How to Start a Retail Garments Shop in Dubai with Meydan Free Zone?

Dubai’s fashion industry and diverse customer base make retail garment shops an excellent business opportunity. With the city’s multicultural environment, there are potentials to cater to locals, expats, and tourists by offering a variety of clothing styles, sizes, and price ranges. Furthermore, Dubai’s status as a luxury shopping destination makes it attractive for high-end and designer brands, while traditional and cultural clothing are also popular with those seeking to experience local fashion. By leveraging e-commerce platforms and participating in shopping festivals, retailers can expand their reach and tap into the growing online market.  

In the Meydan Free Zone, a wide range of business activities related to garments trading (retail) are available. Here are some of the most popular activities to consider:

  • 4771.00 Retail Sale of Clothing, Footwear, and Leather Articles in Specialized Stores 
  • 4771.82 Men’s Garment Trading 
  • 4771.83 Ladies Garment Trading 
  • 4771.84 Baby Wear Trading 
  • 4771.85 Men Underwears Trading 
  • 4771.86 Arab Wear Trading 
  • 4771.88 Sports Wear Trading 
  • 4771.89 Protective Garments & Vests Trading 
  • 4771.90 Uniforms Trading 
  • 4771.93 Women Underwears Trading
  • 4771.94 Military Clothware & Requisites Trading 
  • 4771.95 Ready-Made Garments Trading

Inclusions

With your trade license with activity codes 4771.00, 4771.82, 4771.83, 4771.84, 4771.85, 4771.86, 4771.88, 4771.89, 4771.90, 4771.93, 4771.94, and 4771.95, you can engage in the retail sale of various clothing items, including articles of clothing, articles of fur, and clothing accessories such as gloves, ties, and braces. Additionally, you are allowed to retail umbrellas, footwear, and leather goods. Furthermore, your license encompasses the retail sales of travel accessories made from both leather and leather substitutes. 

Exclusions

Your trade license permits you to sell various clothing items, accessories, footwear, and leather goods under activity codes 4771.00, 4771.82, 4771.83, 4771.84, 4771.85, 4771.86, 4771.88, 4771.89, 4771.90, 4771.93, 4771.94, and 4771.95. However, it’s important to note that your license explicitly excludes the retail sale of textiles. This means you are not authorized to sell fabrics, textiles, or similar materials as part of your business operations.

The clothing and textile industries often use the terms garments and textiles interchangeably. However, while they are closely interconnected, there is a distinction between the two:

Textiles: Textiles are any woven, knitted, or manufactured fabric. Essentially, they are raw materials used to produce various products, including garments. Textiles can be made from natural fibers (such as cotton, wool, silk) or synthetic fibers (such as polyester, nylon, and acrylic). They come in different forms, including rolls of fabric, yarns, threads, or fibers. 

Garments: Garments are finished products made from textiles. They are the clothing items that people wear, such as shirts, pants, dresses, jackets, and other apparel items. A garment is created from textile materials cut, sewed, and assembled. The final wearable product can include various fabrics, colors, patterns, and embellishments.

4771.00 Retail Sale of Clothing, Footwear, and Leather Articles in Specialized Stores 

Apply for a business license under Retail sale of other goods in specialized stores and choose business activity Retail Sale of Clothing, Footwear, and Leather Articles in Specialized Stores with activity code 4771.00.

The retail sale of clothing, footwear, and leather articles in specialized stores refers to the business activity of selling these specific products in dedicated retail stores. You can specialize in a particular product category or niche within the industry, offering a curated selection of merchandise and expertise in the respective product category. Retail sales can be conducted in physical stores, online platforms, or both, giving customers a tailored shopping experience.

4771.82 Men’s Garment Trading 

Apply for a business license under Retail Sale of Clothing, Footwear, and Leather Articles in Specialized Stores and choose business activity Men’s Garment Trading with activity code 4771.82.

With a Men’s Garment Trading license, you can resell various men’s garments, catering to different styles and preferences. One of the key categories of men’s garments that can be resold under your license is shirts. As a licensee, you can purchase shirts from manufacturers, wholesalers, or suppliers and offer them to customers through your chosen business model.

Another type of men’s garment that falls under the scope of your license is suits. With your Men’s Garment Trading license, you can resale suits. Coats and jackets are also part of the men’s garment category that can be traded under this license. Whether it’s a classic overcoat, a trendy leather jacket, or a versatile blazer, you can source and resell a wide range of coats and jackets.

In addition, you can trade men’s garments such as socks and ties. You can sell socks, available in various materials and designs. Your trading license allows you to explore other men’s garments beyond the mentioned categories. This may include trousers, jeans, shorts, sweaters, vests, and more. 

Whether you establish a physical store, an online platform, or engage in retail or wholesale distribution, your Men’s Garment Trading license empowers you to resell men’s garments and bring value to the fashion industry.

4771.83 Ladies Garment Trading 

Your business license allows you to resell a wide range of women’s garments. You can include ladies’ shirts, trousers, party and evening dresses, maternity clothes, wedding dresses, night and in-house wear, beach and bath wear, scarves, and more. 

4771.84 Baby Wear Trading 

With your business license, you can engage in the reselling of a variety of children’s garments. You can include swaddling clothes, nappies, nightwear, party clothes, shirts, trousers, and more. Your license enables you to offer various clothing options for children, catering to different needs and occasions.

4771.85 Men Underwears Trading 

Your Men Underwear Trading license allows you to resale men’s undergarments made of woven, knitted, or crocheted fabric. You can include options such as undershirts or T-shirts and pants or briefs. 

4771.86 Arab Wear Trading 

With an Arab Wear Trading license, you can resell Arab ready-made wear, such as dishdashas, ghotra, bishts, oqal and caps, also women’s traditional cloak (aba) head covers and veils.

4771.88 Sports Wear Trading 

With your sportswear trading business license, you can specialize in reselling sportswear designed specifically for exercising and participating in sports activities. Our product range includes various items such as socks, shoes, hats, gloves, balls, bags, and training suits. You can resell your merchandise to offer athletes, fitness enthusiasts, and sports teams.

4771.89 Protective Garments & Vests Trading 

With your Protective Garments & Vests Trading business, you can specialize in reselling protective costumes and vests designed for various purposes. Here’s an overview of the types of protective garments and vests you can offer:

  • Fire-Resistant Wear: You can sell Fire-resistant garments with your trade license. These garments are essential for workers in industries such as firefighting, oil and gas, construction, and welding, where there is a high risk of exposure to flames or intense heat. 
  • Athletes and Medical Wear: You can sell protective wear for athletes and medical professionals, including compression garments, braces, supports, and specialized clothing designed to enhance performance, provide support, and reduce the risk of injury. These products can range from sports-specific gear like football pads and protective vests to medical scrubs and lab coats with antimicrobial properties.
  • Body Cooling Vests: You can sell body cooling vests designed to regulate body temperature and keep individuals cool in hot environments or during physical activity. You can use technologies such as evaporative cooling or phase-change materials to absorb and dissipate heat.

4771.90 Uniforms Trading 

Your uniforms trading license from Meydan Free Zone enables you to trade uniforms that allow you to buy and sell various readymade uniforms and related accessories. These uniforms can include attire worn by different sectors, such as hotels, airlines, schools, etc. You can trade uniforms from these sectors, as well as requisites or accessories that are commonly associated with uniforms. Examples of such requisites can include hats, helmets, socks, gloves, shoes, ties, bags, badges, and other similar items.

It’s important to note that the license, Uniforms Trading with activity code 4771.90,  explicitly excludes military clothing and uniforms. This means that the licensee is not authorized to trade or resell military-specific uniforms, typically reserved for military personnel or approved organizations. In addition, excluding military clothing ensures that the licensee does not sell items that may have specific regulations or security concerns associated with them. 

4771.93 Women Underwears Trading 

Your license for trading women’s undergarments enables you to resell undergarments made of woven, knitted, or crocheted fabric for women and children. These undergarments are designed to be worn beneath outer clothing, such as T-shirts worn over the waist or pants worn below the waist. It is essential to adhere to the regulations set by the Dubai Economy & Tourism Department (DED), which mandate that your store employs female staff members to provide these services.

4771.94 Military Clothware & Requisites Trading 

Your Military Clothware & Requisites Trading license allows you to involve in tailoring clothing and uniforms for the armed forces, police, and civil defense personnel. Additionally, this license allows to trade and create specialized clothing and requisites required by military and police officers.

Here’s an outline of what your license includes:

  • Tailoring Clothing and Uniforms: The license permits you to create, design, and tailor clothing items specifically for men and women serving in the armed forces, police departments, and civil defense organizations. You can include various types of uniforms, such as combat uniforms, dress uniforms, ceremonial attire, and specialized items like tactical gear and protective equipment.
  • Trading Military Clothware: The license allows you to trade and sell military cloth ware and related accessories. You can sell ready-made clothing items, such as uniforms, badges, insignia, and other requisites required by military and law enforcement personnel.
  • Requisites for Armed Forces, Police, and Civil Defense: Your license covers the creation and trading requisites required by armed forces, police, and civil defense organizations. This may include items such as boots, belts, headgear, gloves, bulletproof vests, and other gear necessary for the operational needs of military and law enforcement personnel.

Businesses with this license are expected to comply with any applicable laws, regulations, and quality standards related to the production and sale of military clothing and requisites.

4771.95 Ready-Made Garments Trading

Your Ready-Made Garments Trading license from Meydan Free Zone permits you to resell a diverse range of outerwear and underwear for men, women, and children. This license allows you to trade various clothing items, including coats, suits, jackets, skirts, shirts, trousers, shorts, coats, gloves, swimming wear, and socks.

With this license, you can resell outerwear garments designed to protect against cold weather or offer specific styles and functions. This encompasses a wide selection of coats, suits, jackets, and skirts suitable for individuals of all genders and age groups. Furthermore, the license enables you to resell different types of underwear for men, women, and children. This encompasses a range of clothing items such as shirts, trousers, shorts, and undergarments designed for everyday wear or specific activities. In addition to outerwear and underwear, your license allows for the resale of complementary clothing items. This includes gloves, swimming wear, and socks, essential accessories for various purposes and age groups.

The Commercial Compliance & Consumer Protection Sector of the Department of Economic Development has established specific guidelines for engaging in Ready-Made Garments Trading. These guidelines serve as a framework to ensure compliance and promote fair practices within the industry. Here are the outlined guidelines:

  • Sale policy shall be declared to the consumer through an appropriate means, including the goods’ return, replacement, or reparation.  
  • Any fake goods or products found on the local market should be reported to the Department.  
  • Both parties shall adhere to specifications, numbers, weights, and measurements under the agreements.  
  • The activity shall only be practiced in the location by a license or permit.  
  • The Department must approve a change of licensed location or relocation.
  • There should be changing/fitting rooms for men and women.  
  •  Purchased goods must be documented by an invoice.  
  • The sale of products bearing fake trademarks is prohibited.  
  • Licensing data may only be altered, amended, or modified with the Department’s approval. 
  • The promotion, sale, or display of counterfeit goods is prohibited.  
  • The standardizations of country laws regulating the sale and trade of different products shall be considered.  
  • The commercial name mentioned in the license shall be similar to the name on the signboard.  
  • Sales, discounts, and special offers should not be placed without permission.  
  • Goods and commodities must be marked with prices.  
  • Activities after 12 am are prohibited unless a permit has been obtained.
  • Trademarks must be registered at the Ministry of Economy to be protected.
  • The facility must not have any secret doors or rooms.  
  • Laws that regulate the consumer’s rights must be considered, i.e., the phrase “The sold goods are neither returnable nor exchangeable” must not appear on the invoice. 
  • No additional fees shall be imposed against the use of credit cards. 

Third-Party Approvals

The business activities with the specified codes 4771.00, 4771.82, 4771.83, 4771.84, 4771.85, 4771.86, 4771.88, 4771.89, 4771.90, 4771.93, 4771.94, and 4771.95 do not require third-party approvals to operate in Dubai. This means businesses engaged in these activities can start and run their operations without additional approvals or permissions from external entities.

ESR & UBO

Businesses related to Buying and Selling of Garments or Garments Trading (4771.00, 4771.82, 4771.83, 4771.84, 4771.85, 4771.86, 4771.88, 4771.89, 4771.90, 4771.93, 4771.94, and 4771.95) are exempt from UBO (Ultimate Beneficial Ownership) and ESR (Economic Substance Regulations). UBO refers to the identification and reporting of individuals who have ultimate ownership or control over a business entity, while ESR pertains to regulations that require businesses to demonstrate legitimate economic activity and substance within the jurisdiction where they operate.

AMLAML (Anti-Money Laundering) regulations do not apply to Businesses related to Buying and Selling of Garments or Garments Trading (4771.00, 4771.82, 4771.83, 4771.84, 4771.85, 4771.86, 4771.88, 4771.89, 4771.90, 4771.93, 4771.94, and 4771.95). AML regulations in Dubai primarily focus on preventing and detecting money laundering and terrorist financing activities.

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