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The HR consultancy market in Dubai is experiencing rapid growth as businesses in the region recognize the importance of effective human resource management. As companies strive to attract and retain top talent, the demand for HR consultancy services has never been higher. If you are looking to capitalize on this growing market and start your own HR consultancy firm in Dubai, obtaining an HR consultancy license in Dubai is essential.

Obtaining an HR consultancy license in Dubai comes with a range of benefits. Not only does it allow you to tap into the growing demand for HR services, but it also provides you with the opportunity to work with a variety of clients across different industries.

With a consultancy license, you can offer services such as recruitment, training, employee relations, and HR strategy development to help businesses thrive in the competitive market of Dubai.

But the question is – How to get an HR consultancy license in Dubai? Well, here’s how:

What is an HR Consultancy License in Dubai?

An HR consultancy license in Dubai allows you to operate a business offering services related to human resource management for other companies. This can include a wide range of activities, such as:

  • Designing and implementing HR policies and procedures
  • Recruitment and onboarding
  • Employee training and development
  • Performance management
  • Compensation and Benefits Administration
  • Organizational development

HR consultancy business in Dubai assists businesses in various HR-related tasks, allowing them to focus on core operations. The primary regulatory body for HR consultancies in Dubai is the Department of Economic Development (DED). They oversee the licensing process and ensure businesses operate within legal guidelines.

The Ministry of Human Resources and Emiratisation (MOHRE) also oversees all aspects of employment in Dubai, including recruitment and labour standards. They might require additional permits for specific activities like overseas recruitment.

Eligibility Criteria for Obtaining an HR Consultancy License

  • Generally, there’s no requirement for UAE nationality. Expats can obtain 100% ownership of the consultancy.
  • Relevant educational qualifications are usually required.
  • A bachelor’s degree in HR, business administration, or economics is commonly sought after.
  • Work experience in HR management is often mandated.
  • The specific number of years can vary, but 3 years of experience is a common benchmark.

Steps to Get the HR Consultancy License in Dubai, UAE

To get a HR consultancy license in the UAE, follow the step-by-step procedures:

1. Define Your Desired Business Activities

Clearly identify the specific HR services you plan to offer (e.g., recruitment, training, policy development). This helps determine the appropriate license code.

2. Choose an Appropriate Business Structure

Decide on a suitable legal structure such as a sole proprietorship, LLC (Limited Liability Company), or a branch office. Each has its own ownership and liability implications. However, LLC is the most popular choice among entrepreneurs.

3. Select Your Location

Evaluate the pros and cons of establishing your business in the Dubai mainland or a free zone. Mainland offers wider market access, while free zones might have specific benefits like tax exemptions.

4. Reserve a Trade Name

Check for availability and secure a trade name that aligns with your consultancy’s brand and complies with DED (Department of Economic Development) regulations.

5. Gather Required Documents

Prepare all necessary documents like:

  • Application form
  • Passport copies and visas of shareholders/partners
  • Passport-size photographs 
  • Educational certificates of license holders
  • Proof of experience (if applicable)
  • Business plan
  • Trade name approval certificate
  • Office space lease agreement

6. Submit Application

Submit the license application along with the documents to the DED or the relevant authority. The DED will review your application and documents. The review process may take several weeks. Ensure all submitted documents are complete and accurate to avoid delays.

7. HR Consultancy License Issuance

Once approved by all relevant authorities, the DED will issue your official HR consultancy license. Certain HR activities, such as overseas recruitment, might require additional approvals from MOHRE.

8. Visa Requirements

You and your employees might require work visas to operate in Dubai. Explore visa options based on your needs and DED guidelines.

Consider partnering with a business setup consultant in Dubai such as Shuraa. Our company formation experts can simplify the process, ensure compliance, and expedite license acquisition.

Cost of Obtaining HR Consultancy License in Dubai

The base license fee for an HR consultancy license in Dubai generally starts from AED 12,900* to higher amounts depending on the chosen location and business structure.

Setting up in a free zone might have different fee structures compared to Dubai mainland. Some free zones offer competitive packages specifically for HR consultancy licenses.

Please note – These are estimations, and actual costs can be higher or lower depending on your specific circumstances. For a more accurate cost estimate, contact our business setup experts in Dubai and inquire about the cheapest packages for HR consultancy license acquisition.

Benefits of Obtaining an HR Consultancy License in Dubai, UAE

There are several potential benefits to obtaining an HR consultancy license in Dubai, UAE:

1. High Demand

Dubai’s rapidly growing business scene creates a high demand for HR expertise. Many companies, especially SMEs (Small and Medium Enterprises), lack the resources for a dedicated HR department and outsource these functions.

2. Ease of Doing Business

Dubai has streamlined processes for business setup, making it relatively easy to obtain licenses and operate your consultancy.

3. Global Reach

Dubai’s strategic location and international connections make it a great base for reaching clients across the Middle East and beyond.

4. Complete Business Ownership

If you set up in Dubai, you can benefit from 100% foreign ownership of your HR consultancy business.

5. Tax Advantages

While corporate tax was recently introduced in the UAE, some free zones still offer competitive tax benefits, including zero personal income tax.

Related Blog: How to Obtain a Consultancy License in UAE?

Shuraa – Your One-Stop Shop for HR Consultancy Licensing

Dubai’s booming business environment presents a golden opportunity for HR professionals. Obtaining an HR consultancy license in Dubai involves several key steps, from researching market demand to obtaining trade name approval, securing office space, and submitting the license application. While the process may seem daunting, entrepreneurs can navigate it successfully with the right guidance and support.

Shuraa Business Setup is here to simplify your journey. Our specialists in Dubai can assist you with every step, from selecting the most suitable business structure to obtaining your license and securing visas. We offer a comprehensive package of business setup services in Dubai.

Contact us today for a Free Consultation at +971 44081900 or WhatsApp at +971 507775554 or drop an email at [email protected].

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