Every year, Dubai witnesses thousands of companies establishing on its shore. These include both domestic and international organizations. With more companies setting up, there is an increased demand for manpower. However, recruiting an apt workforce can be a tough chore for these companies provided they lack time and expertise for the same. Therefore, they seek assistance from recruitment agencies who test and hire employees on their behalf. Apparently, these recruitment services are in high demand in the growing diverse community of Dubai. So, if you too are willing to start a recruitment agency in Dubai, then you are definitely making the right choice!
Keep reading to know the basics of starting a recruitment firm.
Types of recruitment agencies in Dubai
You can start any of the following types of job recruitment agencies in Dubai –
- Traditional recruitment agencies – These kinds of firms majorly focus on meeting the requirements for various general skills requirements.
- Executive search agencies – These agencies function to fill senior-level seats or leadership positions in companies with higher-end salaries and job offers.
- Specialist agencies – Specialist agencies help in providing experts in a particular field available in their database.
- Large-scale labor recruitment agencies – As the name itself suggests, these firms provide a workforce in large numbers to employers or companies.
- Temporary recruitment agencies – These agencies act as an employer to place candidates in the company or hire employees on the behalf of the company.
Types of recruitment license Dubai
There are basically two types of licenses available to start a recruitment agency in Dubai –
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Brokerage license
Companies involved in activities related to the intermediation or employment relations between UAE and foreign nationals/foreign companies can obtain a brokerage license. Additionally, there are several other tasks one can carry out with this license –
- Processing applications of employment-seeking nationals from foreign as well as UAE
- Receiving employment requests from firms looking for employees from the UAE or abroad
- Prepare a database of job opportunities and update new ones as they appear
- Maintain the database of employers and candidates and exchange them as and when required
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Temporary recruitment license
With this type of license, the holder gets the responsibility to shortlist, interview, and place candidates for the employer's required number of job openings. The agency can recruit these employees from within or outside the UAE as the employer may want to outsource the workforce from outside the UAE. In that case, the Dubai recruitment agency would sponsor foreign employees.
Measures to start a recruitment agency in Dubai
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Analyze the market
Before getting into the business, you need to analyze the target audience and conduct an inclusive study on their expectations, preferences, and criteria. This process will enable you to define the basic conditions of the work availability and prospects created by the businesses to hire employees.
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Choose an entity
The UAE offers various choices of business models for commercial establishments. Hence, entrepreneurs need to look into each of them, consider their benefits and drawbacks, and finally pick the one that fits their business needs.
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Find a strategic location
The location of the organization plays a critical role in the success of the business. Therefore, you need to be very finicky while choosing the right venue for your company so that the target group can easily access it.
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Keep the prerequisites handy
The prerequisites include the essential documents that need to be submitted to the Ministry in order to process the recruitment agency license.
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Fill in the application form
While filling in the application form for your license, make sure to update all the details and information about the new business such as shareholders' details, IDs, etc. The application will be reviewed and verified by the Ministry. Nevertheless, if you want to make any changes to the application, instantly notify the ministry about the same.
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Obtain a recruitment license
Once your application is reviewed and processed, you will be entitled to receive a valid recruitment license to operate in Dubai.
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Go through the post-setup processes
Once you establish your agency and get hold of the license, it is important to take care of the post-setup tasks such as taxation, visa services, accounting, etc. These are the core pillars of the business.
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Procedure to start a recruitment agency in Dubai
Given are the essential steps you need to follow while starting a recruitment firm in Dubai –
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Company name reservation
Select an appropriate trading name that suits best your company. However, ensure to comply with the UAE’s naming criteria while choosing the name.
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Document submission
Submit a request for a recruitment license along with the supporting documents to the Ministry of Human Resources and Emiratisation.
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Visa application
Once you make an application for your license, you are eligible to apply for your respective visa and avail of the visa services.
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Cost estimation
Since every business is different, it is tough to evaluate the cost with complete certainty. Nevertheless, based on your company size, setup, and location, you can assess the cost you may incur for your business idea.
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Bank account opening
After completing all the above steps, you may apply for a corporate bank account to take care of your business finances.
Additionally, you need to gather the below documents for your recruitment agency formation in Dubai –
- Passport copies of the shareholders of the firm
- Family book/details of the applicant
- Emirates ID of the resident shareholders
- Certificate of Good Conduct
- Copy of Trade name registration certificate
- Written statements by the shareholders of the company, stating the purpose and forming of business
- Blueprint of agency’s location
Guiding principles to start a recruitment agency in Dubai
Any agency holding a recruitment license Dubai is primarily involved in recruiting ex-pats. Thus, they can place employees in permanent job positions in companies. However, there are some strict guidelines set by Dubai MR1283 for the protection of workers looking for a job and submitting a request to an employment business or a recruitment agency.
- To start a recruitment agency in Dubai, one must deposit a bank guarantee. Apart from that, they are also subject to payment of 2,000 Dirhams for every employee brought to Dubai.
- According to the law of Licensing and Regulation of Private Employment Agency, recruiting companies would be accountable for the company's obligations toward the worker. This law was introduced to enforce transparency in employment businesses.
- It is the primary duty of employment businesses to hire qualified personnel and experienced managers.
- There is a fee limit set by the Labour Ministry that recruitment agencies in Dubai can request from clients.
- The recruitment agencies in Dubai must clearly state the terms and conditions in the contract along with the duties of the employees.
- The employment companies in Dubai are obligated to keep records of their clients from the last three years.
- Dubai Freezone Company Formation is also an option for expats to start a recruitment agency in Dubai.
- To hire foreign professionals for UAE companies, the recruitment agencies must get mandatory approvals from the Ministry. They must also ensure that foreign employees have a clean criminal history.
- As per MR 1283, Private Employment Agencies can get a license from the UAE government. As per this law, foreign outsourcing companies can venture into Dubai with the legal approval of the Ministry of Labour in Dubai.
- While forming a recruitment firm in Dubai, the owner must have a registered address.
- In addition, the owners and staff of the recruitment firm must have proven experience in the relevant field.
Cost of starting a recruitment agency in Dubai
The cost of establishing an employment business in Dubai relies on several factors. For example, the specific business activity you wish to carry out in your agency, the size of your agency, and the location you choose to form your business. Additionally, the cost may also vary depending on the location such as Mainland or Freezone.
Although the start-up costs of a recruitment firm are believed to be low, it is recommended to seek professional assistance to get a better insight.
Shuraa Business Setup is here for you!
Shuraa holds exceptional expertise in business setup formalities. For instance, the professional team of Shuraa has the necessary connections that can help in making the whole process smooth, effortless, and without any error. So, start a recruitment agency in Dubai in the right jurisdiction, with a suitable license and office resources.
Contact +971 44081900 or info@shuraa.com for any query related to setting up a business in Dubai or anywhere in UAE.