Setup an HR Consultancy in Dubai, UAE

Dubai, the economic hub of the UAE, has fostered a thriving business environment for entrepreneurs from across the globe. The region is home to numerous global companies, unicorn companies, and emerging startups that employ a diverse skilled workforce. Entrepreneurs planning a business incorporation in Dubai must understand UAE labour laws, become proficient in hiring practices, and improve employee relations. This rapid economic growth in the region has led to a surge in demand for human resource (HR) expertise.

Establishing an HR consultancy can be a profitable venture due to the growing need for staffing, recruitment, and HR services in Dubai. This guide will walk you through the benefits, the role of the consultancy, and the steps taken to set up an HR consultancy in Dubai.

Why Set up an HR Consultancy in Dubai?

Startups and large corporations frequently look for professional HR consultants in Dubai to manage compliance, enhance employee engagement, and speed up the hiring process. Let us look at the benefits of setting up HR services in Dubai:

Booming Economic Hub

Dubai’s surging economy, pro-business policies, and government support attract companies from diverse sectors. With so many companies, there will always be a demand for skilled workforce. This further increases the demand for HR consultancy in Dubai.

Diverse Workforce

Dubai is a multicultural city with expatriates from different countries contributing to its vibrant workforce. This diversity creates a strong demand for HR consulting services. Businesses need HR services to manage expatriate employment, compliance, and cultural diversity in the workplace.

Pro-business Initiatives

The government of Dubai works extensively towards creating a pro-business environment. It has created free zones and introduced flexible licensing options for entrepreneurs who want to set up an HR consultancy in Dubai. Setting up a business in Dubai free zone also offers benefits like 100 per cent foreign ownership, tax rebates, no currency restrictions, and full repatriation of profits.

Dynamic Location

Due to its dynamic location the Emirate has access to key markets such as Asia, Europe, and Africa. This gives a competitive edge to HR businesses in Dubai with access to both domestic and foreign companies.

Simplified Business Setup

The Dubai Department of Economic Development (DDED) has streamlined the registration process for new businesses. This makes it easier for HR consultancy services to set up their business and get the license in a stipulated time.

What is the Role of an HR Consultancy in Dubai?

HR consulting services assist businesses in integrating HR policies, procedures, and practices into daily operations. Businesses can achieve productivity and set appropriate working standards by partnering with an HR firm. Let us look at what role does an HR consultancy play:

Talent Acquisition

HR consultancy in Dubai helps companies attract, source, and hire skilled professionals. HR firms make it easier to employ the best talent for businesses. These firms manage the entire recruitment process, including identifying potential applicants, conducting interviews with them, and overseeing the entire hiring procedure.

HR Compliance

HR consultants in Dubai help companies align with UAE labour laws. They also help companies adhere to best HR practices so that employees do not face any issues in the organisation.

Payroll Management

HR firms handle payroll and compensation for companies in a systematic procedure. The consultants manage performance reviews, salaries, benefits, deductions, bonuses, and any overtime. They also ensure the salaries are compliant with UAE wage laws.

Employee Relations and Engagement

Companies need to take care of their employees for better productivity and preserving positive relationships. HR consultancy services play a crucial role here in handling employee relations, conflict resolution, and behavioural issues. Good employee relations enhances the company culture.

Training and Development

Companies should encourage employees to upskill themselves with the right resources and training . Having an HR consultancy ensures your employees go through top-notch training and development. They provide leadership, skill development, and compliance training.

Visa and PRO Services

HR consultancy in Dubai assists expat employees with work permits, visas, and government documentation. Partnering with experts who provide PRO services in Dubai can help simplify government procedures and ensure full compliance with local regulations.

Steps to Set Up an HR Consultancy in Dubai

Here is the step-by-step guide for starting an HR consultancy in Dubai:

Step 1: Choose the Jurisdiction

The first step for HR company formation in Dubai is to choose from the two jurisdictions:

Dubai Mainland: Setting up a consultancy in the Dubai mainland allows you to operate anywhere in the region. It also allows you to work with private, public, and government entities.

Dubai Free Zones: Setting up a business in Dubai free zone offers tax benefits, 100 percent ownership, full repatriation of profits, world-class infrastructure, modern office spaces, and easy setup process.

Step 2: Determine the Business Structure

The next step is to decide the legal structure that you want your HR firm to adopt. You can choose from various structures such as sole proprietorship, partnership, limited liability companies (LLC), a branch of foreign companies, and free zone establishment.

Step 3: Register the Consultancy Name

The name of your consultancy should be unique and not similar to any other registered company. The name should also comply with naming rules set by DDED. Once you decide the name, register it at DDED’s online portal.

Step 4: Obtain the Initial Approval

The next step for your HR firm is to get an initial approval or the no-objection certificate from DDED. This will allow you to freely set up your company without any interference.

Step 5: Submit the Documents

Now, you must submit necessary documents such as complete form for registration, memorandum of association, board resolution, power of attorney given to manager, and passport copies of owners. Pay the necessary fees for license issuance.

Step 6: Get the License

After the fee payment is successful, you can get the HR consultancy license in Dubai from DDED. Now you are ready to begin your business operations.

Why Commitbiz?

Starting an HR consultancy in Dubai is a promising business opportunity due to Dubai's vibrant job market and business-friendly policies. With the right planning and legal setup, it is a great place to start a profitable firm and meet the expanding HR requirements of companies in Dubai. Contact us if you want to set up a successful HR consultancy in Dubai. With more than 17 years of experience, Commitbiz is dedicated to helping you with a hassle-free business setup journey by handling all the formalities and legalities.