How to Set Up a Manpower Supply Company in Dubai

Maybe in the future, you will be seeing humanoid robots delivering pizzas, cooking food, repairing gadgets, teaching students, cutting hair, guarding buildings, doing surgeries, patrolling the streets, taking photos, waiting tables, walking dogs and doing whatnot. But for the time being, no business can completely rely on machines, and they need humans to run their company. It’s days like today that I’m pretty sure that “if not for manpower, businesses can’t even breathe”. They are not just the heart of any business but ears, eyes, brains, hands, legs and everything that makes a business an entity. Do I need to mention how?! I think not. Therefore, if you are wondering to start a manpower supply company in the UAE, I must say it’s a great idea! Especially when it’s Dubai, where there is no dearth of employers and jobseekers looking for one another. The business capital of the UAE is a gigantic pool of talents from around 200 nationalities looking for fresh or better jobs. Thanks to the city’s expat-friendliness and ever-growing economy!

Is Dubai right for my manpower supply company formation?

With a choice of great emirates, like Dubai, Sharjah, Abu Dhabi, Ajman and Ras Al Khaimah, as well as striking scenery and sky-scraping structures, the UAE has a strong draw for immigrants. People with different nationalities, religions, educations, and professions, make Dubai a cultural mosaic. With immigrants, who come particularly from India, Bangladesh, and Pakistan, comprising over 90% of the nation’s private workforce, the UAE attracts both low- and high-skilled migrants. The country is a strong attraction for Europeans and citizens of free-cold countries because of its year-round sunshine. And quite obvious, Dubai, due to its economic attractiveness, relative political stability, and modern infrastructure, is the most preferred emirate of the UAE to live and work. Dubai, in the Gulf region, has been a forerunner in the transformation towards a neoliberal market of skills and hands. The commercial capital of the UAE, has simpler immigration policies and lesser red flags when it comes to obtaining visas and residency permits, compared to the cities of Canada, Germany, New Zealand and other A-list expat-friendly destinations. No wonder, the expat as well as the business-friendly city receives hundreds of thousands of individuals every year, some to start a business, some to feel the superlative beauties while many others to take up new jobs and settle down here raising their families.

Furthermore, Dubai dispensed 72,152 new business licences in 2021, compared to 42,729 licences in the previous year (says business registration & licencing sector at the Department of Economy and Tourism) which is a dead giveaway that the city will never cease to lure investors the world over. Imagine the demand for skilled, unskilled manpower and recruitment agencies to fulfil the manpower requirements of companies with the rising number of businesses in Dubai, UAE!

Advantages of setting up a Manpower Supply Agency in Dubai

Depending on the jurisdiction you choose to set up your manpower supply company, you can enjoy a wide range of benefits in Dubai. Some of them are:

  • No taxes (for free zone manpower agencies)
  • Easy and quick setup of business
  • 100% foreign ownership
  • Operational costs are low
  • Transfer of funds incurs no charges
  • Free from foreign exchange control
  • Ready-made offices, factories
  • Nil duties
  • Availability of customers and clients in abundance
  • Strategic location
  • High-quality lifestyle

Eligibility criteria for acquiring a recruitment licence in Dubai, UAE

  • Manpower supply licence in Dubai can only be requested by UAE nationals
  • The recruitment agency in Dubai is also required to hire a professionally qualified and experienced manager who must be a UAE local and registered with the Ministry of Labour
  • Foreign nationals can incorporate manpower supply companies in the free zones only
  • The applicant must hold at least a high school degree, if not a graduation degree
  • Having a head office with a registered address is mandatory for manpower suppliers to conduct the approved business activities
  • The recruitment company must employ sufficient team members including supervisors and administrative staff to operate the business without a hitch
  • According to MR1283 law, manpower supply agencies are required to deposit AED 2,000 for every employee on board to ensure workers’ protection in the UAE
  • The shareholders of the manpower supply firm must be UAE nationals and no younger than 21 years
  • The partners of the agency must have a clean legal record
  • The Ministry must be communicated about any variations made within the recruitment agency
  • The agency has to submit a bank guarantee of AED 300,000 to the Ministry for the entire period of the licence validity
  • The agency must ensure the protection of workers and should abide by the rules laid out by the UAE government

Types of Recruitment Licence in Dubai

In order to become a legitimate manpower supplier in Dubai, you must obtain a Manpower Supply Licence (aka On-Demand Labour Supply Licence) from the Ministry of Labour which is responsible for the issuance of trade licences to recruitment agencies in Dubai, UAE in line with the Private Employment Agency Law (MR 1283). You may open majorly two types of companies in the manpower staffing service domain –

  • Brokerage agency
  • Temporary recruitment agency

Furthermore, you don’t have to necessarily base your company in Dubai to recruit expats, it can be done from your home country as well. The primary function of a recruitment company in Dubai is to recruit expatriates.

How to set up a manpower supply company in Dubai?

You must have a manpower supply licence to be able to start a recruitment agency in Dubai. The licence is granted by the Ministry of Labour, and it can easily be obtained by following a series of steps, provided you are eligible to apply for the same. Once you have determined the type of business activity, the legal form of the company and the location of your recruitment company’s headquarters in Dubai, you have to decide on a unique and appropriate name for your company in line with UAE standards and reserve it with the authority. After your application for the trade name reservation is filed, you can proceed with the next step of having the company’s Memorandum of Association (MOA) notarised at the Department of Economic Development (DED). The next step now is of course collecting all the required documents and submitting them to DED or the respective government body to obtain initial approval. After receiving the initial approval, complete the rest of the paperwork and duly submit them along with the trade licence application to the authority in charge of the chosen jurisdiction and apply for the labour card. Once your licence is approved, pay and collect it. Now you can apply for the Labour Card and the Establishment Card with the Ministry of Labour. The last step of setting up your manpower supply firm in Dubai is to register the native workers with the Ministry of Labour and GAPSS (General Authority for Pension and Social Security).

Required documents for a manpower supply agency formation in Dubai

  • Shareholders’ passport copies
  • Applicant’s family book copy
  • Applicant’s ID Card copy (for UAE nationals)
  • Copy of trade name application with the trade register
  • A statement of good conduct
  • Blueprint of the agency’s location
  • Shareholders’ written approval for the company formation
  • Notarised Memorandum of Association (MOA)
  • Notarised Articles of Association (AOA)

Meet your manpower supply company formation specialist in Dubai

The process of company formation in Dubai can be complicated if you are not well acquainted with UAE rules and regulations. Plus, the paperwork and formalities involved in the process can seem daunting, too. The internet is chock-full of answers to questions such as “How to form a manpower supply company in Dubai?” Sure, you can gain knowledge about the business setup process and the prerequisites to achieve the same. However, when you’re in the field, away from the world of the internet, you are sure to experience a lot of challenges, especially when it’s time to make on-the-ground decisions. For instance, is the UAE national or sponsor reliable, which jurisdiction is more rewarding for you – mainland, free zone or offshore, if free zone then which one is the best, what type of legal structure will suit you the best, where should you rent or buy the office premise, how many employment visas would suffice your requirement, do you need external approvals, and so on? Moreover, you don’t want to delay the process because of any errors or discrepancies and cough up on rectifying them. And what if you find out during the course that the documents you were running after like a hamster are irrelevant to the company you are intending to incorporate? Working with one of the best business formation specialists in Dubai such as Adam Global can make things a lot easier. Here’re some tips to find the right business setup advisors in Dubai. The Dubai business advisor you choose must help you decide what’s good for you and your business in the long run. To figure out if Adam Global business setup consultants are right for you, book a free consultancy with one of them!

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