How To Start a Recruitment Agency in Dubai?

Posted on August 18, 2022

Every successful business will ultimately reach a point in its growth when it must hire new staff to fill vacancies. However, recruiting new personnel may often seem like navigating a minefield, and the consequences of doing it wrong can be severe. A bad recruiting decision might cost thousands of dollars, not to mention the time required to train the new employee.

In order to attract and employ the best-qualified workers, several companies in Dubai and the United Arab Emirates use the specialized services provided by staffing agencies.

In Dubai, it is the obligation of recruiting services to put candidates in permanent roles inside businesses. These agencies provide the same services as the Employment Business program in Dubai, including employing employees, assisting workers in acquiring work permits, and outsourcing workers to temporary employment positions inside enterprises.

Local and international investors may create employment agencies in Dubai, however, foreign investors must first get a residence permit before entering the country. Local investors are not compelled to do so. Additionally, the founding of a staffing agency in Dubai requires the participation of a local partner.

UAE’s recruitment industry is expanding and this is something you should take advantage of. Dubai is one of the most popular destinations in the world for business. If you’re looking to start a recruitment agency, there are a few things you need to know. In this blog post, we’ll outline the process of setting up a recruitment agency in Dubai and how to make it successful. Keep reading to learn more!

Benefits of Starting an HR Consulting Business in Dubai UAE

The city’s expansive and continuously increasing market is one of the many persuasive factors in favor of opening a staffing agency in Dubai. The method for founding a corporation in the emirate has a long history and has been shown to be effective. It was created with simplicity in mind and is accessible to businessmen worldwide.

This is in addition to the United Arab Emirates’ exceptionally attractive 0% tax rate, which applies to both personal and commercial income.

Here are some of the notable benefits of starting an HR consulting business in Dubai:

1. Premier Location

If you are located in one of the most desirable and centrally located business properties in Dubai, you are just minutes away from the city’s most vital areas as well as its most important commercial and financial districts.

2. Easy To Start Up

Take advantage of an uncomplicated registration process, as well as access to priority assistance with government relations and comprehensive support services, all of which may be tailored to your company’s unique needs.

3. Diverse Market

The present market in Dubai is home to a huge number of SMEs (small and medium-sized businesses), and each day, more of these firms open their doors. They are responsible for around forty percent of the economic value added in Dubai. 42 percent of Dubai’s total workforce is employed by small and medium-sized businesses.

It is likely that the firm does not have the resources or infrastructure to run a full-fledged human resources department due to its modest size. Therefore, HR consultancy businesses have a considerable possibility to get contracts with organizations of this kind.

4. Low Cost

Because the cost-saving aspect of human resource outsourcing is so advantageous, more businesses are opting for it in order to avoid the extra expenses involved with maintaining and expanding a whole department as required. This saves them money on equipment and software, as well as a substantial amount of time.

5. Mobility

If you have enterprises spread around the United Arab Emirates, you are aware of how difficult it is to relocate your employees. Nonetheless, if you outsource your HR operations, you will be able to transfer your staff to other branches or sibling firms without having to bother with visa requirements.

6. Financial Growth

Beginning an HR consulting business in the United Arab Emirates might potentially be lucrative given the enormous demand that exists there. Even if the UAE is famous for its extravagant way of living, it is not always necessary to spend a lot of money to launch a new company there.

You may start your own consulting with a little amount of funding without sacrificing any of the fundamental needs. The expansion of the company’s financial position might be aided by one of the many investment strategies that are at one’s disposal nowadays.

How to Get a Recruitment Agency License in Dubai?

Applications for licenses may be printed out at the Tas’heel service centre or at businesses that participate in the Ministry’s electronic form initiative. The following is a list of the steps necessary to get the license:

After you have completed the application form and uploaded the required papers, it will be electronically sent to the Ministry’s database for verification reasons and to check that all criteria have been met.
If it is found that you meet all conditions, the transaction will be executed. The applicant is responsible for visiting the official website of the Ministry to see whether or not their application was approved.
As previously indicated, the applicant must thereafter pay the necessary fees at the service center ‘Tas’heel’ or via businesses participating in the Ministry’s e-form initiative.

HR Recruitment & Consulting Business License Costs in UAE

The price to operate as a temporary staffing agency is AED 100,000, but the fee to operate as a brokerage agency is AED 50,000.

In addition to the license price, you must provide MOHRE with a bank guarantee in the amount of AED 300,000 or AED 1,000,000 for the duration of the license, depending on whether you are asking for a temporary recruitment license or a brokerage license.

Steps to Open a Recruitment Agency in Dubai

We will now outline the process for opening a recruitment agency in Dubai, as well as provide some tips for getting your business up and running. So if you’re ready to jump into the world of recruitment, keep reading!

Step #1: Select Your Company Name

The registration of a company’s name is the first and most crucial step in the process of acquiring a business license. You must thus choose a name for the HR consulting business you’re launching. Avoid using any language that might be seen as offensive or obscene. Prevent using well-known corporate names or acronyms if you want to avoid misunderstanding while naming your company after yourself.

Step #2: Company Structure

Equally essential is ensuring that your HR consulting firm has the proper legal foundation for its activities. It is as important as any other business decision that may be made. If you have the proper corporate structure in place, your business will be able to work more efficiently and achieve its goals. Therefore, establish an acceptable framework for your HR consultation. It is conceivable that the structure will be a single proprietorship, a foreign corporation’s limited liability company (LLC), or a foreign firm’s branch office.

Step #3: Decide on Your Business Location

Choosing a location for a business is not something that can be determined on the spur of the moment. However, you may select a Dubai office location based on the benefits and prospects you anticipate receiving in that region. Consider factors such as a simple and quick incorporation process, ongoing company support, and financial advantages like tax exemptions and no currency use restrictions. Additionally, you should evaluate your financial status.

You have the option of traveling to either the mainland or the free zone. After you have chosen your location, the next step is to consider your financial constraints while you look for an office space that is appropriate for your HR consulting firm.

Here are some of the popular free zones in the UAE:

Step #4: Prepare Your required Document

A copy of the applicant’s valid passport
A copy of the family book
A copy of the applicant’s ID
A certificate of good conduct or rehabilitation
A copy of the commercial name booking for the new trade license
Written and signed acknowledgment from the applicant
A sketch/ illustration of the establishment premises

All of the aforementioned standards need to be met in order to establish a complete mainland DED recruiting license. If it is not necessary for the business to be located on the mainland, then you may establish the recruiting firm in any one of the free zones that are located across the United Arab Emirates.

Because of this, the organization will be able to undertake Recruitment and HR Services not just inside that Freezone but also abroad.

Step #5: Apply for a License

Be sure to submit an application for the appropriate license in accordance with the kinds of commercial endeavors that your consultancy will be engaging in. To apply for a license to operate as an HR consultant, you will need to submit the relevant paperwork and pay the associated costs.

Step #6: Get Your License

After successfully completing all of the required stages, you will be able to apply for and get your HR consultant license.

Step #7: Open Bank Account

You may now submit an application to create a business bank account, in order to receive payments or make transactions.

How much do HR Consulting Firms Make in UAE?

It is projected that an HR consultant in the Dubai, United Arab Emirates makes a total of 19,001 AED a year, with an average income of 19,000 AED per year. Just imagine how much an entire firm with potentially hundreds of employees would earn together.

How Airzone Can Help Setup your HR Consulting Company in UAE?

Airzone assists businesses in building a foundation in the UAE. Contacting us immediately away makes it easier to get started. We can put you in touch with the proper service providers to help you build your business in the UAE.

We can put you in touch with reliable partners who can help you register a new company and receive a recruiting agency license in Dubai. While you focus on expanding your company, we’ll connect you with the right people to handle anything from visa applications to important administrative duties.

Conclusion

The robust labor market in the UAE presents an opportunity for the country’s many recruiting services to make a profit. It is not difficult to start a recruitment agency in Dubai, United Arab Emirates, provided that you have the business acumen and determination to turn it into a profitable venture. The price may vary depending on the size of your firm, where it is located, and the activities it engages in. There is also the possibility that the charges will differ depending on whether you decide to form a Mainland Firm or a Free Zone company.

We hope this guide on how to start a recruitment agency in Dubai proved helpful for you. Hopefully, we managed to answer all your queries.

If you want to learn more about how to set up a business in Dubai, we have a comprehensive guide for you. With a thorough understanding of the UAE’s business scene, you should be well prepared to establish a company in the country.