Starting a recruitment company in Dubai involves more than getting a standard professional trade licence. Recruitment, employment mediation and temporary staffing are regulated activities, which means businesses operating in these areas may also need approval and licensing from the UAE Ministry of Human Resources and Emiratisation (MOHRE).
The rules matter because the financial requirements differ considerably depending on how your agency operates. A company that simply introduces candidates to employers falls under a different category from a company that hires workers and supplies them to client businesses.
This guide explains the recruitment agency license Dubai requirements, MOHRE fees, bank guarantees, documents and setup process.
What Is a Recruitment Agency License in Dubai?
A recruitment agency licence allows a business to conduct approved employment agency activities in the UAE.
Under the UAE's executive regulations governing recruitment agencies, recruitment activities broadly fall into two categories:
Mediation: The agency connects an employer and candidate, assists them in negotiating employment terms and facilitates the employment relationship. The agency itself does not become the worker's employer.
Temporary employment and outsourcing: The agency employs the worker directly and then assigns that person to work for another business, referred to as the beneficiary.
Businesses can also obtain approval covering both categories. This distinction should be decided before incorporation because it affects your MOHRE licence fee and required financial security.
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Recruitment Agency vs HR Consultancy in Dubai
An HR consultancy and a recruitment agency are not automatically the same business.
An HR consultancy may provide services such as workforce planning, HR policies, organisational advice, compensation planning and other consulting services.
A recruitment agency goes further by undertaking employment mediation or temporary staffing activities.
This difference is important. Registering a consultancy activity does not automatically give your company permission to conduct activities regulated by MOHRE.Your actual business model should therefore determine the activity selected on your Dubai licence.
Types of MOHRE Recruitment Agency Licences
MOHRE currently provides three main licensing options.
Agency Activity | MOHRE New Licence Fee | Minimum Bank Guarantee |
Mediation agency | AED 25,000 | AED 300,000 |
Temporary employment and outsourcing | AED 50,000 | AED 1,000,000 |
Combined activities | AED 75,000 | AED 1,000,000 |
These figures come from MOHRE's current new employment agency licensing service. The Ministry also allows an approved insurance arrangement to be provided as an alternative to the bank guarantee where applicable.
The guarantee should not simply be treated as another government fee. It is financial security maintained for the validity of the licence and MOHRE may use part or all of it to settle amounts due because the agency failed to meet its obligations.
For many founders, this financial-security requirement is the main difference between setting up a normal consulting company and operating a regulated staffing business.
MOHRE Requirements for a Recruitment Agency License in Dubai
Applicants must meet a number of suitability and compliance conditions.
- Suitable owners and partners
A sole proprietor or partners in the legal entity must comply with MOHRE's eligibility requirements.
Applicants must not have certain convictions involving offences such as breach of honour or trust, human trafficking or specified offences under UAE labour legislation unless the applicable rehabilitation conditions have been satisfied.
MOHRE also restricts applicants who own or participate in establishments carrying relevant labour-law violations.
- MOHRE relationship restrictions
The applicant or partners cannot be employees of MOHRE or fall within the restricted family relationships specified by the Ministry.
The legal representative must provide the relevant declaration.
- Business premises
MOHRE requires an identifiable address dedicated to conducting the agency's activity unless the Ministry specifically allows the recruitment activity to operate electronically.
Applicants are also asked to provide information showing the location of the establishment.
- Financial capacity
Applicants must provide financial information demonstrating their ability to operate the agency.
MOHRE currently requests documents including:
Credit report
Certificate of financial solvency
Property report of the licensee
Required bank guarantee or approved insurance arrangement
These requirements mean founders should consider financial eligibility early rather than applying for the commercial licence first and dealing with MOHRE requirements later.
Documents Required for a Recruitment Agency License
MOHRE's current service information lists documents that can include:
Initial approval from the relevant economic department
Passport copies of the licensee
Emirates ID copies
Valid commercial licence documentation
Establishment location diagram
Police clearance certificate
Credit report
Certificate of financial solvency
Licensee's property report
Declaration acknowledging the rules governing employment agencies
Requirements can change based on the legal structure, partners and proposed activities.
Companies being formed by founders outside the UAE can also review Nexture's guide on setting up a Dubai company remotely for the broader incorporation documentation.
How to Set Up a Recruitment Agency in Dubai
The setup normally involves coordination between Dubai's business licensing authority and MOHRE.
- Define your recruitment model
Decide whether you will provide:
Candidate-employer mediation
Temporary staffing and outsourcing
Both activities
Do this before choosing the licence activity because each model has different regulatory requirements.
- Choose the legal structure and activity
For a Dubai mainland business, company registration and commercial licensing are handled through the Dubai Department of Economy and Tourism.
DET provides its current mainland business licensing services for trade names, licensing and related company registration procedures.
- Obtain initial economic approval
The relevant recruitment activity should be selected and the required initial approval obtained from the licensing authority.
Because recruitment is externally regulated, commercial approval and MOHRE approval must be coordinated.
- Secure suitable premises
Arrange an appropriate establishment address and prepare the location information requested by MOHRE.
A simple virtual licence should not be assumed to satisfy the regulated recruitment-agency requirements unless the relevant authorities specifically approve that operating model.
- Prepare the MOHRE application
Gather the police clearance, identification records, financial documents and company documentation.
The application can then be submitted through MOHRE's available service channels.
- Pay the licence fee and provide financial security
Once approved, pay the applicable federal licensing fee and arrange the required bank guarantee or permitted insurance alternative.
MOHRE's separate employment agency bank guarantee process explains how the guarantee is deposited through a participating bank and electronically recorded by the authorities.
- Complete commercial and establishment registrations
Complete the remaining Dubai licensing formalities and register the establishment details with MOHRE where required.
MOHRE states that creating an establishment file for a recruitment or mediation agency requires the reference number associated with the agency guarantee.
How Much Does a Recruitment Agency License Cost in Dubai?
There is no single all-inclusive recruitment agency setup price.
The MOHRE component currently starts at:
AED 25,000 for mediation
AED 50,000 for temporary employment and outsourcing
AED 75,000 for combined activities
You then need to account for the AED 300,000 or AED 1 million financial-security requirement, depending on the activity.
Other costs may include:
Dubai commercial licence fees
Trade name and registration charges
Office rent
Establishment and immigration-related charges
Visas
Documentation
Insurance or banking costs
Professional setup assistance
Because the bank guarantee is financial security rather than an ordinary licence fee, it is better to separate it from your operating-cost budget.
We’ll model the requirements and send back a single-page breakdown within 24 hours.
Recruitment Agency Licence Renewal
MOHRE states that recruitment agency permits are valid for two years under its current service information.
Current federal renewal fees are:
Agency Type | Renewal Fee |
Mediation agency | AED 12,500 |
Temporary employment agency | AED 25,000 |
Combined activities | AED 37,500 |
The required guarantee must remain valid and the agency should not have restrictions, outstanding compliance issues or suspension affecting its licence.
MOHRE lists a processing period of 5 working days for qualifying renewal applications.
Rules Recruitment Agencies Must Follow
Licensing is only the beginning of the compliance responsibility.
Recruitment agencies cannot collect employment commissions, recruitment charges or similar fees from workers, directly or indirectly. MOHRE has specifically stated that agencies must not receive money, commissions or fees from workers for obtaining employment.
Agencies must also deal with properly licensed recruitment partners when sourcing workers through other parties or overseas entities.
For temporary employment arrangements, responsibilities are divided between the agency and the beneficiary company. Contracts, worker supervision, working conditions and labour-law obligations therefore need to match the approved staffing model.
Conclusion
Getting a recruitment agency license in Dubai requires more planning than forming a standard professional services company.
The first decision is whether your business will only connect employers with candidates or actually employ workers and supply them to clients. That choice determines whether your MOHRE fee is AED 25,000, AED 50,000 or AED 75,000 and whether your minimum financial security is AED 300,000 or AED 1 million.
Before committing to a company structure, confirm the exact recruitment activity, Dubai licensing route, premises requirements and MOHRE approval conditions. Getting those points right at the beginning can prevent licence amendments and regulatory problems after launch.
Frequently Asked Questions
Do recruitment agencies need MOHRE approval in Dubai?
Yes. Businesses conducting regulated employment mediation, temporary employment or outsourcing activities require the appropriate MOHRE approval and licence.
How much is a recruitment agency license in Dubai?
MOHRE charges AED 25,000 for mediation, AED 50,000 for temporary employment and outsourcing and AED 75,000 for a combined licence. Other Dubai setup costs apply separately.
What bank guarantee is required for a recruitment agency?
A mediation agency requires at least AED 300,000. Temporary employment, outsourcing and combined licences require at least AED 1 million.
Can a recruitment agency charge candidates a placement fee?
No. Recruitment agencies must not charge workers commissions or recruitment fees for obtaining employment.
How long does MOHRE approval take?
MOHRE currently lists a service completion period of around 10 working days for a complete new agency licence application, subject to satisfying all requirements.
Is an HR consultancy licence enough for recruitment?
Not necessarily. HR consultancy and regulated employment agency activities have different scopes. Businesses carrying out employment mediation or temporary staffing should obtain the approvals required for those activities.
