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Recruitment Agency Setup, Dubai, UAE

How to start a recruitment agency in Dubai, UAE

A recruitment agency needs a MOHRE-regulated licence, not a standard commercial one, plus a decision between a temporary recruitment licence and a brokerage licence. Here's how the two fit together.

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    Starting a recruitment agency in Dubai needs a MOHRE-regulated recruitment licence in addition to your standard commercial trade licence. Agencies typically choose between a temporary recruitment licence, where you act as an employer of record placing candidates directly, and a brokerage licence, where you connect candidates and employers without direct employment. Both carry MOHRE conditions including a required bank guarantee, so confirm which structure fits your business model and get an itemized cost breakdown before you commit.

    Why It Matters

    Why the licence type matters more than the setup speed

    Recruitment in the UAE is regulated by MOHRE, not just the DED, and agencies typically choose between a temporary recruitment licence, placing candidates directly with employers, and a brokerage licence, connecting candidates and employers without direct employment. The two carry different conditions, bank guarantees and permitted activities, so pick based on your actual business model, not just cost.

    Recruitment consultant meeting a client in a Dubai office

    The Case For Dubai

    Benefits of starting a recruitment agency in Dubai

    Region-Wide Talent Access

    Dubai's status as a regional hiring hub gives recruitment agencies access to a deep, multinational candidate pool across sectors.

    Two Regulated Licence Paths

    Choose the licence structure, temporary recruitment or brokerage, that actually matches how your agency will work with candidates and employers.

    100% Foreign Ownership

    No local UAE sponsor or partner required for recruitment and HR consultancy activities.

    0% Personal Income Tax

    Keep more of what your business earns, with no personal income tax in the UAE.

    Full Repatriation

    100% repatriation of capital and profits, with no currency restrictions.

    Beyond the Trade Licence

    Approvals and compliance you'll need

    MOHRE Licensing

    Recruitment activity is regulated separately from your standard commercial trade licence.

    Bank Guarantee

    A required financial guarantee condition tied to your licence type and category.

    Office Requirement

    A physical office is typically required to meet MOHRE's licensing conditions.

    Licence Type Fit

    Temporary recruitment vs brokerage licence carry different conditions and permitted activities.

    Getting Started

    Recruitment agency setup: the step-by-step process

    01

    Confirm Business Model

    Decide between temporary recruitment (employer of record) and brokerage (connector-only).

    02

    Choose Jurisdiction

    Mainland for direct placement activity; free zone for HR consultancy/advisory.

    03

    Reserve a Trade Name

    Submit your preferred company name for approval.

    04

    Secure a Compliant Office

    MOHRE recruitment licensing typically requires a physical office.

    05

    Apply for MOHRE Licensing

    Submit your recruitment-specific application alongside your trade licence.

    06

    Arrange Your Bank Guarantee

    Set up the required financial guarantee for your licence category.

    07

    Receive Your Licences

    Issued once trade licence and MOHRE approval are both complete.

    08

    Start Placements & Track Renewal

    Begin operating and note your annual renewal requirements.

    Budgeting

    Requirements and cost

    ItemDetail
    Commercial trade licenceConfirmed per jurisdiction and activity scope
    MOHRE recruitment licence feeSeparate fee on top of the trade licence, category-dependent
    Bank guaranteeRequired by MOHRE, amount depends on licence type and category
    Office requirementPhysical office typically required for MOHRE recruitment licensing
    Corporate taxStandard UAE mainland corporate tax rules apply, confirm with a tax advisor
    Nationality requirementOpen to any nationality

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    Frequently Asked, and Ready When You Are

    Recruitment agency setup, answered, plus a direct line to our team

    What licence do I need to start a recruitment agency in Dubai?+
    A MOHRE-regulated recruitment licence, either a temporary recruitment licence or a brokerage licence, in addition to your commercial trade licence from the DED or a free zone authority.
    What is the difference between a temporary recruitment licence and a brokerage licence?+
    A temporary recruitment licence covers placing candidates directly with employers as an intermediary employer of record for a period. A brokerage licence covers connecting candidates and employers without you being the employer of record. The conditions, bank guarantees and permitted activities differ between the two.
    Should I set up on the mainland or in a free zone?+
    Mainland is generally required if you are placing candidates with UAE-based employers directly, since MOHRE licensing for recruitment activity is typically mainland-regulated. Free zones can suit HR consultancy or advisory services that do not involve direct placement.
    How much does it cost to start a recruitment agency in Dubai?+
    Costs vary by licence type and structure, covering the trade licence, MOHRE recruitment licence fees, a required bank guarantee, and office costs. Get an itemized breakdown from MOHRE and your licensing authority before budgeting a total.
    Do I need a bank guarantee to start a recruitment agency?+
    Yes, MOHRE typically requires a bank guarantee as a condition of the recruitment licence. The amount depends on your licence type and category.
    Can a foreigner own 100% of a recruitment agency in Dubai?+
    Yes, recruitment and HR consultancy activities are generally eligible for 100% foreign ownership, though the MOHRE licensing conditions still apply regardless of ownership structure.
    What are MOHRE's licensing conditions for recruitment agencies?+
    MOHRE sets specific conditions covering office requirements, financial guarantees and permitted recruitment activities. Confirm the current conditions directly with MOHRE or a licensed advisor before applying, since these are periodically updated.
    How long does it take to set up a recruitment agency?+
    The commercial trade licence can move within one to two weeks, but MOHRE's recruitment-specific licensing and bank guarantee arrangement typically add further weeks to the overall timeline.
    Do I need HR or recruitment experience to open an agency?+
    There's no formal experience requirement to hold the licence itself, though MOHRE conditions and market credibility generally favor founders or key staff with genuine recruitment or HR sector experience.

    Talk to an advisor

    Send your details and our team will reply with next steps and a tailored quote.


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