How to Start a Labour Recruitment Agency in Dubai, UAE
February 11, 2025
September 24, 2025
June 19, 2025
September 24, 2025
Topic Summary
1. Understand the Market Demand and Sector Requirements
The UAE’s rapidly expanding economy has heightened the need for skilled and unskilled labour across essential sectors including construction, hospitality, logistics, healthcare, and retail. Conduct thorough market research to identify sector-specific demands and tailor your recruitment services accordingly. Understanding these requirements will assist in positioning your agency competitively.
2. Acquire the Necessary Business Licences
To operate legally, you must register your recruitment agency with the Department of Economic Development (DED) in Dubai. Choose an appropriate legal structure, such as a Limited Liability Company (LLC) or a Free Zone entity, and obtain a commercial trade licence specific to labour recruitment services. Ensure all documentation, including the Memorandum of Association and lease agreements, complies with regulatory norms.
3. Obtain Approval from the Ministry of Human Resources and Emiratisation (MOHRE)
Labour recruitment agencies require explicit authorisation from MOHRE. Submit an application demonstrating your agency’s compliance with labour laws, financial stability, and operational capacity. MOHRE’s approval is critical as it legitimises your agency’s activities in sourcing and supplying workers within the UAE labour market.
4. Fulfil Legal and Financial Compliance
Ensure compliance with all UAE labour laws and regulations concerning worker rights, fees, and contract conditions. Your agency must maintain transparent financial records, including a guarantee deposit as mandated by MOHRE, to safeguard employees’ rights and assure service quality. Additionally, invest in robust contracts to define clear terms with both clients and workers.
5. Implement Efficient Recruitment and Operational Processes
Develop comprehensive recruitment protocols encompassing candidate screening, skills verification, medical testing, and visa processing. Establish strong partnerships with overseas recruitment firms if sourcing internationally. Adopt modern technological tools for database management and communication to streamline operations and deliver prompt, reliable manpower solutions.
The UAE’s fast-growing economy continues to create demand for qualified manpower across sectors like construction, hospitality, logistics, healthcare, and retail.
If you are planning to enter this sector, you must follow a regulated process to register a labour recruitment agency in Dubai.
This guide explains the licensing requirements, MOHRE approvals, and legal conditions you must meet to launch your manpower business the right way.
It also outlines how Meydan Free Zone can support your setup, especially if you offer HR consultancy or executive search services, which are permitted within the zone.
Overview of the Labour Recruitment Industry in Dubai
Recruitment and manpower services are a vital part of the UAE’s labour market.
A labour recruitment agency license in Dubai from Meydan Free Zone allows you to legally source, hire, and deploy workers for third-party employers under the rules set by the Ministry of Human Resources and Emiratisation (MOHRE).
These services include:
- Temporary and contract staffing
- Permanent placement services
- Labour outsourcing for projects or seasonal needs
The industry is tightly regulated to ensure fair treatment of workers and compliance with employment laws.
Licensing Requirements for Recruitment Agencies in Dubai
To operate a legal recruitment agency, you must apply for a license under one of the following categories:
- Brokerage License: Allows you to mediate between job seekers and employers without being directly involved in contracts.
- Temporary Employment License: Allows you to recruit and deploy workers under your sponsorship to third-party clients.
All companies engaging in manpower supply must obtain MOHRE recruitment agency approval.
The process includes a financial guarantee, fit-out of an approved office, and security clearance for shareholders.
It is important to note that labour supply license in Dubai Free Zone options are not available in most free zones, including Meydan.
However, you can still operate in the broader HR sector through permitted activities like executive search, recruitment consultancy, or outsourcing support.
Steps to Register a Labour Recruitment Agency in Dubai
To register a recruitment company in Dubai, you must follow this general process:
Step 1: Determine Your Activity
Choose between brokerage or labour supply, based on the scope of your services. Each has its own regulatory requirements.
Step 2: Reserve a Trade Name and Apply for Initial Approval
Submit your business name and receive initial clearance from the Department of Economic Development (DED) or free zone authority.
Step 3: Apply for MOHRE Approval
You must complete your manpower license application in Dubai through MOHRE, including bank guarantee submissions, office inspection, and security checks.
Step 4: Finalise Trade License and Labour Card
Once MOHRE approves, your commercial license is issued and your company is officially registered as a recruitment or labour supply agency.
Key Considerations for Setting Up in Meydan Free Zone
Meydan Free Zone does not issue labour supply licenses that fall under MOHRE jurisdiction. However, it supports HR-related activities such as:
- Recruitment services for executive roles
- Employment placement consultancy
- Talent acquisition advisory and training services
- HR consultancy and workforce planning
These activities are ideal for founders who want to operate in the white-collar recruitment space without entering the heavily regulated blue-collar labour supply category.
If your services involve direct labour deployment or manpower outsourcing, you must register your business through the mainland and obtain full MOHRE licensing.
Cost and Compliance Factors to Consider
The cost of registering a labour recruitment agency in Dubai depends on your structure, location, and whether MOHRE approval is needed.
Factors influencing cost:
- Business license issuance and renewal
- Bank guarantee to MOHRE (can exceed AED 300,000)
- Office fit-out and inspection
- Visa quotas and employee sponsorship
- Legal and PRO service fees
Compliance with MOHRE standards is mandatory, including maintaining employee records, reporting obligations, and conducting fair recruitment practices.
FAQs
1. What is required to register a labour recruitment agency in Dubai?
You must apply for a brokerage or manpower license, obtain MOHRE approval, submit a bank guarantee, and operate from a compliant office.
2. Can I start a recruitment company in a free zone like Meydan?
Yes, but only for permitted HR-related services such as recruitment consultancy and executive search. Labour supply is not allowed.
3. Is MOHRE approval necessary for recruitment agencies?
Yes. MOHRE recruitment agency approval is mandatory for all manpower or labour supply companies operating in the UAE.
4. What is the difference between a labour supply and a recruitment consultancy?
Labour supply involves directly hiring and deploying workers. A recruitment consultancy refers candidates to employers without direct sponsorship.
5. How much does it cost to register a manpower agency?
Costs vary widely. MOHRE licenses involve high financial guarantees and compliance fees, while free zone HR consultancies have lower entry barriers.
6. Can Meydan Free Zone issue a labour supply license?
No. Meydan Free Zone does not offer labour supply licenses. These must be obtained through MOHRE under a mainland setup.
7. What activities are allowed under a Meydan Free Zone HR license?
You can offer services such as recruitment consulting, talent acquisition strategy, training, and executive search.
8. What documents are required for MOHRE approval?
You need shareholder passports, office lease, bank guarantee, security clearance, and application forms submitted via the MOHRE portal.
9. Can I offer both white-collar and blue-collar staffing services?
Only if licensed under MOHRE as a full-service manpower supplier. Free zones typically do not permit blue-collar labour supply.
10. What is the first step to starting a recruitment agency?
Start by defining your business activity and choosing the right jurisdiction. Then reserve your trade name and begin the licensing process.
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