In the past few years, the number of business establishment in the UAE region has drastically increased.
Manpower License in Dubai
The United Arab Emirates has a remarkable business climate that attracts millions of business freaks in its arena. The nation has a robust infrastructure that opens up business opportunities for newbies as well as experienced professionals. Ranging from manufacturing, retail, to startups and e-commerce business, the region offers premises for all. One of the world’s fastest growing city, Dubai, has been experiencing an exponential increase in the number of immigrants and their demand for business setup in Dubai. This has lead to an increase in the manpower agencies which help in supplying manpower to the third parties, under their sponsorship. For instance, any company looking out to hire manpower can connect with the agencies to deal with a large project. It is known that different businesses in Dubai need to hold a business license as per the commercial activities. The same goes for manpower agency, which needs to hold a manpower license, that comes under a commercial license. If you are planning to set up your business in the UAE, you are at the right spot.
Manpower Agency Business in Dubai
In the past few years, the number of business establishment in the UAE region has drastically increased. On a general count, more than 20,000 companies get established, which directly increases the demand of labourers to complete the business establishment processes. In turn, this demand has opened a new space for manpower agencies to come into the picture and help in supplying efficient labourers to the third party, which can be a corporate or an individual, and gets applied to Dubai Mainland, Free Zone and Offshore. According to the Emirati Government, any manpower agency company must hold manpower license under Private Employment Law, known as MR 1283, and is issued by the Ministry of Labor.
Guidelines to be Followed Before Setting Up a Manpower Agency Business in Dubai
- The agency manager should be a UAE national and should be registered in the Ministry of Labor
- The expected age for all the shareholders of the company are expected to be 21 or above
- The partners are expected to have a clean legal record and shouldn’t be indulged in any obscene crime, dishonesty, human trafficking etc.
- Throughout the validity period of the license, the applicant needs to submit a bank guarantee to the Ministry and which is not less than AED 300,000
- The applicant must have a head office at which the agency will carry on their activities
- Adequate number of administrative employees, as well as supervisors, are to be hired to carry on the business functions in a smooth way
- The adequate fees are to be cleared to obtain the license
What are the Documents Required to Obtain a Manpower License?
- Copies of valid passport of shareholders
- Copy of applicant’s family book
- Copy of ID Card, for nationals
- A statement of good conduct
- Copy of trade name application with Trade Register
- The shareholder’s written statement on the opening of the company
- A blueprint of the employer agency’s location
How to Obtain a Manpower License?
In order to obtain the Manpower License, the following steps need to be followed.
- The process starts by checking whether your name is registered in the registry books. If not, you need to register your company name in the Registry Office
- In the next step, you need to apply for notarization at the Department of Economic Development (DED) regarding the Memorandum and Articles of Association that are essential for a business entity
- Next, you need to provide all the necessary docs required by the authority to verify and issue a license and wait for the approval
- Once you have been given the final approval, you need to obtain the license
- After obtaining the license, you need to apply for a labor card at the Ministry of Labor which is an essential document
- Once the labor card is issued, the next process is to register your workers with the Ministry of Labor
- Last but not least, you need to register the workers with the General Authority for Pension and Social Security
Workers’ Protection in Dubai
As mentioned earlier, the Emirates have been a booming ground for business establishment, the Government of Dubai takes enough necessary steps to ensure protection to workers. Dubai MR1283 is extremely strict in assuring the worker’s protection. The agencies are required to deposit 2,000 Dirhams for every employee onboard. To bring more transparency, the Law on Licensing and Regulation of Private Employment Agencies comes into the picture that states the employment businesses will be held accountable for the obligations a company has towards the worker. The Ministry of Labor (MOL) has also set limitations regarding the fees that the agencies are allowed to request from clients. The agencies are also expected to maintain proper records regarding each employee for at least three years.
The changing face of UAE has got new laws that help the agencies to hire skilful workers. Moreover, it is mandated for the agencies to inform the Ministry regarding any variation that takes place in the organization. The Emirati government has initiated several steps and is keen on leveraging more employment opportunities to uplift the manpower sector, which ultimately increases the business growth in the region. If you are planning to incorporate your manpower business in the UAE, do contact us-we’d be glad to assist.