Dubai, one of the cities with the most significant population growth worldwide, has seen an exponential rise in the number of immigrants and their desire to establish businesses there. As a result, more employment agencies are helping to provide labor to third parties with their sponsorship.
For instance, any business seeking to staff a significant project might contact the agencies. It is well known that, depending on their commercial activity, several enterprises in Dubai are required to possess a business license.
The same is valid for workforce agencies, which are covered by commercial licenses and must possess a workforce license. You've come to the perfect place if you're looking to start a business in the United Arab Emirates.
Manpower Agency Business in Dubai
The number of business establishments in the UAE has dramatically expanded over the last several years. In total, more than 20,000 businesses start up, directly raising workers' need to finish the business creation procedures.
This need has created a new opportunity for workforce agencies to enter the scene and assist in providing skilled laborers to the third party, a company, or a person. It gets applicable to Dubai Mainland, Free Zone, and Offshore.
Any agency for labor must possess a license under the Private Employment Law, also known as MR 1283, which is given out by the Ministry of Labor, according to the Emirati government.
The Procedure for obtaining a License for Manpower Supply
To obtain the Manpower License, the following steps need to be followed:
1. Register the Company Name
The process starts by checking whether your name is registered in the registry books. If not, you need to register your company name in the Registry Office.
2. Apply for the Notarization
In the next step, you need to apply for notarization at the Department of Economic Development (DED) regarding the Memorandum and Articles of Association essential for a business entity.
3. Submit the Documents
Next, you need to provide all the necessary docs required by the authority to verify and issue a license and wait for approval.
4. Apply for the License
Once you have been given the final approval, you need to obtain the license.
5. Obtain the Labor Card
After obtaining the license, you need to apply for a labor card at the Ministry of Labor which is an essential document. Once the labor card is issued, the following process is to register your workers with the Ministry of Labor.
6. Register the Employees
Lastly, you must register the workers with the General Authority for Pension and Social Security.
Required Documents to Obtain a Manpower License
The documents needed for the manpower license are as follows:
- Copies of valid passports of shareholders
- Copy of applicant’s family book
- Copy of ID Card for nationals
- A statement of good conduct
- Copy of trade name application with Trade Register
- The shareholder’s written report on the opening of the company
- A blueprint of the employer agency’s location
Conditions for Applying in Dubai for a Manpower Supply License
All stockholders must be citizens of the UAE, be at least 21 years old, and be fully capable.
The partners should not be found guilty of any illegal activity, including human trafficking, theft, dishonesty, or breach of trust. The situation is different, though, if the person is rehabilitated after a decision restricting their freedom or after a year has passed after the day a judgment fining them was issued.
The applicant must provide a written guarantee that no changes to partners—either by addition or withdrawal—will be undertaken without first receiving formal approval from the Ministry.
The agency must employ a sufficient number of administrators and managers with relevant expertise in their line of work.
A manager for an agency must be of UAE nationality and at least have a high school diploma. A person asking for a license is an exemption, as long as they have a high school diploma and are registered as managers with the General Pensions Authority or Abu Dhabi Pensions Fund and the Ministry of Labor.
The authorized signatory must also meet the exact requirements of an agency manager.
After receiving initial approval for the license to practice the proposed activity, the applicant must pay the fees set forth by law.
The applicant must provide the Ministry with a bank guarantee worth at least AED 300,000 (in the event of brokerage operations) or AED 1,000,000 for the duration of the license's validity (in case of temporary recruitment activities).
Protection for Workers
As mentioned earlier, the Emirates have been a booming ground for business establishment; the Government of Dubai takes enough necessary steps to ensure the protection of workers.
Dubai MR1283 is extremely strict in assuring the worker’s protection. The agencies are required to deposit 2,000 Dirhams for every employee onboard. To bring more transparency, the Law on Licensing and Regulation of Private Employment Agencies comes into the picture. Employment businesses will be held accountable for the company obligations.
The Ministry of Labor (MOL) has also set limitations regarding agency fees for client requests. In addition, these agencies are also expected to maintain proper records regarding each employee for at least three years.
The new UAE legislation mandates that agencies notify the Ministry of internal changes. The Dubai government is committed to fostering an open employment intermediary sector in the UAE and ensuring more robust protection for employees hired utilizing organizations like workforce supply, recruitment, or labor agencies.
Dubai's expanding corporate community suggests that there will be more labor available. Therefore, an entrepreneur should launch such an organization to move forward. Business Setup Worldwide is here to help you. You can contact us for information and questions about establishing a manpower agency in Dubai; we'll be pleased to assist.