Manpower supply agencies in UAE obtain licenses that allow them to hire employees and assign them to other companies. In this case, the supply of labor to third-party companies plays an important role in business activities. Therefore, starting this type of business could prove to be a great success for you.
In this article, you will learn what you need to know to start this type of business in the United Arab Emirates. In addition, we will show you all the processes and requirements you will need to launch your business successfully.
Step By Step Process to Start Manpower Supply Company in Dubai, UAE
If you want to start an agency for manpower supply Dubai, You will have to undertake the application for a license for this. Likewise, this permit will allow you to begin activities in this business by being a bridge between the employee and the employer of a third-party company.
Requirements for forming a manpower supply company in the UAE
Starting a business of this type in the Emirates requires first meeting a series of conditions, as you will see below:
- Emirati citizens are the only ones who can obtain a license for this type of business in the UAE.
- The main manager must be a local citizen and must register with the Emirati Ministry of Labor.
- In the free zones, is where the foreigner can start a manpower supply business.
- The applicant citizen must present a university or high school degree.
- The company must be domiciled in a social area where it will carry out its operations.
- Your company must have a sufficient number of personnel between administrative employees and supervisors. This condition is established to ensure the proper functioning of the company.
- The MR 1283m law requires a deposit of AED 2,000 for each worker for their protection.
- Shareholders must be national citizens and be at least 21 years of age or older.
- Partners participating in the business must not have a criminal record.
- The manpower supply company must inform the Ministry if they make any changes to it.
- Within the duration of the business, you will have to submit a bank guarantee to the Ministry of AED 3,000,000.
Additionally, to undertake the Dubai supply company business, you will need to follow the following steps:
Partnership with Connect Business Centers
The first thing you should think about when you want to start your manpower supply business is to create a partnership with professionals. In this case, the best support company to start your business is Connect Business Centers. Our company has the best team of qualified and committed professionals so that the entire process is efficient and fluid.
Likewise, we can help you from the necessary license applications to the ideal spaces to start your business. Additionally, we offer you a range of services that will be useful to you on the path to starting your manpower business in Dubai and the UAE.
Select a legal structure
After associating with the best entrepreneurial company, you must establish the legal structure that the manpower supply company will have. This step is essential because this will define what type of jurisdiction the company will have, the licenses it will need, and the commercial activity it will be able to carry out.
With the help of the experts at Connect Business Centers, you will be able to know what type of legal framework is best for your business operations.
Choose a legal jurisdiction
For this step for the formation of the manpower supply business, you must choose the type of jurisdiction that works best for your company. In this case, you can choose between the 40 free zones in Dubai and the mainland. In the case of the free zone, you can have multiple benefits that include good tax incentives and 100% ownership of your company.
Additionally, you will receive company support services specific to your requirements. However, if you choose the free zone, you will only be able to work in it and will not be able to operate anywhere else outside of it.
On the other hand, if you choose to establish your company in the continental area, you will have to hire a sponsor to whom you must give 51% of the shares. Nevertheless, you will be able to operate within the entire UAE market without the need for a branch.
Specify business activities
To start a manpower supply agency, you will need a specific license because in the emirates they are a legal requirement to operate. However, you must determine what business you will be doing to know the specific type of license you will need. Hence, you can choose from the 2000 allowed commercial activities and align them with the activity you will do.
If you do not do this step carefully, you may face significant fines from the Emirati government. This is because there are commercial activities that are not allowed. That is why the experts at Connect Business Centers are recommended to save you time and money.
Secure the reservation of your company’s trade name
Select the name of the manpower supply agency. In this case, the UAE Registry Office is responsible for supervision and compliance with regulations. Likewise, your company name should not contain any blasphemous or offensive language and avoid references to Allah or Islam.
On the other hand, if you decide to add your name or that of any other person, it cannot be abbreviated but complete. Also, when registering the company, you should put in 3 options for potential names and check that it is available.
Rent office space
In free zones, you must necessarily have a physical space for the offices of the company. On the other hand, with continental companies, you will have more options for your location. In general, you will be able to choose from several spaces and find the one that best suits your needs.
Additionally, you will be able to choose the perfect space, design, or budget on the spot for the space for the manpower supply business.
Submit an application for initial approval
You must apply for initial approval to acquire the business license from the Dubai supply company. In this case, if the company is in the free zone, the approval will be given by the zone authority. On the other hand, if it is continental, the approval will be received from the Department of Economic Development.
Additionally, you must present your passport, visa, and business plan in detail for the authorities to review and issue approval.
Submit an application for your trade license
Once you receive initial approval, you can submit your business license application including the name reservation certificate. You will also receive the initial approval certificate, rental agreement, and all supporting documents. Then, once the application is approved, you will have to pay for the business license to start a business in the emirate.
Recruitment License Categories in Dubai
If you wish to be a legal supplier with your manpower supply company, you will have to obtain a license from the Ministry of Labor. This government entity is responsible for issuing online licenses in Dubai and the UAE. Also, according to the Private Employment Agencies Law or MR1283, you may open the following types of agencies:
- Temporary recruitment agency
- Brokerage agency
Likewise, you can hire expatriates even if you are not located in Dubai because the main objective of the recruiting company is to recruit foreigners.
Documents you will need to start manpower supply Dubai agency
To start your business, you will need to submit the following documents to obtain a business license:
- Photocopies of the current passports of the business shareholders.
- Copy of the family book of the applicant.
- Copy of the national identity cards.
- Verification of good conduct.
- Photocopy of the commercial name application submitted to the Commercial Registry.
- Written statements from shareholders regarding the inauguration of the company.
- Location map of the employment agency.
- Make a record of all business workers.
- After obtaining the license, you must apply for the work card and the establishment card from the Ministry of Labor.
- Register employees with the Ministry.
- Finally, register employees with the General Authority for Pensions and Social Security.
Moreover, you should know that the license for the Dubai supply company will have to be renewed every year.
Protection for Dubai manpower supply company employees
A manpower supply company is a good alternative if you want to start a business in Dubai. However, the government is strict when it comes to the production of employees recruited by manpower companies or other recruitment agencies. In this case, agencies must deposit AED 2,000 for each worker brought into the country.
If you fail to meet your obligations to your employees, the Law on Licensing and Regulation of Private Employment Agencies will hold you responsible. Likewise, the Ministry of Labor has a limit for those agencies authorized to request payments from clients.
In addition, before the employee signs the contract, the agencies must declare the terms of the duties and rights of the workers. Similarly, you must have on hand the record of each of the workers hired by the company. Additionally, you must report any changes you make within your business to the Ministry of Labor.
On the other hand, with the new laws, the government seeks transparency in the hiring of workers for their protection.
Starting Cost of Manpower Supply Company in Dubai, UAE
The initial cost to open your manpower supply business will be between AED 15,000 and AED 25,000. However, costs will vary depending on the size of your business, and the rental of that space where the location will operate, among others. These figures do not include license fees or any additional fees.
Furthermore, for the brokerage license, you will pay a fee equal to AED 50,000 and a bank guarantee for the Ministry of Labor of AED 300,000. In addition, if the company is on temporary contract the cost will be AED 100,000, and the bank guarantee for the Ministry of Labor AED 1,000,000.
How to Expand Your Manpower Supply Company in Dubai, UAE
To expand your manpower supply business in the Emirate of Dubai, you will need to have good action strategies. First, you must consolidate relationships with potential clients. Likewise, it must offer comprehensive services that meet the needs of labor, which will create a good reputation for this business.
Furthermore, you must offer your services to various types of clients in various types of businesses in the Emirates. With this, you will be able to expand the range of clients from various industries and will not depend on a single sector to prosper.
Similarly, you must create networks within the business ecosystem of the Emirate Dubai and the rest of the UAE. In this case, you must participate in different types of industrial activities such as associations and fairs to attract customers. Additionally, you can take advantage of the digital resource with marketing, which will improve your online presence and you will be able to reach more customers widely.
Also, if you take advantage of analysis and technology, you can improve workforce management which will guarantee profitability and efficiency. In the same way, you can expand your range of services such as training services to improve skills. This way, you will be able to meet all the changing demands of the labor market.
Why Work with Connect Business Centers to Start Your Business in Dubai, UAE
To start your manpower supply agency you will have to navigate the difficult business world of the emirates and make critical decisions. Therefore, a successful and professional agency like Connect Business Centers will be able to support you in everything. In addition, our professionals can help you request the required licenses, and locate the appropriate office space, among others.
Additionally, we have extensive experience in establishing companies in the emirates, the nuances and legalities of the country. Equally, we have extensive knowledge of Emirati business ecosystems and a lot of experience guiding entrepreneurs coming to the country. Therefore, by partnering with us we can fulfill your business dreams.
In conclusion, partnering with Connect Business Centers will ensure that all processes will be much simpler and more effective. Hence, contact us, and we will support you to make you successful in the business world of the UAE.