Steps to Register Your Labour Recruitment Agency in Dubai
February 27, 2025
February 27, 2025
In the UAE, approximately 52% of employers believe there is a shortage of skilled workers. Filling this gap can turn into a booming business when done right. Hence, this talent shortage allows entrepreneurs to start a labour recruitment agency in Dubai. Moreover, it's not only employers facing troubles in this sector; employees are constantly searching for better opportunities due to dissatisfaction with their current jobs. Operating a labour agency in Dubai can help you tap into both sides and grow a successful venture.
Importance of Labour Recruitment Agency in Dubai
Dubai is a rapidly growing economy that needs active, skilled workers to support its journey. When talent with the right skillset finds a suitable employer, it becomes a win-win for both sides.
On a larger scale, many important sectors struggle to keep up with the growing demand. Almost 418,500 job openings are present in the UAE every year, with Dubai having the highest demand. Labour recruitment agencies can play a crucial role in bridging the gaps between employees and employers, creating a better business environment.
Steps to Register Your Manpower Supply Agency in Dubai
To have a credible and lasting operational success as a labour recruitment agency in Dubai, it must comply with the government's strict legal guidelines for registration. This can be a lengthy process which typically contains these steps:
1. Finalise a Business Structure: Your business structure is the legal structure of your business. The most common structures are Limited Liability Companies (LLCs) and sole proprietorships.
2. Choose Your Unique Company Name: It is a compulsion to choose a name that gives an idea of your business. Stay away from using any offensive or unrelated terms. To check whether your desired name is unique, do a free check using Meydan Free Zone's Company Name Check tool.
3. Submit Documents & Get Initial Approval: Submit the necessary documents to obtain approval from the Ministry of Human Resources and Emiratisation (MOHRE) to establish your recruitment business. These can typically include:
- Passport copies of all shareholders.
- National IDs.
- Company formation statements from shareholders.
- A layout of your office location.
- Financial statements
4. Apply for a Business License: After submitting the documents, apply to the concerned authority for a labour recruitment agency license.
5. Lease an Office Space: Recruitment agencies are required to have a physical office. So explore various options across the Mainland and free zones. Some free zones, like Meydan Free Zone, offer flexi-desk and dedicated office spaces. Select one depending on your requirements.
6. Obtain Additional Approvals: Depending on the scope of your activities, you might need to obtain additional licenses to provide them legally.
7. Open a Business Bank Account: Once you receive your license, open a corporate bank account to operate efficiently.
8. Apply for Visas: You need to apply for your employees' visas. Some areas restrict the number of visas approved in one round; however, others process just about all the visa application requests if they meet their criteria for the Meydan Free Zone.
Licensing and Compliance For Operating a Recruitment Business
Some key licensing and compliance requirements for labour contractor business in Dubai are:
- Deposit Requirements: Recruitment agencies must deposit AED 2,000 for every employee they bring to Dubai.
- Record Keeping: Maintain employee records for the duration [specified by the local legal authorities.
- Hiring Practices: You must ensure that every individual is hired according to the MOHRE standards and has a clean criminal record.
- Transparent Fees: The fees charged to clients should have clear terms and conditions. They should adhere to regulations set by the Ministry of Labour.
- Worker Welfare: You must provide fair wages, accommodation, and other benefits as per the laws.
- Annual License Renewal: A business license expires in a year. Ensure that you renew it every year to keep operating without any disruptions.
Benefits of Starting a Labour Contractor Business in Dubai's Premier Location
The entire emirate of Dubai is a popular business destination. However, some areas prove to be more beneficial than others. Meydan Free Zone is a free zone located in the centre of Dubai with excellent local and international connectivity, 24/7 assistance, streamlined bureaucracy, 100% foreign ownership, and tax exemptions. These benefits are supported by the various government initiatives that aim to make Dubai a more business-friendly environment.
By starting a business with Meydan Free Zone, you are guaranteed to have a smooth business experience when operating your labour recruitment agency. Reach out to us today and put your business on the path to success!
Frequently Asked Questions About Recruitment Business in Dubai
1. What licenses are required to start a recruitment agency in Dubai?
There are two primary license types:
- Brokerage License: Allows mediation between employers and job seekers.
- Temporary Recruitment License: It acts as a permit to hire candidates for a limited period.
2. How much does it cost to obtain a recruitment license?
Depending on your requirements, the cost can vary from AED 12,500 to AED 100,000.
3. Can a labour recruitment agency in Dubai recruit expatriates?
Yes, you can recruit expatriates if they meet the set criteria by the MOHRE and employers' requirements.
