If your business runs call centres, handles HR outsourcing, manages back-office functions, or provides IT support to clients around the world, Dubai Outsource City is built specifically for you. It's the only free zone in the UAE created solely for the outsourcing and shared services industry, and it sits under the same regulatory umbrella as Dubai Internet City and Dubai Media City.
This guide walks through what the free zone actually offers, who can license a company there, what the process looks like, and what you'll pay in tax once you're operating.
What Is Dubai Outsource City?
Dubai Outsource City is a business community dedicated to helping outsourcing companies provide services such as BPO, HR outsourcing, IT outsourcing, and back office and call centre operations to global markets. Its benefits include state-of-the-art office space, robust telecom infrastructure, facilities management services, and 24-hour security.
The free zone operates under the jurisdiction of the Dubai Development Authority (DDA), which handles company registration, licensing, employee services, and planning and development. So while people still refer to it by its old name, "TECOM," the licensing authority you'll actually deal with is DDA.
One practical advantage worth knowing about: the zone sits next to Dubai International Academic City, giving business partners access to a pool of more than 28,000 students available for part-time and temporary work, according to Dubai Outsource City's official site. If your model depends on scaling a workforce quickly, that's a real recruitment pipeline sitting right next door.
In a 30-minute call we map your situation against jurisdiction, activity and cost — no commitment required.
Who Can Set Up a Company Here?
Dubai Outsource City is sector-specific. You can't license a general trading company or a restaurant here. The zone is built around activities tied to outsourcing and shared services, including:
Business process outsourcing (BPO)
HR outsourcing and recruitment process outsourcing
IT outsourcing and managed IT services
Call centre and customer support operations
Data centre operations
Back-office and finance and accounting support
Some regulated activities, such as financial or healthcare-related services, may need a no-objection certificate from another UAE authority before DDA issues your licence. Check your specific activity against DDA's approved list before you commit to a structure, since this affects your timeline.
Legal Structures Available
You have three main routes into Dubai Outsource City:
Free Zone Limited Liability Company (FZ-LLC), the standard structure for a new company with 100% foreign ownership.
Branch of a foreign or UAE company, useful if you already operate elsewhere and want a UAE presence without forming a new legal entity.
Freelance permit, available for solo professionals in eligible tech, media, or education-related fields through the zone's GoFreelance offering.
Each route carries different documentation, share capital, and renewal requirements, so match the structure to how you actually plan to operate, not just to what's cheapest upfront.
How to Register Your Company
The registration process follows a standard sequence across DDA's free zones:
Choose your business activity and confirm it's on the approved DOC list.
Reserve your trade name and submit initial approval documents.
Sign the customer confirmation letter once your application is approved.
Pay the licence fee and any registration charges.
Sign your lease agreement for office space or a flexi-desk, plus your personal sponsorship agreement if you're sponsoring your own visa.
Receive your trade licence and begin the visa process for yourself and your staff.
Visa processing and other government transactions run through TECOM's axs platform, which covers licence renewals, immigration services, and related procedures for all business partners across the TECOM communities, Dubai Outsource City included.
What It Costs to Set Up
Free zone costs shift depending on your activity, licence type, and office requirement, so treat the figures below as a starting point rather than a fixed quote. Confirm current fees directly with DDA or your setup consultant before budgeting.
Cost Component | What It Covers | Typical Range (AED) |
Licence fee | Annual trade licence, renewable yearly | 9,000 – 30,000+ |
Registration and name reservation | Initial company entry, trade name approval | 1,000 – 2,500 |
Office or flexi-desk | Mandatory workspace requirement | 15,000 – 20,000+ per year |
Establishment card | Links your company to immigration systems | 1,800 – 2,000 |
Visa (per person) | Medical test, Emirates ID, stamping | 3,000 – 6,000 |
Visa allocation is usually tied to your office footprint, so if you plan to hire beyond a skeleton team, factor a larger workspace into your budget from day one rather than upgrading later.
If you want a clearer picture of how these numbers compare across mainland and free zone options, Nexture's step-by-step guide to setting up a business in Dubai breaks down the four decisions that shape your total cost before you file a single document.
VAT Obligations for DOC Companies
Being in a free zone doesn't exempt you from VAT. According to the Federal Tax Authority's VAT registration guidance, the mandatory VAT registration threshold is AED 375,000 in taxable supplies, and this threshold doesn't apply to foreign businesses making taxable supplies in the UAE. Voluntary registration is available once your taxable supplies or expenses cross AED 187,500, which is worth considering if you want to recover input VAT from your first invoices.
Dubai Outsource City is not a Designated Zone, so the goods-related VAT relief that applies in zones like JAFZA doesn't apply here. Since outsourcing and shared services are, by definition, services rather than goods, this distinction rarely changes your obligations in practice: if you're billing a UAE-based client, standard 5% VAT applies.
Corporate Tax: What You Actually Pay
Companies established in a UAE free zone fall within the scope of UAE corporate tax as taxable persons and must comply with the requirements in the Corporate Tax Law, per the UAE Ministry of Finance. However, a free zone person that meets the conditions to be a Qualifying Free Zone Person can benefit from a 0% corporate tax rate on qualifying income.
That 0% rate isn't automatic. The FTA's corporate tax guide on free zone persons sets out the conditions in detail: maintaining adequate substance in the zone, earning income that falls under the qualifying activities list, and staying within the permitted threshold for non-qualifying revenue. Any income outside that scope gets taxed at the standard 9% rate. Registration with the Federal Tax Authority is mandatory regardless of whether you expect to owe anything, so don't treat "qualifying" status as a reason to skip the paperwork.
If your outsourcing business serves both free zone and mainland clients, get your revenue mix reviewed before you assume the 0% rate applies across the board. Nexture's PRO and corporate support services can help you structure this correctly from registration onward, and coordinate the government-facing paperwork so nothing slips past a deadline.
We’ll model the requirements and send back a single-page breakdown within 24 hours.
Visas and Staffing
Once your licence is issued, visa quotas are calculated against your office size, following the same model used across TECOM's communities. Investor visas, employee visas, and dependent visas all route through the same immigration process tied to your establishment card.
For a walkthrough of how ICP Smart Services fits into visa and Emirates ID applications once your company is licensed, Nexture's guide to ICP Smart Services covers what to have ready before you submit anything, which cuts down on the back-and-forth that slows most first-time applicants down.
Dubai Outsource City vs. Other Free Zones
If your business genuinely centres on BPO, call centre operations, or HR and IT outsourcing, DOC gives you neighbours who understand your industry, dedicated infrastructure for large workforces, and proximity to a student talent pool through DIAC. If your activities span outsourcing plus other services, such as consulting or trading, a broader free zone like Dubai Internet City or a multi-activity zone might fit better since it won't restrict your licence to a single sector.
Nexture's company formation and business setup service can walk you through activity classification and match your business against the right zone before you commit to a licence application.
Conclusion
Dubai Outsource City gives outsourcing and shared services businesses a purpose-built base with dedicated infrastructure, a nearby talent pool, and licensing built around the sector rather than adapted from a general-purpose free zone. The trade-off is that your activity has to fit the zone's scope, and your VAT and corporate tax obligations don't disappear just because you're operating from a free zone.
Frequently Asked Questions
Is Dubai Outsource City only for large BPO companies?
No. The zone licenses businesses of varying sizes, from small IT support teams to large call centre operations. The requirement is that your core activity falls within outsourcing or shared services, not that you meet a minimum headcount.
Can I get 100% foreign ownership in DOC?
Yes. Free zone companies in the UAE, including those in Dubai Outsource City, allow full foreign ownership with no local sponsor required.
Does my company need a physical office, or can I use a flexi-desk?
Most licence types require at least a flexi-desk. The exact requirement depends on your visa quota and activity type, so confirm this with DDA or your consultant before signing a lease.
Do I still pay corporate tax if I qualify for the 0% free zone rate?
You still need to register with the Federal Tax Authority and file returns even if your qualifying income is taxed at 0%. Only income outside the qualifying activities list gets taxed at 9%.
How long does licence issuance take?
Timelines vary by activity and documentation readiness. Straightforward applications with complete paperwork move faster than activities requiring external approvals.
