How to Start a Manpower Company in Dubai, UAE: Licence Types, Requirements, and Steps

How to Start a Manpower Company in Dubai, UAE Licence Types, Requirements, and Steps

Quick Summary

  • A manpower or recruitment business needs two approvals: a DET trade licence and a MOHRE agency licence.
  • MOHRE’s published fee schedule lists bank guarantees of AED 300,000 for a mediation licence and AED 1,000,000 for a temporary employment or combined licence.
  • Ownership eligibility should be confirmed with DET before filing; a free zone consultancy is the fallback for foreign founders.
  • MOHRE lists a 10-working-day service completion time for new agency licence issuance.

 

What Is a Manpower Company in the UAE, and Which Licence Do You Need?

A manpower company in the UAE falls into two regulated categories. A temporary employment and outsourcing agency sponsors workers and seconds them to client companies. 

A mediation agency matches candidates with employers who sponsor them directly. Both require a mainland trade licence from the Dubai Department of Economy and Tourism (DET) plus a separate agency licence from MOHRE.

Neither licence works on its own. You cannot legally supply or place workers in the UAE market on a trade licence alone, and MOHRE will not issue an agency licence without proof of an underlying DET trade licence.

Licence type

Who sponsors the workers

Governing body

Best for

Temporary employment and outsourcing licence

The agency itself sponsors and seconds workers to client companies

MOHRE, with a DET trade licence

Ongoing outsourced labour supply

Mediation (recruitment brokerage) licence

The end employer sponsors the worker directly

MOHRE, with a DET trade licence

Placement and candidate matching

Combined licence

Covers both models under one entity

MOHRE, with a DET trade licence

Businesses running both models

Getting the activity classification wrong at this stage means refiling later, which costs both time and licensing fees, so confirm the exact activity code with DET before you reserve a trade name.

Can a Foreigner Own a Manpower Supply Company in Dubai?

The UAE amended its Commercial Companies Law to remove majority Emirati ownership requirements across most mainland business setup activities. 

The current federal exclusion list covers security and defense, telecommunications, banking and insurance, commercial agencies, Hajj and Umrah organizing, Quran recitation institutes, and marine catching. 

Manpower supply and recruitment activities are not on that list.

This doesn’t automatically confirm 100% foreign ownership for your specific activity code, though. 

DET assigns activity-level conditions at the point of application, and MOHRE applies its own eligibility rules to the licence applicant regardless of the ownership structure above it. 

Eligibility checklist for the applicant, per MOHRE’s own published conditions:

  • No current or prior employment with MOHRE, and no close family relation to a MOHRE employee for the applicant role
  • A clean labour-law compliance record, with no prior establishment closures tied to labor law violations
  • No convictions involving dishonesty, breach of trust, or human trafficking, unless legally rehabilitated
  • A dedicated, verifiable business address for the agency
  • A submitted credit report from a recognised credit authority

 

If your founder profile doesn’t cleanly fit the mainland route, a free zone recruitment consultancy licence is worth evaluating. 

It generally allows international placement work without local UAE employment sponsorship, though it carries its own scope limits worth checking against your business plan.

Which license type fits your manpower or Recruitment Business?

The three routes’ founders confuse most often are manpower supply, recruitment brokerage, and free zone consultancy, and each carries a different legal relationship with the worker. 

Getting this wrong mid-application is a common and avoidable source of delay.

  • Manpower supply (temporary employment and outsourcing): your company is the legal sponsor of the workers. You second them to client businesses under a service contract and carry the labor law liability for those workers.
  • Recruitment brokerage (mediation): you introduce candidates to employers, but the employer becomes the sponsor once the contract is signed. Your liability exposure is lower, and MOHRE’s bank guarantee requirement reflects that.
  • Free zone recruitment consultancy: you place candidates into roles, typically for employers outside the UAE or into mainland roles where the employer handles sponsorship itself.

 

Factor

Manpower supply

Recruitment brokerage

Free zone consultancy

Who sponsors the worker

Your company

The end employer

Not applicable in most cases

MOHRE bank guarantee

AED 1,000,000 minimum

AED 300,000 minimum

Not required

Licence issuer

DET plus MOHRE

DET plus MOHRE

Free zone authority

Best fit

Ongoing staffing contracts

Placement and search work

International or remote-facing placement

Costs and regulations are subject to change. Confirm current figures with the relevant UAE government authority or with JSB before making decisions.

What Does It Cost to Start a Manpower or Recruitment Company in Dubai?

Costs fall into three categories: the DET trade licence fee, the MOHRE agency licence fee, and a bank guarantee. 

MOHRE’s published fee schedule lists the agency licence fee at AED 25,000 for mediation, AED 50,000 for temporary employment, and AED 75,000 for a combined license, on top of the DET trade licence cost.

The bank guarantee is separate from the licence fee and must be maintained for the duration of the license, per MOHRE’s conditions. 

MOHRE’s published minimum is AED 300,000 for a mediation licence and AED 1,000,000 for a temporary employment, outsourcing, or combined license, held at an MOHRE-approved bank.

 

Cost item

Manpower supply

Recruitment brokerage

Free zone consultancy

DET trade licence fee

Applies

Applies

A free zone fee applies instead

MOHRE agency licence fee

AED 50,000

AED 25,000

Not applicable

Bank guarantee

AED 1,000,000 minimum

AED 300,000 minimum

Not applicable

Combined licence fee

AED 75,000

AED 75,000

Not applicable

What Is the Step-by-Step Process to Register a Manpower Company in Dubai?

Registering a manpower or recruitment company runs through DET first and MOHRE second. 

Skipping ahead in that order causes most rejected applications. The sequence below reflects the standard mainland path for this activity.

  1. Select the correct DET activity classification for manpower supply, mediation, or a combined scope.
  2. Reserve your trade name with DET.
  3. Obtain DET’s initial approval for the licence application.
  4. Draft and notarize your Memorandum of Association and Articles of Association if applicable to your legal structure.
  5. Secure your office lease and Ejari registration, since MOHRE requires a verifiable business address.
  6. Submit your DET trade licence application and pay the applicable fee.
  7. Apply for the MOHRE agency license, submitting your trade license, passport and Emirates ID copies, credit report, police clearance certificate, and signed acknowledgment of agency regulations.
  8. Deposit the required bank guarantee with an MOHRE-approved bank once MOHRE issues its approval notification.
  9. Complete establishment card registration to begin sponsoring or processing employee visas.

 

MOHRE’s published service completion duration for a new temporary employment or mediation agency licence is 10 working days from a complete submission. Incomplete documentation is the largest driver of delays beyond that window.

Client experience: “We have recently incorporated our company through JSB Incorporation. Gaurav Keswani has been a tremendous help throughout the entire process. His support enabled us to complete everything seamlessly, even accommodating last-minute changes. It was a wonderful experience working with JSB Incorporation. We look forward to a long-term engagement.” Veena Talegaonkar, Google Reviews.

What Documents Do You Need to Apply?

Documentation requirements differ slightly for mainland and free zone applicants, but the mainland manpower and recruitment route generally asks for your trade license, corporate documents, and personal-conduct verifications for every partner and legal representative. 

Missing even one item restarts MOHRE’s review clock.

  • Initial approval from DET for the licence application
  • Valid DET trade licence for the corporate entity
  • A signed acknowledgment of the legal regulations governing agency activities
  • Passport and Emirates ID copies for the licensee
  • A diagram showing the physical location of the establishment
  • A credit report from a recognised credit authority
  • A valid police clearance certificate for the applicant
  • Certificate of financial solvency and a property report for the licensee

 

Free zone applicants for a recruitment consultancy model typically submit a shorter document set through their chosen free zone authority, since the MOHRE agency licence and bank guarantee generally don’t apply to that structure.

How Long Does Approval Take?

Approval timelines depend on how complete your documentation is at first submission and which licence category you’re applying for. 

MOHRE’s own published figure for issuing a new temporary employment or mediation agency licence is 10 working days once your file is complete, though this excludes the preceding DET trade licence stage.

Rather than quoting an unverified total turnaround figure, confirm the currently published DET processing time for your specific activity directly with DET at the time you file, since mainland trade licence timelines vary by jurisdiction and activity complexity.

Frequently Asked Questions

  1. Do I need a UAE national to own a manpower supply company?

The federal ownership law no longer requires a majority Emirati shareholder for most mainland activities, and manpower supply doesn’t appear on the current federal list of excluded activities. 

2. Can I run a recruitment agency from a free zone instead of the mainland?

Free zone recruitment consultancy licences exist as an alternative, typically covering international or employer-sponsored placement work. 

They generally don’t require the MOHRE bank guarantee that applies to mainland manpower supply and brokerage licences. Confirm scope limits with your chosen free zone authority before assuming full equivalence.

3. Is a bank guarantee required for a manpower or recruitment license, and how is the amount set?

Yes. MOHRE’s published fee schedule requires a bank guarantee of at least AED 300,000 for a mediation licence and at least AED 1,000,000 for a temporary employment or a combined license, maintained with an MOHRE-approved bank for the licence duration.

4. Is a manpower supply licence the same as a recruitment agency license?

No. A manpower supply licence makes your company the legal sponsor of the workers you place, carrying full labor-law liability. 

A recruitment brokerage licence has the end employer sponsor the worker while your agency only facilitates the match between candidate and employer.

5. What documents do I need to apply for a manpower company license?

Core documents include your DET trade license, passport and Emirates ID copies, a location diagram, a credit report, a police clearance certificate, a signed acknowledgment of agency regulations, and a certificate of financial solvency, submitted to MOHRE alongside your existing trade licence.

6. How long does approval typically take once documents are submitted?

MOHRE lists a 10-working-day service completion time for issuing a new agency licence once your submission is complete. 

The preceding DET trade licence stage runs on a separate timeline that you should confirm directly with DET for your specific activity code.

7. Can a free zone recruitment company place candidates into UAE mainland jobs?

This depends on the specific free zone’s licensed activity scope and whether the mainland employer holds its own sponsorship arrangement. 

8. What happens if I operate a manpower business without the correct labor-ministry permit?

Operating a manpower or recruitment business without the required MOHRE agency licence exposes the business to regulatory action under UAE labor law. 

9. How much capital should I plan for before starting a manpower or recruitment company in Dubai?

Budget for the DET trade licence fee, the MOHRE agency licence fee, and the bank guarantee, which MOHRE’s published schedule sets at AED 300,000 for mediation or AED 1,000,000 for temporary employment activities at minimum, plus your office lease costs.

Reviewed by Gaurav Keswani, Founder, JSB Incorporation

Gaurav Keswani is the Founder of JSB Incorporation, a Dubai-based business setup and immigration consultancy. He appeared on Talk 100.3 FM answering live listener questions on UAE Golden Visa eligibility, citing GDRFA and ICP guidelines directly on air. JSB Incorporation handles documentation preparation and application coordination; all visa and license decisions rest with the relevant UAE government authorities, GDRFA, ICP, DET, and DLD.

Ready to Start Your Manpower Company the Right Way?

Choosing between a manpower supply license, a recruitment brokerage license, and a free zone consultancy structure isn’t something to guess your way through, especially once ownership eligibility and a six or seven figure bank guarantee are involved. 

JSB’s team can then manage trade name reservation, Memorandum of Association notarization, MOHRE permit liaison, and establishment card registration on your behalf, so you’re not coordinating two government departments alone. 

Contact JSB Incorporation at Regal Tower, Business Bay, Dubai, to schedule your consultation.

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