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Frequently Asked Questions

What is a Tawafoq Service Center and what does it do

A Tawafoq Service Center is a licensed business entity that facilitates structured conciliation and settlement support between employers and employees in the UAE. The word Tawafoq means "agreement" or "accord" in Arabic, reflecting the center's core purpose of resolving employment disputes before they escalate to formal labour court proceedings.

The center acts as a formal intermediary, helping parties manage documentation, structured dialogue, and resolution of issues such as contract disputes, termination disagreements, and workforce compliance matters. It is classified under activity code 6910.96 within the Legal & Para-Legal Services industry.

What activity code covers a Tawafoq Service Center licence

A Tawafoq Service Center operates under activity code 6910.96, which falls within the Legal & Para-Legal Services industry classification in the UAE. This code covers the provision of conciliation and settlement support in employment matters.

If you intend to offer complementary services alongside conciliation — such as HR advisory or document attestation — you should confirm with your free zone authority whether these can be added to the same licence under a multi-activity arrangement.

Why should I set up a Tawafoq Service Center in Meydan Free Zone

Meydan Free Zone is a Dubai-based free zone that offers a broad activity list, fast incorporation timelines, and competitive pricing — making it well suited to service-oriented businesses like a Tawafoq center. Key benefits include 100% foreign ownership, no corporate or personal income tax, and the option to operate with a virtual or flexi-desk office to keep overheads low.

The zone also supports multi-activity licences, which is useful if you plan to combine conciliation services with HR consulting or document processing under one entity. Most applications are processed digitally within a few business days.

Is there a minimum share capital requirement to set up this business

There is no mandatory minimum share capital required to establish a Tawafoq Service Center in Meydan Free Zone. This makes it accessible to solo operators and small professional firms who want to enter the employer-employee conciliation space without significant upfront capital commitments.

The flexible cost structure, combined with the availability of virtual office options, means you can launch the business in a lean and cost-effective manner while maintaining full legal standing in Dubai.

What office setup is required for a Tawafoq Service Center in Meydan Free Zone

Meydan Free Zone allows Tawafoq Service Centers to operate with a flexi-desk or virtual office, meaning you are not required to lease dedicated physical premises to obtain and maintain your licence. This significantly reduces ongoing overhead costs, particularly for businesses in the early stages of operation.

If your business grows and you require a more formal presence — for example, to conduct in-person conciliation sessions — you can upgrade to a physical workspace within the free zone. Package tiers are available to match different operational needs and visa allocation requirements.

What is the step-by-step process to obtain a Tawafoq Service Center licence

The setup process involves five key steps. First, confirm your activity and legal structure — verify that activity code 6910.96 covers your intended services and decide between a sole establishment or free zone company (FZC). Second, choose your package and office type based on your staffing and workspace needs.

Third, submit your application digitally with passport copies, completed forms, and a business plan summary if required. Fourth, once approved, receive your trade licence and incorporation documents, then open a UAE corporate bank account with a bank experienced in professional service firms, such as Emirates NBD, Mashreq, or RAKBANK. Fifth, apply for visas and register with relevant authorities, including the Ministry of Human Resources if your services involve direct engagement with that body.

Who are the typical clients of a Tawafoq Service Center

A Tawafoq Service Center serves a broad range of clients involved in employment relationships. On the employer side, typical clients include HR departments managing termination or contract disputes, businesses handling workforce compliance, and companies seeking to resolve employment matters before they reach the labour courts.

On the employee side, the center provides mediation support to individuals seeking structured resolution of workplace grievances. The business model is service-based and can be structured around retainer agreements, per-case fees, or corporate packages depending on client needs.

Can a foreigner own 100% of a Tawafoq Service Center set up through Meydan Free Zone

Yes. One of the primary advantages of incorporating through Meydan Free Zone is that it permits 100% foreign ownership of the business entity. There is no requirement to have a UAE national as a shareholder or local sponsor, which gives international entrepreneurs full control over their business.

This ownership structure, combined with the absence of corporate and personal income tax in the free zone, makes Meydan an attractive jurisdiction for professionals looking to establish a Tawafoq Service Center in Dubai without the complications of traditional mainland ownership arrangements.

How to Start a Tawafoq Service Center For Employers And Employees with Meydan Free Zone

Labour dispute resolution is a growth sector in the UAE. As the workforce expands and employment relationships become more complex, the demand for structured mediation and conciliation services between employers and employees is rising steadily. A Tawafoq Service Center sits directly inside this space — licensed under activity code 6910.96, it operates as a formal intermediary providing conciliation and settlement support in employment matters.

Meydan Free Zone offers one of the most straightforward routes to establishing this business in Dubai, with a cost structure and licensing process that suits both solo operators and small professional firms.

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What Is a Tawafoq Service Center?

Infographic: How to Start a Tawafoq Service Center For Employers And Employees with Meydan Free Zone

Tawafoq — meaning "agreement" or "accord" in Arabic — refers to the UAE's employer-employee conciliation framework. A Tawafoq Service Center is a licensed entity that facilitates structured dialogue, documentation, and resolution between parties in employment disputes, typically before matters escalate to formal labour court proceedings.

Activity code 6910.96 places this business within the legal and para-legal services classification. Clients are employers managing workforce compliance, HR departments handling termination or contract disputes, and employees seeking mediation support. The business model is service-based: retainer agreements, per-case fees, or corporate packages.

Key Stats at a Glance

Detail Information
Activity Name Tawafoq Service Center For Employers And Employees
Activity Code 6910.96
Industry Classification Legal & Para-Legal Services
Free Zone Meydan Free Zone, Dubai
Minimum Visa Allocation Starts from 1 visa (package dependent)
Office Requirement Flexi-desk or virtual office available
Share Capital Required No mandatory minimum
100% Foreign Ownership Yes

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Why Meydan Free Zone

Meydan Free Zone is a Dubai-based free zone with a broad activity list, fast incorporation timelines, and competitive pricing. For a service-oriented business like a Tawafoq center, it offers 100% foreign ownership, no corporate or personal income tax, and the ability to operate with a virtual office — keeping overheads low while maintaining full legal standing.

The zone also supports multi-activity licences, which is relevant if you intend to combine conciliation services with HR consulting or document processing under one entity.

Step-by-Step Licence Setup Guide

Step 1: Confirm Your Activity and Structure

Verify that activity code 6910.96 covers your intended scope of services. If you plan to offer complementary services — such as HR advisory or document attestation — confirm these can be added to the same licence. Decide on your legal structure: sole establishment or free zone company (FZC).

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Step 2: Choose Your Package and Office Type

Meydan Free Zone offers tiered packages. For a Tawafoq Service Center starting lean, a flexi-desk or shared workspace package is sufficient. Select a visa allocation that matches your immediate staffing needs — you can scale later.

Step 3: Submit Your Application

Prepare your documentation: passport copies, a business plan summary if required, and completed application forms. Meydan Free Zone's process is largely digital. Most applications are processed within a few business days.

Step 4: Receive Your Licence and Establish Banking

Once approved, you receive your trade licence and incorporation documents. Proceed to open a UAE corporate bank account. Given the nature of this activity — legal and para-legal services — choose a bank comfortable with professional service firms. Emirates NBD, Mashreq, and RAKBANK are commonly used by free zone entities.

Step 5: Apply for Visas and Register with Relevant Authorities

Apply for your investor or partner visa through Meydan Free Zone. If your Tawafoq services will involve direct engagement with the Ministry of Human Resources and Emiratisation (MOHRE), ensure your licensing and any required approvals align with MOHRE's framework for conciliation service providers. Refer to mohre.gov.ae for current regulatory guidance.

Regulatory Considerations

Tawafoq services operate adjacent to formal legal practice. While a Tawafoq Service Center does not require a practising advocate licence, you must ensure your services remain within the conciliation and documentation scope — not legal representation. The UAE's Federal Decree-Law No. 33 of 2021 on Labour Relations governs employment disputes and sets the framework within which Tawafoq centers operate. Review this legislation at u.ae.

Conclusion

A Tawafoq Service Center is a well-defined, regulated, and commercially viable business in the UAE. Demand is structural — wherever there are employment relationships, there will be disputes requiring structured resolution. Meydan Free Zone gives you a clean, cost-effective entry point with full foreign ownership and minimal administrative friction.

If you are a legal professional, HR practitioner, or business consultant looking to formalise this service offering in Dubai, the setup process is straightforward. The more important work is building credibility with employers and employees who need a trusted, neutral intermediary.

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