Initiating the process of business setup in Dubai Outsource City provides the foreign investors with a golden opportunity to be part of the Middle East’s leading community for outsourcing and shared services. Launched in 2007, Dubai Outsource City has rapidly grown to be a global hub for local and international outsourcing companies. The free zone’s state-of-the-art infrastructure and facilities are perfectly aligned to help businesses deliver services such as HR, IT, Back office and call centre outsourcing services.

Dubai Outsource City is being managed by the Tecom Group and is regulated by the Dubai Development Authority (DDA). DDA has set out an investor-friendly regulatory regime for foreign investors so that the process of company formation in Dubai Studio City becomes more flexible. The free zone delivers unparalleled benefits such as strategic business location, a wide range of activities, and world-class facilities. Business setup consultants in Dubai can help foreign investors leverage such benefits without any hassle. Read ahead for more insights on business setup in Dubai Outsource City:

Types of Legal Structures in Dubai Outsource City

The rules of business setup in Dubai warrants the selection of an appropriate legal structure to kick off the incorporation procedure. Investors can identify a suitable legal entity based on the number of shareholders and the nature of the proposed company. Entrepreneurs who availed bespoke business setup services in Dubai will have an easy time determining the legal form of their proposed company. The following types of legal structures can be incorporated in Dubai Outsource City:

a. Free Zone Limited Liability Company

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    Dubai Outsource City recognises the incorporation of a Free Zone Limited Liability Company (FZ-LLC) within its premises. An FZ-LLC in Dubai Outsource City is an independent legal entity formed by at least two shareholders. The shareholders can be individuals, corporate entities or a combination of the two.

    b. Branch of a Foreign Company 

    Any company incorporated in a foreign jurisdiction can open a branch within Dubai Outsource City. The brand should, however, carry out activities similar to that of the parent entity. Business consultants in Dubai can assist foreign investors in opening a branch company.

    c. Branch of a UAE Company 

    Not only foreign companies but firms licensed within the UAE are also allowed to open a branch within Dubai Outsource City. The branch office should carry out all or some of the activities performed by the parent company.

    Activities Permitted in Dubai Outsource City 

    Investors must select an activity first to kick off the process of business setup in Dubai Outsource City. Entrepreneurs must browse through the list of activities permitted by the DDA to start the process. For more clarity on activities, investors can seek advice from business setup consultants in Dubai. The following is an indicative list of activities in the Dubai Outsource City free zone:

    • Customer Care
    • Transaction Processing
    • Information Technology Management
    • Document Management
    • Operations Support
    • Property Management Services
    • Consultancies

    Benefits of Business Setup in Dubai Outsource City 

    Foreign investors engaged in outsourcing activities consider Dubai Outsource City as their top option. The free zone enjoys a good reputation among foreign investors due to the benefits it extends to the business community. The benefits of company formation in Dubai Outsource City include the following:

    1. Free Zone Status 

    By setting up a business in Dubai Outsource City, businesses can have enjoyed the benefits arising out of the free zone status. The benefits include 100% foreign ownership, full repatriation of profits and capital, guaranteed 50-year exemption from personal, income and corporate taxes and exemption from customs duty for goods and services.

    2. Unique Cluster Environment 

    Dubai Outsource City boasts of unique cluster environment in which businesses across the industry value chain share a work campus dedicated to their industry. Such an environment enables them to interact and collaborate effectively. The communities in Dubai Outsource City are led by the best known global, regional and local brands in the industry.

    3. World Class Infrastructure 

    The process of company formation in Dubai Outsource City offers direct access to state-of-the-art technology and community infrastructure with the free zone. The facilities and infrastructure in Dubai Outsource City are designed to support and foster the growth of the industry clusters. Business setup consultants in Dubai can provide more information on the facilities in the free zone.

    4. Business-friendly Environment 

    Dubai Outsource City is especially known for providing a conducive environment of company incorporation for foreign investors, startups, and SMEs. The process of company incorporation in Dubai Outsource City is simple and flexible. The DDA, which issues the licenses, has implemented a set of hassle-free and business-friendly company regulations and legal frameworks for foreign entrepreneurs.

    The free zone administration acts as a one-stop solution, providing the investors with a variety of business setup services in Dubai including licensing, visa, traffic and postal services. Company formation services in Dubai Outsource City are marked by 24-hour visa service and quick access to knowledge workers due to the fast-track immigration process. Business setup consultants in Dubai can guide the investors further.

    5. Availability of Talent  

    There are no restrictions in Dubai Outsource City on recruiting foreign workers. Dubai is known for having a talent pool of expatriate workers of different nationalities. They are highly skilled and are available at cost-effective rates. Investors can also hire students from Dubai Academic City for part-time or temporary jobs. Dubai Academic City free zone is an affiliated community of Dubai Outsource City that boasts of a pool of 27,000 plus students open for recruitment within the free zone.

    Compliance Requirements in Dubai Outsource City 

    Companies operating within Dubai Outsource City are required to meet compliance obligations such as Ultimate Beneficial Ownership (UBO), Economic Substance Regulation (ESR) and Anti-Money Laundering & Combatting Financing of Terrorism (AML-CFT). Businesses that fail to meet such requirements will be punished with administrative penalties and other consequences such as suspension of trade license and exchange of information with the foreign competent authority.

    Companies under liquidation in Dubai Outsource City are also required to abide by ESR & UBO regulations. Foreign investors are recommended to periodically carry out a self-assessment of their compliance status to avoid non-compliance. Business set-up consultants in Dubai can help investors to carry out such assessments to ensure regulatory compliance.

    Avail of the Best Business Setup Services in Dubai, UAE 

    Foreign investors wishing to start an outsource-related business in Dubai should look no further than Dubai Outsource City. The process of business setup in Dubai Outsource City is simple and comes with huge benefits. However, the extensive documentation and compliance requirements may discourage some investors. Availing of bespoke business setup services in Dubai provided by Jitendra Business Consultants (JBC) can help foreign investors in such a situation.

    JBC is one of the leading business setup consultants in Dubai with more than 20 years of experience. We have a team of consultants who are well-versed in the UAE Immigration & Labour laws. Our in-depth knowledge in such matters will help entrepreneurs navigate complex requirements such as the selection of activities & legal structure, visa processing, bank account opening, document drafting etc. We also provide compliance services such as VAT, ESR, UBO, AML-CFT etc. Consult with us today to know about the best business setup packages in Dubai.

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