Since the UAE is a place that receives professionals and business owners, they need to connect somehow. For this reason, many businesses decided to establish a recruitment firm but to do this they need a Recruitment Agency License in Dubai.
The UAE Authorities enabled the licenses for private employment agencies in 2011, and ever since there have been many investors that want to establish this kind of business. If this is your case, you must know how to carry out this process properly.
In this article, you’re going to learn everything you need to know about how to check recruitment agency licenses for your business. In addition, you can gain valuable insight into each step of the process. Let’s observe:
- How to Get Recruitment Agency License in Dubai?
- What does a recruitment agency do?
- What are the conditions for opening a recruitment agency in Dubai?
- Why should you choose your business activity and company name?
- What kind of legal structure do you need?
- Which jurisdiction should you choose?
- What types of recruitment licenses are there in Dubai?
- Which documents do you need to open your recruitment agency?
- What are the fees for obtaining the recruitment license?
- How can Connect Resources help you with recruitment license?
How to Get Recruitment Agency License in Dubai?
Setting up a business in Dubai is the go-to decision for investors around the world that are looking for new opportunities. This is because Dubai is a great place with a lot of benefits for business owners.
However, finding the perfect business activity could be challenging. For this reason, many opt for choosing a sector that has a lot of demand. Since there are many new foreign companies in Dubai constantly, as well as job seekers looking to find their dream job, having a recruitment agency may be a great choice.
The recruitment sector is booming in Dubai, so if you want to take advantage of this, now is the right time.
How to set up a company in Dubai?
Establishing a business in Dubai is a pretty straightforward process. This is because the UAE Authorities want to encourage the economy by attracting foreign investors.
One of the main requirements you must have to set up your business in Dubai is having a business license. With it, you can operate legally and offer your services.
So, you must need a Recruitment Agency License in Dubai if you want to have this kind of business. In this case, you must learn everything you need to know about how to obtain it.
What does a recruitment agency do?
When you want to obtain your Recruitment Agency License in Dubai, you must be very clear about the business activity you want to carry out. So, for this reason, it’s important to know what a recruitment agency does.
In Dubai, the activities of the recruitment agency will vary depending on the type of business license obtained.
So, we have the two following main activities depending on the license:
- Brokerage agency: receive applications from workers and requests from companies. Create databases and keep information about employers and candidates.
- Temporary recruitment agency: become the employer and sponsor of workers (UAE nationals and foreigners) as well as carry out additional administrative tasks
As you can see, a recruitment agency has to choose the business license before determining what activity they want to do. If you want to obtain an on-demand labor supply license, you must consider also the fees that you’ll have to pay.
What are the conditions for opening a recruitment agency in Dubai?
To open a staffing company and obtain your Recruitment Agency License in Dubai you must fulfill some conditions. The UAE has established some rules and guidelines that business owners must follow to be able to have a recruitment agency.
This is because the UAE has strict regulations regarding the protection of workers. These rules are stated in the regulation MR1283 and are as follows:
- The business owner must have a clean criminal record
- The company must have a registered address in Dubai
- Apply for the brokerage license or temporary recruitment license
- Deposit a Bank Guarantee
- Business owners and employees must prove experience in the recruitment field
- Security deposit AED 2000 for each employee
So, if you want to obtain your manpower supply license in Abu Dhabi or any other place in the UAE, you must comply with the previous conditions and also you can Talk to experts in Emiratisation
Why should you choose your business activity and company name?
After knowing the activities and conditions for obtaining your labor supply license in UAE, you can start considering the steps for setting up your staffing company.
The first step is to choose your business activity. As we mentioned before, the recruitment company will carry out its activities based on the type of business license you want to obtain.
You could decide to cover broker between employees and employers or operate as a temporary staffing company.
How to choose your company name?
The next step is to choose your company name. Make sure to follow the strict naming conventions in the UAE which are the following:
- Avoid blasphemous and offensive language, as well as religious names
- Avoid abbreviations
- Don’t use famous names or names from well-known corporations
Also, you have to choose an available name. For this reason, it’s advisable to consider at least three options. You’ll then have to register the trade name and obtain the certification to submit when you’re applying for your manpower supply license in Abu Dhabi and Here we have everything you need to know about E-care
What kind of legal structure do you need?
The legal structure refers to the kind of entity you want for your business. However, keep in mind that for any kind of company you need your Recruitment Agency License in Dubai to operate legally.
For a staffing company, probably the best option could be a limited liability company (LLC). To incorporate this entity you need the following:
- 2 shareholders (Mainland) or 1 shareholder (Free Zone)
- A local partner
- Prepare the Articles of Association
Keep in mind that if you decide to establish an LLC in a Free Zone, your recruitment activities are limited to that Free Zone. If you want to carry out recruitment activities within the UAE, it’s best to establish it in Mainland because this way you won’t have any restrictions.
Also, you have to learn about the documentation required for incorporating the company. Once you have all of your documents ready, you can proceed with the registration process. First, you must register your trade name, and then apply for the initial approval. After that, you can pay the fees to collect your business license.
Which jurisdiction should you choose?
After deciding your business activity and legal structure, you must choose the jurisdiction. This is the zone where you want to conduct business. You could choose to establish a Mainland Company or a Free Zone Company.
In this case, you have to consider which one gives you more benefits for your on-demand labor supply license.
- Mainland: in Mainland, you have a great benefit which is being able to conduct business within the entire UAE territory. You can also take on lucrative government contracts.
- Free Zone: in a Free Zone you can receive financial incentives such as zero currency restrictions and tax exemptions.
In either case, you must know how to check recruitment agency license.
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What types of recruitment licenses are there in Dubai?
Once you know your preferred business activity and your chosen jurisdiction, the next step is knowing which license you need. There are two types of Recruitment Agency licenses in Dubai.
First, you must know that the kind of license you’re going to obtain is a commercial license. This allows you to carry out commercial activities legally. Then you have to be aware that the license must be renewed yearly.
Here we have the two types of licenses for employment agencies in Dubai:
A brokerage agency carries out mediation activities between the employers and employees. Its main objective is to negotiate with the employees on the employers’ behalf about topics such as contractual and employment conditions.
It also carries out additional activities such as:
- Collecting databases and keeping data about workers
- Keep employer’s record about available job
- Store applications and any information about the employees to provide to the employer whenever they need it
Temporary recruitment agency license
With the temporary recruitment agency license, the company is allowed to hire employees and offer sponsorship to provide them for a third party on a short-term contract or temporary basis.
The agency sponsors the employees and also carries out administrative tasks on the employer’s behalf such as payroll administration.
This kind of license is more expensive than the brokerage license, and any foreigner can open a recruitment agency in Dubai as long as he or she fulfills the conditions. Also, one of the shareholders must obtain a special license for recruitment activities and he or she must be a UAE national.
Which documents do you need to open your recruitment agency?
When you’re going to submit your application for obtaining your approval and business license, you must have the required documentation. In Dubai, no matter the type of service you’re going to offer, you must have the following documentation:
- Passport copies of the company’s shareholders
- Family book and ID card for UAE nationals
- Statement of good conduct
- Certificate of the trade name registration
- Blueprint of company’s location
All labor recruitment agencies in Dubai had to submit this paperwork to obtain their licenses. You must gather the documents, and submit them to the MoHRE so you can register your company collect your license.
What are the fees for obtaining the recruitment license?
Once you have submitted all the required documentation, you must wait for approval. If the authorities approve your legal documents, then you must pay the necessary fees to obtain your Recruitment Agency License in Dubai.
You should know that the costs for opening your recruitment agency in Dubai will vary depending on several factors. Your company size, location, and specific business activity may influence the cost. In addition, if you choose to establish a Mainland Company or a Free Zone company, the costs may vary too.
For example, if you plan to set up your business in a Free Zone, like Fujairah Creative City, the cost will range from AED 15000 to AED 25000.
In addition, the fees for the labor supply license in UAE will vary depending on the following:
- Brokerage license: AED 50000 fee for application and AED 300,000 for Bank Guarantee
- Temporary recruitment agency license: AED 100,000 fee for application and AED 1,000,000 for Bank Guarantee
As you can see, the price range is considerable. So, you must evaluate which option could be the best one for you.
How can Connect Resources help you with your recruitment company?
Here in Connect Resources, we want to help you achieve your business goals. For this reason, we help with labor recruitment agencies in Dubai. Our team of specialists is readily available to guide you on how to obtain everything you need for your business.
Our comprehensive service aims to help you obtain visas, HR consultancy, and everything you need to have your company running smoothly. With our team of specialists, you can be sure that you’re going to achieve success.
Would you like to contact Connect Resources for licensing services? You can call at +971 433 166 88 or send an email to email@example.com, and you’ll talk to one of their representatives that will gladly answer all of your questions.