How to Start a Manpower Supply Company in the UAE?

In the United Arab Emirates, over 20,000 new companies are established annually, providing opportunities for numerous manpower supply firms operating in the region. These businesses supply labor or professionals to start-ups. The need for manpower agencies has increased as a result of the rise in the number of businesses.

A Manpower Supply License is required to launch a manpower supply business in the United Arab Emirates. With this kind of license, you can serve as a middleman between employers and employees and carry out the labor/workforce supply business.

A Manpower Supply License under the Private Employment Agency Law, also known as MR 1283, issued by the Ministry of Labour is required for a manpower agency to be able to legally operate in the United Arab Emirates. This type of license is also known as the On-Demand Labour Supply Licence.

ELIGIBILITY CRITERIA FOR GETTING A MANPOWER SUPPLY LICENCE UAE

• UAE nationals are the only ones eligible to request a manpower supply license in Dubai.
• A professionally qualified and experienced manager who is a resident of the United Arab Emirates and registered with the Ministry of Labor must also be hired by the recruitment agency in Dubai.
• Foreign nationals are allowed to incorporate manpower supply companies in the free zones only
• If not a graduation degree, the candidate must have at least a high school diploma.
• To carry out approved business activities, manpower suppliers must have a head office with a registered address.
• The recruiting firm needs to hire sufficient team members, including managers and administrative staff, to operate the business smoothly.
• To guarantee the safety of workers in the United Arab Emirates, manpower supply companies are required by the MR1283 law to deposit AED 2,000 for each employee on board.
• The company’s shareholders must be citizens of the United Arab Emirates and cannot be younger than 21 years old.
• The agency’s partners need to have a clean legal record.
• Any changes made within the recruitment agency must be reported to the Ministry.
• For the entire duration of the license’s validity, the agency must provide the Ministry with a bank guarantee of AED 300,000.
• The company is required to protect employees and follow the guidelines set forth by the UAE government.

TYPES OF RECRUITMENT LICENCES IN DUBAI

A Manpower Supply Licence, also known as an On-Demand Labour Supply Licence, is required to operate as a legal manpower supplier in Dubai. This license is issued by the Ministry of Labour, which is also in charge of issuing trade licenses to recruitment agencies in the United Arab Emirates in accordance with the Private Employment Agency Law (MR 1283). You can primarily start two kinds of businesses in the manpower staffing services industry:

• Brokerage agency
• Temporary recruitment agency

Furthermore, you can hire foreign workers from your home country as well; you are not restricted to basing your business in Dubai. Hiring foreign workers is the main duty of a recruitment agency in Dubai.

DOCUMENTS REQUIRED TO START A MANPOWER SUPPLY COMPANY IN THE UAE

• Copies of the shareholders’ passports
• Copy of the applicant’s family book
• Blueprint of the agency’s location
• Copy of the applicant’s ID card (for UAE nationals) 
• Copy of trade name application with the trade register
• A statement of good conduct
• Written consent from shareholders to form the company
• Notarised Memorandum of Association (MOA)
• Notarised Articles of Association (AOA)

HOW TO START A MANPOWER SUPPLY COMPANY IN DUBAI

• Company Name Registration – Checking if your suggested company name is already listed in the registry books is the first step in the registration process. If not, you must register the company name with the Registry Office and apply for a reservation of the company name.
• Notarization – Following name approval, you must apply to the Department of Economic Development (DED) for the notarization of the company’s articles of association and memorandum.
• Apply for Final Approval – The next step is to apply for final approval by submitting to the appropriate authority all required company documentation. After reviewing the paperwork, the authority will grant final approval. After that, to receive the license, you must pay the required licensing fees. The required documents to obtain the manpower license are listed above.
• Obtain License – The appropriate authority will grant the license after receiving the final approval. An annual renewal of the license is required.
• Apply for Labour Card – The next step after receiving the license is to submit an application to the Ministry of Labour for both the Labour Card and the Establishment Card.
• Register Workers with MOL – The next step is to register your native workers with the Ministry of Labour after the labor card has been issued.
• Register Workers with GAPSS – Registering your employees with the General Authority for Pension and Social Security is the final step.

COST OF OPENING A MANPOWER SUPPLY COMPANY IN DUBAI

AED 15,000 to AED 25,000 is the approximate cost of starting a manpower supply business in Dubai. The size of the business, its location, the cost of renting office space, and other variables will affect these expenses.

If you wish to open a company, refer to the Dubai company registration for more information.

Reach out to us at Relin Consultants for further assistance with the formation of your manpower supply company in the UAE.