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Recruitment Consultancy License in Dubai

A recruitment license is a permit that needs to be obtained by recruitment agencies, that gives them the permit to outsource workforce to the business entities to ease their hiring process, and the Ministry provides the license.

Ranked as the 2nd largest in the Middle East, and 33rd in the ease of doing business, the UAE is seen as a business platform by more than 2500+ companies every year. Irrespective of the business industry and nature, the region experiences a continuous growth in the business setup process which opens up new ways of employment. This gets applied to both national and foreign employees and increases the chances of getting hired. Now, to match the workforce supply, the recruitment consultancies comes into the picture who aims to ease the hiring process for the established business. In turn, we can say that the chances of setting up a business in the UAE get increased for entrepreneurs and businesspersons. Opening a recruitment consultancy turns out to be one of the profitable business in the UAE, but it does require a license. This article exactly talks about the same.

What is the Recruitment Agency License?

A recruitment license is a permit that needs to be obtained by recruitment agencies, that gives them the permit to outsource workforce to the business entities to ease their hiring process, and the Ministry provides the license. When it comes to the Emirates, it has got two types of licenses that a recruitment agency can hold.

Brokerage Agency License

This license is to be obtained by the business entities when they are occupied dealing with foreign nationals. Holding a brokerage agency will help the agency to receive national as well as foreign candidates. On the other hand, requests will be received from the businesses who are seeking to hire. Moreover, holding this license helps to keep a database of available jobs and post new jobs, and meet the demand and supply.

Temporary Recruitment License

On the flip side, holding a temporary recruitment license will allow the recruitment agency to stand as an employer of a company who outsources workforce to UAE company.

Upon obtaining a suitable license, the business entity is expected to renew the same yearly. The Labour of Ministry has set specific specification on the fees that Dubai recruitment agencies are allowed to charge from their clients. Another mandate is that the recruitment agencies are expected to maintain the employee information for a period of three years.

How to Start a Recruitment Agency in Dubai?

To start a recruitment agency in Dubai, the following steps are to be followed accordingly:

1.Analyze the Recruitment Market

The first step is to analyze the target market. Conducting complete research on the needs and wants, demands of the targeted market will help you to identify the essentials regarding the availability of jobs, the standards set by companies to hire employees. In short, you need to have an overall idea regarding your target audience, before you plan a business establishment.

2.Choose a Business Entity

In the next move, you need to choose a business structure. The UAE provides numerous options for a business establishment to entrepreneurs. You need to understand each of them and their pros and cons, and accordingly choose the one that suits your business needs.

3.Choose a Strategic Location

The location where the business establishes plays a vital role. After choosing the business entity, you need to make sure that you choose the best location and is reachable by your target audience. The UAE provides numerous options like Mainland, Free Zone, and Offshore to initiate the business setup process

4.Keep the Essentials Handy

A set of documents are to be kept handy which are to be submitted to the Ministry to obtain the recruitment license. In the next section of the article, you will find the essential required.

5.Fill the Application Form

The application form issued by the Government Authority needs to be duly filled with all the information of the shareholders. Also, the necessary documents are to be submitted along with the application form. In case if any changes take place in the entity, the Ministry is to be informed immediately. Once the documents are submitted, the verification process gets initiated which gets completed within a span of 15 working days.

6.Obtain a Recruitment Agency License

Once the verification is completed, you are eligible to obtain a recruitment agency license.

7.Avail the Post-Set up Processes

After obtaining the license, you also need to establish the core pillars of your business like accounting, taxation, clear VAT proceedings, Visa Services, etc.

Documents Required to Start a Recruitment Agency in Dubai

As stated above, the following documents are to kept handy in order to obtain a recruitment license.

  • Copy of valid passport and visa of the shareholders
  • Copy of applicant’s family book
  • Copy of ID card of nationals
  • A statement of good conduct
  • Copy of trade name application with the trade register
  • Shareholder’s written statements regarding the opening of the company
  • A blueprint of the employment agency’s location

Cost Break-Up to Obtain a Recruitment License in Dubai

To obtain a recruitment license, a cost according to the following structure is to be paid.

Description

Cost (in AED)

Application for issuing a brokerage agency license

50,000

Bank Guarantee for a brokerage agency license

300,000

Application for issuing a temporary recruitment license

100,000

Bank Guarantee for temporary recruitment license

1,000,000

 

Helping business entities to hire the right talent is an exceptional business. However, it becomes essential that the business establishment process turns out to be error-free. In case, if any error is notified, it can obstruct the business incorporation process. To carry forward the process in an error-free way, joining hands with an expert professional turns out to be the best choice. A professional expert can help you clear the process step-by-step. We at Business Setup Process are here to give you an overall business incorporation portfolio that will meet the necessities of your business, which makes us one of the top business consultants in the UAE. To know more, do contact us-we’d be glad to assist.