With the industrial revolution taking place in Dubai, the economy of the country is booming. Entrepreneurs from all over the world are coming to Dubai to start their businesses. This is opening up investment opportunities and employment opportunities for employees and businessmen. Investors and foreign workers are coming to Dubai to find a job or make an investment. All this together is creating a lucrative market for a recruitment agency. So, if you are planning on starting your own business in UAE, start a recruitment agency in Dubai might be the best idea for you.
The number of Recruitment agencies in Dubai has increased due to the growing flow of immigrants. The government has facilitated the formation of recruitment agencies by permitting the licensing of private employment agencies Law in 2011, also known as MR 1283, issued by the Department of Labor. This makes a recruitment agency a great opportunity for entrepreneurs. Both local and foreign entrepreneurs can start a recruitment agency in Dubai.
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.
Types of Recruitment Licenses in Dubai
To form a recruitment agency in Dubai, you will need to acquire a recruitment license. You are required by law to obtain a recruitment license to run a recruitment agency in Dubai legally. The type of recruitment license you will need to acquire will depend on the type of your recruitment agency. There are two types of recruitment licenses available in Dubai. They are:
1. The Brokerage License
With a brokerage license, a recruitment company will act as an intermediary between the candidates and the employers. When a company works as a middleman between UAE and foreign nationals seeking jobs and UAE and foreign companies looking for workers, it must obtain a brokerage license. It will allow the agency to do the following:
- Receives application form the candidates
- Receive requests from companies hiring workers
- Create a database and website, post recruitment notices
- Help the candidates get the job when they meet the requirements
2. The Temporary Recruitment License
A temporary recruitment license, on the other hand, will allow the recruitment agency to work as the employer. This means the recruitment agency itself will be able to hire employees from or outside the UAE and outsource the workforce to a UAE company. In the case of foreigners, the recruitment agency will need to act as a sponsor.
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:
- 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 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
The process of starting a recruitment agency or HR Consultancy in Dubai is quite straightforward, thanks to the UAE government. However, the process might seem complicated to you if this is your first time starting a company in a new country.
Here are the steps you will need to follow to start a recruitment agency in Dubai:
1. Choose a name for your recruitment agency
The first step is to choose a name for your company. 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.
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.
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.
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.
6. 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.
7. 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:
- 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 of Starting a Recruitment Agency in Dubai, UAE
The cost of starting a recruitment agency will differ based on different factors like the business location, agency size, office, visas, and many others. However, generally speaking, it will cost you around AED 9,600 to AED 25,000 to start a recruitment agency in Dubai.
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 firstname.lastname@example.org
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:
- 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.