Table of Contents
Frequently Asked Questions
What does activity code 7810.97 permit a labour recruitment brokerage in Dubai to do
Activity code 7810.97 authorises a business to act as an intermediary that connects employers with workers. This covers sourcing, screening, and placing domestic, skilled, and semi-skilled workers on behalf of third-party employers.
Importantly, it does not permit the direct employment of those workers or their supply as temporary staff — those activities fall under separate licence categories. Conflating brokerage with manpower supply creates serious compliance exposure from the outset.
Typical clients include construction firms, hospitality groups, SMEs with seasonal hiring needs, and corporate HR departments that outsource candidate sourcing.
Which government authority regulates labour recruitment brokerage offices in Dubai
The Ministry of Human Resources and Emiratisation (MOHRE) is the central regulatory authority for all private employment agencies in the UAE. No recruitment brokerage can operate legally without a valid MOHRE permit running alongside the trade licence.
The compliance baseline is established by Federal Decree-Law No. 33 of 2021 and its executive regulations, which govern agency conduct, worker protections, fee structures, and reporting obligations. Full regulatory detail is available via the Official UAE Government Portal.
Is a MOHRE permit separate from the trade licence for a recruitment brokerage
Yes — the MOHRE permit is a completely separate application from the trade licence. One does not substitute for the other; both must be valid and active before the agency can legally operate.
The MOHRE permit is submitted through the MOHRE portal and requires supporting documentation including the Memorandum of Association, a valid tenancy contract, and passport copies of all shareholders and directors. It is subject to annual renewal and carries compliance audit obligations.
Agencies that fail to maintain proper records, ethical recruitment standards, or required financial guarantee levels risk permit suspension.
What financial guarantee is required before a labour recruitment brokerage can operate
Before licence activation, MOHRE requires a financial guarantee in the form of a bank deposit or insurance bond. This guarantee is a non-negotiable precondition — it cannot be waived or deferred.
The exact amount varies depending on the agency category and the volume of workers the agency intends to place. Its primary purpose is to protect workers in the event the agency fails to meet its obligations.
Can a recruitment brokerage in Dubai charge placement fees to workers
No — agencies are legally prohibited from charging placement fees to workers. All revenue must be derived from the employer side of the transaction. This is not a discretionary policy; it is a firm legal requirement under Federal Decree-Law No. 33 of 2021 with active enforcement consequences.
Violating this rule exposes the agency to regulatory penalties including permit suspension. Founders should structure their entire fee and contract model around employer-side billing from day one.
Can a foreign national own 100% of a labour recruitment brokerage in Dubai
Yes. 100% foreign ownership is available for this business activity, and there is no personal income tax in the UAE, making it an attractive jurisdiction for international founders.
Ownership structure options include mainland (DED) incorporation or a free zone such as Meydan Free Zone. Free zone incorporation offers a streamlined setup process, while a mainland licence allows broader direct access to the UAE market without requiring a local service agent for most activities.
What are the first steps to setting up a labour recruitment brokerage licence in Dubai
The process begins with choosing your jurisdiction — either mainland (DED) or a free zone. Each has distinct advantages: free zones offer streamlined foreign ownership structures, while mainland licences provide broader direct market access.
Next, you reserve your trade name and confirm activity code 7810.97 via the DED e-services portal or your chosen free zone's application platform. Following that, incorporation documents must be prepared, including the Memorandum of Association and shareholder documentation.
The MOHRE permit application runs as a parallel process alongside the trade licence application and requires its own documentation set, including a valid tenancy contract and passport copies of all directors and shareholders.
How large is the UAE workforce and what is the scale of the recruitment market
The UAE workforce comprises over 9 million workers, with expatriates accounting for approximately 88% of the total workforce, according to the Dubai Statistics Center. This creates sustained, structural demand for organised recruitment services.
The broader GCC recruitment market is experiencing steady projected growth driven by national initiatives such as Vision 2030 and ongoing UAE economic diversification efforts, according to Mordor Intelligence. Labour recruitment brokerages operating under a compliant framework are well-positioned to serve this demand across construction, hospitality, and corporate sectors.
Labor Recruitment Brokerage Office Services Setup in Dubai
Dubai runs on hired labour, and the rules around arranging it are stricter than most founders expect. A trade license on its own will not get you trading. You also need a ministry permit and money on deposit before you can take a single client.
That is the thing to understand up front. This guide covers activity code 7810.97: what it lets you do, what it firmly does not, which approvals you need, and how to set up a compliant labour recruitment brokerage in Dubai.
Key Stats at a Glance
| Activity code | 7810.97, labour recruitment brokerage |
|---|---|
| UAE workforce | Over 9 million workers, with expats making up around 88% – Dubai Statistics Center |
| GCC recruitment market | Steady projected growth, driven by Vision 2030 and UAE economic diversification – Mordor Intelligence |
| Governing law | Federal Decree-Law No. 33 of 2021 covers all private employment agencies – MOHRE |
| Ownership | 100% foreign ownership available, and no personal income tax |
| Typical setup time | Three to six weeks end to end |
What This License Covers
Code 7810.97 lets you act as a go-between. You can source, screen, and place domestic, skilled, and semi-skilled workers for other employers.
Note what it does not let you do. You cannot employ those workers yourself, and you cannot supply them as temporary staff. Both of those sit under separate license categories. Mixing up brokerage and manpower supply is the single most common way founders in this space create a compliance problem for themselves on day one, so be clear about which business you are actually in before you apply.
Who Your Clients Will Be
Your buyers are construction firms, hospitality groups, small and medium businesses with seasonal or bulk hiring needs, and corporate HR teams that would rather outsource sourcing than build it in-house.
How you charge matters as much as who you sell to. Agencies cannot charge placement fees to workers. Every dirham has to come from the employer side. That is not a guideline you can work around, it is written into the law and enforced. Build your fee model on employer-side billing from the very first contract: placement fees, retainers with corporate clients, and volume hiring agreements.
Mainland or Free Zone
This is the biggest choice you will make when setting up. Let your clients decide it, not the price.
| Factor | Mainland (DET) | Free Zone (Meydan Free Zone) |
|---|---|---|
| Market access | Broad direct access to the UAE market | Clients under service agreements |
| Ownership | No local service agent needed for most activities | 100% foreign ownership |
| Setup | More steps and approvals | Streamlined process |
| Premises | Physical office tenancy | Flexi-desk options that satisfy tenancy requirements |
Whichever you pick, the MOHRE permit requirement does not change.
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How to Set Up Through Meydan Free Zone
- Step 1, choose your jurisdiction: Mainland or a free zone such as Meydan Free Zone. Free zone setup gives you full foreign ownership and a simpler process.
- Step 2, book your trade name: Reserve the name and confirm activity code 7810.97 through the DET e-services portal or your free zone platform.
- Step 3, prepare your documents: The Memorandum of Association, shareholder identification, and either an office tenancy contract or a flexi-desk agreement.
- Step 4, apply for the trade license: Get initial approval. This is the commercial gate only. It does not yet let you recruit.
- Step 5, apply for the MOHRE permit: Submit through the MOHRE portal with the full document set, and have the financial guarantee in place before you submit. This is where timelines slip if paperwork is thin.
- Step 6, finish and activate: Get the final license, open a corporate bank account, and start. Both the trade license and the MOHRE permit must be live before you speak to a client or a worker.
Allow three to six weeks end to end, depending on jurisdiction and how ready your documents are. Mainland setups can involve extra approvals. Meydan Free Zone packages suit lean operations, with flexi-desk options that meet the tenancy requirement without a large office commitment.
Compliance and What You Need in Place
MOHRE permit
The Ministry of Human Resources and Emiratisation (MOHRE) oversees every private employment agency in the UAE. The permit is a separate application from the trade license and one does not replace the other. You submit it through the MOHRE portal with your Memorandum of Association, a valid tenancy contract, and passport copies for all shareholders and directors. It renews every year and comes with audit duties.
Financial guarantee
Before your license goes live, MOHRE wants a financial guarantee, either a bank deposit or an insurance bond. The amount depends on your agency category and how many workers you plan to place. It exists to protect workers if you fail to meet your duties, and it cannot be waived or delayed.
Worker fees
You cannot charge workers. Breaking this rule risks having your permit suspended.
Record keeping
Agencies that let their records, recruitment standards, or guarantee levels slip risk losing the permit. Treat the audit trail as part of the operation, not an afterthought.
Tax
Once yearly turnover passes AED 375,000, VAT registration with the Federal Tax Authority becomes compulsory. Build it into your model early rather than bolting it on later.
Market Opportunity
The demand is structural rather than fashionable. The UAE workforce runs to more than 9 million people and roughly 88% of them are expats, which means recruitment is not an occasional need here, it is a permanent function of how the economy works.
The wider GCC recruitment market is growing steadily, helped along by Vision 2030 and the UAE's own push to diversify. Construction, hospitality, and corporate hiring all keep feeding the same pipeline. An agency that is genuinely compliant has an advantage too, because clients in this space carry their own risk if they use one that is not.
Conclusion
A labour recruitment brokerage in Dubai is a workable business with a demanding compliance layer. The trade license is only the first gate. The MOHRE permit and the financial guarantee are the real backbone, and both have to be in place before you do anything commercial. Your jurisdiction, your cost base, and your ethical duties to workers all need deciding before launch, not after.
Speak to a Meydan Free Zone adviser to confirm the right structure, activity scope, and approval order before you commit to any costs.
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References
- Dubai Statistics Center
- Mordor Intelligence
- Ministry of Human Resources and Emiratisation (MOHRE)
- Federal Tax Authority
- Official UAE Government Portal
- Dubai Department of Economy and Tourism e-services
- Invest in Dubai
