Every year, more than 20,000 new businesses get started in the UAE, opening doors for several manpower supply companies in the region. These companies provide labour or professionals to new businesses. The growth in the number of businesses has led to an increase in the demand for manpower agencies.
To start a manpower supply company in the UAE, you need to apply for a Manpower Supply Licence. This type of licence enables you to perform the activity of labour/workforce supply to other companies and act as a bridge between employer and employee.
In order to operate legally, a manpower agency in the UAE must hold a Manpower Supply Licence under the Private Employment Agency Law, known as MR 1283, issued by the Ministry of Labour. This type of licence is also known as the On-Demand Labour Supply Licence.
Listed below are seven steps to start a manpower supply company in the UAE.
- Company Name Registration: The process starts by checking whether your proposed company name is already registered in the registry books. If not, you need to apply for a company name reservation and get the company name registered in the Registry Office.
- Notarisation: After name approval, you need to apply for notarisation of the company Memorandum and Articles of Association at the Department of Economic Development (DED).
- Apply for Final Approval: Next, you need to submit all the necessary company documents to the authority to apply for final approval. The authority will verify the documents and give final approval. You need to then pay the necessary licensing fees to obtain the licence. The documents required to obtain a Manpower Licence include:
- Copies of valid passports of shareholders
- Copy of the applicant’s family book
- Copy of applicant’s ID Card (for nationals)
- A statement of good conduct
- Copy of Trade Name application with the Trade Register
- Shareholders’ written statements on the opening of the company
- A blueprint of the manpower supply company’s location
- Obtain Licence: Once you receive the final approval, the relevant authority will issue the licence. The licence must be renewed yearly.
- Apply for Labour Card: After getting the licence, the next step is to apply for the Labour Card and the Establishment Card with the Ministry of Labour.
- Register Workers with MOL: Once the labour card is issued, the next step is to register your native workers with the Ministry of Labour
- Register Workers with GAPSS: The last step is to register your workers with the General Authority for Pension and Social Security.
Conditions For Starting a Manpower Supply Company in the UAE:
- Only UAE nationals can apply for a manpower supply licence in the UAE.
- The agency manager must be a UAE local and registered with the Ministry of Labour.
- Expats are only allowed to start manpower supply agencies in the free zones.
- The applicant must have a degree of graduation or at least a high school degree.
- The manpower agency must have a head office with a registered address at which it will carry on its activities.
- The agency must hire an adequate number of supervisors and administrative employees to carry on the business functions smoothly.
- To ensure worker protection, the MR1283 law requires agencies to deposit AED 2,000 for every employee on board.
- All the shareholders of the manpower supply company should be 21 years old or above and be UAE nationals.
- The partners of the company are expected to have a clean legal record.
- Manpower supply agencies must inform the Ministry about any variations made within the agency.
- Throughout the validity period of the manpower supply licence, the agency needs to submit a bank guarantee of AED 300,000 to the Ministry.
Setting up a manpower supply company in the UAE is a lucrative business opportunity. However, the process can be laborious and time-consuming. Reliable company formation consultants like Creative Zone can help with the setup process.
At Creative Zone, we take care of the entire setup process and the documentation required for obtaining the manpower supply licence. If you are looking to start a manpower supply company in the UAE, please call us at 800 LICENSE (5423673) to arrange a consultation with one of our company formation advisors today.