Table of Contents 

1. Overview
2. Manpower Agency Business in UAE
3. Advantages of establishing a Manpower Agency in Dubai
4. What Documents do you need to get a Manpower License?
5. What is the procedure for obtaining a manpower license?
6. Terms & Conditions for Obtaining a Manpower License in United Arab Emirates
7. Dubai's Workers' Protection
8. Why Choose Dhanguard?

Overview

The United Arab Emirates boasts a fantastic business climate that draws in millions of entrepreneurs. The country has a well-developed infrastructure that allows newcomers as well as seasoned professionals to do business. The region has space for all types of businesses, from manufacturing to retail to startups and e-commerce. Dubai, one of the world's fastest developing cities, has seen an exponential rise in the number of immigrants and their need for company establishment in the city. As a result, the number of manpower agencies that assist in the supply of Labour to third parties under their sponsorship has increased.

Any corporation wishing to employ people, for example, can connect with agencies to handle a huge project. Different types of firms in Dubai are required to have a business license depending on their commercial operations. The same is true for manpower agencies, which must have a manpower license in addition to a commercial license. If you want to start a business in the UAE, you've come to the correct place.

In order to start a manpower supply business in the UAE, you must first obtain a manpower supply license, which is a type of commercial license. Obtaining this license allows you to conduct Labour supply business in Dubai and operate as a middleman between employers and employees.

Manpower Agency Business in UAE

The number of businesses established in the UAE region has risen dramatically in recent years. On average, more than 20,000 businesses are formed, resulting in a rise in the demand for labourers to finish the business formation operations. As a result of this demand, manpower agencies have entered the picture to assist in the supply of effective labourers to a third party, which can be a corporation or an individual, on the Dubai Mainland, Free Zone, and Offshore. According to the Emirati government, any manpower agency company must have a manpower license given by the Ministry of Labour under the Private Employment Law, also known as MR 1283.

Advantages of establishing a Manpower Agency in Dubai

• Benefits from taxation
• Operating costs are kept to a bare minimum.
• Funds can be transferred freely.
• There is no control over foreign exchange.
• Factory and ready-to-use office.
• Duty-free.

What Documents do you need to get a Manpower License?

• Copies of shareholders' valid passports.
• A copy of the applicant's family book is required.
• For nationals, a copy of their ID card is required.
• A declaration of good behaviour.
• Trade Register a copy of the trade name application.
• On the day the company was founded, the shareholders signed a written statement.
• A map depicting the location of the employer agency.

What is the procedure for obtaining a manpower license?

The actions below must be fulfilled in order to receive a Manpower License.

• The procedure begins with a check to see if your name is listed in the registry books. If not, you'll need to go to the Registry Office and register your business name.
• The next step is to apply for notarization of the Memorandum and Articles of Association, which are required for a commercial entity, at the Department of Economic Development (DED).
• After that, you must submit all of the relevant documents to the authority in order for them to verify and issue a license, and then wait for their approval.
• You must obtain the license once you have received final clearance.
• Following the receipt of your license, you must apply for a labour card with the Ministry of Labour, which is a required document.
• Following the issuance of the labour card, the following step is to register your employees with the Ministry of Labour.
• Finally, the workers must be registered with the General Authority for Pensions and Social Security.

In Dubai, a manpower supply license must be renewed every year.

Terms & Conditions for Obtaining a Manpower License in United Arab Emirates

1. All stockholders must be UAE nationals with a minimum age of 21 years and full financial capabilities.
2. The partners should not be convicted of any obscene crime, fraud, breach of trust, human trafficking, or any other criminal violation. If he or she is rehabilitated after the issuance of a judgement restricting his or her freedom or after the lapse of one year from the date of the issuance of a judgement imposing a fine on him or her, the situation is different.
3. During the license's validity period, the applicant must present to the Ministry a bank guarantee in the amount of AED 300,000 (in the case of brokerage activities) or AED 1,000,000 (in the case of other activities) (in case of temporary recruitment activities). The bank guarantee must be automatically renewed. The Ministry may use all or part of this guarantee to pay any amounts that the agency is obligated to pay as a result of its failure to comply with the terms of this law and the instructions and decrees issued thereunder.
4. The applicant must have a main office with a distinct address where the agency will conduct business. This type of head office must be licensed for that purpose and meet the requirements set forth in the executive orders and procedures established under this decree. The agency is only allowed to operate if it has a main office like this.
5. The applicant must present a written commitment that no changes to partners will be made, either by addition or withdrawal, until the Ministry has given its written authorization.
6. The agency needs to hire a sufficient number of administrative staff and supervisors with relevant work experience.
7. An agency manager must be a UAE national with at least a high school diploma. Individuals applying for a license can be agency managers if they have a high school diploma and are registered as managers with the Ministry of Labor, the General Pensions Authority, or the Abu Dhabi Pensions Fund.
8. The same requirements apply to the agency authorized signatory as they do to the agency management.
9. Once the application for a license to practice the requested activity has been authorized, the applicant must pay the legally mandated fees.

Dubai's Workers' Protection

As previously stated, the United Arab Emirates has been a thriving field for business establishment, and the government of Dubai takes all essential precautions to assure worker protection. The Dubai MR1283 law is quite severe when it comes to ensuring the safety of workers. For each employee onboard, the agency must deposit 2,000 Dirhams. The Law on Licensing and Regulation of Private Employment Agencies enters the picture to offer more openness, stating that employment organizations would be held accountable for their commitments to employees. The Ministry of Labor (MOL) has also imposed restrictions on the fees that agencies can charge their clients. The agency must also keep accurate records for each employee for a period of at least three years.

With the changing face of the UAE, new regulations have been enacted to assist organizations in hiring skilled individuals. Furthermore, the agencies are required to notify the Ministry of any changes that occur inside the company. The Emirati government has taken various efforts and is focused on utilizing more job possibilities to boost the manpower sector, which in turn boosts regional economic growth.

Why Choose Dhanguard?

The new UAE law also stipulates that agencies must notify the Ministry of any internal changes. The Dubai government is committed to promoting a transparent employment intermediary sector in the UAE and ensuring stronger protection for workers hired through manpower supply, recruitment, or labour agencies. A growth in Dubai's business suggests an increase in labour supply. Starting such an agency is the method to go forward for an entrepreneur. You can contact us for further information or if you have any questions about how to start a manpower agency in UAE; Connect with one of best Consultants in UAE.

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

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