Dubai Outsource City Company Setup 2026: DDA Licence, AED 300,000 Capital, Visas and Costs

Dubai Outsource City company setup is the registration of a free zone limited liability company (FZ-LLC) or a branch with the Dubai Development Authority to run outsourcing, business process and shared-service operations from TECOM Group’s outsourcing community in south-east Dubai. The zone was launched in 2007 as the Dubai Outsource Zone. DDA regulates it under Dubai Law No. 1 of 2000 as amended and Law No. 15 of 2014, and its licence segments, fees and capital rules sit in DDA Decision No. 1 of 2021.

What makes the Dubai Outsource City free zone different is the arithmetic. Outsourcing is a headcount business, and in a DDA zone headcount is capped by the space you lease. Add a capital requirement thirty times higher than most DDA segments, and a single-activity licence, and the structure you choose on day one decides your costs for years.

This guide covers who licenses a Dubai Outsource City company, the permitted activities and their conditions, capital, documents, fees, space and visas, tax for BPO and captive centres, mainland clients and renewals. It is part of our guides to Dubai free zones and free zones in the UAE. If you would like the file handled end to end, see our company formation support.

Dubai Outsource City at a glance

Who licenses a Dubai Outsource City company

The Dubai Development Authority is the regulator. It registers the company or branch, issues the commercial licence, keeps the register of directors and imposes penalties. DDA’s “About” page says it was “established pursuant to the Law No. 1 of 2000 and its amendments”; Law No. 15 of 2014 renamed the zone the Dubai Creative Clusters and Law No. 10 of 2018 gave the authority its current name. One authority licenses every TECOM community, so the DDA rulebook for Dubai Outsource City is the same one used in Internet City or Science Park; only the permitted segments differ.

TECOM Group is the developer and landlord, and axs is its service platform for applications, renewals and visas. The zone’s FAQ is direct about the division of labour: “Dubai Development Authority (DDA) handles establishment and registration”, and the DOC sales team handles space.

Three DDA instruments matter most: Decision No. 1 of 2021 on licence categories (segments, fees, capital, penalties), the Dubai Creative Clusters Private Companies Regulations 2016 (company law, the “PCR”), and Decision No. 3 of 2017 (PCR fees).

What the Dubai Outsource City free zone is known for

Dubai Outsource City describes itself as “a unique business community dedicated to outsourcing and shared service businesses, such as call centers, data centers, and back-office operations”. TECOM’s group page adds HR outsourcing and IT outsourcing, and the zone’s retail page speaks of “8,000+ professionals from 150+ countries”.

Unlike Dubai Science Park or Dubai Design District, the DOC site does not name anchor tenants, and its press page currently shows Internet City and Design District news. We therefore name none. What sets the Dubai Outsource City free zone apart is structural rather than a brand list:

• A licence written for outsourcing. Part Two of Decision No. 1 of 2021 is the only DDA category built for BPO: customer care, transaction processing, third party administration of health claims, IT management, document management, disaster recovery, operations support and manpower supply.
• Ownership options. The FAQ says land is “available for sale”, and the offerings page mentions “salable commercial spaces”, unusual among TECOM communities, where leasing is the norm.
• Infrastructure for seats. The zone markets telecom infrastructure, high-bandwidth and “IP contact centre services” alongside facilities management.
• Cost of location. It sits away from the central business districts, which is why large seat counts often land here rather than in Internet City. Rents are not published, so compare offers yourself.

Legal forms for a Dubai Outsource City company

The Dubai Outsource City free zone FAQ lists three routes: “New FZ-LLC incorporation, or Branch of an existing foreign/UAE company”. Unlike Internet City or Design District, Dubai Outsource City has no freelancer segment in Decision No. 1 of 2021.

The capital rule is the reason many groups choose a branch in Dubai Outsource City: a parent that already has a balance sheet avoids tying up AED 300,000 in a new subsidiary. The trade-off is liability. An FZ-LLC ring-fences contractual and employment claims inside the UAE company; a branch exposes the parent.

Every FZ-LLC needs at least one director aged 21 or over (PCR Reg. 70) and a general manager who is a natural person named on the licence (Reg. 74). A secretary is optional (Reg. 75).

Dubai Outsource City licence activities and their conditions

The Dubai Outsource City licence is issued by segment. The Outsource segment (17.1) costs AED 15,000 a year and allows one activity, so pick carefully; a second activity from another segment means a second segment fee (AED 10,000 a year if it is a standard AED 15,000 segment, Art. 10.1).

The Dubai Outsource City free zone FAQ’s own list of “permitted sectors” is shorter than the decision’s: Customer Care, Transaction Processing, IT Management, Document Management and Operations Support, plus General categories. TPA, disaster recovery, manpower supply and data centres appear only in the decision, so confirm availability with the zone before planning around them.

Two practical points. First, a call centre that sells a client’s products by phone is Customer Care; one that handles the client’s billing is Transaction Processing. If you need both, you need two segments. Second, a Regional Head Quarters licence (26.5) can include a “Call Centre” and a “Back Office” activity for a parent’s own group, but “may not carry out any trading activity from the Zone”. For a captive centre serving only its group, the RHQ route can be cheaper on capital (AED 50,000) than the Outsource segment (AED 300,000).

Capital: why AED 300,000 matters in Dubai Outsource City

Decision No. 1 of 2021 sets a general minimum paid-up capital of AED 10,000 for an FZ-LLC and then lists exceptions. Only one is in Dubai Outsource City: the Outsource segment, at AED 300,000. The General segment exceptions (Support Services, Regional Head Quarters and Property Management) are AED 50,000; the Data Centre segment has no exception, so AED 10,000 applies.

The Dubai Outsource City free zone FAQ simplifies this to “FZ-LLCs require a minimum paid-up capital of AED 300,000”, which is true for the zone’s signature activity but not for every licence issued there. Plan on the figure attached to your segment, and expect the bank and the Registrar to want evidence that the capital was paid in cash from a verifiable source (PCR Reg. 25.4 and 25.5).

Dubai Outsource City company setup, step by step

1. Choose the segment and the single Outsource activity (or RHQ, Data Centre or General) and confirm any conditions. No official time.
2. Size the space from the headcount. At one visa per 80 sq ft, work out the seats you will sponsor in year one and year two, then ask TECOM for an offer. DDA licences are “subject to leasing a facility within the Dubai Development Authority” (DOC FAQ).
3. Apply on axs (“Set up your business”), upload the documents and pay the invoice. Stage 1, provisional approval: 10 working days (DDA service cards).
4. Pay in the capital for an FZ-LLC, sign the lease and obtain any external NOC.
5. Stage 2, registration: 2 working days. Certificate of incorporation, commercial licence, register of directors and articles of association (FZ-LLC). AED 3,500 plus the segment fee plus AED 20.
6. Establishment card through axs, with GDRFA Dubai.
7. Each Dubai Outsource City visa: entry permit or status change, medical, Emirates ID and residence, through axs.
8. Bank account, corporate tax registration within three months (FTA Decision No. 3 of 2024), VAT if applicable, and a beneficial owner register kept at the registered office (Cabinet Decision No. 109 of 2023).
9. Telecom and data-protection set-up for contact centres, with your telecom provider and your clients’ requirements.

The Dubai Outsource City free zone FAQ gives a shorter clock: “7 working days: Phase 1 – Initial application approval (4 days); Phase 2 – Issuing the license (3 days)”. We plan on DDA’s 12 working days and treat 7 as a good outcome. Neither figure includes attestation abroad, which often takes longer than the licence.

Documents for a Dubai Outsource City company

From DDA’s service cards for FZ-LLC and branch registration:

• DDA application form and, for an FZ-LLC, the incorporation resolution on DDA’s template.
• Valid passports of shareholders, directors and the general manager, with the UAE visa page where held.
• Declaration of appointment as general manager if he or she already holds a UAE visa.
• For corporate shareholders and branches: certificate of incorporation, good standing or continuity certificate, the parent’s MoA and AoA, and the board resolution, “Notarized by Notary Public & Attested by UAE Embassy”.
• For a branch of a UAE company: the parent’s valid DET or DED licence.
• Power of attorney for a representative, notarised and attested up to the UAE embassy.
• NOC from an external authority where the activity requires one; for manpower supply, proof that the company already holds that activity on an economic department licence.

An overseas parent may also be asked for its audited accounts for the last two years (PCR Reg. 91.1.4). Documents from abroad go through notarisation, legalisation and the UAE embassy, then UAE Ministry of Foreign Affairs attestation; our document attestation service handles the UAE end. Keep a beneficial owner register from day one; see our UBO register guide.

Dubai Outsource City licence cost: the published fee lines

The Dubai Outsource City free zone FAQ answers the cost question with “competitive, market-aligned pricing” and a phone number. There is no published package. What DDA publishes is below; we checked every line on 26 September 2026.

The regulator’s first-year floor for an Outsource FZ-LLC is therefore AED 18,520 in fees (3,500 + 15,000 + 20), with AED 300,000 of capital on top that stays in the company. For a branch the fee floor is the same and there is no capital minimum. Rent, service charges, fit-out, telecoms, each Dubai Outsource City visa and its deposit are not published and depend on your space and headcount.

The in5 schedule of Decision No. 1 of 2021 shows DDA’s pricing logic for visas: admitted start-ups pay “AED 1,500” per visa and no deposit, which tells you the standard charge is higher and that a deposit normally applies. Ask for the axs visa tariff before you commit to a headcount plan.

Space and the Dubai Outsource City visa quota

This is the section that decides a BPO budget. The DOC FAQ answers “Is there a limit on the number of employees per company?” with: “Yes. A company can sponsor one employee per 80 sq. ft. of the leased space.” The licence itself depends on a lease within DDA, and Decision No. 1 of 2021 requires the registered office to appear on the licence (Art. 2.6).

The ceiling counts sponsored employees, not seats. Shift work lets one seat serve two or three agents, and every one of them needs a visa. A 100-seat centre running two shifts can need 200 visas, which at 80 sq ft each means 16,000 sq ft of lease even if half the floor would do physically. Plan headcount before you sign.

Space options published by the zone:

• Commercial offices for lease, and “salable commercial spaces” for purchase.
• D/Quarters co-working, for small teams; visa allocation for desks is not published.
• Land: “Yes, land is available for sale” (FAQ), for owner-built centres.
• Warehouses of 5,000 to 11,000 sq ft, but located “in Dubai Industrial City”, and light industrial units in Dubai Production City and Dubai Science Park. These are other TECOM districts; check which licence and community your company will sit in before combining them with a Dubai Outsource City licence.

Dubai Outsource City company setup: how MIRDXB PRO helps

We are an independent business setup and PRO consultancy in Al Barsha 1 and an Amer and Tasheel partner. We are not DDA, TECOM Group or a listed partner of Dubai Outsource City. For outsourcing clients the value we add is in the sequencing: segment, capital, space and visas planned together, then high-volume visa processing once you start hiring. If you are still choosing between a free zone and the mainland, begin with our overview of business setup in Dubai.

What we do for a Dubai Outsource City company

• Structure check: Outsource segment, RHQ or branch; capital and liability consequences in writing.
• Space and headcount plan using the 80 sq ft rule, including shifts and year-two hiring.
• DDA file on axs: resolutions, attested parent documents, Stage 1 and Stage 2, establishment card.
• Volume visas: entry permits, status changes, medicals, Emirates ID and residence, in batches that match your training intakes.
• After the licence: corporate tax registration, UBO register, bank file and a renewal calendar.

How it works

1. WhatsApp us the activity, clients, seats and shareholders.
2. We reply in writing with the structure, documents, published fees and our fee.
3. You approve; owners abroad sign a power of attorney.
4. We run the file and hand over every official receipt.

What it costs

DDA, GDRFA and other government fees are passed on at cost; TECOM’s rent is agreed with TECOM. Our fee depends on the structure and the number of visas and is quoted in writing before we start. See our fees page.

Why founders use us

• We show sources and flag conflicts, such as the capital and timing differences in this guide.
• We handle volume: dozens of visas in a hiring wave, not only the founders’.
• Our Al Barsha 1 office is open Monday to Thursday and Saturday 09:00 to 18:00, Friday 09:00 to 12:00. See our business setup service.

Dubai Outsource City visa process and employment rules

Visas for a Dubai Outsource City company are processed by the free zone through axs; the FAQ confirms that visa issuing is one of the zone’s services. GDRFA Dubai issues the residence itself. The steps for each employee are the same as in any DDA zone:

1. Establishment (immigration) card for the company, once.
2. Entry permit, or change of status for someone already in the UAE.
3. Medical fitness test.
4. Emirates ID biometrics.
5. Electronic residence linked to the Emirates ID.

Neither DDA nor the zone publishes per-visa fees or times for axs. Employees of a DDA company are not MOHRE workers; the free zone holds the employment file. Federal Decree-Law No. 33 of 2021 on labour relations still applies, and DDA runs an “Employment Dispute Request” service for disputes. For contact centres, two DDA rules matter:

• Salary floor for operations support: Operations Support licensees “may not supply operation support services through any employee of the Licensee who earns less than AED3,000 per month” (Art. 3.8).
• Manpower supply is closed to new entrants unless they already hold that activity on an economic department licence, so you cannot set up in DOC purely to supply agents to other companies.

Shareholders and families. Shareholders and the general manager can be sponsored on the company quota, and the FAQ confirms family sponsorship through axs. A shareholder whose company capital or share is at least AED 2 million can consider the Golden Visa investor route; see our Golden investor visa service. For differences between free zone and mainland sponsorship, read our free zone vs mainland visa guide; our free zone visa service runs volume files.

Banking for a Dubai Outsource City company

Banks will ask for the licence, certificate of incorporation, articles, registers, lease, establishment card, signatories’ passports and visas, the beneficial owner chart and proof of where the capital came from. For a BPO, they also look at client contracts: who pays you, from where, and for what. A signed master services agreement with a named client is often the most persuasive document in the file. A branch will be asked for the parent’s documents and accounts.

The zone’s own map lists several bank branches inside the community, but a branch on site does not mean an easier account. Our corporate bank account guide sets out documents and timelines.

Corporate tax and VAT for a Dubai Outsource City company

The DOC FAQ still advertises a “50-year tax exemption”, echoing Law No. 15 of 2014 (Art. 17). The federal Corporate Tax Law applies to free zone companies regardless. The question is whether your company can be a Qualifying Free Zone Person (QFZP), paying 0% on qualifying income.

• Third-party BPO: customer care, transaction processing or IT support sold to unrelated clients is not on the list of qualifying activities in Ministerial Decision No. 229 of 2025 (which replaced Ministerial Decision No. 265 of 2023). Unless that income stays within the de minimis limit (5% of revenue or AED 5 million, whichever is lower; Cabinet Decision No. 100 of 2023), expect the standard regime: 0% up to AED 375,000 and 9% above.
• Captive shared-service centres: “headquarter services to related parties” is a qualifying activity, and MD 229 describes it as “administering, overseeing and managing” related entities. A group back office may qualify, subject to substance, audited accounts, arm’s-length transfer pricing and not electing out. Take advice from a registered tax agent.
• Registration: within three months of incorporation (FTA Decision No. 3 of 2024); AED 10,000 late penalty.
• VAT: the Dubai Outsource City free zone is not a designated zone. Services to UAE clients are standard-rated at 5%; exports of services to clients outside the UAE may be zero-rated if the VAT conditions are met. Register above AED 375,000 of taxable supplies.

Our corporate tax registration guide covers EmaraTax step by step.

Serving mainland clients from Dubai Outsource City

The FAQ is clear: “The license is valid only for operating a business inside the Free Zone territory. You may however sell products to other Emirates through distributors.” For an outsourcing firm the usual pattern is to deliver services from the zone to clients who may be anywhere, under contracts that make clear where the work is performed.

Where staff must work on a client’s premises on the mainland, or you want to trade there in your own name, Dubai Executive Council Resolution No. 11 of 2025 provides a DET-licensed branch or, since October 2025, a Free Zone Mainland Operating Permit, announced by the Dubai Media Office at AED 5,000 for six months. Both need DDA’s prior approval, which DDA handles through its “Apply for NOC to Department of Economy and Tourism” e-service. For a mainland entity instead, see our mainland company formation guide.

Dubai Outsource City licence renewal and compliance

• Dubai Outsource City licence renewal is online on axs, “Immediate” once paid, at the segment fee plus AED 20 (DDA renewal card). Late renewal costs AED 2,500 to AED 10,000, and DDA can withhold sponsorship services until you pay.
• Lease first: the licence depends on it; the licence and permits are “valid for one year, renewable annually” (FAQ).
• Audited accounts must be prepared and kept, and supplied to DDA on demand (Decision No. 1 of 2021, Art. 2.8); an auditor is appointed yearly (PCR Reg. 67).
• Operations support records: keep third-party contracts for DDA inspection (Art. 3.8).
• Beneficial owners: register kept at the office, changes within 15 days (Cabinet Decision No. 109 of 2023); AED 5,000 DDA penalty for failing to produce it.
• Each Dubai Outsource City visa renews with its own cycle; cancel visas before closing or shrinking space, because the quota follows the lease.
• Penalties: AED 10,000 for working outside the licensed activity, AED 5,000 for misleading information (Schedule 4).

Dubai Outsource City free zone: pros and cons

Who Dubai Outsource City suits, and who should look elsewhere

It suits contact centres and BPO providers with a real headcount, groups building a captive shared-service or back office, data centre operators and consultants, and document management businesses that need storage space.

Look elsewhere if:

• You are a software or IT services company rather than an outsourcer: Dubai Internet City has broader IT segments and no AED 300,000 capital rule.
• You want a tech-park address with residential and a different authority: compare Dubai Silicon Oasis.
• You are a small consultancy with a handful of staff and no outsourcing licence need: a lighter zone such as IFZA or Meydan Free Zone may cost less.
• Most of your agents will sit at clients’ mainland sites: a mainland company may be simpler than a free zone company plus permits.

Dubai Outsource City company setup in practice: five cases

These cases are built from the situations we see most often. Names and identifying details are left out, and the figures are the published ones.

1. A third-party contact centre for regional telecom clients

Two investors planned 60 agents on two shifts handling customer care for telecom operators. Customer Care (17.1.1) was the single Outsource activity; billing support for the same clients would have needed a second segment. As an FZ-LLC they had to pay in AED 300,000. The headcount, not the seats, set the lease: 120 sponsored staff at 80 sq ft each meant at least 9,600 sq ft. Their income from unrelated clients would not be qualifying income, so they budgeted for 9% corporate tax above AED 375,000.

2. A European group’s captive shared-service centre

A manufacturing group wanted finance, HR and IT support for its Middle East subsidiaries. It registered a branch of the foreign parent, avoiding the AED 300,000 capital, and chose the Regional Head Quarters segment with back office and administration activities, since the centre served only group companies. Its tax adviser assessed the fees charged to subsidiaries as “headquarter services to related parties”, a qualifying activity, subject to substance and transfer pricing.

3. An IT support firm choosing between two TECOM zones

A firm offering remote system maintenance compared Information Technology Management (17.1.4) in Dubai Outsource City with Internet City’s IT segments. With eight engineers and a plan to sell software licences later, it chose Internet City, where its segments allowed several activities and no AED 300,000 capital applied. Dubai Outsource City would have suited it only if outsourcing was the whole business.

4. A records storage business

A founder wanted to store client archives. Document Management (17.1.5) fits, but it is “physical storage facilities”, so the office-only space most DOC firms lease was not enough. The warehouses advertised on the DOC site are in Dubai Industrial City, a separate district, so the founder confirmed with TECOM which community and licence would cover storage before signing.

5. A staffing agency hoping to supply agents

A recruiter wanted to license manpower supply in DOC and place agents with other free zone companies. Decision No. 1 of 2021 restricts that activity to organisations already licensed for it by an economic department. With no existing licence, the recruiter set up on the mainland first and treated a Dubai Outsource City licence as a later expansion.

What circulates online about Dubai Outsource City that is not true

How to verify every figure in this guide

What we will and will not do

• We will model structure, capital, space and visas together before you commit to a lease.
• We will show government fees on official receipts and quote our fee in writing first.
• We will not claim to be a DDA or TECOM partner or promise approval dates DDA controls.
• We will not give tax or transfer pricing opinions; we work alongside your registered tax agent.

Related guides

• Dubai free zones: the full list
• Free zones in the UAE
• Dubai Internet City company setup
• Dubai Silicon Oasis company setup
• IFZA company setup
• Dubai Science Park company setup
• Corporate tax registration in the UAE
• UBO register in the UAE

Keeping the establishment card, visa renewals and cancellations moving for a large team is what our PRO services in Dubai team handles.