Starting a manpower recruitment agency in Dubai can be a profitable venture. As your business grows, you’ll need to hire more staff to meet demand and broaden your expertise. However, being a skilled entrepreneur doesn’t necessarily make you an expert in candidate screening and matching skills to job openings.
That’s why many business owners in Dubai turn to experienced recruiters when making new hires. Dubai’s strict employment laws and standardized contracts can make the hiring process complex.
Given the diverse and expanding business community in Dubai, there’s a consistent demand for recruitment services. So, if you can effectively connect talent with job roles, there’s an excellent opportunity in Dubai, UAE.
If you are a foreigner, you will need a resident visa to enter the country. You will also need a local sponsor in case you want to start a recruitment company on the mainland. The formation of a recruitment agency is slightly different than starting a general company. The process might confuse you if you are a foreigner or if this is your first time starting a company. Company Setup Consultants can help you through the process. Our experienced professionals can streamline the process for you and help you run your recruitment agency in Dubai.
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Dubai Recruitment Consultancy License Types
In Dubai, a recruitment consultancy can obtain two types of licenses:
- Brokerage License:
- This license is for companies involved in activities related to connecting UAE and foreign nationals or UAE and foreign companies.
- It allows the recruitment firm to process job applications from both foreign and UAE nationals.
- The firm can also handle requests from businesses looking to hire employees from the UAE or abroad.
- They can create and manage databases of available jobs, candidates, and employers, facilitating information exchange as needed.
- Temporary Recruitment License:
- With this license, the recruitment agency can shortlist, interview, and place candidates for a specific number of job openings as required by the employer.
- This type of license enables the agency to recruit and hire employees from both within and outside the UAE.
- In cases involving foreign workers, the Dubai recruitment agency acts as the sponsor.
These two license types offer flexibility for recruitment agencies to serve the needs of employers, both locally and internationally.
Different Types of Dubai job Recruitment Agencies
There are different types of job recruitment agencies in Dubai:
1. Traditional Recruitment Firms:
These agencies focus on meeting general skill requirements for various job positions.
2. Executive Search Firms:
They specialize in filling high-level positions with higher salaries in companies.
3. Specialized Agencies:
These agencies provide subject matter experts from their talent pool.
4. Large-Scale Labor Recruiters:
They supply employers with a workforce, often for industries requiring many employees.
5. Temporary Recruitment Agencies:
These agencies act as employers when hiring and placing candidates for temporary positions.
Choosing the Entity for an Employment Agency in Dubai
Choosing the legal entity for a company is very important. You will need substantial investment to start a recruitment agency in Dubai. The legal entity will help the investors to make their decision. The legal entity will show the chain of command within the company. You should choose an entity that best represents the activities of the company.
Limited Liability Company would be the best choice as the entity for your recruitment agency. Here are the requirements for an LLC recruitment agency in Dubai:
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- You will need at least two shareholders if you start your recruitment agency in Dubai mainland . In that case, you will also need a local sponsor who will own the majority of your company.
- At least one shareholder is required to start an LLC company formation in one of the free zones.
- You will need to follow the regulations of the local authority regarding the share capital if you start your business in one of the free zones. The rules and regulations may differ depending on the location of the Freezone.
- You will need the Articles of Association no matter where your LLC is placed.
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How to Open a Recruitment Agency or HR Consultancy in Dubai
Do you want to start a recruitment agency in Dubai? Here are the steps you will need to follow
Step 1. Choose a name to start a recruitment agency in Dubai
The first step is to choose a name for your company to start recruitment agency in Dubai. You will need to follow the guidelines and get the name registered with the Dubai Department of Economic Development. You must make sure that the name of your recruitment agency is unique in Dubai and it does not contain any kind of vulgar language.
Step 2. Select a Location
You will need to select the location for your recruitment agency next. You can either choose to start your agency in the Dubai mainland or in one of the free zones. Both of these locations have rules and advantages unique to them. For an entrepreneur, the free zone might be the best option.
Step 3. Apply for the Recruitment License
Next, you will need to apply for a recruitment license. You can either apply online or visit the local office. You will need to apply to the Dubai Department of Economic Development if your business is on the mainland. In case it’s in one of the free zones, you can apply through the local office.
Step 4. Submit the Required Documents
You will need to submit some documents required by the authority. They will verify the documents and approve your application.
Step 5. Apply for Visa
Once the licensing procedure is completed, you can apply for a visa. You will need a residence visa to stay in the country. Next, you can sponsor your employees, family, and friends.
Step 6. Open a Corporate Bank Account
Finally, you can open a corporate bank account in the name of your company. You will need to open a bank account to handle all the financial transactions for your company.
Documents Required to Start a Recruitment Agency in Dubai
Here are the documents you will need to submit to obtain a recruitment license and start your own recruitment agency:
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- Passport-size photos of the shareholders
- Photocopy of the shareholders’ passport
- Photocopy of the emirates id
- A report of good conduct
- A blueprint of the employment agency’s location
- A Copy of the company name registration
Cost to start a recruitment agency in Dubai
The cost of setting up a recruitment agency in Dubai varies based on factors like company size, setup type, and location. In general, business setup in a free zone can start at around 17,900*, while mainland setup may begin at approximately 18,500*.
How can I start manpower supply company in UAE?
To start a manpower supply company in the UAE:
- National Requirement:
- Only UAE citizens can apply for a manpower supply license.
- Local Agency Manager:
- The agency manager must be a UAE national and registered with the Ministry of Labour.
- Expat Option in Free Zones:
- Expatriates can establish manpower supply agencies, but this is limited to UAE free zones.
- Education Requirement:
- Applicants should have a minimum educational qualification, either a degree or at least a high school diploma.
How can I start a recruitment agency in Dubai?
You will need to follow a few steps to start a recruitment agency in Dubai. They are:
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- Select a name for your recruitment agency
- Choose a Location
- Apply for the Recruitment License
- Submit the relevant Documents
- Apply for Visa
- Start a Corporate Bank Account
How can I collect a recruitment license in UAE?
You will need to acquire a commercial license to run a recruitment agency in Dubai and UAE. If you are planning on starting your company in the Dubai mainland, you can apply for the recruitment license directly from the Dubai Department of Economic Development. In the case of the free zones, you can apply to the local office.
How much do recruitment agencies charge in Dubai?
A recruitment agency in Dubai will typically charge you around 15-25% of your salary for the first year. You will only be required to pay after you have been successfully placed in a job by the recruitment agency.
How do I start my own employment agency?
You must follow these steps to start your own employment company:
- Do your market research
- Select your target market
- Know your competitor
- Assess your capabilities and financial resources
- Know the relevant law and regulations
- Develop business plans
- Set business goals and objective
- Invest in people
Is it difficult to start a recruitment agency?
You will face some tough challenges starting a company from the ground up. You will require the help of professionals to start a successful recruitment agency. You can hire Company Setup Consultants whose experienced professionals can set up your recruitment agency with their industry know-how and contracts.
How do recruitment agencies work in UAE?
Here’s how recruitment agencies operate in the UAE:
- Submit Your CV:
- Send your resume to licensed recruitment agencies in the UAE.
- Matching Job Openings:
- The agency reviews your qualifications and interests.
- If they find a suitable job opening, they will contact you.
- Licensing Information:
- Recruitment agencies in the UAE are licensed by the Ministry of Human Resources and Emiratisation (MoHRE).
- These agencies can only be owned by UAE citizens.
How can we help you?
If you want to set up a recruitment agency in Dubai, but you do not know where to get started, then you are in the right place. This is because Company Setup Consultants have helped more than 20,000 companies make a name for their brands in the UAE marketplace. Our experienced business consultants will answer all your business-related queries. Contact us today and hit the ground running.
Click here to book a free consultation with our experts and learn more about how to register a recruitment agency in Dubai; call +971582595164. You can also send a WhatsApp message at +971582595164. For email assistance, mail your query at info@companysetup.ae
