How to Start a Manpower Supply Company in Dubai

Start a Manpower Supply Company in Dubai

Each year 20,000 new businesses start in the United Arab Emirates. Dubai is driving the Middle East’s transformation into a global investment and business hub. Government incentives and zero-tax policies are just some of the headline benefits attracting business people to Dubai from all over the world. In fact, of the 10 million people in the UAE, about 8.5 million are foreign nationals.

The most popular jobs and employers in Dubai are in construction, maintenance, hospitality, tourism, transport, finance, retail and trade, marketing, management, IT, engineering, real estate, education, and medical.

Manpower supply business ideas in Dubai? You’re onto a profitable, sustainable and rewarding company to start in Dubai.

Dubai’s manpower supply industry’s target market services private companies, government agencies, and job seekers alike. From supplying workers for construction clients, permanent jobs, long-term contracts, or temporary workers, an employment agency of this type bridges the gap between employers and employees.

You might have the best business ideas, marketing strategies, and greatest systems but lack the right knowledge, staff, and skills. A manpower supply agency is a key to its success.

Benefits of Starting a Manpower Supply Company in Dubai

To start a manpower supply agency in Dubai, you’ll first need to apply for a Manpower Supply License. The UAE’s Ministry of Labour issues these under the Private Employment Agency Law (known locally as MR 1283). You might also see the name On-Demand Labour Supply License being mentioned when researching or applying for this license.

Businesses licenses in the UAE are a legal requirement to operate. The Manpower Supply License is a specific type of business license that entitles the holder to function as a labor broker and a manpower supply agent to other companies and businesses.

The major asset in starting a manpower supply business in Dubai is the growing demand. Recent changes to the UAE’s visa regulations and full-ownership rights for foreign national-owned businesses have only increased the attraction of Dubai as a destination for foreign investment, entrepreneurs, and job seekers.

A competitive advantage for your manpower supply business is that the UAE is currently the world’s leading employer of scientific and technical jobs. It also draws the best talent from around the world in fields as diverse as IT security, education, sciences, media, and logistics.

Set up in a free zone with Trade License Zone – and the benefits continue. Partnering with a local company setup specialist means we can manage the entire company registration, license, and visa process to help you open your employment business for you.

For a company to legally trade in the UAE, they require a business license. The UAE has streamlined the processes and application requirements for business license and free zone company setups, but for those unaccustomed to such governmental procedures, the process can be somewhat daunting and overwhelming at times.

This article will provide you with the insights to help you get your workforce agency up and running with the support of a local company setup expert like Trade License Zone.

Steps to Start a Manpower Supply Business in Dubai

Step 1: Partnering with Trade License Zone

As we’ve mentioned, partnering with a local company setup agency is the first step to opening any type of business in this country. Our specialists at Trade License Zone will manage all aspects of your company formation process, operating licenses and guide you on the various governmental and municipal trade regulations for operating in the UAE.

Step 2: Choosing a Business Structure

What sets Dubai apart from other cities around the world is its innovative utilisation of free-trade zones. Our government created these special economic zones to offer tax concessions and customs duty benefits to foreign national business owners.

The free zones are dedicated to a specific industry for trading, services, and licenses to investors and entrepreneurs setting up shop in Dubai. What’s more, free zones offer support centres, SME incubators and accelerators, access to world-class logistics facilities, highly skilled workers, and access to customers requiring manpower.

Step 3: Choosing and Registering a Business Name

We’ll help you choose and register your company name with the Registry Office. The business name must comply with the UAE’s strict naming regulations. It cannot include any offensive or blasphemous language, nor any references to Allah or Islam. If you wish to include your name in your company name, you must use it in full rather than just your surname or initials. We’ll also check that your chosen name is available to be registered.

Step 4: Notarising your Business Documentation

Once the company name’s been approved by the Registry Office, you need to apply for notarisation of the company’s Memorandum of Association  (MOA) and Articles of Association (AOA) with the Department of Economic Development in Dubai (D-DED).

Step 5: Submitting your Business License Application

Along with your completed application form and initial business plan, you’ll also need to submit the following documentation:

  • Proof of ID and address for directors and shareholders
  • Passport copies for shareholders and directors
  • Copy of trade name confirmation
  • Memorandum of Association (MOA)
  • Articles of Association (AOA)

At the same time, we’ll also register your company with the Ministry of Human Resources and Emiratisation.  If you’re bringing an employee or employees for your manpower supply agency to settle in the UAE as workers, you’ll need to pay an AED 2,000 deposit per employee.

Step 6: Getting your Business License

Only once you’ve received final approval from the D-DED (Dubai Department of Economic Development) will the Ministry of Labor issue your business license.

Step 7: Registering your Business’ Employees

The Ministry of Labor will also issue you with a Labor Card and an Establishment Card. This will enable you to register your UAE national employees with the Ministry of Labor.  Your last step is the registration of employees for GAPSS: General Authority for Pension and Social Security.

Conditions For Starting a Manpower Supply Company in the UAE

  • Only UAE nationals can apply for a manpower supply licence in the UAE.
  • The agency manager must be a UAE local and registered with the Ministry of Labour.
  • Expats are only allowed to start manpower supply agencies in the free zones.
  • The applicant must have a degree of graduation or at least a high school degree.
  • The manpower agency must have a head office with a registered address at which it will carry on its activities.
  • The agency must hire an adequate number of supervisors and administrative employees to carry on the business functions smoothly.
  • To ensure worker protection, the MR1283 law requires agencies to deposit AED 2,000 for every employee on board.
  • All the shareholders of the manpower supply company should be 21 years old or above and be UAE nationals.
  • The partners of the company are expected to have a clean legal record.
  • Manpower supply agencies must inform the Ministry about any variations made within the agency.
  • Throughout the validity period of the manpower supply licence, the agency needs to submit a bank guarantee of AED 300,000 to the Ministry.

Conclusion

Starting a manpower supply agency in Dubai is a profitable, sustainable, and rewarding business. The company formation process and manpower license process in the UAE have been designed with simplicity in mind in navigating the legal requirements.

That said, it take some hard work and in-depth knowledge of the region, its markets, its many customs and regulations.

That’s why it’s always advisable to sign up to the services of a UAE business setup company to guide you on your company’s license and setup based on your needs and budget.

When you work with Trade License Zone, we’ll guide and manage the entire incorporation process for you, and guide you through the latest government regulations regarding your manpower license and businesses. Get in touch today for a personalised quote and competitive advantage.

We’ll give you peace of mind that your license and visa applications are free from errors and omissions – both of which can lead to delays and rejection.

All you need to provide is some basic documentation and some information about the nature of your business. Then, sit back and let the experts take care of the rest – managing your license and visa applications, communicating with all relevant government departments and authorities, and reporting back when you’re ready to trade. It is that simple.