Are you dealing with the textile business and looking for expansion? Read our latest news on Dubai Textile City to understand more about the perfect destination for your business
“The textile industry was the automobile industry of the Middle Ages”-Barbara W. Tuchman
Over the ages, the textile industry has positioned itself as one of the booming sectors at a global level. Deals with the production of different types of fabrics, yarns, garments, blankets, the industry stands as an evergreen market and is estimated to hold a value of USD 1,230 billion by 2024. By analyzing and understanding the potential that the textile market holds, the region of the UAE has got a dedicated zone named as Dubai Textile City to uplift the industry and boost the production.
If you are holding a textile business and wants to accelerate it further, or planning to start a business in Dubai, then this is the perfect time to make a move. This blog is curated to provide the respective information that you should be aware of before starting a textile business in Dubai Textile City.
What is Dubai Textile City?
Completed in the year 2006, the Dubai Textile City is a joint venture between TEXMAS, Dubai Port and Customs Authority to facilitate the Textile industry in the region of Dubai and expand it to the other parts of the world. Starting a business in Dubai has turned out to be a simplified process over some time, gaining the attention of international investors. The region of DTC allows different types of business activities:
The DTC is one of the most promising and convenient textile hubs in the world which offers multiple benefits to the business investors like:
- Complete exemption from the customs duties for an unlimited period
- Premise sublease options
- Free transfer of goods
- Long lease period with attractive rent
- A smart and integrated framework for the business of different sizes
How to Start a Business in Dubai Textile City?
To incorporate a business in Dubai Textile City (DTC), one has to go through the following process:
1. Decide Company Name
The name of a company is the attention grabber and holds the complete identity of a business. Deciding the name of a company is one of the crucial tasks that a business owner or investor needs to go through. While determining the name of a company in Dubai, one needs to follow the legal guidelines:
- The company name should not hold any indecent or obscene words
- It shouldn’t be offending the general public
- The name of the company shouldn’t indicate “Allah” or “God’s” name
- The name of a company shouldn’t be of a country or government
- In case if the company name is of a person, he/she needs to be a legal business partner
- Family names can’t be used as a trade name
- Punctuation marks or special characters shouldn’t be included
2. Decide a Business Structure
Once the company name has been decided according to as per the stated laws, the next step is to proceed ahead by selecting the type of business structure. In Dubai Textile City (DTC), a business owner has the option to choose from the following:
●Free Zone Limited Liability Company (FZ-LLC)
A free zone limited liability company is a separate legal business entity that allows individual shareholders or corporate shareholders to come forward and establish a company.
●Branch of a Foreign or National Company
Any foreign or national company who deals with textile business has got the flexibility to incorporate a branch in Dubai Textile City.
3.Submit the Required Essentials
A business entity gets incorporated only if appropriate documents are submitted in an error-free way. The set of essential documents that need to be submitted in Dubai Textile City includes:
- Passport and visa copies of shareholder(s)
- Proof of trade name registration
- Proof of initial fee approval
- Notarized Memorandum and Articles of Association (MOA/AOA)
- Notarized Power of Attorney
- Lease agreement stating the physical address of the business
- Initial capital to be invested
Apart from the documents stated above, the additional documents required are stated below:
- Board resolution of the existing company
- Certificate of business registration
Benefits of Starting a Company in Dubai Textile City
By starting a company in Dubai Textile City (DTC), an investor will be able to avail the following benefits:
- Complete foreign ownership
- Strategic location for business incorporation
- 100% tax exemption
- Flexible government initiatives
- Robust network and connectivity
- Easy access options to the global market
- Better business opportunities during Expo 2020
Benefits of Availing Professional Services
Dealing with business experts who are well-versed with the legal proceedings helps the business investors in the following ways:
- Legal proceedings are carried out in an error-free way
- Tasks get completed in a professional way
- Investors carry less burden on their shoulders
- Effective utilization of time and resources
How Can We Help?
Business Setup Worldwide is one of the premier business consultants in Dubai who has been delivering business incorporation services to clients at a global level. With the dedication of providing the best strategic business solutions, our experts take the utmost care in understanding your business requirements and provide tailored solutions suiting your business needs. In case you hold any query, do speak to our experts. Contact us today-we’d be glad to assist.