How to start a manpower recruitment agency in Dubai
Starting a manpower recruitment agency in Dubai is a potentially profitable venture in and of itself. As your company expands, you will need to hire new employees to meet demand and expand your knowledge base. But just because you’re an expert entrepreneur doesn’t mean you’re an expert at screening candidates and matching them to skill gaps.
That is why, when making a new hire, many business owners seek the assistance of expert recruiters. Particularly in Dubai, where strict employment laws and standardized contacts can add to the process’s complexity.
With such a diverse and growing business community out here, recruitment services are always in high demand. So, if you can match talent to job roles, there is a fantastic opportunity in Dubai, UAE.
Dubai recruitment consultancy license types
A recruitment company established in Dubai can obtain two types of recruitment licenses.
Companies that complete activities involving the mediation or employment of UAE and foreign nationals or UAE and foreign companies must obtain a brokerage license. In other words, a brokerage license will enable the recruitment firm to:
- Process employment applications from foreign and UAE nationals
- Receive requests from businesses looking to hire employees from the UAE or elsewhere.
- Create a database of available jobs and post new ones as they become available.
- Maintained a database of candidates and employers and exchanged information as needed.
Temporary recruitment license
A temporary recruitment license authorizes the recruitment agency to shortlist, interview, and place candidates for the employer’s required number of job openings. In this case, the employer may have requirements to hire workers from outside the UAE.
The requirement allows the recruitment agency to recruit and hire employees from within and outside the UAE. In such cases, the Dubai recruitment agency will serve as a sponsor for foreign workers.
Different types of Dubai job recruitment agencies
The following are the various types of Dubai job recruitment agencies:
Traditional recruitment firms
These businesses also concentrate on meeting various general skill requirements.
Executive search firms
These organizations exist to fill higher-level positions in companies with higher-paying jobs.
They also provide subject matter experts from their database.
Labor recruiters on a large scale
Basically, they provide employers with a workforce.
Temporary recruitment agencies
Agencies that act as an employer in the hiring and placement of candidates.
How to start a recruitment agency in Dubai
A recruitment license holder company in Dubai primarily recruits ex-pats. However, a recruitment license allows you to place employees in permanent positions in businesses.
The Dubai MR1283 has strict guidelines for the protection of workers who seek employment through an employment business or a recruitment agency.
- Aside from the guarantee, employment agencies must deposit 2,000 Dirhams for each employee brought to Dubai.
- The law on Licensing and Regulation of Private Employment Agencies states that employment businesses will be held accountable for the company’s obligations to the worker for the sake of transparency.
- Furthermore, employment firms and recruitment agencies must hire qualified employees and experienced managers.
- The Labour Ministry has also placed restrictions on the fees that Dubai recruitment agencies can charge potential clients.
- Dubai’s employment agencies must clearly state the terms and conditions of the contract as well as the employees’ responsibilities.
- Recruitment agencies in Dubai are required to keep employee records for the previous three years.
- Expats can also form a company in the Dubai Freezone for their recruitment agency.
- The Ministry must approve their hiring of foreign professionals, and the foreign employees must be free of any criminal record.
- According to the 2011 Law known as MR 1283, which the Ministry of Labour issues, the government allows licensing for a Private Employment Agency, allowing foreign outsourcing companies to venture into Dubai.
Steps to start a recruitment agency in Dubai
The following steps are required to start a recruitment agency in Dubai
1. Select a company name to start a recruitment agency in Dubai
Specifically, choosing a trading name that complies with the UAE’s naming criteria.
2. Submit the documents required start a recruitment agency in Dubai
To obtain a license to open a recruiting agency in Dubai, apply for a recruitment license and submit the following documents to the Ministry of Human Resources and Emiratization:
- Copies of the company’s shareholder’s passport(s).
- A photocopy of the applicant’s family tree.
- Copies of the nationals’ ID cards.
- A code of ethics statement.
- The Trade Register should receive a copy following the trade name application.
- The shareholders’ written statements on the company’s formation.
- A layout of the location of the employment agency.
3. Apply for a visa
After submitting your license application meanwhile you can apply for a visa through our Dubai visa services.
4. Cost to start a recruitment agency in Dubai
Because every business is unique, it is difficult to provide a definitive answer. The price can be influenced by your company’s size, setup, and location.
Generally speaking, the cost of business setup in freezone starts 17,900* and cost of business setup in mainland starts 18,500*.
5. Establish a business bank account
Finally, you can apply for a corporate banking account.
In most cases, a commercial license is required to start a recruitment agency in Dubai and the UAE. You can also apply for a recruitment agency license directly to the Department of Economic Development (DED) or to one of the UAE’s many free zones.
Shuraa Business Setup can assist you in establishing a manpower recruitment agency in Dubai. Be it the right location and jurisdiction for your recruitment agency’s office setup, acquiring the appropriate recruitment licenses, or our experts can answer all questions about business setup services. Please contact us if you have any questions about starting a business in Dubai; we will gladly assist you. Reach out to us on call at +971 44081900, send us a WhatsApp message at +971 507775554, or send us an email at email@example.com