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The United Arab Emirates has a workforce of 7.38 million, out of which 7.21 million are employed. According to the latest figures published by the Federal Competitiveness and Statistics Authority, about 164,655 are unemployed. This clearly presents an opportunity for those seeking to bridge the gap between employers and the unemployed. So you can see why recruitment agency business setup in Dubai makes a lot of sense. What better place than Dubai, one of the leading commercial hubs of the world?
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How to Open a Recruitment Agency in Dubai, UAE
Dubai has the highest population of all the seven emirates that make up the United Arab Emirates. As the number of employers and prospective employees is high in Dubai, it makes sense to open shop here.
The first step you need to do is figure out which area you plan to specialize in. There are several business models for you to choose from. For instance, you could specialize in executive search, where you try to place highly qualified and experienced candidates in senior roles. This means that you will be dealing with a limited number of candidates, but the effort could be worth it. A recruitment agency could hope to be rewarded by the employer with 10% to 25% of the annual salary of the candidate successfully placed.
Or you could operate as a specialist recruitment agency. These are recruitment agencies that find candidates for niche areas, such as technology, engineering, management, oil and gas, legal, banking, finance, customer service, or others. You would be dealing with a higher volume of candidates, but it also calls for technical recruiters who specialize in the same field and know exactly what to look for in a prospective candidate. Another option is to function as a traditional recruitment agency, dealing with all roles at all levels.
You also have to decide whether you plan to simply refer candidates to the organizations that are hiring – this means that they conduct the interview – or whether you will be conducting the interviews yourself.
According to your business model, you can apply for either a brokerage license or a temporary recruitment license. The brokerage license permits you to act as a mediator between the employer and the candidate, sharing information as applicable. The temporary recruitment license allows you to conduct interviews on behalf of your clients and place candidates in the roles that have been agreed upon. With a temporary recruitment license, you can recruit candidates outside the United Arab Emirates as well.
The next step is to zero in on a name for your recruitment agency in Dubai. There are certain rules pertaining to company nomenclature in the United Arab Emirates. For instance, you cannot have religious terms in the name of your recruitment agency. The names of countries and cities are not allowed, but you can have nationalities and the names of geographical regions in your company’s trade name. A first name is allowed only if it is the first name of one of the shareholders in the recruitment agency.
Once you have decided on a trade name for your recruitment agency in Dubai or anywhere else in the United Arab Emirates, you can proceed to draw up the company formation documents. These outline the name of the company, the reason why it is being established, and the name(s) of the business owner(s). The company formation documents must be notarized by a Notary Public so they become legally valid in the United Arab Emirates. This is where a business setup consultant can be of assistance.
Prior to drawing up the company formation documents, a business setup consultant can run a search to see if the name you have in mind for your recruitment agency in Dubai is available. This can prevent you from having to redo the company formation documents if you discover later that the trade name has already been registered to another business entity. A business setup consultant can also reserve the trade name you have in mind, so that it will be granted exclusively to you when you apply for company registration.
You also need to select a suitable office space for your recruitment firm. You can choose to be located in a free zone, or on the mainland. The mainland is the area in the United Arab Emirates that is not part of a free zone. On the mainland, you need to enter into a Tenancy Agreement with the owner of the premises and get it registered so that it becomes a legally binding Tenancy Contract or Ejari. This is replaced by a Lease Agreement in a free zone, and it is signed with the corresponding Free Zone Authority.
The address of the commercial space you have leased becomes the registered office address of your recruitment agency as per official Government records when company registration is granted.
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List of Documents Required for Starting a Recruitment Agency in Dubai
- Copies of the passports of all shareholders
- Copies of the pages where Residence Visa or Visit Visa is stamped for those already in the UAE
- Emirates ID of those already resident in the UAE
- No Objection Certificate from current Local Sponsor, if already a resident of the UAE
All the documentation, including the company formation documents and the Tenancy Contract / Lease Agreement must be submitted. If everything is in order, company registration and a business license are granted in a matter of days.
You can then commence operations. It is also recommended that you open a corporate bank account, so that you can make and receive payments with ease. Owing to strict anti-money laundering regulations, it is not easy to open a bank account in the United Arab Emirates. But with the right business setup consultant by your side, the entire process could take as little as two hours instead of the whole day. A good business setup consultant would also be able to help you with visas for yourself and your agency staff.
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Why Choose A&A Associate LLC for Opening Your Recruitment Agency in Dubai?
At A&A Associate LLC, we have years of experience with company registration in Dubai and the rest of the United Arab Emirates. We have been of assistance to clients from 100 countries around the world, and have an excellent client satisfaction rate so far. For more information on how you can open a recruitment agency in Dubai or elsewhere in the United Arab Emirates, please call +971 56 408 6728 or send us a message using the form below. A senior business setup consultant will be in touch with you shortly.
