If you want to start a manpower supply company in Dubai, you must follow the UAE labor laws around hiring workers and setting up your business. Entrepreneurs and investors must also understand that a manpower supply company is not the same as a recruitment agency.
A recruitment agency generally deals with finding and screening long-term candidates while manpower supply companies provide short-term staff, usually for project-based employment.
Laws Around Starting a Manpower Supply Company in Dubai
The UAE follows the “Licensing and Regulation of Private Recruitment Agencies” law for hiring and providing temporary workers. These are the key rules you must follow to start a manpower supply company in Dubai:
- You need a Manpower supply license issued by the Ministry of Human Resources and Emiratisation (MOHRE) under Ministerial Resolution 1283
- The license is also called the On-Demand Labour Supply License
- Only UAE nationals can apply for a mainland manpower supply license in Dubai
- Expats can open manpower companies only in free zones, and cannot directly operate across all Emirates
- You must keep a bank guarantee with MOHRE:
- AED 300,000 for brokerage license
- AED 1,000,000 for temporary recruitment license
- A deposit of AED 2,000 per worker must be paid to protect employee rights
- The agency manager has to be a UAE citizen, registered with MOHRE, and have at least a high school certificate.
- Your business must have a licensed office space with a proper address
- The company must hire trained admin staff and supervisors to run operations
- All partners or shareholders must be UAE nationals, at least 21 years old, and have no criminal record
- You must inform MOHRE if there are any changes in partners or company structure
- The license must be renewed every year
Steps to Get a Manpower Company License in Dubai
1. Select a Legal Structure
The first step is to decide where you want a mainland company setup or in a free zone. If you want to supply workers to companies across the country, then setting up in the mainland is your best option. This is the most common choice for manpower supply businesses in Dubai.
As only UAE nationals are allowed to own manpower supply companies on the mainland, if you’re an expat and want full ownership of your company, free zone company formation is the ideal choice.
2. Apply for a License & MOHRE Approval
Once you’ve chosen your business structure, you’ll need to reserve your company name and get initial approval from the Department of Economic Development (DED) or the relevant free zone authority.
If you’re interested in company formation in UAE with a partner, you’ll need a Memorandum of Association (MoA). Once the MoA is ready, it has to be notarized through a notary public or at the DED office.
Then, you’ll apply for the manpower supply license in Dubai through the MOHRE by submitting the necessary documents and paying the fees. You should also choose the type of manpower license you will need:
- Brokerage license: You act as a middleman between employers and workers
- Temporary recruitment license: You hire workers under your company’s visa and supply them to other businesses.
The fees can include:
- AED 50,000 for brokerage
- AED 100,000 for temporary recruitment
- A bank guarantee (AED 300,000 for brokerage / AED 1,000,000 for temporary recruitment)
- A deposit of AED 2,000 per employee for worker protection
Once you are issued a trade license in Dubai, you can move on to opening a bank account and hiring workers.
3. Open a Bank Account
You’ll need to open a bank account for your manpower supply company. As manpower supply is considered to be a regulated business activity, banking institutions may require additional documents during the application.
Working with an expert in business setup in Dubai (like the ones at A&A Associate) can help you choose a bank that suits your needs and collect all the necessary documents for the application process. Our consultants can also handle the application process, including liaising with the banking representatives on your behalf.
4. Apply for Labor & Establishment Card
You will also need a labor card and an establishment card from MOHRE. You cannot hire or sponsor any employees until you have these documents. Every worker you hire should also be MOHRE-registered.
To do that, you’ll need to:
- Apply for a work permit for each employee
- Prepare a labor contract
- Provide health insurance
- Upload all required documents to MOHRE’s system
You will also need to register any Emirati employees with the General Authority for Pensions and Social Security (GPSSA).
Streamline Your Business Setup Process
Documents for Manpower Company Setup
To apply for a manpower supply license in Dubai, you’ll need to submit the following documents:
Personal identification documents
- Passports of all shareholders
- Emirates ID of shareholders and any legal representatives
- Copy of the applicant’s family book (for UAE nationals)
Legal and business documents:
- Initial approval certificate
- Trade name reservation certificate
- Memorandum of Association (MoA) (notarized)
- Copy of the trade license (if applying as an existing entity)
- Written acknowledgment of MOHRE regulations
Background and compliance documents:
- Certificate of good conduct (police clearance)
- Credit reports of the licensee and partners (from an approved authority)
- Certificate of financial solvency (recent bank statement)
- Property report issued by the Dubai Land Department
Office location details:
- A blueprint or layout showing the manpower agency’s office location
- A clear location map or sketch of the office premises
Manpower License Cost in Dubai
The cost of getting a manpower supply license in Dubai will depend on the legal structure, jurisdiction, and the type of license you are applying for. Generally, the cost can be broken down into:
- Application fee: AED 50,000 to AED 100,000 (depending on license type)
- Bank guarantee: AED 300,000 to AED 1,000,000
- Security deposit: AED 2,000 per employee
- Other fees: DED registration, trade name, MoA notarization, labor card
You should aim to set aside at least AED 500,000 to AED 1.2 million in initial investment, especially if you plan to offer temporary recruitment services. You can also use our cost calculator to get a pricing breakdown.
Start a Manpower Business in Dubai With A&A Associate
A&A Associate houses expert business setup consultants who can help you start a business in UAE by handling the entire company formation process, from licensing to setting up a bank account. Our consultants can advise you on the type of license you need, help you gather and notarize documents, and liaise with government officials.
