Obtaining a recruiter licence is essential for starting a respectable recruitment business in Dubai's ever-changing employment market. This manpower agency license gives your business legal and puts it in a position to take advantage of the growing need for qualified workers in a variety of sectors.
There are many opportunities, and the HR outsourcing sector in the UAE is predicted to grow by an astounding 8.96% a year between 2022 and 2027. As well, it is projected that the online recruiting market in the Middle East and Africa would increase at a steady 3.8% annual rate from 2021 to 2028, underscoring the region's increasing dependence on digital recruitment tools.
Obtaining a recruiter licence ensures compliance with the Ministry of Human Resources and Emiratisation (MoHRE) regulations, safeguarding employers and job seekers. Whether you're aiming to offer workforce services, job consultancy, or temporary employment solutions, understanding the details of the recruiter licence process is crucial.
This guide explores the essentials of acquiring a recruiter licence, ensuring you're well-equipped to direct the regulatory landscape and capitalize on the region's recruitment opportunities.
A recruiter licence in Dubai, also known as a job placement licence, is a mandatory authorization granted by the Ministry of Human Resources and Emiratisation (MoHRE) to individuals or entities intending to operate as recruitment agencies. This licence ensures that agencies adhere to the legal frameworks set by the UAE government, promoting ethical recruitment practices and protecting job seekers' rights.
Establishing a company in the UAE has several advantages. The following are some benefits of using a recruitment agency with a recruitment license.
Strong Economy : Dubai’s growing industries like tourism, real estate, and oil create a steady demand for skilled workers.
Global Access : Its strategic location makes connecting with international talent and markets easy.
High Demand for Talent : As Dubai develops, many sectors need more skilled professionals.
Government Support : The UAE offers incentives and support to help recruitment businesses grow, especially for those with a valid recruitment license.
Room for Expansion : Dubai’s diverse economy allows agencies to grow across industries and nationalities.
To run a recruitment agency in the UAE, you must have a valid license for recruitment agencies. These are the two main types of licenses that can help you start your agency :
This licence allows agencies to act as intermediaries between employers and job seekers without being directly involved in the employment contract.
This licence permits agencies to hire workers temporarily and then supply them to clients for specific projects or durations.
Both licences require adherence to specific regulations, including financial guarantees and operational standards, to maintain the integrity of the recruitment process.
To ensure the credibility and reliability of recruitment agencies, the MoHRE has set forth stringent eligibility criteria:
Nationality : Only UAE nationals aged 21 years or above are eligible to apply for a recruiter licence.
Clean Legal Record : Applicants must have no prior convictions related to dishonesty, breach of trust, or human trafficking.
Educational Qualifications : A minimum of a high school diploma is required, with higher qualifications preferred.
Financial Stability : Applicants must provide a bank guarantee—AED 300,000* for a brokerage licence and AED 1,000,000* for a temporary recruitment licence.
Physical Office Space : A registered office space in Dubai, complete with the necessary infrastructure to conduct recruitment operations, is mandatory.
Dhanguard can assist you in finding and setting up the right office space for your recruitment agency, ensuring it meets all operational requirements.
You must adhere to a well defined procedure in order to launch a recruitment agency in Dubai. These actions include:
Define your agency’s goals, recruitment niche, and service areas. A strong business plan helps secure job consultancy licence approval and guides your operations, growth strategy, and market positioning.
Choose an individual trade name for your recruitment agency and register it with the Department of Economic Development (DED) to ensure legal recognition and brand identity in Dubai. This is a key step in obtaining your manpower consultancy license, which is required to operate legally in the UAE recruitment sector.
Collect key documents such as passport copies, academic qualifications, Emirates ID, and a certificate of good conduct, which are mandatory for applying for your recruitment license.
Submit your complete application and documents to the Ministry of Human Resources and Emiratisation (MoHRE) for review as part of the official recruitment license issuance process.
Depending on your license type, you must pay the required bank guarantee. MoHRE holds this financial security, which is essential to safeguarding the rights of employees and clients.
Once all steps are verified, MoHRE will issue the recruiter licence. This legal approval, often referred to as a manpower licence, allows your agency to begin offering employment and recruitment services in the UAE.
Dhanguard guides you through every step—from document submission to bank account setup, and licence process—for a smooth process.
Starting a recruitment agency in Dubai comes with varying costs depending on factors such as the business location, company formation type, and the scale of your operations. The expenses can differ significantly based on whether you choose to establish your business on the Mainland or in a Free Zone.
Dhanguard can assist you in selecting the most suitable and cost-effective setup that aligns with your business goals, ensuring a smooth and efficient setup process.
Establishing a recruitment agency in Dubai presents numerous opportunities. With the right license for employment agency or Manpower services license your agency can legally operate, ensuring compliance with the Ministry of Human Resources and Emiratisation (MoHRE) regulations. By understanding the eligibility criteria, licence types, and the step-by-step process, you’ll be well-positioned to take advantage of Dubai’s growing employment market.
Dhanguard is here to guide you through every phase of the recruitment agency setup process, from securing office space and preparing essential documents to navigating the application process and ensuring compliance.
Start your journey today and tap into the growing recruitment opportunities in Dubai with the expertise and support of Dhanguard.
The fee for applying for a brokerage license is AED 50,000 with a bank guarantee of AED 300,000, and the fee for applying for a temporary recruiting agency license is AED 100,000 with a bank guarantee of AED 1,000,000
Apart from SCA, there are several departments involved in license issuance: Economic Development Department, Ministry of Economy, Dubai Court, and so forth.
There are several different sorts of recruitment agencies: • Traditional Recruitment Firms - Concentrates on meeting a variety of generic skill requirements. • Executive Search Firms - Firms that specialise in filling executive positions in firms with higher-paying salaries and positions. • Specialist Agencies - From their database, they provide expertise in specific fields. • Large-Scale Labour Recruiters - Who provides employers with a large workforce? • Temporary Recruitment Agencies - Agencies that hire and place candidates on a temporary basis.
The agencies' job is to develop a connection between employers and employees. The agencies also assist employees in negotiating contracts on their behalf. The negotiations are conducted using a database that contains information about the employees. The database will also include information about the employees' qualifications and job prospects.
The recruitment license is valid for one year; however, it can be renewed.
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