How to Obtain Recruitment Agency License in Dubai?

by Zaara 08, May 2019

How to Obtain Recruitment Agency License in Dubai?

Dubai is currently the go-to place for any foreigner seeking a job because the city guarantees you the opportunity, growth, healthy pay, and higher standard of living in any sector. So naturally, Dubai sees a rising number in business set up of startups or an already established foreign company. Job seekers who come to Dubai looking for recruitment agencies will help them get a proper job with good pay. Therefore, recruitment agency company formation in Dubai is becoming a booming sector in the market.

Setting up a Recruitment Agency in Dubai

A recruitment agency in Dubai can be run in two ways,

  1. Brokerage Agency
  2. Temporary Recruitment Agency

Let us understand in-depth about the two types.

Brokerage Agency

Recruitment Agency and Brokerage Agency are essentially the same. The activity allows the agency to mediate between employees and employers and to negotiate contractual and employment conditions on their behalf. It includes collecting databases. The database stored includes data about workers, available job opportunities, employment applications and any relevant information regarding the employee and employer. The activities involved under this are essential;

  • To collect and keep the data about workers
  • Keep the record of an available job with the employer
  • Store the worker applications and any other information to provide it to the employer when it is required

Temporary Recruitment Agency

This type of agency hires full-time employees under their sponsorship and seconds them to a third party for a temporary basis for short-term contracts. The sponsorship of the employees and the payroll remains with the agencies.

Opening a recruitment agency must be priorly followed by fulfilling requirements laid by the Ministry. You must also know that an individual from any nationality can open a recruitment agency in Dubai. The requirements include;

  • Having a clean criminal record
  • The company must have a registered address in Dubai which must be displayed at its head office
  • A bank guarantee must be deposited while paying the fees for availing license
  • A special license for completing recruitment activities can also be obtained by one of the shareholders of the company

Other such conditions include appointing a manager who must fulfil certain conditions like registering with the Ministry of Labor in Dubai.

Recruitment Consultancy License in Dubai

To start a recruitment company in Dubai, UAE, the primary step to go for has a Recruitment License. The license will enable you to perform a middleman activity between an employer and an employee. You can store data of the employee and employer and match them. The recruitment license in Dubai is valid for just one year and can be renewed. The UAE also states that agencies must inform the Ministry about the variations made within the agency. The licensee is allowed to assist the new ex-pat in a secure job position in Dubai.

Rules and Guidelines to Open Recruitment Agency in Dubai

When starting a recruitment company in Dubai, you’ll need to abide by the emirate’s strict guidelines regarding the protection of workers. Some of the conditions are -

  • You must ensure that you and your employees are qualified and experienced in your field. You must also put up a security deposit of AED 2,000 for every employee you bring into Dubai.
  • When recruiting expatriates, you must ensure that they are of good standing with no criminal convictions.
  • Finally, you must follow the Ministry’s guidance on fees, with set limits depending on the nature and duration of employment.

Procedure to Obtain Recruitment Agency License in Dubai

The license applications are printed at the service centre ‘Tas’heel’ or through establishments participating in the Ministry’s e-form program. The steps to obtain the license are as follows,

  1. Once you fill the application form and attach the documents, it is transferred electronically to the Ministry’s database for verification and to make sure that all the laid out conditions are met with
  2. If it is noted that you have fulfilled all the conditions, the transaction will be executed. The applicant has to visit the official website of the Ministry to know if the application is approved or not
  3. After which the applicant shall pay prescribed fees at the service centre ‘Tas’heel’ or through establishments participating in the Ministry’s e-form program as mentioned above
  4. If anything is missing, the applicant will be made aware of to complete them by following the steps above

You will be issued the license in 15 working days.

Fees to Obtain Recruitment Agency License in Dubai

  • Fees for application for issuing brokerage license is AED 50,000- Bank Guarantee of AED 300,000
  • Fees for application for issuing temporary recruitment agency license is AED 100,000- Bank Guarantee of 1,000,000

Documents Required to Obtain Recruitment Agency License in Dubai

The following documents must be submitted to the Ministry of Human Resource and Emiratisation to obtain a license and register the company

  • Copy of valid passport of the shareholders
  • Copy after the ID card for nationals
  • A statement of good conduct
  • Copy after the trade name application with the Trade Register
  • Written statements of the shareholders’ on the opening of the company
  • A blueprint of the employment agency’s location.

If you want to be the middleman between the employer and the employee and essentially become a job provider, you can start this company. Still sceptical? We at Commitbiz are here for you to wash your doubts away. Our consultants have years of experience in this field and can help you start a recruitment agency in Dubai. Do contact us today.