Dubai sees thousands of businesses start up on its shores every year. These businesses require skilled employees – and with a population made up of over 80% expatriates, they are happy to find them from all over the world. It’s no surprise that the UAE recruitment industry is thriving. As Dubai’s businesses once again look to the future, there’s perhaps never been a better time to take your place in this bustling and rewarding sector.
There is no denying that Dubai requires a never-ending supply of workers to keep its economy going. The scope and scale of workers required make it an appealing market to set up a recruitment agency. Human Resources professionals from across the globe have made Dubai their home by setting up recruitment firms catering to a variety of niches. Keep reading to find out how to get started.
Starting a Recruitment Agency in Dubai
Before running through the steps involved in starting your UAE business, there are a few things you’ll need to know. First, the process can be simple, but only if you seek out expert help before you begin. That’s why it’s always advisable to partner with a company formation agent. Working with an agent makes business setup in Dubai easy. We can manage the entire process for you, taking care of early admin and assisting with license, visa, and bank account applications. You should also familiarize yourself with the documents and licenses required to start a recruitment agency in Dubai. Below are several key points to consider.
To start a recruitment agency in Dubai, the following steps are to be followed accordingly:
- 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.
- 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.
- 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
- 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.
- 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 of 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.
- 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
Dubai recruitment market can be broken down into five categories. Knowing where you are going to position your new agency is essential for its long-term success.
- Traditional Recruitment Firms
First, there are traditional recruitment firms that focus on general skilled personnel; these firms tend to work with businesses of every size. Whether you need an admin assistant or a salesperson, these agencies tend to have a large database of candidates that they can utilize to find the right person for any business.
- Executive Search Agencies
This is for the very top end of the market, for roles where the salary and competition are high. This kind of agency will undertake head-hunting and other, more time-consuming, yet effective activities.
- Niche or Specialist Agencies
These agencies hire candidates who are skilled in highly specialized areas and fields. They will tend to focus on specific areas of finance, technology, science, banking, oil, gas, and the legal sector. For example, a company may need a person specializing in cybersecurity in power plants, hence an agency that can target people with a very particular skill set.
- Large-Scale Labour Recruiters
These tend to bring in huge volumes of people from across Asia for construction projects or domestic help roles. These agencies usually tend to have a presence overseas and channel workers through their UAE agency to businesses and employers that need them.
- Temporary Recruitment Agencies
These also recruit labor however they make such labor available to a third party. The recruitment company leases out the labor of workers under its control to business for a specific fee and time. The labor goes from site to site for specific tasks.
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 starting a recruitment company in Dubai, you’ll need to abide by the emirate’s strict guidelines regarding the protection of workers. You must ensure that you and your employees are qualified and experienced in your field. You must also put up a security deposit of AED 2,000 for every employee you bring into Dubai. When recruiting expatriates, you must ensure that they are of good standing with no criminal convictions. Finally, you must follow the Ministry’s guidance on fees, with set limits depending on the nature and duration of employment.
As per current laws, only UAE nationals can apply for a recruitment agency license in Dubai. This essentially means that you will need to establish a contract with a UAE national if you want to set up an agency.
Licensing of a Recruitment Agency in Dubai
In order to open a company in Dubai, that will operate as a recruitment agency, a commercial license is required. The license must allow the company to conduct mediation activities between employer and employee. The license of a Dubai employment agency must be renewed yearly. One of the specifications of the MR 1283 is that only UAE nationals are authorized to open a recruitment company in Dubai and its manager must also be a UAE national. The new law also states that Dubai employment agencies must notify the Ministry about any changes made within the company. Foreign investors are also allowed to open recruitment agencies within Dubai’s free zones and in the International Financial Centre (DIFC).
A recruitment license is a permit that needs to be obtained by recruitment agencies, which 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 that outsources the workforce to the UAE companies.
Upon obtaining a suitable license, the business entity is expected to renew the same yearly. The Labour of Ministry has set specific specifications 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.
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 Riz and Mona Consultancy 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.