business that allows you to get benefits from all the people that come to this place.

Repatriation of profits and capital

The extra capital is a matter that worries several business owners when it comes to start or liquidate the company in another country. However, in Dubai you don’t have to worry about this matter.

You get the complete repatriation of the profits you have earned as well as for the capital you invested in your business.

What are the documents needed to start a textile industry business in Dubai?

What are the documents needed to start a textile business in Dubai?

To incorporate your textile business in Dubai you must gather the following documentation:

  • Copies of your passport and your business partners’
  • Copies of your visa and your business partner’s. If you’re an UAE resident you must submit a copy of your residence visa, and if you’re a non-resident you must submit your tourist visa.
  • Emirates ID copy (for UAE residents)
  • Initial approval certificate
  • Certificate for trade name registration
  • MOA (attested) with proof of approval of business information
  • Tenancy agreement and Ejari for your physical shop or warehouse (if necessary)
  • External approval from relevant authorities in the textile area

Keep in mind that these documents may vary depending on the structure of your business. In addition, the UAE Authorities may request for additional documents in case they consider it.

Be sure to have your documents attested and translated, especially when it comes to foreign documents.

ConnectZone can help you plan your textile business setup.

If you’re planning to start a textile industry in Dubai and you want to get assistance with this matter, here in ConnectZone we can assist you. Whether you’re looking for having a retail store or a wholesale business, we can help you.

Although incorporating a company is quite simple, you need to have assistance from experts if you don’t want to face any issues. Our team of specialists can help you understand everything about the process so you can get a comprehensive service that matches your requirements.

Get all the benefits of having a textile business in the UAE, which is one of the most profitable markets in the world. Just contact us  at +971 4331 6688 or and we will provide the necessary information.

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