How To Start a Recruitment Agency in Dubai?

Dubai is a great place with lot of benefits for business Owners. Setting up any businesses in Dubai is the go-to-decision for investors around the world that are looking for new opportunities. UAE authorities have encouraged many foreign investors to setting up their businesses in Dubai. Establishing a business in Dubai is a pretty straightforward process.

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.

Setting up a recruitment business in mainland allows you to trade directly with the UAE market and take on potentially lucrative government contracts. However, when you want to obtain your Recruitment Agency License in Dubai, you must be very clear about the business activity you want to carry out.

In order to set up a recruitment firm in Dubai you must comply with specific rules of the emirate on employee security.

• The business owner must have a clean criminal record
• The company must have a registered address in Dubai
• Apply for the brokerage license or temporary recruitment license
• Deposit a Bank Guarantee
• Business owners and employees must prove experience in the recruitment field
• Security deposit AED 2000 for each employee

There are two types of recruitment licenses that can be obtained by recruitment agencies in Dubai.

1. Brokerage 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.
2. 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.

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. Niche or 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

How do You start your own Recruitment Agency in Dubai, Mainland?

1. Analyse the Recruitment Market: Conduct comprehensive analysis on the expectations and preference of targeted business market.
2. Choosing Business Activity and Structure: There are several activities to choose from. However, it important to choose the activity aligns exactly with the activities you wish to carry out . Also, decide whether you wish to establish your business in a free zone or on the mainland.
3. Select Company Name: Select the name as per your business activity
4. Apply for Licence: You will require a commercial license to operate as a recruitment agency in Dubai. You can make your license for recruitment agency application directly to the Department of Economic Development (DED) in Dubai.
5. Choose the strategic location: Where you can pick the right target group
6. Register with Ministry of Labour: Applying for your business license, you’ll also need to register your company with the Ministry of Labor in Dubai.
7. Pay the Fees and Collect the Licence: Pay the required fee and collect your licence
8. Open Corporate bank account: to trade in the UAE as per your operations and transactions.
9. Avail post set up processes: such as accounting , taxation, clear VAT proceedings, Visa Services etc.

What are the Document Required to start a Recruitment Agency in Dubai, Mainland?

The following documents are to be submitted while opening a Recruitment 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

How much does it cost to start a Recruitment Agency in Dubai, Mainland?

The cost of starting a recruitment agency in the UAE will depend on several factors such as specific business activities, and company size and location. In addition, if you choose to establish a Mainland Company or a Free Zone company, the costs may vary too. In most cases, however, start-up costs are usually low.

If you are looking to start an Recruitment Agency business in the UAE, it is recommended that you work with company formation professionals who have exceptional expertise in business set up formalities. They also have the necessary connections that help make the whole process smooth and effortless. Remember that the process is only easy and hassle-free when the business setup is done without any error.

Infographic on how to start your Recruitment Agency in mainland Dubai