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How To Start a Clothing Business in UAE

Starting a clothing business in the UAE is a great idea because it is a global fashion hub and attracts many fashion lovers. Your business in the UAE can be very successful due to a supportive and friendly environment. Here is a simple guide on how to start a clothing business in UAE

Steps to Start a Clothing Business in the UAE

clothing business

1. Draw Up a Business Plan

Your business plan must contain detailed information about how much you are going to invest in your clothing business, your vision and goals regarding your business, and your price range. You can also mention up to 10 activities per license that you want to do. Your business plan should be unique so that your business can stand out so you can achieve your goals. 

2. Choose a Location

Starting a clothing business in UAE means you can choose where you want to locate your business between mainland areas and free zones. Entrepreneurs often choose free zones to start there because they get 100% ownership of their business. But in the mainland, they only get 49% ownership of their business while the local sponsor gets 51% ownership. However, starting a business in both of these areas is beneficial in their own way. 

What is Mainland and Free Zone?

Mainland in the UAE are chosen areas where starting a business means your business will be officially registered with the Ministry of Economy and managed by the Department of Economic Development. Mainland businesses can operate within the UAE and outside the UAE including the free zones. 

Free zones are also specially chosen areas in each Emirate, and each has its own rules. Free Zone Authority manages these areas. Those who invest in free zones get many benefits like full ownership, no taxes, etc. There are over 40 free zones in the UAE. However, businesses in these free zones can not trade in the mainland areas directly unless they work with local agents. Other than that these companies can trade within the specific free zone area they are operating in, internationally, and they can also trade with companies in other free zones in the entire UAE. 

3. Obtain License and Permits

Operating under rules and regulations is very important in the UAE. For that, you need to obtain a trade license and other permits. To obtain a trade license for your garment business, you need to visit the DED (Department of Economic Development). You will have to fill out an application form and submit it. Along with the application form, other required documents are needed to be submitted. After paying the license fee wait for the approval of your license. 

Documents Required for Setting Up a Clothing Business in the UAE

To acquire your trade license for your clothing business in UAE, you need to submit some documents according to the jurisdiction rules of the specific Emirate in the UAE where you are going to start your clothing business. These documents are:

  • A business plan with all the details
  • Application form 
  • Visa 
  • Passport
  • Emirates ID as proof that you are a UAE resident
  • NOC from the sponsor
  • MOA
  • Approved tenancy contract from the land department
  • Approval from relevant authorities

4. Find a Supply Vendor

The next step in starting a clothing business in UAE is, finding a good supply vendor who can provide you with good material at fair prices. Make sure to buy good-quality raw materials and machinery to keep your clothing business running smoothly. 

5. Rent a Warehouse and Shop

To run your clothing business in UAE, you need to rent a warehouse and a shop to sell and store your garment stocks. Choose a strategic location for your retail shop so that you can attract lots of customers. Also, make sure that the area in the shop is spacious enough with a beautiful interior design and layout. 

6. Hire Employees

Hiring a skilled staff for your garment business is the next step. It is a very important step because the fashion and garment industry of the UAE is very competitive and having skilled employees can make your clothing business successful. 

7. Branding and Advertising

Create a strategy for branding and advertising that is unique but effective for your clothing business in the UAE. To grow your business investing in branding and advertising is important so that your business can get recognition the the competitive fashion and garment industry. Once your business gains recognition, it will start to grow. 

These are the top needs of starting a clothing business in the UAE. The fashion Industry in the UAE is growing and starting a clothing business can be very profitable. If you want expert advice to start your business in Dubai, UAE, there are business consultants in the UAE who help entrepreneurs start their clothing businesses. So finding a good consultant can help you a lot as a new start of your business in the UAE.

Also read:- Applying for a Freelance Visa in Dubai: Requirements and Process

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