Overview
This guide covers key considerations for starting a manpower supply company in UAE, from choosing a suitable regulated activity and jurisdiction to meeting MOHRE licensing requirements and maintaining compliance. It also highlights the differences between manpower supply, temporary employment and recruitment activities.
How to Start a Manpower Supply Company in UAE
Under the temporary employment and outsourcing framework, a manpower supply company in UAE hires employees and makes them available to a beneficiary company. Unlike recruitment or mediation, the manpower supply company remains the worker’s employer and requires a commercial licence and the necessary MOHRE approval.
What Is a Manpower Supply Company in UAE?
An agency, a worker and a beneficiary company are involved in a manpower supply arrangement. The beneficiary supervises the worker’s activities during a specified period, task, or service, while the agency retains the employment relationship. The arrangement is documented through a formal agreement and falls under temporary employment and outsourcing.
Manpower Supply vs Recruitment Agency: What Is the Difference?
A recruitment agency and a manpower supply company may operate under different regulated activities, depending on the services offered.
Mediation
Mediation brings an employer and potential worker together to create an employment relationship, without the agency becoming a party to that relationship. A recruitment agency using this approach may require a recruitment agency licence for the applicable mediation activity.
Temporary Employment and Outsourcing
A temporary employment and outsourcing agency hires workers and makes them available to a beneficiary while maintaining the employment relationship. This is typically the model applicable to a temporary employment agency or labour supply company in the UAE.
Combined Activity
An agency may engage in both mediation and temporary employment and outsourcing activities under the relevant combined approval.
According to the Ministry of Human Resources and Emiratisation (MOHRE), regulated activities include mediation, temporary employment and outsourcing, or a combination of the two, with the relevant licensing requirements and guarantees.
Which Authorities Regulate Manpower Supply Companies?
- Ministry of Human Resources and Emiratisation (MOHRE): Regulates licensing and employment-agency activities.
- Emirate-level economic authority: Issues the commercial licence.
- ICP/relevant residency authority: Manages relevant immigration and residency procedures.
Businesses considering Mainland Company Formation should make sure the commercial activity and MOHRE approval align.
Who Can Start a Manpower Supply Company in UAE?
The regulated activity and applicant structure determine eligibility. Ownership, applicant or partner suitability, criminal records, creditworthiness, and financial solvency are among the MOHRE requirements that may apply, with rules varying between sole proprietorships and legal entities.
Foreign-ownership rules for ordinary UAE businesses do not automatically determine eligibility for a manpower supply business under the MOHRE licensing framework.
Can a Free Zone Company Operate a Manpower Supply Business?
It depends on the specific free zone, business activity, worker arrangements, beneficiary operations and relevant MOHRE requirements. Manpower supply to mainland beneficiaries is not automatically authorised by having a free-zone company or by doing an HR-related free-zone activity.
MOHRE Requirements for a Manpower Supply Licence
MOHRE employment agency licence requirements for businesses seeking a manpower outsourcing licence UAE can include:
- Economic licensing authority initial approval
- Suitable premises
- Identity and ownership documents
- Credit report
- Criminal-record documentation
- Evidence of financial solvency
- Required guarantee or approved insurance arrangement
Further documents may apply, and certain licence changes may need prior MOHRE approval.
Bank Guarantee and Insurance Requirements
The manpower supply licence bank guarantee is based on the agency activity. An approved insurance alternative may be available, subject to relevant conditions. The guarantee or insurance arrangement must continue to be compliant throughout the licence duration and is separate from worker-level protection requirements.
Manpower Supply Licence Fees in UAE
The regulated activity determines the licence fee.
|
Activity |
New Licence |
Renewal |
|
Mediation |
AED 25,000 |
AED 12,500 |
|
Temporary employment and outsourcing |
AED 50,000 |
AED 25,000 |
|
Combined activity |
AED 75,000 |
AED 37,500 |
These are MOHRE licence fees, not the overall setup cost. Economic licensing, premises, bank guarantees or insurance, immigration and work permits may add to the total.
How to Start a Manpower Supply Company in UAE
The manpower supply company setup UAE process is as follows:
- Confirm the Employment Agency Activity
- Confirm Eligibility and Ownership Requirements
- Choose the Emirate and Legal Structure
- Reserve the Trade Name and Obtain Initial Economic Approval
- Secure Suitable Business Premises
- Prepare the MOHRE Application Documents
- Apply for MOHRE Employment-Agency Approval
- Provide the Required Guarantee or Insurance
- Pay Licence Fees and Complete Commercial Licensing
- Set Up Employment and Immigration Records
- Complete Ongoing Compliance Requirements
PRO & Government Services may also assist with related government and administrative procedures.
Agency Responsibilities Towards Supplied Workers
The agency remains the employer and holds responsibility for employment documents, permits, wages, and employee protection. The employer must not charge workers recruitment or employment fees, directly or indirectly.
The agency and beneficiary must also have a formal agreement describing their respective responsibilities.
Wages Protection System and Payroll Compliance
Where WPS applies, the agency remains accountable for employee wage payments and should maintain accurate payroll records. Persistent non-compliance may result in regulatory action, including licence suspension or revocation.
Emiratisation and Pension Registration
Evaluate relevant Emiratisation requirements based on the company’s classification and workforce. Eligible Emirati and GCC workers may require MOHRE and pension or social-security registration, including GPSSA where relevant.
Expatriate workers are typically not registered with GPSSA under the Emirati pension scheme.
Ongoing Compliance
Key responsibilities may include:
- Annual commercial and MOHRE licence renewal
- Maintaining guarantees or insurance
- Maintaining employee, payroll and worker-permit records, including WPS compliance
- Emiratisation and pension compliance where relevant
- Obtaining approvals for licence amendments
Tax & Accounting services can support Corporate Tax, accounting, VAT and payroll needs.
Common Mistakes
- Selecting mediation for a workforce-supply model
- Assuming a standard HR consultancy licence permits manpower supply
- Assuming a free-zone licence permits MOHRE-regulated outsourcing
- Ignoring WPS, wage and employer obligations
- Relying on outdated requirements or confusing guarantee types
FAQs About Manpower Supply Companies in UAE
What is the difference between a recruitment agency and a manpower supply company?
Through mediation activity, employers and workers can be connected without the agency becoming their employer. A manpower supply company employs workers and supplies them to a beneficiary.
Can a foreign investor start a manpower supply company in UAE?
Yes, foreign investors can start a manpower supply company in UAE, subject to existing MOHRE eligibility and licensing requirements.
How much bank guarantee is required for a manpower supply licence?
AED 300,000 is required for mediation, while AED 1 million is required for temporary employment and outsourcing or combined activities.
What documents are required for a MOHRE employment-agency licence?
Documents may include identity and commercial documents, economic approval, credit and criminal-record information, premises documentation and financial-solvency evidence.
