Manpower Supply Licence UAE: MOHRE Requirements and Setup

Supplying workers to other businesses is a regulated activity in the UAE. You cannot open a normal HR consultancy, sponsor employees and then send them to work for client companies.

If your company will employ workers under its own establishment and place them with another business, you generally fall under the temporary employment and outsourcing framework regulated by the Ministry of Human Resources and Emiratisation, or MOHRE.

This is what many businesses mean when they search for a manpower supply licence UAE. The setup is more demanding than a standard professional or consultancy licence. MOHRE requires specific approvals, financial security and ongoing responsibility for the workers employed by your agency.

This guide explains how the licence works, what it costs, the documents you should prepare and what happens after your company starts supplying manpower.

What Is a Manpower Supply Licence in the UAE?

Under the UAE labour framework, temporary employment and outsourcing involve an agency employing a worker and making that worker available to another party, known as the beneficiary.

The worker's employment relationship remains directly with the manpower agency even though the employee may perform day-to-day work at the beneficiary's premises.

This structure is different from ordinary recruitment. For example, suppose your company hires 30 technicians, sponsors their work permits, pays their salaries and assigns them to construction, facilities management or industrial clients. Your company remains their employer. That is manpower supply or temporary employment and outsourcing.

If you simply introduce a candidate to another company and that company hires the person directly, you are providing mediation or recruitment services instead.

Nexture's guide to obtaining a recruitment agency licence in Dubai explains this distinction in more detail.

Types of MOHRE Employment Agency Licences

MOHRE's framework broadly separates employment agency activities into three categories.

MOHRE requires a bank guarantee of at least AED 1 million for temporary employment and outsourcing agencies. An approved insurance arrangement may be accepted as an alternative under the applicable framework.

This financial security is one of the biggest differences between a manpower supply company and a normal consultancy. The guarantee is not simply another government fee. It must generally remain available during the licence period and MOHRE may use it to settle amounts owed by an agency if the agency fails to meet its obligations.

Who Regulates Manpower Supply Companies in the UAE?

The main federal regulator is MOHRE. Your economic or trade licence is also issued through the relevant licensing authority in the emirate where you establish the company.

For example, a Dubai mainland company deals with the Dubai licensing authorities for the commercial licence while MOHRE regulates the employment agency activity.

An Abu Dhabi business deals with the relevant Abu Dhabi economic licensing system. The Abu Dhabi Department of Economic Development licensing portal explains the wider economic licence framework.

The important point is that obtaining a commercial licence does not automatically permit you to supply manpower. The regulated employment agency approval must also be completed.

MOHRE Requirements for a Manpower Supply Licence UAE

MOHRE applies additional checks because the manpower agency becomes responsible for workers' employment rights. According to the employment agency licensing framework, the requirements include the following.

1. Suitable Business Activity

   Your commercial licence must contain the appropriate employment agency, temporary employment or outsourcing activity. Do not register a generic management consultancy or HR consultancy activity and assume it covers manpower supply.

   The activity should match what your business will actually do.

2. Initial Approval From the Economic Authority

   The employment agency procedures require initial approval from the relevant Department of Economic Development or licensing authority, along with trade name reservation.

   Your setup therefore usually begins with the economic licensing authority before the regulated MOHRE approval is completed.

3. AED 1 Million Bank Guarantee or Approved Insurance

   Temporary employment and outsourcing agencies must maintain financial security of at least AED 1,000,000.

   For mediation-only agencies, the minimum is AED 300,000. Businesses should account for this separately when preparing their startup budget.

   A company may spend relatively modest amounts on registration, office rent and administrative processing but still need substantial liquidity because of the guarantee and worker payroll obligations.

4. Clean Criminal Record

   The applicant, sole establishment owner or relevant partners cannot have certain convictions involving matters such as dishonesty, breach of trust or human trafficking unless the legal rehabilitation conditions have been satisfied.

   A valid police clearance or good-conduct certificate is therefore normally part of the application file.

5. Financial Reliability

   MOHRE may require a credit report showing the financial position of the applicant or partners.

   The licensing procedures also refer to evidence of financial solvency such as bank statements.

   This requirement makes practical sense because a manpower business may need to pay hundreds of employees before receiving payment from clients.

6. Suitable Business Premises

   MOHRE's licensing framework states that an applicant should have a clearly identifiable business address dedicated to the agency activity, unless the Ministry specifically permits electronic operation.

   Office requirements can also vary according to the emirate, licensing authority, workforce size and nature of operations.

Documents Required for a Manpower Supply Licence

• The exact document list may vary according to your company structure and licensing authority.
• You should generally prepare:

• Initial approval from the relevant economic licensing authority

• Trade name reservation

• Passport copies of shareholders or licence holders

• Emirates ID copies where applicable

• Commercial licence or incorporation documents

• Police clearance certificate

• Credit report

• Bank statements or financial solvency documents

• Declaration confirming compliance with employment agency regulations

• Office or premises information

• Location or site plan where requested

• MOHRE application forms

• Bank guarantee or approved insurance documentation

MOHRE's procedures specifically refer to the economic authority's initial approval, establishment location information, identification documents, credit reports, clearance certificates and financial solvency evidence.

Step-by-Step Manpower Supply Company Setup in UAE

1. Decide Exactly What Services You Will Offer

   Start by deciding whether you will provide:

   • Recruitment and candidate placement

   • Temporary staffing

   • Labour outsourcing

   • Project-based manpower

   • Skilled technical manpower

   • Administrative staff

   • Construction manpower

   • Hospitality staff

   • Logistics workers

   • A combination of recruitment and manpower supply

   This determines whether you need mediation, temporary employment and outsourcing or a combined agency approval.

2. Choose Your Legal Structure and Emirate

   Select the emirate where your company will be registered and determine the appropriate legal structure.

   For manpower operations serving UAE businesses, you should verify the licensing jurisdiction carefully before paying incorporation fees.

3. Reserve the Trade Name and Obtain Initial Approval

   Apply through the relevant economic licensing authority.

   The proposed activity must accurately describe the regulated manpower or employment agency business. You may also need external approval from MOHRE before the final economic licence can be completed.

4. Prepare the MOHRE File

   Compile the required shareholder documents, criminal clearance documents, financial records, premises details and declarations.

   MOHRE then reviews whether the licensing conditions have been satisfied.

5. Arrange the Bank Guarantee or Insurance

   For a temporary employment and outsourcing agency, plan for the AED 1 million financial-security requirement.

   Do not confuse this with the separate worker-level guarantees or insurance arrangements that may apply to individual employees.

6. Pay Licensing Fees and Complete Approval

   MOHRE's licensing framework provides for payment of the applicable federal fees after the required approvals and financial security are completed.

   MOHRE lists the following current employment-agency licensing fees:

   Agency Type	New MOHRE Licence Fee	Renewal Fee
   Mediation	AED 25,000	AED 12,500
   Temporary Employment and Outsourcing	AED 50,000	AED 25,000
   Combined	AED 75,000	AED 37,500

   MOHRE currently states that employment agency licences are valid for two years and lists a five-working-day processing period for renewal.

   The Ministry's procedures also state a 10-working-day service response time for the employment agency licensing process once the relevant requirements are in place. Treat these as government processing times rather than a guaranteed total company formation timeline.

What Happens After You Get the Licence?

Receiving the licence is only the beginning.

A manpower supplier becomes an employer with ongoing responsibilities toward every worker it sponsors.

Open the MOHRE Establishment File

Your business needs the required establishment registration before it can recruit and sponsor employees.

The UAE Government's mainland employee recruitment guidance explains that employers need an establishment file and related employment approvals before recruiting workers.

Obtain Work Permits

Workers cannot legally work in the UAE without the appropriate work authorisation. Nexture's UAE labour card and work permit guide explains how these employment records work.

Your agency also needs sufficient quota and must comply with the conditions applicable to the occupations being recruited.

Arrange Residency and Employee Documentation

Depending on the worker and assignment, the process can involve a work permit, residence procedures, medical testing, Emirates ID and employment contract registration.

Salary Payments and WPS Compliance

A manpower agency remains responsible for paying the employees it employs.

MOHRE-registered private sector employers generally pay eligible employees through the Wage Protection System.

The UAE Government's current WPS and salary payment guidance confirms that establishments registered with MOHRE must pay covered workers through the system according to the applicable wage rules.

For a manpower supplier, this creates an important cash-flow issue. Imagine that you supply 100 workers earning an average of AED 3,000 per month. Your monthly basic payroll exposure alone could be around AED 300,000 before accommodation, transport, visas, insurance and administration.

If your client pays invoices after 60 days but you must pay employees monthly, your business needs enough working capital to cover that gap. Late payment by a client does not automatically remove your obligation to pay your employees.

Nexture's guide to WPS penalties in the UAE covers the compliance risks in more detail.

Can a Manpower Agency Charge Workers Recruitment Fees?

No. Federal Decree-Law No. 33 of 2021 prohibits employers from charging workers recruitment and employment costs, directly or indirectly.

Your commercial model should therefore generate revenue from the business receiving the manpower rather than by recovering recruitment costs from workers.

This should be built into your pricing before you begin signing client contracts.

Worker Accommodation May Also Apply

Large manpower businesses should budget for accommodation requirements. Current UAE Government guidance states that establishments employing 50 or more workers earning AED 1,500 or less per month must provide qualifying worker accommodation and register the relevant information in MOHRE's labour accommodation system.

This can become a major operating expense for companies supplying lower-paid labour in construction, logistics, cleaning, industrial services and similar sectors.

How Much Does It Cost to Start a Manpower Supply Company?

There is no single all-inclusive price.

For a temporary employment and outsourcing business, your budget can include:

• Economic licence and registration fees

• AED 50,000 MOHRE new licence fee

• AED 1 million minimum bank guarantee or applicable approved insurance

• Office rent

• Immigration and establishment registration

• Employee work permits

• Residency processing

• Worker insurance

• Recruitment costs

• WPS and payroll administration

• Employee accommodation where applicable

• Transport

• Medical expenses

• Software and HR systems

• Working capital for payroll

The AED 1 million guarantee should be separated from ordinary operating costs when calculating your startup investment. It is also worth estimating at least several months of payroll working capital before accepting large manpower contracts.

Common Mistakes to Avoid

One common mistake is choosing a normal HR consultancy licence when the real business model involves sponsoring and supplying workers.

Another is focusing only on the commercial licence fee while ignoring the AED 1 million financial-security requirement.

Cash flow is another major risk. A profitable manpower contract can still put pressure on the company if employees must be paid every month while clients settle invoices after 30, 60 or 90 days.

You should also avoid informal arrangements where workers sponsored by one company are simply sent to another company without the correct regulatory structure.

Finally, never build recruitment fees charged to workers into your financial model. UAE labour law places recruitment and employment costs on the employer side, not the worker.

Conclusion

Getting a manpower supply licence UAE involves much more than registering a normal service company.

If your agency will employ workers and supply them to clients, you generally need approval for temporary employment and outsourcing through MOHRE. The financial requirements are substantial, including at least AED 1 million in security for this activity.

You also become responsible for work permits, employment contracts, wages, WPS compliance and other employee obligations.

The best approach is to plan the complete operating model before applying. Decide how many workers you expect to sponsor, how quickly clients will pay, what accommodation and transport will cost and how much working capital you need.

Frequently Asked Questions