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.
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. Setting up a recruitment agency business is in itself is potentially a profitable venture.
The Ministry of Labor over there has issued MR1283 in 2011 in regards to enabling the license and regulation of Private Employment Agencies Law. This further boosts a recruitment agency to operate their business with throttle and utilise the facilities provisioned to businesses set up in Dubai. The law allows the establishment of companies performing foreign outsourcing which enhances the operations of a recruitment agency.
Types of a Recruitment Agency License
There are two types of recruitment licenses that can be obtained by recruitment agencies in Dubai.
- Brokerage License
- Temporary Recruitment License
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
- Maintain the database of candidates and employers and exchange on based on requirements
Temporary Recruitment License
A temporary recruitment license grants the recruitment agency the entire responsibility of shortlisting, interviewing and placing employees for the required number of job openings for the employer. The employer, in this case, may have requirements to outsource the workforce from outside the UAE as well. The requirement entitles the recruitment agency to recruit and hire workers from the UAE or outside the UAE. The Dubai recruitment agency, in such a case, will act as a sponsor for foreign employees.
Further, there are the following types of different recruitment agencies:
1. Traditional Recruitment Firms - Focuses on sufficing for various general skills requirement
2. Executive Search Agencies - Agencies operating to fill the leadership positions of companies with higher-end salary and positions.
3. Specialist Agencies - They provide the experts of a field from their database
4. Large-Scale Labor Recruiters - Who provides a mass workforce for employers
5. Temporary Recruitment Agencies - Agencies that act as an employer for hiring and placing candidates
Documents Required to Set Up a Recruitment Agency in Dubai
The following documents are to be submitted to the Ministry of Human Resources and Emiratisation in order to obtain the license for opening 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
Guidelines to Set Up a Recruitment Agency in Dubai
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 are also required to deposit 2,000 Dirhams for every employee brought in Dubai. For transparency purposes, the law on Licensing and Regulation of Private Employment Agencies states that employment businesses will be held accountable for the obligations a company has towards the worker. Also, employment business and recruitment agencies are required to hire qualified personnel and have an experienced manager.
The Labor Ministry has also set limitations for the fees that Dubai recruitment agencies are allowed to request from possible clients. Employment agencies in Dubai have the obligation to clearly state the terms and conditions of the contract and the duties of the employee. Recruitment agencies in Dubai must also keep records of their employees from the last three years.
Expats can set up recruitment agencies in Dubai free zones. 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 is issued by the Ministry of Labor, this has allowed foreign outsourcing companies to venture 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
Procedure to Open a Recruitment Agency in Dubai
Here are the steps to open a recruitment agency in Dubai -
- Choose a company name making sure that it complies with the UAE’s naming criteria
- Apply for a recruitment license
- With your license application made, you can apply for your UAE visa
- Finally, you can now apply to open a corporate bank account.
Cost of Opening a Recruitment Business in Dubai
This is not easy to answer with complete certainty as every business is different. The size of your company, the type of setup, and your chosen location can all have a bearing on 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.
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.
1. 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.
2. 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.
3. What are the types of recruitment agency licenses in Dubai?
There are two primary types –
• Brokerage License
• Temporary Recruitment License
4. 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.