With an increase in disposable income, the pressure on companies to cater to the demands of consumers while maintaining quality has become difficult. The Dubai Outsource City (DOC) was established within the Dubai Creative Clusters Authority (DCCA) as an initiative to address this issue.
The DOC is a one-of-a-kind community dedicated solely to outsourcing and shared services companies. By allowing a pool of outsourcing options to companies, Dubai can ensure that it meets the demands of consumers while retaining the quality of its products and services.
What is Outsourcing?
It is a business practice of streamlining business tasks by hiring a third party to take care of services or functions that the company performs. Outsourcing helps in achieving economies of scale by distributing tasks across multiple client leads. It enables lowering per-unit costs for each client and helps focus on the core competence of the company, leaving back-end tasks to others. This helps the company increase its operational efficiency, leading to increased customer satisfaction and brand loyalty.
Benefits of Setting up a Company in Dubai Outsource City
Outsourcing plays a crucial role in helping companies streamline their operations, making it a lucrative business proposition. Establishing a Dubai outsourcing company within DCCA opens doors to multiple opportunities and benefits. Let us look at some of the benefits of incorporating a business in Dubai Outsource City:
- It is a ’One-stop shop’ of administrative services.
- Unique visa solutions are offered with no currency restrictions.
- Tax holiday for 50 years along with no customs duty.
- Easy business setup process and significant business opportunities across sectors.
- Full ownership for foreign entrepreneurs is allowed with no restriction on the repatriation of profits and capital.
- Provides value-added services such as networking opportunities, venue management, and industry awareness programs, among others.
- Access to state-of-the-art infrastructure with modern and versatile office and commercial spaces with 24/7 security and access, ample parking space, and high-speed internet.
Type of Business Entities in Dubai Outsource City Free Zone
Let us look at the business entities which you can choose for registering a business in the free zone:
Free Zone Limited Liability Company (FZ-LLC):
This company structure has characteristics of a corporation and a partnership or a sole proprietorship (depending on the number of owners). It is formed as an independent entity that provides the members with limited liability. A minimum capital is required depending on the registered business activity.
Branch of UAE Company/ Establishment
A branch office of a UAE company is considered an extension of a UAE-registered parent company that is operating outside the free zone. The business structure allows you to establish a presence in places other than the headquarters, helping you extend your brand presence. There is no requirement for a minimum capital for this type of entity.
Branch of Foreign Company
A branch office is a legal entity linked to the parent foreign company. When looking to establish a brand image in Dubai Outsource City, this is the perfect choice.
Types of Licenses Available in the Outsource City, Dubai
Dubai Outsource City free zone allows a variety of business activities, such as operation support, IT management, customer care, hotels, and real estate. However, to legally conduct these in the freezone, obtaining the relevant license is necessary. Let us look at the available licenses:
Commercial License
This license can be availed by those who wish to engage in commercial activities such as import-export of goods.
Service License
If you are a professional who wants to utilise their knowledge and expertise to provide services, you need to obtain this license.
Trade License
A trade license authorises you to engage in the production of goods by setting up industrial and manufacturing plants.
Documents Required to Establish a Business in Dubai Outsource City
Along with the application form for company registration and license, you must submit the following documents to the authorities of DOC freezone.
- Proof of share capital
- Copy of business plan
- Copy of board resolution
- Secondment agreement
- Specimen signature of the manager
- Personal details of the shareholder(s)
- Receipt slip of registration and license fees
- Certificate of authorisation for the GCC Standardization Organization (GSO)
- Coloured photocopies of valid passports [Manager(s)/director(s)/shareholder(s)]
- Original Memorandum of Association (MOA) and Articles of Association (AOA) (whichever is applicable)
How to Start an Outsourcing Company in the DOC?
For setting up a company in Dubai Outsource City, the steps mentioned below must be followed:
File Application
Choose a unique trade name and a business structure and continue with the application process. Once it is submitted, the DOC authorities will evaluate it.
Documentation
Submit the required documents for company registration in Dubai Outsource City. Depending on the chosen business activity, external regulatory approvals may be needed.
Preparing MoA and AoA
Sign and notarise the Memorandum of Association (MoA) and Articles of Association (AoA) to formalise the company structure. Then, collect the bank's introduction letter and resolution.
Open Bank Account
By depositing the required share capital (if applicable), you must open a bank account in the name of the company. Proof of capital letters must be submitted to the DOC authorities.
Finalise Setup
Sign and return the customer confirmation letter and proceed to make the payment for availing the business license. Finally, complete the company setup by signing the lease agreement and personal sponsorship agreement.
Why Commitbiz?
At Commitbiz, we have business setup experts who have answers to all your business queries. Our professionals understand the requirements and cater to them by offering personalised services to help the business grow. If you are hesitant and need more clarity regarding company registration in Dubai, contact us. We will ensure your business dreams turn into reality and help it prosper in the Middle East.
Which are some of the famous companies providing outsourcing activities in the DOC free zone?
A few companies that provide outsourcing activities in Dubai Outsource City include Nokia Siemens Network, Larsen & Toubro Infotech Ltd, and Dunia Finance.
Who is responsible for issuing visas in Dubai Outsource City?
The Government Services Operations (GSO) department of TECOM is responsible for issuing visas.
What kind of services are provided by DOC activities?
The DOC authorities provide a wide range of support services. Some of them are immigration services, interactive voice response facilities and affordable on-site housing.
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