Starting Online Clothing Business - License Cost & Manufacturers

Whether you’re planning to start an online clothing business or open a trendy retail outlet in the city, this article will guide you through everything you need to know. We will cover all the details that you need to know about this business in Dubai.

We’ll cover:

(i). The types of business licenses you’ll need
(ii). Estimated setup and clothing business license costs
(iii). How to find manufacturers for your brand
(iv). Tips on setting up your online store
(v). And why photography and marketing can make or break your business

As business consultants in Dubai, we’ve helped hundreds of entrepreneurs launch clothing businesses in different category and today, we’re putting that experience into this article just for you.

Now Is the Perfect Time to Start Your Clothing Brand

If you’ve been thinking about starting your own fashion brand, there’s no better time than now. Dubai is a city filled with opportunity - especially in the clothing industry.

And here’s the best part: if you already have a following on Instagram, TikTok, or Snapchat, you may not even need to spend on advertising in the beginning. With a solid product and the right setup, you can turn those followers into real customers fast.

At COFTT, we make it easy. We help new entrepreneurs get registered, choose the right license, and launch their brand in Dubai - from idea to reality.

Clothing Business License

One of the first questions we get from clients is: “What license do I need to start a clothing business in Dubai?” To make it super clear, we’ve broken it down into two simple parts - based on whether you’re going online, offline, or both.

1. License for Online Clothing Business in Dubai

If you’re planning to sell your clothes online only, and your products are being manufactured elsewhere, you can go with a Free Zone setup.

Free Zones like IFZA in Dubai offer e-commerce licenses that are quick to register.

a. License cost in Dubai Free Zones: Starts from around AED 12,000
b. You can apply with or without a visa
c. If you want to start with lower cost, consider Sharjah or Ajman Free Zones

In Sharjah and Ajman Freezone, you can get your ecommerce license for around AED 6000 only. This price is without Visa. So, if you are already have UAE residency visa then you can get the license for just AED 6000/-

This setup is perfect if you want to start small and scale later.

Clothing License for Retail Store in Dubai Mainland

If you want to open a physical shop, say in a mall or on a busy street, you’ll need to register under Dubai Mainland.

You’ll choose the business activity called Readymade Garments Group - which lets you sell clothing, shoes, perfumes, and fashion accessories.

a. License cost in Mainland: Around AED 12,000

Additional:

a. AED 2,000 if your trade name is in English
b. Visa cost: Around AED 6,500 per person
c. Annual store rent based on location

With this setup, you can sell directly to walk-in customers, advertise locally, and even expand to multiple branches later.

Registering Your Clothing Business in Dubai

The registration process is simple if you know what you’re doing. You’ll choose your jurisdiction, license type, company name, and activity - and then submit the documents.

We’ve explained the full step-by-step company setup process in this detailed article: How to Open a Company in Dubai

Market Research Is Where It All Begins

Many people rush into the clothing business without understanding: What people are already buying, who their competitors are, what price points customers expect and which designs work - and which don’t

Don't make that mistake of not doing the market research for your clothing brand. We strongly recommend doing proper competitor analysis and product pricing research first. We’ve already written guides to help you:

How to Do Competitor Research for Your Brand

‍Pricing Strategy Before a New Product Launch

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And yes, COFTT can help you with market research too - from understanding local trends to pricing your products right. Check out our Market Research Services

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Finding the Right Manufacturer for Your Clothing Brand

Here’s the simple formula: You get your clothes made by a manufacturer, put your label on them and sell online or in-store under your brand.

Dubai is home to many manufacturers, especially in Ajman. A quick Google search will give you dozens of options you can reach out to directly. You’ll also be surprised to know:

Many good Bangladeshi manufacturers have offices in Dubai. They produce high-quality garments at low wholesale prices

The retail margin in Dubai can be very profitable if you choose right If you're just starting out, these manufacturers are often open to small quantity orders too - perfect for testing your first line.

Setting Up an Online Store

Once your business is registered and your products are ready, it’s time to go live with your online store.

Here’s how most brands start:

WooCommerce:

A great option if you’re using WordPress. Hire a good developer and get your store customized to your brand.

Shopify:

A beginner-friendly platform with beautiful themes and built-in e-commerce tools. Remember: a clean, fast, and mobile-friendly website = more sales.

Get a Professional Product Photoshoot Done

You could have the best clothes in the world - but if your photos don’t reflect that, you’ll lose sales.

In Dubai, there are many photography studios that offer affordable and professional photo shoots for clothing brands. Here’s why good photography is a must:

First impression matters – Your images speak before your product does
Builds trust – Blurry or dull photos kill credibility
Better conversions – High-quality visuals = higher click-to-buy rate
Social media friendly – Beautiful visuals help you go viral

Marketing Your Clothing Brand in Dubai

Once you’re live, it’s time to market your brand - and Dubai loves fashion.

Here’s where to start:

(a). Instagram Reels and TikTok videos: For visual storytelling
(b). Snapchat Ads: For youth targeting and geo-location marketing
(c). Influencer partnerships: Reach a targeted audience fast
(d). Google & Meta Ads: Drive traffic to your online store

Not sure how to run ads or build a digital strategy?

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COFTT has digital marketing partners that can take care of everything - from social content to ad management.

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Start Small, Start Smart

Clothing business in Dubai is exciting - and with the right setup, it can be incredibly profitable. You don’t need a massive team or big investment to get started. At COFTT, we’re here to help you build from the ground up - with expert guidance, done-for-you licensing, and complete support at every step.

Let’s build your clothing brand in Dubai, the smart way.

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Ready to start? Contact COFTT today and let’s get your fashion business off the ground.