How to Set Up a Recruitment Agency in Dubai?

by commitbizadmin 15, Nov 2019

How to Set Up a Recruitment Agency in Dubai?

Over the years, the United Arab Emirates has witnessed amazing growth in the number of business establishments. The economic boom of the UAE has created a phenomenal business climate that attracts millions of business investors. The state-of-art infrastructure in the country opens up many business opportunities for the entrepreneurs as well as experienced professionals. The region accommodates all sort of businesses ranging from manufacturing, retail, to startups and e-commerce and offers premises for all.

Dubai in the UAE is one of the fastest-growing cities in the world, and the number of immigrants has increased manifold. So has their demand for starting a business in Dubai. This has caused an increase in the recruitment agencies which help in supplying manpower to the third parties under their sponsorship.

The government of Dubai permits licensing for a Private Employment Agency as per the Law in 2011 known as MR 1283, which is issued by the Ministry of Labor; this has allowed foreign outsourcing to venture in Dubai. A license holder of the recruitment agency in Dubai is primarily involved in recruiting expats.

When it comes to free zones, foreigners are given the liberty, however, as per the UAE law agencies must inform the Ministry about any variations made within the agency. The candidate applying for a recruitment license must hold no criminal record.

Types of Recruitment License in Dubai

  • Brokerage Agency- A brokerage agency operates by exchanging contractual and also employment-related information. The activities involved in the brokerage agency are as follows.
    • Receive applications from the foreign and the UAE nationals looking for employment
    • Create a database of available jobs and post new jobs as they appear
    • Receiving requests from companies seeking to hire employees from the UAE or outside the UAE
    • Keep information on employers and candidates and match them based on their requirements
  • Temporary Recruitment Agency- It operates as an employer by recruiting labor for third party for a job or service under the supervision of the third party
  • Traditional Recruitment Firms- They focus on sufficing for various general skills requirement
  • Specialist Agencies- They provide the experts of a field from their database
  • Large-Scale Labor Recruiters- This agency offers a mass workforce for employers
  • Executive Search Agencies- Agencies operating to fill the leadership positions of companies with higher-end salary and positions

Conditions for Obtaining Recruitment License in Dubai

To open a recruitment agency in Dubai, you must fulfill a few conditions as stated by the government. They are as under-

  • The applicant must have a no criminal record
  • The company must have a registered address in Dubai which must be clearly displayed in the head office
  • It should also be noted that the office where the staffing agency will provide its services to specific requirement
  • A bank guarantee must be deposited while registering the company
  • A special license for completing recruitment activities can be obtained by one of the shareholders of the company
  • The shareholders have to be UAE national
  • The agency must have sufficient employees to complete the recruitment activities

Recruitment License in Dubai

There are a few steps to obtain a recruitment license in Dubai. They are as follows-

  1. Register your company at the registry office
  2. Apply for notarization from the Department of Economic Development (DED) concerning the Memorandum and Articles and Association which are needed for a business entity
  3. Submit the documents required by the authority so as to verify and issue a license before approval
  4. Get the license once you get the final approval from the authority
  5. Apply for Labor Card at the Ministry of Labor where you can register your workers
  6. Finally you have to register the workers with the General Authority for Pension and Social Security

Documents Required

  • Copy of valid passport of the shareholders
  • Copy of ID cards of the UAE nationals
  • A blueprint of the agency location
  • Copy of trade name registration
  • A statement of good conduct

A law in the UAE states that the recruitment agencies must inform the Ministry about any changes made within the agency. The government is determined to promote a transparent intermediary sector in the UAE and guarantee greater protection for the workers that are hired through agencies like recruitment.

Setting up a recruitment agency comes with a variety of risks for many entrepreneurs who are unware of these difficulties. Our consultants at Commitbiz have helped entrepreneurs like you set up a recruitment agency in Dubai, UAE and can advise you the best way of doing it with minimal risk, and the most cost-effective manner. Contact us today- we’d be glad to assist you.