Table of Contents
Frequently Asked Questions
What is activity code 7810.98 and what does it authorise
Activity code 7810.98 is the official classification for an Employment Brokerage Office Services licence in Dubai. It formally authorises a business to act as a commercial intermediary between job seekers and employers.
In practice, this covers placing candidates, managing recruitment mandates on behalf of client businesses, and charging placement fees for successful hires. It is distinct from a general HR consultancy licence, which does not permit transactional, fee-based recruitment as a core activity.
Who needs an Employment Brokerage Office Services licence in Dubai
Any business whose revenue model depends on placement fees must hold this licence. If you are sourcing, screening, and placing candidates for third-party employers as a commercial activity, activity code 7810.98 is the required authorisation.
Entities that typically need this licence include:
- Recruitment and executive search agencies
- Domestic worker placement offices
- Staffing and contract workforce providers
- Headhunting firms serving UAE-based employers
Is a DED trade licence alone sufficient to operate a recruitment agency in Dubai
No. A DED or free zone trade licence is necessary but not sufficient on its own. MOHRE oversight applies in addition to the trade licence, and dual compliance is mandatory under Federal Decree-Law No. 33 of 2021.
Operating without MOHRE approval exposes the business to fines and licence suspension, regardless of whether a valid trade licence is held. Both approvals must be secured before the business can legally operate.
What is the difference between a mainland and a free zone licence for employment brokerage
A mainland licence issued by the Dubai Department of Economy and Tourism (DED) allows unrestricted client engagement across the UAE with no limitations on industries or geographies served. It is the preferred route for agencies targeting multiple sectors or large corporate clients, though it requires a physical office and carries higher setup costs.
A free zone licence — for example through Meydan Free Zone — offers 100% foreign ownership, faster incorporation, and more predictable pricing. It suits regional or international operations that do not need direct mainland client engagement. However, free zone operators must still obtain a separate MOHRE private employment agency approval before legally placing workers anywhere in the UAE.
What are the main steps to obtain an Employment Brokerage Office Services licence
The process runs across two parallel tracks: the trade licence application and the MOHRE employment agency approval. Both must be completed before the business can legally operate.
The first steps involve reserving a trade name via the DED eServices portal or chosen free zone authority, followed by obtaining initial approval from DED or the free zone. The MOHRE application process should be started simultaneously rather than sequentially to avoid delays.
Can a free zone recruitment agency place workers on the UAE mainland
Yes, but not automatically. A free zone trade licence alone does not grant the right to place workers on the mainland. A separate MOHRE private employment agency approval is still required, and this requirement exists regardless of the free zone registration.
Free zone operators who intend to serve mainland employers or place candidates in mainland roles must complete the MOHRE approval process in addition to their free zone incorporation. Skipping this step constitutes non-compliance under Federal Decree-Law No. 33 of 2021.
What VAT obligations apply to employment brokerage businesses in Dubai
Employment brokerage businesses in Dubai are subject to standard UAE VAT rules. Mandatory VAT registration is triggered when annual taxable turnover reaches AED 375,000. Businesses approaching or exceeding this threshold must register with the Federal Tax Authority.
Placement fees charged to client employers are generally treated as taxable supplies, so agencies should monitor their revenue carefully from the outset and seek qualified tax advice to ensure timely registration and correct VAT treatment of their services.
What is the current scale of the Dubai and UAE employment brokerage market
The UAE private sector workforce has exceeded 5.6 million workers, sustaining consistent demand for brokerage services. Over 200 private employment agencies are currently registered under DED records in Dubai alone.
The broader UAE employment services market is growing steadily, driven by Vision 2031 workforce nationalisation targets and sustained expatriate hiring demand. All private recruitment activity is governed by Federal Decree-Law No. 33 of 2021 under MOHRE, providing a clear regulatory framework for licensed operators.
Apply for an Employment Brokerage Office Services License in Dubai
Dubai's labour market is expanding at pace — and businesses that connect employers with talent sit at the centre of that growth, provided they hold the right licence. Activity code 7810.98, the Employment Brokerage Office Services licence, is the formal authorisation required to operate commercially as a recruitment intermediary in Dubai. This guide covers what the licence involves, who needs it, and the precise steps to obtain it.
Key Stats at a Glance
| Metric | Detail |
|---|---|
| UAE private sector workforce | Exceeded 5.6 million workers, sustaining consistent demand for brokerage services |
| Regulatory framework | All private recruitment activity governed by Federal Decree-Law No. 33 of 2021 under MOHRE |
| Registered agencies in Dubai | Over 200 private employment agencies registered under DED records |
| Market trajectory | UAE employment services market growing steadily, driven by Vision 2031 workforce nationalisation targets and sustained expat hiring demand |
| VAT threshold | AED 375,000 annual taxable turnover triggers mandatory VAT registration |
Sources: Ministry of Human Resources and Emiratisation (MOHRE); Invest in Dubai
What This Licence Covers and Who Needs It
Activity code 7810.98 authorises an office to act as a commercial intermediary between job seekers and employers. In practice, that means placing candidates, managing recruitment mandates on behalf of client businesses, and charging placement fees for successful hires.
This is distinct from a general HR consultancy licence. The brokerage classification specifically permits transactional recruitment — sourcing, screening, and placing candidates for third-party employers as a core commercial activity. If your revenue model depends on placement fees, this is the licence you need.
The licence is relevant to:
- Recruitment and executive search agencies
- Domestic worker placement offices
- Staffing and contract workforce providers
- Headhunting firms serving UAE-based employers
Critically, MOHRE oversight applies in addition to your DED or free zone trade licence. Dual compliance is not optional — operating without MOHRE approval exposes the business to fines and licence suspension.
Business Activities List
Explore Over 2,500+Mainland vs Free Zone: Choosing the Right Jurisdiction
The jurisdiction decision shapes your cost base, ownership structure, and operational scope from day one.
A mainland licence issued by the Dubai Department of Economy and Tourism (DED) allows unrestricted client engagement across the UAE. There are no limitations on the industries or geographies you can serve. This is the preferred route for agencies targeting multiple sectors or large corporate clients. It does, however, require a physical office and carries higher setup costs due to lease obligations.
A free zone licence — for example, through Meydan Free Zone — offers 100% foreign ownership, faster incorporation timelines, and more predictable package pricing. It suits regional or international recruitment operations that do not need to engage clients directly on the mainland without an intermediary. The trade-off is that free zone operators must still obtain a separate MOHRE private employment agency approval before legally placing workers anywhere in the UAE. That requirement does not disappear by virtue of being free zone-registered.
Flexi-desk arrangements are available in several free zones for the initial stages of setup, which reduces the upfront office cost materially.
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Calculate NowStep-by-Step Licence Setup Guide
The process runs across two parallel tracks: the trade licence application and the MOHRE employment agency approval. Both must be completed before the business can legally operate.
Step 1 — Reserve your trade name. Submit via the DED eServices portal or your chosen free zone authority. Confirm the name does not conflict with existing registrations and reflects the brokerage activity accurately.
Step 2 — Obtain initial approval. DED or the free zone issues a preliminary approval letter. Simultaneously, begin the MOHRE approval process — this runs in parallel and is the longer of the two tracks.
Step 3 — Secure tenancy and register Ejari. For mainland DED applications, a commercial office lease registered via Ejari is mandatory. Free zone applicants follow the zone's own tenancy process.
Step 4 — Apply for MOHRE private employment agency licence. Submit through the MOHRE portal. Required documents include company incorporation papers, shareholder and manager passport copies, office lease, and a refundable bank guarantee. The bank guarantee amount varies by agency category — confirm the current figure directly with MOHRE before budgeting.
Step 5 — Final licence issuance. Submit all approvals, the Memorandum of Association (or LSA agreement for mainland), and licence fees. DED or the free zone typically issues the final licence within three to seven working days of receiving a complete file.
Step 6 — Establishment card and visas. Apply for the establishment card and investor or partner visa. This unlocks the ability to sponsor staff and begin operations.
Documents Required
- Passport copies of all shareholders and managers
- No-objection letter if the applicant is on an existing UAE residence visa
- Signed MOA or LSA agreement (mainland applications)
- Commercial office lease registered via Ejari
- MOHRE bank guarantee confirmation
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Get in Touch NowOngoing Compliance and Commercial Considerations
Annual renewal of both the MOHRE agency licence and the DED or free zone trade licence is mandatory. Letting either lapse renders the business non-compliant and exposes it to penalties — treat both renewal cycles with equal priority.
Emiratisation obligations under the Nafis programme apply once your headcount crosses defined thresholds. Monitor updates directly via MOHRE, as targets and timelines are subject to revision.
VAT registration is required once taxable turnover exceeds AED 375,000 annually. Placement fees qualify as taxable supplies. Review your obligations with reference to the Federal Tax Authority guidance before invoicing clients.
MOHRE prohibits charging job seekers placement fees in most categories. Fee structures must be transparent, documented, and directed at the hiring employer. Keep signed fee agreements on file for every client engagement.
On banking: factor in four to eight weeks for UAE corporate account onboarding. Prepare audited financials and a clear business plan before approaching banks — recruitment businesses without an established track record will face closer scrutiny.
Conclusion
An Employment Brokerage Office Services licence in Dubai requires dual compliance — a trade licence from DED or a free zone authority, plus a separate MOHRE private employment agency approval. The process is structured and manageable with the right preparation. The step most operators underestimate is the MOHRE bank guarantee requirement and the parallel approval timeline it creates. Start both tracks simultaneously, not sequentially, and your setup timeline will be significantly shorter.
Speak with a Series M adviser to map the fastest, most cost-effective jurisdiction for your recruitment business and get your licence application moving without delays.
References
- MOHRE (mohre.gov.ae)
- Invest in Dubai (investindubai.gov.ae)
- DED eServices portal (eservices.dubaided.gov.ae)
- Federal Tax Authority (tax.gov.ae)
