Dubai offers a thriving market for trading men’s and women’s clothing due to its robust economy, status as a popular tourist destination, and multicultural population. Due to the city’s affluent residents and visiting tourists, fashion is in high demand, creating an attractive business environment. Moreover, Dubai’s multicultural market offers a diverse customer base seeking clothing that reflects both their cultural preferences and global fashion trends. The city also hosts fashion shows and events that attract industry professionals and offer opportunities for collaboration and brand exposure. Since Dubai is an international fashion hub renowned for its luxury shopping and varied retail industry, trading men’s and women’s clothing can be profitable.
In the Meydan Free Zone, there is a diverse array of business activities catering to trading men’s and women’s clothing. Here are a few notable and popular activities you should 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
- 4771.85 Men Underwears Trading
- 4771.93 Women Underwears Trading
- 4771.95 Ready-Made Garments Trading
Inclusions
With your trade license with activity codes 4771.00, 4771.82, 4771.83, 4771.85, 4771.93, 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, 4771.85, 4771.93, 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.
4771.85 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.
4771.93 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.
4771.95 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, 4771.85, 4771.93, 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, 4771.85, 4771.93, 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, 4771.85, 4771.93, and 4771.95). AML regulations in Dubai primarily focus on preventing and detecting money laundering and terrorist financing activities.
