The total number of companies in UAE is increase every day; every year more than 20,000 businesses are setup in UAE; which open a door for new labour supply company in UAE; because every new company want to start their operation quickly with a minimal cost. So they are looking for labor supply company to provide them labor or professional to start their operation as soon as possible. So it increases the demand for manpower supply license in UAE. For manpower supply license in UAE the gov’t permitting the License under a private employment agency Law in 2011; also known as MR 1283, issued by the Ministry of Labor. This type of a license is also known as on demand labour supply license. The holder of manpower supply license in UAE is allows to supply work force to other companies;
In order to start manpower supply license in UAE; you need to apply for a on demand labour supply license; which is professional license. This type of a license enables you to perform activity of labor supply; and become a bridge between employer and employee. In this type of a license you can store data of the employee; and whenever employers need to hire an employee form this agency you are providing them.
On demand labour supply license must be renew yearly. One of the conditions of manpower supply license in UAE is that only UAE nationals can apply for it; and also the manager must be a uae local. The new UAE law also states that agencies must inform the Ministry about any variations made within the agency. The Dubai employment agency is also required to have a registered address. Expat are only allowed to start recruitment agencies in Dubai free zones.
How to start a manpower supply company in UAE
To start a manpower supply company in UAE you need to follow the following six steps.
- First of all apply for name reservation for the company and Apply for registration
- After name approval apply for notarization of the company MOA at DED for your manpower supply license in UAE
- File company documents and apply for final approval.
- After getting a license next step is to apply for labor card; as well as the establishment card at the Ministry of Labor
- Register native workers with the Ministry of Labor
- Register native workers with the General Authority for Pension and Social Security
Detail of On Demand Labour Supply license
- Activity Code : 749103
- Activity Group : Labour Supply & employment agency
- License Type : Professional
Activity Description: On demand labour supply license allow you to supply labor to others companies; that is on temporary basis. The holders of manpower supply license in UAE are works like an employer; and recruit a labor which is then to be available for a third party (User). The third party may be a natural person or corporate person; in order to perform a job or service under control and the supervision of the User. In this case, the agency becomes an Employer with direct business link with the concerned labour. The labour can be hired from outside as well as from inside of the country.
Terms and Conditions for manpower supply license in UAE
- In case of natural person, the applicant age must be 21 or above with full capability. And also all company partners must be a UAE national.
- During the license legitimacy age, the candidate will submit a bank security deposit to the Ministry; which value shall not be less than one million dirhams in case of on demand labour supply license. The bank guarantee must be renewed repeatedly. The Ministry may allocate all or some of this security; to pay any expanses that the company will pay due to its failure to perform the duties; under the requirements of this law and to fulfil with orders and decrees issued thereunder.
- The natural person or any partners in the company in case of corporate bodies; shall not be convicted of any crime; any kind of corruption, break of trust, a crime of human trafficking; or any of those crimes specified in the labour law regulation or its applying decrees. Unless he or she is reform after the issuance of a judgment limiting his or her freedom; or after the gap of one year from the date of fine on him or her.
- The applicant will give an on paper undertaking that no change will be made to partners; that is, either adding of a new partner or removing of a partner. But they can do that after getting a written approval from the Ministry.
- The candidate will have a head office with a clear address, at which the company will perform its activities. Such head office is license for only that purpose; and will satisfy the standards specified by the law of UAE. The agency may not practice its activity except through such head office.
- The company will hire a suitable number of executive employees; as well as administrators who have right experience in their line of work
- The company certified signatory must fulfil the same conditions of the company manager
- The company manager must be a UAE passport holder; as well as he will have at least a high school degree. Natural persons who apply for license are an exception, as he or she can be the agency manager.
- The candidate will pay the fees once the license to practice the demanded activity is initially accepted.