Dubai is essentially becoming among the top choice for incorporating businesses. With numerous free zones, not only serves as a tax-free jurisdiction but also provides facilities and incredible opportunities for companies to thrive in any respective sector. Because of which immigrants flew to set up business in Dubai from across the globe. Multinational companies and start-ups alike find the Dubai market lucrative.
Dubai is essentially becoming among the top choice for incorporating businesses. With numerous free zones, it not only serves as a tax-free jurisdiction and provides facilities and incredible opportunities for companies to thrive in any respective sector.
These immigrants flew to set up businesses in Dubai from across the globe. Multinational companies and start-ups alike find the Dubai market lucrative.
More companies setting up, and the rise in development in Dubai has brought more employment opportunities. The need for recruiting the apt workforce is a task for which companies acquire assistance from recruitment agencies.
Starting a recruitment agency in Dubai is in itself potentially a profitable venture. The Ministry of Labour over there issued MR1283 in 2011 regarding enabling the license and regulation of the Private Employment Agencies Law.
This further boosts a recruitment agency to operate its business with throttle and utilize the facilities provided to businesses in Dubai. The law allows the establishment of companies performing foreign outsourcing, which enhances the operations of a recruitment agency.
Types of a Recruitment Consultancy License in Dubai
Two types of recruitment licenses can be obtained by recruitment business setup in Dubai.
The brokerage license must be obtained by companies completing activities related to the mediation or employment relations between UAE and foreign nationals and UAE and foreign companies. In other words, a brokerage license will allow the recruitment agency to:
- Processes applications from foreign and UAE nationals looking for employment
- Receiving requests from companies seeking to hire employees from the UAE or abroad
- Create a database of available jobs and post new jobs as they appear
- Maintained the database of candidates and employers and exchanged on based on requirements.
Temporary Recruitment License
A temporary recruitment license grants the recruitment agency the responsibility of shortlisting, interviewing, and placing employees for the employer's required number of job openings. The employer, in this case, may have requirements to outsource the workforce from outside the UAE.
The requirement entitles the recruitment agency to recruit and hire workers from the UAE or outside the UAE. In such a case, the Dubai recruitment agency will act as a sponsor for foreign employees.
Different Types of Job Recruitment Agencies in Dubai
The following are the different types of job recruitment agencies in Dubai:
Traditional Recruitment Firms
These firms focus on sufficing for various general skills requirements.
Executive Search Agencies
These agencies operate to fill the leadership positions of companies with higher-end salaries and jobs.
They provide experts in a field from their database.
Large-Scale Labour Recruiters
They provide a workforce for employers.
Temporary Recruitment Agencies
Agencies that act as an employer for hiring and placing candidates.
Guidelines to Set Up an Employment Consultancy in Dubai
A recruitment license-holder company in Dubai is primarily involved in recruiting ex-pats. With a recruitment license, one is permitted to place employees in permanent job positions in companies.
The Dubai MR1283 has strict guidelines for the protection of workers appealing to an employment business or a recruitment agency to find a job.
- Apart from the guarantee deposited, employment businesses must also deposit 2,000 Dirhams for every employee brought to Dubai.
- For transparency purposes, the law on Licensing and Regulation of Private Employment Agencies states that employment businesses will be held accountable for the company's obligations toward the worker.
- Also, employment businesses and recruitment agencies must hire qualified personnel and experienced managers.
- The Labour Ministry has also set limitations on the fees that Dubai recruitment agencies can request from possible clients.
- Dubai's employment agencies must clearly state the contract's terms and conditions and the employee's duties.
- Recruitment agencies in Dubai must keep records of their employees from the last three years.
- Expats can also opt for a Dubai Freezone company formation for their recruitment agency.
- The Ministry has to approve them for hiring foreign professionals, and the foreign employees should have no criminal record.
- The government permits licensing for a Private Employment Agency as per the Law in 2011 known as MR 1283, which the Ministry of Labour issues, allowing foreign outsourcing companies to venture into Dubai.
Procedure to Open a Job Consultancy in Dubai
The following steps are essential to open a job consultancy in Dubai.
1. Choose a Company Name
Select a trading name, ensuring it complies with the UAE’s naming criteria.
2. Submit the documents Required for All Recruitment Companies in Dubai
Apply for a recruitment license and submit the following documents to the Ministry of Human Resources and Emiratisation to obtain the license for opening a recruiting agency in Dubai:
- Copies of passport(s) of the company’s shareholder(s)
- Copy of the applicant’s family book
- Copies of the ID cards of the nationals
- A statement of good conduct
- Copy after the trade name application with the Trade Register
- The shareholders’ written statements on the opening of the company
- A blueprint of the employment agency’s location.
3. Apply for Your Visa
With your license application made, you can apply for your visa through our Dubai visa services.
4. Note the Cost of Being on the List of Recruitment Agencies in Dubai
This is not easy to answer with complete certainty as every business is different. The size of your company, the setup, and your chosen location can all affect the price.
Generally speaking, however, free zone licenses range from AED 9,600 with no visa application up to AED 24,700 inclusive of six visas and beyond.
5. Open a Business Bank Account
Finally, you can now apply to open a corporate bank account.
Commitbiz can help you in setting up a recruitment agency in Dubai. Be it the right location and jurisdiction for the office set up of your recruitment agency, acquiring the suitable recruitment licenses and our experts can answer all concerns regarding business setup services.
Contact us for any query in setting up a business in Dubai; we would be happy to assist you.
How can I start a recruitment agency in Dubai?
To set up a recruitment agency in Dubai, you have to follow steps like registering trade names, getting initial approval, registering for a license, and getting additional approvals.
What is the difference between a recruitment agency and a recruitment business?
A recruitment agency is one that provides staff who is then employed by the client employer. A recruitment business on the other hand, provides staffs who do not become employed by the hirer but who are seconded or supplied to a client employer.
What are the types of recruitment agency licenses in Dubai?
There are two primary types – • Brokerage License • Temporary Recruitment License
What is the Cost of Obtaining Recruitment License in Dubai?
The cost depends on several factors like jurisdiction, business activity and most importantly the type of business license you decide to go with.