Tips To Start A Recruitment Agency In Dubai

Tips To Start A Recruitment Agency In Dubai

Posted on Aug 26, 2021

Any growing company will reach a moment in its life cycle when it is necessary to make a new hire. However, hiring new employees may be a difficult job, and the consequences of getting it wrong can be disastrous. A bad hire can cause a significant loss to your company. Also, you will have to invest a lot of time to train a new employee.

That is why, in order to attract and retain the top people, many firms in Dubai and the UAE use the services of a recruiting agency. The same report suggested that 70% of UAE employers focus on planning to hire last year.

The UAE's recruitment agencies may benefit from the booming employment market. It's simple to start a recruitment agency in Dubai, UAE if you have the business know-how and determination to make it a success.

As Dubai's businesses look to the future once more, there's possibly never been a better moment to join this thriving and rewarding industry. 

What Is the Best Way to Start?

There are a few things you should know before going through the steps of opening your UAE business.

First, the procedure can be straightforward, but only if you seek professional assistance before starting. That is why working with a company formation agency is usually a good idea.

Working with an agency makes establishing a business in Dubai simple. All that you need is to take the help of a professional recruitment agency that can handle aspects of the procedure for you, including early administration and assistance with license, visa, as well as bank account applications.

You should also become familiar with the documentation and licenses that are required to open a recruitment agency in Dubai. There are a few crucial items to consider in this regard:

What Are the Differences Between the Two Types of Recruitment Agency Licenses?

A brokerage license or a temporary recruiting license can be obtained by recruitment agencies in Dubai. In this regard, a brokerage license permits you to conduct business between UAE and foreign nationals, as well as UAE and foreign companies.

You have permission to post job openings, process applications from job searchers, keep a database of employers and employees, and facilitate contact between the two parties.

Shortlisting, interviewing, as well as placing individuals on behalf of a company are all possible with a temporary recruitment license. You may also hire personnel from outside the UAE and function as their employer for the duration of their employment.

What Paperwork Is Required to Open a Recruitment Agency in Dubai?

You must submit certain documentation as part of your application, regardless of the license you require.

This could contain things like: 

  •         A copy of your passport
  •         A blueprint of your premises
  •         Written statements specifically from all the shareholders
  •         Good conduct statements

What Are the Regulations?

When opening a recruitment firm in Dubai, you'll have to follow the emirate's tight requirements regarding worker protection.

You must ensure that you as well as your employees are knowledgeable and skilled in your profession. For each employee you bring into Dubai, you must also put in a security deposit of about AED 2,000. When hiring expatriates, you should make sure they are in good standing and have no criminal records.

Finally, you must obey the Ministry's fee guidelines, which include defined limits based on the nature and duration of the employment.

Step By Step Instructions

When launching a business in the UAE, there are a few procedures to follow before you can apply for your license, regardless of your field.

The first step is to sketch out your business operations. Several activities are permitted in this aspect. Also, there are various activities to select from while starting a recruiting agency in Dubai or becoming a recruitment consultant in Dubai.

Some activities allow you to act as a broker between employers as well as employees, while others allow you to work as a temporary staffing agency. It's critical that the activity you choose corresponds to the activities you want to do.

One who has expertise in the formation of the company can assist you in adhering to them. In short, any disrespectful or profane words should be avoided. While naming your company, avoid well-known company names and abbreviations, for example, instead of D Mann Consulting, Dave Mann Consulting should be used.

You should also double-check that the name you want to use is available for registration or not. The last step before submitting an application for a license is to decide whether you want to start your business or on the mainland or in a free zone.

On the other side, a mainland structure allows you to trade directly with the UAE market and pursue potentially lucrative government contracts.

Step 1

To begin with, you'll need to choose as well as register a company name that meets the UAE's naming requirements.

In your company name, there must be no offensive or blasphemous words, as well as no references to Allah or Islam.

If you want your name to appear in your company name, you must use it completely, not simply your surname or initials. You should also make sure that the name you want to use is available for registration.

Step 2

The subsequent step is to decide whether you want to start your business on the mainland or in a free zone.

Free zones have a number of advantages, including full customs tax exemption, no currency restrictions, as well as the option to repatriate 100 percent of your capital along with the profit.

Mainland companies are not permitted to take advantage of all of the benefits offered by free zones, but they are allowed to trade directly with the local UAE market without the need for a service agent and can also take on government contracts, both of which free zone businesses are not permitted to do.

In most circumstances, forming a corporation in a Dubai-free zone is more cost-effective than doing so on the mainland.

Step 3

Now comes the most critical step: obtaining your firm license. The process varies depending on whether you want to operate in a free zone or on the mainland.

If you feel that the mainland is a preferable location for your company, you must apply directly to the DED or Dubai Department of Economic Development and request extra approval from the MOHRE or Ministry of Human Resources and Emiratisation.

The majority of this procedure is completed online.

If you have decided on a free zone configuration, you can apply directly to the free zone of your choice. You do not need additional approvals to trade in free zones because they are self-regulated, making the procedure faster and more efficient.

This is one of the many reasons why forming a free zone company is frequently the most cost-effective as well as a straightforward way to start a business in Dubai.

Step 4

You can apply for your UAE visa after you have completed your license application. In this regard, you will need to visit an immigration center to provide biometric information during the overall process. A fitness test, blood test, and chest x-ray are all part of the visa application process.

It is also likely to sponsor people for UAE visas, such as your children, partner, or parents, but the condition is that you have to meet the salary criteria.

Step 5

Dubai is home to a diverse range of banking institutions, including both local as well as international banks.

However, because creating a bank account can be a complicated procedure for international business owners, it's advisable to enlist the support of a professional who is familiar with the process and its criteria.

How Much Does It Cost?

As every business is different, it's difficult to give a definitive response. The size of your firm, the type of setup, and the location you choose can all affect the pricing.

Free zone licenses, on the other hand, often range from AED 9,600 with no visa application to AED 24,700 with 6 visas as well as beyond.

Setup Of Business In Dubai

The company formation process in Dubai has been designed to be as simple as possible. However, it does necessitate a thorough understanding of the UAE as well as its numerous norms and rules.

That's why it's always a good idea to hire a business setup provider who can not only guide you through the process but also help you to find the best license and setup type for your company based on your requirements and budget.

Final Words

While the steps that are required to create a business in the UAE are not particularly complex, but they do necessitate some prior knowledge of the process.

Furthermore, it is critical to remember that the application procedure is only simple if your business application is full and error-free at the time of submission. In this regard, you can consider taking the assistance of helpful resources about leading a Dubai recruitment agency.


Hamza Sarfraz

Blog Author

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