Business in Dubai Textile City
Dubai Textile City (DTC) is a free zone that was raised from an agreement that happens in 2000 between Textile Merchants Group and Ports Customs and Free Zone Corporation. It is a free zone like no other that focuses on the textile industry.
Texmas built the necessary requirements that will be needed by their members. This includes the buildings, showrooms, storage, offices, and such. Dubai Textile City was completed in 2006. Its exclusive for its members as it was established in the first place to support and promote the textile industry in the Emirate of Dubai. It is one of their goals to show to the world that Dubai is one of the biggest and most convenient textile hubs in the world.
There are three legal structures that Dubai Textile City allows inside their location. The documents and capital requirements are different for establishing these business structures.
This is a separate legal entity that has only one shareholder or owner. The owner or shareholder can either be an individual or a corporate entity.
This is a legal entity with two or more shareholders. Like the first one, they can be either individuals or corporate entities.
A branch is basically an entity that is under the name of its parent company. It is sort of a representative of an existing company. It conducts the same business and activities as its parent company. The parent company can either be a local company in the UAE or an international one.
Just like any other location or free zone in the UAE, DTC has its own list of business activities that they allow in their location. Because of this, businessmen should be fully informed about this fact before going forward with their decision to be a part of DTC.
DTC has a list of benefits as well as any other free zone in the UAE. The members can enjoy the following benefits and more when they decide to venture in the textile industry:
The general documents that are needed in a business setup in Dubai Textile City would be as follows:
There are additional requirements that the government may ask from an applicant after submitting the above documents. These additional requirements of documents can be the following:
A company can only establish a company inside the DTC if they already have an established legal entity as LLC in the UAE mainland. Since DTC does not let anyone have a business setup in Dubai Textile City right away, their LLC company needs to be a member of TEXMAS to get a license in DTC for them to operate inside.
The companies that are inside the DTC are, therefore, members of TEXMAS only.
The license available in DTC is a trading license, and a legal entity can have shareholders that are individuals or corporate entities. The directors need to be individuals only.
The share capital is a minimum of AED 50,000 per shareholder. An audit need not be worried about because it is not required to be filed in the free zone.
A renewal of a company license needs to be done yearly. Like any other authority, there is a penalty if late renewal happens.
Business setup in Dubai Textile City is a different kind than any other free zones. One cannot simply establish a company inside without having one in the mainland.
FAR Consultants can help you with your business setup plans. Contact us and book a free consultation.