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Home Services Recruitment Business in the UAE: Licensing & Compliance Guide

Recruitment Business in the UAE

The recruitment market in the UAE is strictly regulated and divided into two key formats: Recruitment Consulting and Manpower Supply licenses. The choice defines the business model, legal responsibility, and compliance requirements. MIRAD helps you select the right format, obtain the license, and launch operations in full compliance with UAE law.

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Model 1: Recruitment Consulting License

  • Suitable for recruitment agencies, HR consultants, and interview specialists.
  • The company does not hold a hiring quota — employees are registered under the client’s entity.
  • Revenue is generated through commissions and consulting services.
  • Registration possible in both Mainland and Free Zone.
  • License category — consultancy / services.

Model 2: Manpower Supply / Outsourcing License

  • Best suited for large contractors, construction, and logistics companies.
  • Mandatory registration only in Mainland.
  • Requires a local partner (Emirati Sponsor).
  • Unlimited hiring quota for employees.
  • The company officially employs staff, pays salaries, and assigns them to clients under contracts.
  • Approval from the Ministry of Human Resources & Emiratisation (MOHRE) is required.

Comparison: Consulting vs Manpower Supply

CriteriaRecruitment ConsultingManpower Supply
JurisdictionMainland or Free ZoneMainland only
Local PartnerNot requiredMandatory (Emirati Sponsor)
Hiring quotaNo quota (hired by client)Unlimited employee quota
Revenue modelPlacement commissionMonthly contracts + commission
MOHRE licenseNot requiredMandatory
Risks & responsibilityLow (consulting)High (labor disputes, penalties)

Risks of operating without a license

Important

Illegal recruitment activities in the UAE are subject to fines of up to AED 100,000, license suspension, immigration platform blocking, and staff deportation. Banks also freeze accounts of unlicensed recruitment companies.

What MIRAD does

  • Business model analysis and license selection.
  • Preparation of incorporation documents and Articles of Association.
  • Company registration in Mainland or Free Zone.
  • Structuring: local sponsor, work visas, WPS setup.
  • Submitting applications to MOHRE (for Manpower Supply).
  • Drafting client contracts with proper risk allocation.
  • Compliance and legal protection of the agency’s interests.
Want to open a recruitment company in the UAE?

MIRAD will help you choose the right model, obtain the license, and build a business that fully complies with UAE requirements.

Book a consultation

HowTo: open a recruitment company in the UAE

  1. Decide on the model: consulting or outsourcing.
  2. Choose jurisdiction: Free Zone or Mainland.
  3. Register the company with DED or Free Zone Authority.
  4. Apply for HR or Manpower license.
  5. Draft contracts and compliance policies.
  6. Set up WPS for salary payments.
  7. Obtain visas and start operations.

Why choose MIRAD

  • Expertise in 45+ UAE jurisdictions.
  • Direct interaction with MOHRE and Free Zones.
  • Legal, HR, and tax expertise in one package.
  • Proven track record in launching recruitment and outsourcing companies.

FAQ: Recruitment licenses in the UAE

❓ Can an agency be opened in a Free Zone?
✅ Yes, but only as consulting. Manpower Supply license is only available in Mainland.

❓ Is a local partner required?
✅ Not for consulting. For outsourcing, an Emirati Sponsor is mandatory.

❓ What is the main advantage of the Manpower Supply license?
✅ Unlimited hiring quota and the ability to officially provide staff to clients.

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