A Dubai Outsource City FZ-LLC needs AED 300,000 of paid-up capital, thirty times the AED 10,000 that the same Dubai Development Authority (DDA) decision sets for most other activities [1]. The annual licence is the cheap part: AED 15,000 for the zone's single "Outsource" segment, which carries one activity [1]. Dubai Outsource City's own FAQ confirms the capital figure and adds the rule that sizes every contact centre: "a company can sponsor one employee per 80 sq. ft. of the leased space." [2]
Those three numbers decide whether Dubai Outsource City (DOC) is the right base. Choose it for a function that is not on its activity list, or lease too little space for your headcount, and you pay for an amendment, a second lease or a licence that does not match your contracts. Choose it for the work it was built for, such as a contact centre, a transaction processing hub, a remote IT support desk or a disaster recovery site, and you get a TECOM district designed around that work.
BusinessDubai.ae has advised founders on UAE company setup since 2013. This guide covers who licenses the zone, the eight permitted activities and what they leave out, the DDA fees and capital, office space and the visa ratio, the setup steps, the rules for call centres and manpower supply, corporate tax and VAT, a comparison with Dubai Internet City, cheaper free zones and the mainland, and a first-year budget. It is general information, not legal or tax advice: confirm your position with the DDA and a tax adviser before you commit.
What is a Dubai Outsource City licence, in short?
A Dubai Outsource City company is licensed by the Dubai Development Authority under one segment, "Outsource", at AED 15,000 a year with one activity [1]. An FZ-LLC needs AED 300,000 of paid-up capital, while a branch of an existing company needs none [2]. Visas follow leased space, at one employee per 80 square feet [2].
The core facts, with their sources:
| Item | Figure or rule | Source |
|---|---|---|
| Licensing authority | Dubai Development Authority (DDA) | DDA Decision No. 1 of 2021, Article 2.1 [1] |
| Segment | One: "Outsource" | Article 14.1 fee table [1] |
| Annual licence fee | AED 15,000 | Article 14.1 [1] |
| Activities per licence | One, chosen from eight | Article 14.1 and Segment 17.1 [1] |
| Minimum paid-up capital, FZ-LLC | AED 300,000 | Article 15.1 [1]; DOC FAQ [2] |
| Minimum capital, branch | None | DOC FAQ [2] |
| Visa allocation | One employee per 80 sq ft of leased space | DOC FAQ [2] |
| Premises | Lease required before the licence | DOC FAQ [2] |
Read the table as a filter. If your function is not one of the eight activities, or you cannot put AED 300,000 into the company and have no parent to open a branch, Dubai Outsource City is probably not your zone.
Who runs Dubai Outsource City, and who licenses companies there?
TECOM Group develops and operates Dubai Outsource City, and the Dubai Development Authority (DDA) licenses the companies in it under DDA Decision No. 1 of 2021, the Licensing Categories Decision issued on 7 April 2021 [1][2]. Your licence, activity, renewals and penalties are DDA matters, and your office lease is a TECOM matter.
DOC's FAQ states the split plainly: "Dubai Development Authority (DDA) is responsible for the establishment and registration of companies in Dubai Outsource City (DOC)." [2] The Decision's Article 2.1 is the legal line: "Licences are issued by the Authority for each of DIC, DMC, DKP, DIAC, DPC, DOC, DSC, DSP and D3 for their respective licence segments as set out below." [1] Its definitions use the Authority's earlier name, "the Dubai Creative Clusters Authority".
TECOM's undated district page, read on 23 October 2026, lists DOC as established in 2004, with "more than 80 customers" "from the global aviation, banking, and telecommunications industries" [3].
Our Dubai Internet City setup guide, Dubai Science Park setup guide and Dubai Media City setup guide cover sister DDA districts that work the same way.
Which eight activities can a Dubai Outsource City licence carry?
A Dubai Outsource City licence can carry one of eight activities listed under Segment 17.1 of DDA Decision No. 1 of 2021: Customer Care, Transaction Processing, Third Party Administrator, Information Technology Management, Document Management, Disaster Recovery Centre, Operations Support and Manpower Supply [1]. The fee table allows one activity per Outsource licence.
The Decision defines each activity in a sentence or two. The short phrases below are quoted from those definitions [1].
| No. | Activity | From the Decision's definition | Typical business |
|---|---|---|---|
| 17.1.1 | Customer Care | "marketing campaigns, telemarketing and telesales, retention of services and support" and "technical help desks" | Inbound and outbound contact centres |
| 17.1.2 | Transaction Processing | "billing and payment services, insurance claims processing, medical prescription processing and general collections" | Billing, collections and claims back offices |
| 17.1.3 | Third Party Administrator (TPA) | "processing health insurance claim and perform other administrative services in accordance with the service contract" | Health insurance administrators |
| 17.1.4 | Information Technology Management | "outsource services to third parties on a remote basis for system maintenance, technical support and customer relations management systems" | Remote IT support and managed services |
| 17.1.5 | Document Management | "physical storage facilities to third parties for document management purposes" | Records storage |
| 17.1.6 | Disaster Recovery Centre | "premises with full facility to perform mission-essential functions for the continuity of operations" | Business continuity sites |
| 17.1.7 | Operations Support | "outsource services to Clients for office operations functions" | General back-office work |
| 17.1.8 | Manpower Supply | "manpower supply services (skilled and semi-skilled workforce) in the free zone for third party licensees" | Labour supply to free zone companies |
Three definitions carry conditions that change who can use them. Transaction Processing "does not include any of the insurance service activities set out in the Service Provider Segment (Segment 26.1)" [1]. Manpower Supply ends: "For the avoidance of doubt, this activity is restricted to organizations that are currently licensed to undertake this activity by the relevant Department of Economic Development in UAE" [1]. And Article 3.8 adds two rules for Operations Support: licensees "must retain copies of their operation support contracts with third party clients for verification by the Authority on demand and may not supply operation support services through any employee of the Licensee who earns less than AED3,000 per month." [1]
The one-activity limit is tighter than in other DDA districts, where a standard segment allows four or five activities [1]. Article 10.5 says the Authority "may, at its discretion and on application by a Licensee, increase the number of activities permitted under a particular segment" [1]. A contact centre that also wants to run collections should apply for that before signing the client contract, not after.
Common Mistake: Choosing Dubai Outsource City because it is "the outsourcing zone" before checking that your function is one of the eight. A payroll bureau, a recruitment firm or an accounting practice can spend AED 3,500 on registration and sign a lease, then find its work does not match a Segment 17.1 definition. Carrying on "a business of a different segment or activity to that set out on the Licence" carries an AED 10,000 penalty under Schedule 4 of the Decision [1]. Match the definition first.
Can a shared services, HR or finance and accounting centre get a Dubai Outsource City licence?
DDA Decision No. 1 of 2021 has no Dubai Outsource City activity called shared services, HR outsourcing or finance and accounting outsourcing [1]. Such work has to fit within one of the eight definitions, with Operations Support, "office operations functions", the closest, and the DDA decides whether it fits. Confirm the activity in writing before you lease.
The market sells "shared services", "HR outsourcing" and "F&A"; none of those names appears in Segment 17.1 [1]. DOC itself says it serves "both captive and non-captive companies looking to set-up in the region" [2], so a group centre is not excluded by DOC's positioning. The question is which activity the DDA will put on the licence.
The definitions also use the language of third parties. Information Technology Management covers services "to third parties on a remote basis", Document Management serves "third parties", and Operations Support serves "Clients" [1]. A captive centre whose only clients are its own group companies should put that fact to the DDA in the application rather than assume the wording covers it.
The table maps common functions to the nearest definition. It shows where to start the conversation with the DDA, not what the DDA will approve.
| Function you plan | Nearest Segment 17.1 activity | Wording to raise with the DDA |
|---|---|---|
| Payroll and HR administration | Operations Support (17.1.7) | "office operations functions" for "Clients" [1] |
| Accounts payable, billing and collections | Transaction Processing (17.1.2) | "billing and payment services" and "general collections" [1] |
| Group IT service desk | Information Technology Management (17.1.4) | "to third parties on a remote basis" [1] |
| Customer service for group brands | Customer Care (17.1.1) | "outsource services" for retention, support and help desks [1] |
| Bookkeeping and accounting for clients | None of the eight | Ask the DDA which segment and conditions apply |
Pro Tip: Send the DDA a one-page description of the work before you sign a lease: who the clients are (third parties, group companies or both), what the staff do day to day, and which Segment 17.1 activity you believe fits. Ask for the activity, any approvals from other authorities under Article 2.15, and the Article 3.8 contract and pay rules if Operations Support is chosen [1]. A written answer costs nothing and protects the AED 15,000 licence and the lease that depends on it.
What does a Dubai Outsource City licence cost under the DDA fee schedule?
A Dubai Outsource City licence costs AED 15,000 a year for the Outsource segment under Article 14.1 of DDA Decision No. 1 of 2021 [1]. The DDA adds a registration fee of AED 3,500 and a Knowledge Dirham and an Innovation Dirham of AED 10 each per transaction [4]. Rent, visas and paid-up capital sit outside those fees.
The Decision is dated 7 April 2021, and the DDA's registration page describes the licence fee as "Calculated based on selected activity(s)" [4]. Confirm the current figures with the DDA before you budget.
The DDA's published fee lines for a Dubai Outsource City company:
| DDA fee line | Amount (AED) | Notes |
|---|---|---|
| Outsource segment licence | 15,000 a year | One activity; Article 14.1 [1] |
| Additional standard segment | 10,000 a year on top | Prior approval; no pro-rating; Article 10.1 [1] |
| Extra activity in the same segment | 0 within the limit | The Outsource limit is one; Article 10.5 lets the DDA raise it [1] |
| Registration fee | 3,500 | DDA registration page [4] |
| Knowledge Dirham and Innovation Dirham | 10 each per transaction | DDA registration page [4] |
Article 10.1 adds that "There shall be no pro-rating of the Additional Segment licence fee irrespective of when the Licensee's Licence is due for renewal." [1] Dubai Outsource City has only one segment of its own, so a second segment would come from the General segments or another cluster, which Article 11.1 allows only "at the sole discretion of the Authority" [1].
Quick Math: The published DDA lines for year one are AED 15,000 for the licence, AED 3,500 for registration and AED 20 in dirhams on the registration transaction, so AED 18,520 before anything else [1][4]. Add a second standard segment and the licence line becomes AED 25,000 a year. Add it two months before renewal and, with no pro-rating, the full AED 10,000 is charged for those two months and again at renewal. Timing the change to the renewal date saves AED 10,000.
Why does a Dubai Outsource City FZ-LLC need AED 300,000 of capital?
A Dubai Outsource City FZ-LLC needs AED 300,000 of paid-up capital because Article 15.1 of DDA Decision No. 1 of 2021 sets that figure for the Outsource segment, against an AED 10,000 default for most activities [1]. DOC's FAQ confirms it and adds that a branch of an existing company has no minimum capital [2].
The default sentence in Article 15.1 reads: "Subject to certain minimum paid up capital amounts set out below for specific segments and activities, for all other activities and for the purposes of Regulation 25.1 of the PCR, the minimum paid up capital of an FZ-LLC shall be AED 10,000." [1] The table that follows lists Dubai Outsource City first, with one row: Outsource, share capital AED 300,000 [1]. DOC's FAQ says the same in plain words: "FZ-LLCs incorporated in Dubai Outsource City are required to have a minimum paid-up capital of AED 300,000. Branch establishments have no minimum capital requirements." [2]
Quick Math: AED 300,000 against the AED 10,000 default is 30 times the capital, a difference of AED 290,000 [1]. For a founder comparing setups, that gap is larger than the DDA licence fee for nineteen years at AED 15,000 a year. A branch of an existing company avoids the requirement entirely under DOC's FAQ [2], which makes the branch the first route for an established group to price.
The two legal forms compared:
| Factor | FZ-LLC | Branch of an existing company |
|---|---|---|
| Minimum paid-up capital | AED 300,000 [1][2] | None [2] |
| Legal person | A new company owned by its shareholders | Part of the parent company |
| Liability | Limited to the FZ-LLC | The parent stands behind the branch |
| Registration fee | AED 3,500 [4] | AED 3,500 [5] |
| Key documents | Shareholder and manager documents | Parent board resolution, notarised and attested by the UAE Embassy [5] |
| Best for | A new venture, a joint venture or a founder-led provider | An established group placing a centre in Dubai |
Real Talk: Paid-up capital is not a fee to the DDA. It is the company's own money, paid in and shown in its accounts. Some pages describe the AED 300,000 as optional, and the Decision does not: it is a "minimum paid up capital" [1]. If AED 300,000 would strain the business, that is a sign the operation is too small for Dubai Outsource City, or that a branch of a parent company is the better structure. Ask the DDA and your bank what evidence of payment they need before you incorporate.
What offices does Dubai Outsource City offer, and what does space cost?
Dubai Outsource City offers commercial offices, D/Quarters co-working, in5 centres, retail units, warehouses and light industrial units, and publishes no rent, unit sizes or lease terms [6]. TECOM quotes space on request, and DOC's FAQ says DDA commercial licences "are subject to leasing a facility", so the lease comes before the licence [2].
DOC describes its commercial space as offices designed for outsourcing and shared service businesses, and its FAQ lists campus services including restaurants, banks, supermarkets, courier services, meeting rooms and 24-hour security [2][6]. On location, DOC's FAQ says the district is "easily accessible from Emirates Road and Dubai Bypass Road" and names RTA bus route 365 [2].
What DOC does not publish is the number that drives the budget. No rent per square foot, no unit sizes and no lease term appear on DOC's site or its FAQ [2][6]. TECOM's results release for the first half of 2026 reported "97% occupancy rates" across its commercial and industrial portfolios, a group-wide figure with no separate number for DOC [7]. When a landlord is that full, ask early and ask for written terms.
Pro Tip: Ask TECOM for three things in the same quote: the leasable area in square feet, the visa allocation that area carries, and the fit-out condition (shell, fitted or furnished). A 100-seat centre needs at least 8,000 sq ft for its visas at DOC's published ratio [2], so a quote that gives only an annual rent, without the area, cannot be checked against your headcount. Ask too whether the lease term matches your client contract.
How many visas can a Dubai Outsource City company sponsor?
A Dubai Outsource City company can sponsor one employee per 80 square feet of leased space, according to DOC's FAQ [2]. A 100-seat centre with a visa for every seat therefore needs at least 8,000 square feet, about 743 square metres, before supervisors, managers or growth are counted.
Visas are processed through DOC's Government Services Department, which the FAQ describes as "One of the value-added services we offer" [2]. DOC publishes no per-visa fee, so ask for the establishment card, entry permit, medical, Emirates ID and residence costs as a quote per person.
The arithmetic for common team sizes, at one visa per seat:
| Visa holders | Minimum leased area (sq ft) | About (square metres) |
|---|---|---|
| 25 | 2,000 | 186 |
| 50 | 4,000 | 372 |
| 100 | 8,000 | 743 |
| 150 | 12,000 | 1,115 |
| 250 | 20,000 | 1,858 |
These are floors. Shift staff share seats but each holds a visa, so size the lease on headcount, not seats.
Quick Math: Dubai Internet City, the sister TECOM district, allows one visa per 60 square feet, as set out in our Dubai Internet City setup guide. For 100 visa holders that is 6,000 sq ft against 8,000 sq ft at DOC's 80 sq ft ratio [2]. DOC needs a third more space for the same headcount. Whether that costs more depends on the rent per square foot each district quotes, which neither publishes, so get both quotes on the same headcount.
Package free zones tie visas to the package and desk instead. Our guide to how free zone visa quotas work compares the rules, and our guide to hiring overseas staff through a UAE free zone company covers the employment side.
How do you set up a Dubai Outsource City company, step by step?
Setting up a Dubai Outsource City company takes about 7 working days by DOC's FAQ, 4 for initial approval and 3 for the licence, or 12 working days by the DDA's registration page, 10 for provisional approval and 2 for registration [2][4]. The lease, the capital deposit, visas and the bank account add time on top.
Neither page is dated, and the DDA's branch page gives the same 10 plus 2 split [5]. Plan on the longer figure.
| Step | What happens | Who | Time |
|---|---|---|---|
| 1. Confirm the activity | Written description of the work against Segment 17.1 | DDA | Before you apply |
| 2. Choose FZ-LLC or branch | FZ-LLC needs AED 300,000; branch needs none | You | Before you apply |
| 3. Initial or provisional approval | Application, documents, outside approvals if any | DDA | 4 working days per DOC [2]; 10 per DDA [4] |
| 4. Lease the space | Sized to your visa headcount | TECOM | Quote |
| 5. Pay in capital | FZ-LLC only | Your bank | Depends on the bank |
| 6. Registration and licence | Licence fee and AED 3,500 registration paid | DDA | 3 working days per DOC [2]; 2 per DDA [4] |
| 7. Establishment card and visas | Per employee | DOC Government Services | Quote |
| 8. Bank account | Corporate account opening | Bank | Separate process |
| 9. Tax registrations | Corporate tax, and VAT once over the threshold | FTA | After incorporation |
Steps 3 and 4 interact. The licence depends on a lease, so negotiate the space while the approval is in progress, and do not sign for a floor area until the activity is confirmed.
Banking runs on its own clock. The signatory has to be present, and the bank will want to see the client contracts, the premises and the source of the capital. Our guide to opening a corporate bank account in Dubai covers the documents banks ask for.
For a document checklist built around your activity and legal form, tell us what the centre will do and who its clients are.
What does a Dubai Outsource City company owe the DDA after the licence is issued?
A Dubai Outsource City licensee must appoint a General Manager, keep a Registered Office, prepare and retain Audited Accounts, and renew the AED 15,000 licence on time under DDA Decision No. 1 of 2021 [1]. Late renewal costs AED 2,500 to AED 10,000, and trading outside the licensed activity costs AED 10,000.
The Decision sets these duties in Article 2. Article 2.5 requires every licensee to "appoint a General Manager". Article 2.6 requires a "Registered Office which will be stated on the Licence". Article 2.8 says: "Each Licensee must prepare and retain Audited Accounts. A Licensee shall supply its Audited Accounts to the Authority on demand by the Authority." [1] Article 2.15 adds that a DDA licence "does not exempt the Licensee from having to obtain any other permit, licence or approval from such other regulators as required by Dubai or UAE law in the conduct of business." [1]
Schedule 4 of the Decision sets the penalties [1]:
| Breach | Penalty (AED) |
|---|---|
| Renewal more than 30 and up to 60 days late | 2,500 |
| Renewal more than 60 and up to 90 days late | 5,000 |
| Renewal more than 90 days late | 10,000 |
| Business carried on without a licence | 10,000; 25,000 for a subsequent offence |
| Business of a different segment or activity to the licence | 10,000 |
The renewal schedule also allows the Authority to "refuse to provide any governmental services, including sponsorship services" while a penalty is outstanding [1]. For an outsourcing company with a hundred visas, a blocked visa service is worse than the fine.
Year two is when renewals, visa renewals, the corporate tax return, audited accounts and any VAT returns all fall due within a few months of each other. Our post-setup services team runs that calendar for free zone companies so none of it lands on a client delivery week.
Common Mistake: Treating Operations Support as a flexible catch-all and then hiring at the lowest wage band. Article 3.8 bars Operations Support licensees from supplying services "through any employee of the Licensee who earns less than AED3,000 per month", and requires them to keep client contracts available for inspection [1]. Build the AED 3,000 floor into the staffing model and keep every client contract on file.
What extra rules apply to call centres, manpower supply and government outsourcing?
A Dubai Outsource City licence does not replace the rules that govern the work itself. Call centres face the UAE telemarketing rules and federal data protection law, Manpower Supply is restricted to organisations already licensed for it by a UAE Department of Economic Development [1], and Dubai government outsourcing falls under Law No. 5 of 2026.
Call centres. A Customer Care licence covers "telemarketing and telesales" as an activity [1]. The calling windows, consent rules, Do Not Call Registry, TDRA position on voice services, call-recording rules and the VAT treatment of calls for overseas clients are set out in our call centre and BPO setup guide. Read it before you dial a UAE number.
Customer data. Every outsourcing provider that handles client records is processing personal data on someone else's behalf. Our guide to the UAE Personal Data Protection Law covers the obligations, and client contracts will usually add their own.
Manpower supply and recruitment. The Decision's Manpower Supply activity is labour supply "in the free zone for third party licensees", restricted to organisations "currently licensed to undertake this activity by the relevant Department of Economic Development in UAE" [1]. It is not a recruitment or placement licence. A recruitment business follows the route in our recruitment agency setup guide.
Dubai government work. A provider bidding for Dubai government call centre, customer service or back-office contracts falls under Dubai Law No. 5 of 2026 on government outsourcing, including its Emiratisation conditions. Our guide to Dubai's government outsourcing law explains what it requires of contractors.
Mainland clients. DOC's FAQ states: "The license is valid only for operating a business inside the Free Zone territory." [2] Serving clients on the Dubai mainland is possible through the permits and licences under Executive Council Resolution No. 11 of 2025 [8], which the call centre guide sets out. Check it for every UAE client.
Does a Dubai Outsource City company pay UAE corporate tax?
Yes. A Dubai Outsource City company is a taxable person under Federal Decree-Law No. 47 of 2022 [9], and outsourcing for third parties is not a Qualifying Activity under Ministerial Decision No. 229 of 2025 [10]. A third-party provider pays 0% on taxable income up to AED 375,000 and 9% above, or uses Small Business Relief where eligible.
DOC's FAQ lists among the zone's benefits a "Guaranteed 50-year exemption from personal, income and corporate taxes" [2]. The law that now applies is Federal Decree-Law No. 47 of 2022, which brings free zone companies into UAE corporate tax. A free zone company reaches 0% only as a Qualifying Free Zone Person (QFZP), and only on qualifying income [9][10]. Budget on the federal law.
The closed list in Article 2(1) of Ministerial Decision No. 229 of 2025 runs from manufacturing to logistics services, and third-party outsourcing of any kind is not on it [10]. A DOC provider whose revenue is all third-party outsourcing fails the de minimis test, the lower of 5% of revenue or AED 5,000,000 of non-qualifying revenue [10], and is taxed at the ordinary rates.
Small Business Relief is the other route for a young provider. It applies where revenue is at or under AED 3,000,000 in the current and all previous tax periods, for tax periods ending on or before 31 December 2029, and a QFZP cannot use both [11]. Our guide to Small Business Relief to 2029 covers the election, and our Qualifying Free Zone Person guide covers the conditions for 0%.
Quick Math: A third-party contact centre with taxable income of AED 1,000,000 pays 0% on the first AED 375,000 and 9% on the remaining AED 625,000, so AED 56,250 [9]. The same centre with revenue of AED 2,800,000 and an SBR election pays no corporate tax for the period, provided it meets the conditions [11]. Above AED 3,000,000 of revenue the relief stops, and the ordinary rates apply.
Can a captive shared services centre in Dubai Outsource City reach 0% corporate tax?
A captive centre serving only its own group has an arguable route to 0% under the "Headquarter services to Related Parties" item in Ministerial Decision No. 229 of 2025 [10]. No FTA guidance applies that item to captive service centres, so treat 0% as a position to model, document and defend, not a certainty.
Article 2(1) lists, as item (i): "Headquarter services to Related Parties." [10] Article 2(3) defines it: "Headquarter services to Related Parties includes the administering, overseeing and managing of Business Activities of Related Parties, including the provision of senior and general management, captive insurance services, administrative services, procurement services, business planning and development, risk management, coordination of group activities, and in general incurring expenditures on behalf of Related Parties and providing other support services to Related Parties." [10]
A captive centre would rely on the closing words, "providing other support services to Related Parties", arguing that billing, IT support and HR administration for group companies are such services. Against that, the definition reads as a list of headquarters functions, and no FTA guide or public clarification applies it to captive centres, so the position is untested.
Four further conditions apply to any QFZP claim:
- Natural persons. Article 2(2)(a) excludes "Any transactions with natural persons", except for four listed activities that do not include headquarter services [10]. A captive centre billing individuals cannot treat that income as qualifying.
- Substance. The centre must have adequate assets, staff and operating expenditure in the free zone under Article 8 of Cabinet Decision No. 100 of 2023 [12]. Plan the headcount and spend in the zone to match the income claimed.
- Audited accounts. A QFZP must prepare audited financial statements under Ministerial Decision No. 84 of 2025 [10][13].
- Arm's length pricing. The centre's charges to group companies must be priced at arm's length and documented. Our transfer pricing guide for the UAE covers the method and the files.
Failing any condition has a long tail. Under Article 5(2), a QFZP that fails a condition at any time in a tax period "shall cease to be a Qualifying Free Zone Person from the beginning of the relevant Tax Period and for the subsequent (4) four Tax Periods." [10] The company is then taxed at the ordinary rates, 0% up to AED 375,000 and 9% above, for that period and the next four [9].
Real Talk: A group that sets up a DOC centre mainly to reach 0% is building on the least certain line in the plan. The stronger business case rests on talent, time zone, space and cost, with 0% as an upside if the headquarter services position holds. Model the centre at the ordinary rates as well, so the case still works if the FTA takes the narrower view [9][10].
For a model of your centre's tax position on both readings, set out the group, the functions and who the centre bills.
Is Dubai Outsource City a VAT Designated Zone?
No. Dubai Outsource City does not appear on the Federal Tax Authority's list of Designated Zones under Cabinet Decision No. 59 of 2017, as amended through Cabinet Decision No. 81 of 2021 [14]. Its services are standard-rated at 5% unless an export of services condition is met, which depends on where the client is and where the service is received.
DOC companies mostly supply services, so the export rules decide their VAT. Article 31 of the VAT Executive Regulation zero-rates a service "supplied to a Recipient of Services who does not have a Place of Residence in an Implementing State and who is outside the State at the time the Services are performed", subject to further conditions [15]. Article 31(3) removes zero-rating where the service is received in the UAE by another person, including an employee or director of the overseas client, and that was reasonably foreseeable [15].
A centre handling calls for a foreign client's UAE customers, or supporting the client's UAE branch, may fail the export test. Our guide to zero-rated exported services covers the conditions, our guide to Designated Zones and VAT explains what the status does and does not change, and the call centre guide covers the call-specific cases.
VAT registration is mandatory once taxable supplies exceed AED 375,000 and voluntary from AED 187,500 [15]. Zero-rated exports count towards the mandatory threshold, so a provider with only overseas clients still registers once it crosses it.
Should you choose Dubai Outsource City, Dubai Internet City, a cheaper free zone or the mainland?
Choose Dubai Outsource City for a large, space-led outsourcing operation that fits one of its eight activities and can fund AED 300,000 of capital or use a branch [1][2]. Choose Dubai Internet City for a technology company, a cheaper free zone package for a small team, and the Dubai mainland when most clients are in the UAE.
BusinessDubai.ae has no Dubai Outsource City package. The prices below for other zones and the mainland are BusinessDubai.ae's current package prices, and they are what a founder compares when a DOC licence is not required. The DOC row uses the DDA's published fee and capital rules [1][2][16].
| Base | Who it suits | Licence or package price (AED) | Capital | Visa rule | Serving mainland clients |
|---|---|---|---|---|---|
| Dubai Outsource City | Contact centres, transaction processing, TPAs, DR and records sites | DDA licence 15,000 a year, plus lease [1] | 300,000 for an FZ-LLC; none for a branch [2] | 1 per 80 sq ft leased [2] | Through Resolution No. 11 of 2025 routes [8] |
| Dubai Internet City | Software, IT and technology companies | Quoted by DIC; see our DIC guide | Per DIC's FAQ, in our DIC guide | 1 per 60 sq ft leased | Through Resolution No. 11 of 2025 routes [8] |
| Meydan Free Zone or Dubai South | Small service companies needing a Dubai licence | 12,500 licence only; 21,850 one visa; 28,400 two visas [16] | Not part of the package price | Visas in the package | Through a permit, branch or dual licence |
| Expo City | Small service companies | 12,500 licence only; 21,850 one visa; 25,350 two visas [16] | Not part of the package price | Visas in the package | Through a permit, branch or dual licence |
| IFZA | Small service companies | 12,900 licence only; 22,200 one visa; 25,400 two visas (partner price) [16] | Not part of the package price | Visas in the package | Through a permit, branch or dual licence |
| RAKEZ (Ras Al Khaimah) | Teams that do not need a Dubai address | 6,010 licence only; 12,810 one visa; 18,810 two visas [16] | Not part of the package price | Visas in the package | Not a Dubai licence |
| Dubai mainland | Providers whose clients are UAE businesses | 18,200 year one without a visa; 24,400 with one visa [16] | No DOC-style minimum | Linked to the office leased | Direct |
The IFZA figures are a partner price. Compare the package zones on the one-visa or two-visa column, not on the licence-only headline: on one visa, Meydan, Dubai South and Expo City are AED 350 below IFZA, which is not a reason to choose either.
Scale and clients decide it. AED 300,000 of capital and a lease at 80 sq ft per visa make sense for a floor of staff, not two founders, and a provider whose clients are mostly UAE businesses gains little from a free zone licence it has to work around. Our free zone company setup and mainland company setup pages itemise both routes on the same visa basis.
For technology, DOC's IT Management activity covers remote support "to third parties", while Dubai Internet City licenses software businesses more broadly; our software development company setup guide covers that side. A fintech may look at the DIFC Innovation Licence.
A team that needs no Dubai address can compare our business setup in Sharjah and business setup in Abu Dhabi pages, with RAKEZ in Ras Al Khaimah as a further option.
What does the first year in Dubai Outsource City cost?
The first year in Dubai Outsource City costs at least AED 18,520 in published DDA lines, made up of the AED 15,000 licence, AED 3,500 registration and two AED 10 dirhams, plus AED 300,000 of paid-up capital for an FZ-LLC [1][2][4]. Rent, fit-out, visas and staff are quoted separately, and BusinessDubai.ae has no DOC package.
The table uses only published figures and marks everything else as a quote.
| Cost item | Amount (AED) | Notes |
|---|---|---|
| DDA licence, Outsource segment | 15,000 | Annual; one activity [1] |
| DDA registration fee | 3,500 | Paid at registration [4] |
| Knowledge Dirham and Innovation Dirham | 20 | AED 10 each, per transaction [4] |
| Paid-up capital, FZ-LLC | 300,000 | Company's own funds, not a fee [1][2]; none for a branch |
| Second standard segment, if approved | 10,000 | Annual; no pro-rating [1] |
| Office lease | Quote | TECOM publishes no rent; size at 80 sq ft per visa [2] |
| Fit-out, furniture and telephony | Quote | Contractor and supplier quotes |
| Establishment card and visas | Quote | Per person, through DOC Government Services [2] |
| Staff salaries | Quote | Operations Support staff at least AED 3,000 a month [1] |
| Audit | Quote | Audited Accounts required under Article 2.8 [1] |
| Year two, DDA licence | 15,000 plus dirhams | The licence fee is annual [1]; lease and visas renew separately |
The licence lines are the smallest and most certain part of the budget. The lease, the fit-out and the payroll are the rest, and none of them has a published Dubai Outsource City price.
Real Talk: A Dubai Outsource City quote that arrives as one total hides its largest line. Ask for five numbers separately: the DDA licence and registration fees, the TECOM lease with its square footage and visa allocation, fit-out, visa costs per person, and the adviser's fee. Only the first has a published figure [1][4]. If the licence line in your quote is not AED 15,000, ask what has changed since the 2021 Decision.
For a first-year budget built from the DDA's fee lines, a written lease quote and the alternatives on the same headcount, tell us your activity, seats and clients.
Which setup fits which outsourcing business?
The right base depends on the operation. A large third-party contact centre or processing hub fits Dubai Outsource City at AED 15,000 a year plus capital and lease [1]. A captive centre fits if the DDA accepts the activity, and a two-person back-office start-up is usually better served by a package zone from AED 21,850 with one visa [16].
| Business | Starting point | Why | Watch for |
|---|---|---|---|
| 150-seat third-party contact centre | DOC FZ-LLC, Customer Care (17.1.1) | Purpose-built district; at least 12,000 sq ft carries 150 visas [2] | AED 300,000 capital; telemarketing rules; ordinary corporate tax rates [1][10] |
| Captive shared services centre for a foreign group | DOC branch of the parent, activity confirmed by the DDA | No capital for a branch [2]; DOC markets itself to shared service providers [6] | Activity fit for group-only clients; 0% only arguable; transfer pricing [10] |
| IT managed-services provider | DOC, IT Management (17.1.4), or Dubai Internet City | DOC covers remote support "to third parties" [1] | Compare the DIC licence and its 60 sq ft visa rule |
| Document storage or disaster recovery site | DOC, Document Management (17.1.5) or Disaster Recovery Centre (17.1.6) | Warehouse and industrial units in the district [6] | Space quotes; client contracts on continuity and data |
| Two-person back-office start-up | Probably not DOC: a package zone such as Meydan, Dubai South or Expo City | AED 28,400 for two visas at Meydan or Dubai South, against AED 300,000 of DOC capital [1][16] | Check the package zone's activity list fits the service |
| Manpower supply company | DOC Manpower Supply (17.1.8) only if already DED-licensed for it | The activity is restricted to existing DED licence holders [1] | It is labour supply in the free zone, not recruitment |
Real Client Stories
These are composite examples built from the situations outsourcing and shared services founders most often face in Dubai. Names and details are illustrative, and the only figures used are published DDA fees and BusinessDubai.ae's package prices.
The contact centre that also wanted to collect payments
A customer service provider planned a Dubai Outsource City FZ-LLC on Customer Care, the one activity its AED 15,000 Outsource licence allows. Weeks before launch, its anchor client added payment collections to the contract. Collections sit under Transaction Processing, a second activity in the same segment. Invoicing it without the activity would have risked the AED 10,000 penalty for business outside the licence. The provider applied for the DDA's discretionary increase under Article 10.5 before signing the amended contract, and held the collections work back until the DDA answered. Lesson: map every service line in the client contract to an activity before you sign it.
The European group that asked for a shared services activity
A European manufacturer wanted a Dubai centre for payroll, accounts payable and IT support for its own subsidiaries. Its adviser found no shared services activity among the eight in Segment 17.1, and wording in the definitions that refers to third parties and clients. The group chose a branch of the parent, which needs no capital, instead of an FZ-LLC with AED 300,000, and asked the DDA in writing which activity fit. Its tax team modelled the centre twice: as a Qualifying Free Zone Person under the headquarter services item, and at the ordinary rates. Lesson: confirm the activity and model both tax readings first.
The two founders who priced the capital first
Two founders planned a back-office support service for small companies, starting with themselves and a few freelance staff. Dubai Outsource City looked like the natural address for an outsourcing business. Then they priced it: AED 15,000 for the licence, AED 3,500 for registration and AED 300,000 of paid-up capital for an FZ-LLC, before any lease. They compared BusinessDubai.ae's Meydan Free Zone package at AED 28,400 with two visas, confirmed the activity fit there, and started in Meydan. They kept Dubai Outsource City on the plan for when a large contract justified a floor of staff. Lesson: choose the zone for the operation you have now.
Start your Dubai Outsource City setup the right way
Three decisions decide a Dubai Outsource City setup: whether your work fits one of the eight DDA activities, whether you can fund AED 300,000 of capital or use a branch, and how much space your visa headcount needs at one employee per 80 square feet [1][2]. The AED 15,000 licence fee is the easy part.
Since 2013, BusinessDubai.ae has completed 700+ company registrations across the UAE, with itemised pricing and no hidden fees. We do not sell a Dubai Outsource City package, so we will build your budget from the DDA's fee lines and a written TECOM lease quote, and set it beside a free zone company setup package and a mainland company setup on the same headcount. Our post-setup services team then runs renewals, visas and filings. If Dubai Outsource City is the right base for your centre, we will say so, and if a package zone does the job, we will say that too.
Frequently Asked Questions
Who issues company licences in Dubai Outsource City?
The Dubai Development Authority (DDA) issues licences for Dubai Outsource City companies, under DDA Decision No. 1 of 2021. TECOM Group develops and operates the district and leases the space.
How much does a Dubai Outsource City licence cost in 2026?
A Dubai Outsource City licence costs AED 15,000 a year for the Outsource segment under Article 14.1 of DDA Decision No. 1 of 2021. The DDA also charges a registration fee of AED 3,500 and a Knowledge Dirham and an Innovation Dirham of AED 10 each per transaction. Rent, visas and capital are separate.
How many activities can one Dubai Outsource City licence carry?
One Dubai Outsource City licence carries one activity, chosen from the eight in Segment 17.1 of DDA Decision No. 1 of 2021. Article 10.5 lets the DDA, at its discretion and on application, increase the number of activities permitted under a segment.
What does it cost to add a second segment to a Dubai Outsource City licence?
An additional standard segment costs AED 10,000 a year on top of the AED 15,000 Outsource fee, under Article 10.1 of DDA Decision No. 1 of 2021. It needs the DDA's prior approval and is not pro-rated.
What is the minimum capital for a Dubai Outsource City FZ-LLC?
A Dubai Outsource City FZ-LLC needs a minimum paid-up capital of AED 300,000, under Article 15.1 of DDA Decision No. 1 of 2021 and Dubai Outsource City's FAQ. That is 30 times the AED 10,000 default the same Decision sets for most other activities.
Does a branch in Dubai Outsource City need share capital?
No. Dubai Outsource City's FAQ states that branch establishments have no minimum capital requirement. A branch is part of its parent company, so the parent stands behind it.
Can I run HR outsourcing from Dubai Outsource City?
DDA Decision No. 1 of 2021 has no Dubai Outsource City activity called HR outsourcing. HR administration would have to fit one of the eight Segment 17.1 activities, with Operations Support, which covers "office operations functions", the closest. Ask the DDA in writing which activity it will issue before you lease space.
Can I run finance and accounting outsourcing from Dubai Outsource City?
There is no finance and accounting outsourcing activity among the eight Dubai Outsource City activities. Billing, payments and collections fit the Transaction Processing definition, while bookkeeping and accounting are not on the list. Describe the work to the DDA and ask which segment and conditions apply.
Can a captive shared services centre be licensed in Dubai Outsource City?
Dubai Outsource City says it serves both captive and non-captive companies, but the Decision has no shared services activity, and several definitions refer to third parties or clients. A captive centre should describe its group-only client base to the DDA and get the activity confirmed in writing before signing a lease.
What rules apply to the Operations Support activity in Dubai Outsource City?
Operations Support licensees must keep copies of their operation support contracts with third-party clients for the DDA to check on demand, under Article 3.8 of DDA Decision No. 1 of 2021. They may not supply the service through any employee earning less than AED 3,000 a month.
Who can hold a Manpower Supply licence in Dubai Outsource City?
Only organisations already licensed for manpower supply by a UAE Department of Economic Development can hold the Dubai Outsource City Manpower Supply activity, under the Decision's definition. The activity covers skilled and semi-skilled workers supplied to other licensees in the free zone. It is not a recruitment licence.
How many visas can a Dubai Outsource City company sponsor?
A Dubai Outsource City company can sponsor one employee per 80 square feet of leased space, according to DOC's FAQ. Visas are processed through DOC's Government Services Department. More staff means more leased space, so size the lease on headcount, including shift staff.
Does Dubai Outsource City publish office rents?
No. Dubai Outsource City publishes no rent, unit sizes or lease terms for its offices, co-working, warehouses or light industrial units, as of October 2026. TECOM quotes space on request. Ask for the area in square feet and its visa allocation in the same quote.
Do I need a lease before I get a Dubai Outsource City licence?
Yes. Dubai Outsource City's FAQ says commercial licences issued by the DDA are subject to leasing a facility. Confirm your activity first, then negotiate the lease while the approval is in progress, so the space matches both the licence and your visa headcount.
How long does company registration take in Dubai Outsource City?
Dubai Outsource City's FAQ says registration usually takes 7 working days, 4 for initial approval and 3 for the licence. The DDA's registration pages give 10 working days for provisional approval and 2 for registration. Plan on the longer figure.
Does BusinessDubai.ae sell a Dubai Outsource City package?
No. BusinessDubai.ae has no Dubai Outsource City package. It builds a DOC budget from the DDA's fee lines and a TECOM lease quote, and compares it with its own packages, such as AED 21,850 with one visa at Meydan Free Zone.
Does Dubai Outsource City's 50-year tax exemption mean no corporate tax?
No. Dubai Outsource City's FAQ lists a guaranteed 50-year exemption from corporate taxes among its benefits, but UAE corporate tax under Federal Decree-Law No. 47 of 2022 applies to free zone companies. A company reaches 0% only as a Qualifying Free Zone Person on qualifying income.
Can a Dubai Outsource City outsourcing company pay 0% corporate tax?
A Dubai Outsource City company serving third parties cannot reach 0% as a Qualifying Free Zone Person, because outsourcing is not on the closed list in Ministerial Decision No. 229 of 2025. It pays 0% on taxable income up to AED 375,000 and 9% above, or uses Small Business Relief if eligible.
What happens if a Dubai Outsource City company fails a QFZP condition?
A Qualifying Free Zone Person that fails a condition is taxed at the ordinary rates, 0% up to AED 375,000 and 9% above, from the start of that tax period. It also loses QFZP status for the following four tax periods, under Article 5(2) of Ministerial Decision No. 229 of 2025.
Does a captive centre in Dubai Outsource City need transfer pricing documentation?
Yes. A captive centre that charges group companies must price those services at arm's length under Federal Decree-Law No. 47 of 2022 and keep documentation to support the price. The group charge is usually the centre's main income, so the pricing file matters.
Can a Dubai Outsource City company claim Small Business Relief?
Yes, if it is not a Qualifying Free Zone Person and its revenue is at or under AED 3,000,000 in the current and all previous tax periods. The relief applies to tax periods ending on or before 31 December 2029. A QFZP cannot use both.
Is Dubai Outsource City a VAT Designated Zone?
No. Dubai Outsource City does not appear on the Federal Tax Authority's Designated Zones list under Cabinet Decision No. 59 of 2017 as amended. Its services carry 5% VAT unless they meet the export of services conditions, which depend on where the client lives and where the service is received.
Can a Dubai Outsource City company serve clients on the Dubai mainland?
Dubai Outsource City's FAQ says the licence is valid for operating inside the free zone. Serving Dubai mainland clients is possible through the permits and licences under Executive Council Resolution No. 11 of 2025.
What is the penalty for renewing a Dubai Outsource City licence late?
Renewing more than 30 and up to 60 days late costs AED 2,500, more than 60 and up to 90 days AED 5,000, and more than 90 days AED 10,000, under Schedule 4 of DDA Decision No. 1 of 2021. The DDA may also withhold government services, including visa sponsorship, until the penalty is paid.
Is Dubai Outsource City or Dubai Internet City better for an IT support company?
Dubai Outsource City fits a provider of remote IT support to third parties under its Information Technology Management activity. Dubai Internet City suits software and technology companies more broadly and allows one visa per 60 square feet rather than 80. Compare both lease quotes on the same headcount.
Does a Dubai Outsource City company need audited accounts?
Yes. Article 2.8 of DDA Decision No. 1 of 2021 requires every licensee to prepare and retain Audited Accounts and supply them to the DDA on demand. A company claiming Qualifying Free Zone Person status must also prepare audited statements under Ministerial Decision No. 84 of 2025.
References
[1] Dubai Development Authority. Decision No. 1 of 2021 (Licensing Categories Decision), issued in Dubai on 7 April 2021: Article 1 definitions, Article 2 (issue of licences, General Manager, Registered Office, Audited Accounts, other approvals), Article 3.8 Operations Support conditions, Articles 10 and 11 additional segments and activities, Article 14.1 fee table (DOC Outsource segment, AED 15,000, one activity), Article 15.1 capital (AED 10,000 default; DOC Outsource AED 300,000), Part Two Segment 17.1 activity definitions, and Schedule 4 penalties. DDA Decision No. 1 of 2021 (PDF)
[2] Dubai Outsource City. Frequently asked questions (undated, read 23 October 2026): DDA as the registering authority, AED 300,000 minimum paid-up capital for an FZ-LLC and none for branches, one employee per 80 sq ft of leased space, registration in about 7 working days (4 for initial approval, 3 for the licence), licences subject to leasing a facility, captive and non-captive companies, visa services, location and the 50-year exemption wording. Dubai Outsource City FAQs
[3] TECOM Group. Business districts: Dubai Outsource City established in 2004, with more than 80 customers from the aviation, banking and telecommunications industries (undated page, read 23 October 2026). TECOM business districts
[4] Dubai Development Authority. Registration of an FZ-LLC with a natural person: AED 3,500 registration fee, licence fee calculated on the selected activities, AED 10 Knowledge Dirham and AED 10 Innovation Dirham per transaction, 10 working days for provisional approval and 2 for registration. DDA FZ-LLC registration
[5] Dubai Development Authority. Registration of a branch of a foreign or UAE company: AED 3,500 registration fee, the same two-stage timing, external authority NOCs under Article 8 where applicable, and a parent board resolution notarised and attested by the UAE Embassy. DDA branch registration
[6] Dubai Outsource City. Offerings: commercial spaces for outsourcing and shared service businesses, alongside D/Quarters co-working, in5, retail, warehouses and light industrial units; no rent, sizes or lease terms published (read 23 October 2026). Dubai Outsource City commercial spaces
[7] TECOM Group. Results release for the first half of 2026, 30 July 2026: 97% occupancy across the commercial and industrial portfolios, with no separate Dubai Outsource City figure. TECOM H1 2026 results (PDF)
[8] Government of Dubai. Executive Council Resolution No. 11 of 2025 Regulating the Conduct of Free Zone Establishments' Activities within the Emirate of Dubai: the permit and licence routes for free zone companies serving the Dubai mainland. Executive Council Resolution No. 11 of 2025 (PDF)
[9] Federal Tax Authority. Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses: 0% on taxable income up to AED 375,000 and 9% above, the Qualifying Free Zone Person rules in Article 18, and arm's length pricing for related-party transactions. Federal Decree-Law No. 47 of 2022 (PDF)
[10] Ministry of Finance. Ministerial Decision No. 229 of 2025 regarding Qualifying Activities and Excluded Activities, issued 28 August 2025: Article 2(1) closed list including item (i) headquarter services to related parties, Article 2(2)(a) transactions with natural persons, the Article 2(3) definition, Article 3 de minimis limit, and Article 5 on audited statements and loss of status for the period of failure and the following four. Ministerial Decision No. 229 of 2025 (PDF)
[11] Ministry of Finance. Ministerial Decision No. 73 of 2023 on Small Business Relief, as amended by Ministerial Decision No. 131 of 2026: revenue at or under AED 3,000,000, tax periods ending on or before 31 December 2029, and no relief for a Qualifying Free Zone Person. Ministerial Decision No. 73 of 2023 (PDF)
[12] Ministry of Finance. Cabinet Decision No. 100 of 2023 on Determining Qualifying Income for the Qualifying Free Zone Person: Article 8 on adequate substance, staff, assets and operating expenditure in the free zone. Cabinet Decision No. 100 of 2023 (PDF)
[13] Ministry of Finance. Ministerial Decision No. 84 of 2025 on Audited Financial Statements: audited statements required of every Qualifying Free Zone Person. Ministerial Decision No. 84 of 2025 (PDF)
[14] Federal Tax Authority. List of Designated Zones under Cabinet Decision No. 59 of 2017, as amended through Cabinet Decision No. 81 of 2021. Dubai Outsource City and the other TECOM districts do not appear. FTA Designated Zones list (PDF)
[15] Federal Tax Authority. Executive Regulation of Federal Decree-Law No. 8 of 2017 on VAT (Cabinet Decision No. 52 of 2017, consolidated 4 October 2024): Article 31 export of services conditions and the Article 31(3) exception for services received in the State, with the 5% rate and registration thresholds of AED 375,000 mandatory and AED 187,500 voluntary. VAT Executive Regulation (PDF)
[16] BusinessDubai.ae. Internal pricing reference, current from 21 October 2026: Meydan Free Zone and Dubai South at AED 12,500 licence only, AED 21,850 with one visa and AED 28,400 with two; Expo City at AED 12,500, AED 21,850 and AED 25,350; IFZA at AED 12,900, AED 22,200 and AED 25,400 (a partner price, as IFZA publishes none); RAKEZ at AED 6,010, AED 12,810 and AED 18,810; the Dubai mainland package at AED 18,200 in year one without a visa, AED 24,400 with one visa and about AED 15,000 on renewal. BusinessDubai.ae holds no package price for Dubai Outsource City. businessdubai.ae
