Every year, Dubai sees thousands of companies start up on its shores. Such organizations need trained workers, and they are able to find them from all over the world with a workforce of over 80 percent expatriates. No wonder that the recruiting industry in the UAE is booming. As Dubai’s corporations focus on the future once again, maybe there has never been a better time to take your spot in this bustling and satisfying industry.
There is no doubt that a never-ending supply of jobs is needed for Dubai to keep its economy running. The nature and size of the needed staff render the creation of a recruiting firm an enticing market. Through setting up recruiting agencies catering to a range of niches, human resources experts from around the globe have rendered Dubai their home. To find out how to get started, keep reading.
Starting a Recruitment Agency in Dubai
There are a few items you may need to know before going through the steps involved in starting your UAE business. First, the procedure can be simple, but only if you’re looking for professional advice before you start. That’s why working with a business forming consultant is still advisable. Acting with an agent makes it easier to set up a company in Dubai. We will navigate the whole procedure for you, taking control of early admin and dealing with paperwork for permits, visas, and bank accounts. To start a recruiting agency in Dubai, you should also familiarize yourself with the documentation and licenses needed. Several main points to remember are below.
The following measures should be taken in order to start a recruiting agency in Dubai:
- Analyze the Recruitment Market
Analyzing the target audience is the first step. Conducting comprehensive analysis on the expectations and preferences of the targeted market, the criteria of the targeted market can enable you to define the basic conditions for work availability, the expectations established by businesses to hire workers. In brief, when you design a business establishment, you need to get an overall understanding of your target audience.
- Choose a Business Entity
In the next stage, you need to pick a business model. For a commercial establishment, the UAE gives entrepreneurs various choices. You need to consider each of them and their benefits and drawbacks and pick the one that fits your company needs.
- Choose a Strategic Location
The place where the organization is built plays a critical role. You need to guarantee that you pick the right venue after selecting the business entity and that the target group can access it. The UAE offers different choices to start the business setup process, such as Mainland, Free Zone and Offshore.
- Keep the Essentials Handy
A collection of documents that are to be forwarded to the Ministry to acquire the recruitment license are to be kept handy. You can find the necessary essentials in the next section of this article.
- Fill the Application Form
It is important to properly fill in the application form provided by the Government Authority with all shareholder details. Often, along with the application form, the required paperwork must be submitted. In the event of any modifications to the organisation taking effect, the Ministry shall instantly be notified of such changes. The verification process, which is done within a maximum of 15 working days, is initiated after the records are submitted.
- Obtain a Recruitment Agency License
Once the verification is completed, you are eligible to obtain a recruitment agency license.
- 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.
Understanding the Recruitment Market
The recruitment industry in Dubai can be narrowed down into five categories. Knowing where the new agency will be situated is important for its long-term sustainability.
- Traditional Recruitment Firms
Firstly, traditional recruiting agencies focus on generally trained personnel; these firms prefer to deal for organizations of all sizes. These agencies seem to have a huge pool of applicants that they can use to find the right individual for any business, whether you need an admin assistant or a salesperson.
- Executive Search Agencies
For positions where the wage and competitiveness are high, this is for the very highest end of the industry. Head-hunting and other, more time-consuming, but profitable tasks would be performed by this form of organization.
- Niche or Specialist Agencies
These organizations seek applicants in highly technical areas and fields that are eligible. Specific areas would appear to be centred on economics, technology, research, banking, energy, gas and the legal field. For example, an organization will require a person that specializes in power plant cybersecurity, therefore an entity that can recruit individuals with a very unique skill set.
- Large-Scale Labour Recruiters
These aim to pull in massive amounts of people for building sites or domestic service positions from across Asia. Typically, these organisations aim to have a presence overseas and channel staff to corporations and employers who require them through their UAE business.
- Temporary Recruitment Agencies
They also employ labour, however, render that labour available to a third party. For a fixed fee and period, the recruiting firm rents out the labour of employees under its management to business. For individual tasks, the labour moves from site to site.
Documents Needed to Start a Recruitment Agency in Dubai
Whatever license you require, you must submit certain documentation as part of your application. This may include:
- A copy of your passport
- A statement of good conduct
- A blueprint of your premises
- Written statements from all shareholders
Rules and Guidelines for Setting Up a Recruitment Agency in Dubai
When establishing a recruiting firm in Dubai, you would need to comply with the specific rules of the emirate on employee security. You must ensure that you and the workers in your field are trained and skilled. For any employee you bring into Dubai, you must also set up a protection deposit of AED 2,000. You must guarantee that by hiring expatriates, they are in good standing with no criminal records. Finally, you must follow the instructions of the Ministry on payments, with restrictions set based on the type and length of the work.
Only UAE nationals may apply for a recruiting agency license in Dubai, as per current laws. This basically suggests that if you wish to start up an entity, you would need to set up a deal with a UAE national.
Licensing of a Recruitment Agency in Dubai
A commercial license is required in order to start a business in Dubai that will act as a recruiting agency. The authorization must permit the organization to perform employer-employee mediation activities. The authorization of the jobs agency in Dubai must be renewed annually. One of the conditions of MR 1283 is that only UAE nationals are allowed to start a recruiting business in Dubai and that their director must also be a UAE national. The new legislation also specifies that the jobs agencies in Dubai must inform the Ministry of any improvements that have been made inside the organization. In Dubai’s free zones and in the International Financial Centre, foreign investors are now permitted to open recruitment agencies (DIFC).
A recruitment authorization is a permit that recruitment companies need to acquire that grants them permission to outsource staff to business establishments to simplify their recruitment process, and the license is issued by the Ministry. There are two forms of licenses that a recruiting firm can possess when it comes to the Emirates.
Brokerage Agency License
This license is to be received by corporate companies working with foreign nationals when they are occupied. Holding a brokerage firm will assist the agency with receiving both national and international applicants. On the other side, applicants would be sent from the firms who are looking to recruit them. In addition, the keeping of this license allows to preserve a database of open jobs, post new jobs, and fulfil demand and supply.
Temporary Recruitment License
Keeping a temporary recruiting license, on the flip side, would allow the recruitment agency to stand as a business employer who outsources workers to the UAE firm. The business company is required to extend the same annual license upon receiving the necessary license. The Ministry of Labour has laid down strict criteria for the rates that recruiting companies in Dubai are entitled to charge their customers. Another mandate is that for a term of three years, the recruiting firms are required to retain the employee records.
We Are Here For You
It’s an exceptional opportunity to help business entities employ the top talent. It becomes essential, however, that the process of business establishment turns out to be error-free. In the event that some mistake is recorded, the process of company registration can be obstructed. Joining hands with experienced professional works out to be the right option to move the process along in an error-free manner. A qualified advisor will enable you to clarify the step-by-step procedure. We at Riz and Mona Consultancy are here to provide you with an overall portfolio of market integration that suits the company’s requirements, making us one of the best business consultants in the UAE. To discover more, please contact us-we’d be happy to support.