The manpower supply industry in Dubai plays a crucial role in connecting businesses with skilled workers across construction, logistics, hospitality, healthcare, and other vital sectors. With rapid infrastructure development and foreign investment, the demand for manpower supply companies in Dubai is higher than ever.
If you want to build a company that provides qualified workers to employers while following UAE’s labour laws, this guide will walk you through the complete process — from licensing and registration to cost, documentation, and compliance requirements.
Why Start a Manpower Supply Business in Dubai?
Dubai’s workforce market is one of the most dynamic in the Middle East. Thousands of new projects and startups launch every year, driving the need for professional recruitment and staffing services. Starting a manpower supply business in Dubai gives entrepreneurs the chance to tap into this multi-billion-dirham sector.
Booming Market Demand
From construction workers to medical staff, every sector in Dubai relies on outsourced manpower. The continuous flow of new business licenses increases recruitment needs across industries.
Strategic Business Environment
Dubai offers excellent business laws, tax benefits, and foreign ownership options. Investors can establish their manpower companies with minimal bureaucracy and complete legal protection.
Government Support
The UAE Ministry of Human Resources and Emiratisation (MOHRE) regulates the manpower sector, ensuring transparency, fair wages, and strong demand for compliant agencies.
Steps to Start a Manpower Supply Business in Dubai
Starting a manpower company requires careful planning, the right approvals, and a valid trade license. Below is the step-by-step process to help you navigate the setup smoothly.
Step 1 – Select the Right Business Structure
Choose the correct company structure depending on your goals and partnerships. You can register as a Limited Liability Company (LLC), Sole Proprietorship, or Branch of a Foreign Company. The LLC structure is the most common because it offers flexibility and full profit repatriation.
Step 2 – Choose the Business Location
Decide whether to operate on the mainland or in a free zone.
- Mainland setup (licensed by DED) allows you to supply workers directly to local businesses.
- Free Zone setup limits operations to within that zone but offers 100% foreign ownership.
Step 3 – Reserve a Trade Name
Submit your preferred business name to the Department of Economic Development (DED). The name must comply with UAE naming conventions — avoid offensive or religious terms.
Step 4 – Obtain Initial Approval
Apply for preliminary approval from the DED or Free Zone authority. This confirms that your business activities are permissible under UAE laws.
Step 5 – Draft the Memorandum of Association (MoA)
The MoA defines your company’s ownership, capital, and activities. It must be notarised and submitted to the licensing authority.
Step 6 – Apply for the Manpower Supply License
Submit your full application, including documents, to MOHRE and DED for an official manpower supply license. This step requires background checks, financial verification, and compliance with UAE labour policies.
Step 7 – Register with MOHRE and Other Authorities
After licensing, register your company under the Ministry of Human Resources and Emiratisation (MOHRE). You’ll also need approval from the General Directorate of Residency and Foreigners Affairs (GDRFA) for visa quotas.
Step 8 – Open a Corporate Bank Account
A local corporate account is mandatory to handle payments, salaries, and deposits. Choose a UAE bank that supports payroll and WPS (Wage Protection System) integration.
Step 9 – Hire Recruitment Staff and Office Personnel
Employ qualified recruitment officers and administrative staff with experience in human resource management, onboarding, and payroll systems.
Step 10 – Start Operations and Marketing
Once approved, you can start signing contracts with companies and deploying manpower. Build relationships with clients, advertise your services, and ensure full compliance with UAE labour laws.
Requirements to Obtain a Manpower Supply License in Dubai
The manpower supply license is mandatory for businesses that wish to provide temporary, contractual, or full-time staff to other companies in Dubai.
Financial Requirements
Applicants must demonstrate financial stability.
- Minimum share capital: AED 300,000 for professional manpower supply activities.
- Bank guarantee: AED 1 million for the main license and AED 50,000 per branch.
These deposits ensure workers’ rights and legal compliance.
Office Space and Location
You must lease a physical office space in Dubai — virtual offices are not allowed. The office must meet safety and accessibility standards verified by the municipality.
Approval from MOHRE
Approval from the Ministry of Human Resources and Emiratisation is essential. MOHRE verifies your company’s ability to meet manpower management, payroll, and labour contract obligations.
Experience and Professional Credentials
The company’s general manager or local service agent must have experience in human resources, labour supply, or recruitment to qualify for approval.
Labour Quota Registration
Once licensed, you must register under the UAE’s Wage Protection System (WPS) and request a visa quota to hire and sponsor employees legally.
How Much Does It Cost to Get a Manpower Supply License in Dubai?
The cost of setting up a manpower supply business depends on several factors, including office location, size, and the number of visas required.
License and Registration Fees
The total cost for obtaining a manpower supply license generally ranges between AED 50,000 and AED 80,000. This includes government registration, trade license fees, and documentation.
Office and Rental Costs
Renting an office in Dubai can cost anywhere from AED 15,000 to AED 50,000 per year, depending on location and size.
Additional Expenses
- Bank guarantee: AED 1 million
- Labour card and establishment card: AED 2,000–3,000
- Visa and employee sponsorship: AED 4,000–7,000 per employee
Proper budgeting ensures a smooth start and avoids interruptions during the licensing process.
Types of Manpower Supply Companies in Dubai
The UAE government recognises different categories of manpower supply and recruitment agencies based on their functions.
Temporary Employment Agencies
These agencies supply short-term labour to construction, hospitality, and logistics sectors. They manage contracts, payroll, and visa arrangements.
Recruitment and Placement Agencies
Focus on sourcing permanent staff for businesses across industries. They screen, interview, and recruit candidates locally and internationally.
Outsourcing Companies
Offer full outsourcing solutions, handling HR management, payroll, and visa processing for other firms.
Domestic Worker Agencies
Provide nannies, housekeepers, drivers, and personal staff to households. This category requires additional MOHRE approval.
Legal Compliance and Labour Regulations in Dubai
Compliance is the backbone of a sustainable manpower supply business in Dubai. The UAE has strict labour laws to protect both employees and employers.
Labour Law and Contract Regulations
All employees must have written contracts approved by MOHRE. Salaries must be processed through the Wage Protection System (WPS) to ensure transparency.
Worker Accommodation
If you provide on-site labour housing, it must comply with Dubai Municipality health and safety regulations.
Insurance and Medical Coverage
All employees must be covered by valid health insurance policies as per UAE law.
End-of-Service Benefits
Employers must provide gratuity, annual leave, and compensation in line with UAE Labour Law (Federal Decree-Law No. 33 of 2021).
Documents Required for Manpower Supply License
To obtain your license, prepare and submit the following documents:
- Passport copies of shareholders and managers
- Emirates ID and residence visa (if applicable)
- Trade name reservation certificate
- Memorandum of Association (MoA)
- Office lease agreement (Ejari)
- Initial approval from MOHRE
- Proof of capital and bank guarantee
Incomplete applications can lead to delays, so double-check all paperwork before submission.
Best Business Locations for Manpower Companies in Dubai
Selecting the right business location helps determine your accessibility, market reach, and compliance costs.
Dubai Mainland (DED License)
Mainland companies can supply manpower directly to both government and private sector clients throughout the UAE.
Free Zones
If your goal is to provide HR consultancy or outsourcing services (not direct manpower supply), consider Free Zones such as:
- Dubai Multi Commodities Centre (DMCC)
- Dubai South
- JAFZA (Jebel Ali Free Zone)
Free Zones offer easy setup, 100% ownership, and fewer regulatory complexities.
Advantages of Starting a Manpower Supply Company in Dubai
Dubai offers one of the most profitable business environments in the world for manpower agencies.
Growing Employment Market
The city’s rapid expansion in hospitality, construction, logistics, and retail sectors ensures continuous demand for skilled and unskilled labour.
Full Ownership Rights
Foreign investors can enjoy 100% business ownership under new UAE laws, making the process more transparent and investor-friendly.
Access to Global Workforce
Dubai’s immigration-friendly policies allow agencies to recruit workers from Asia, Africa, and Europe efficiently.
Tax and Profit Repatriation Benefits
No personal income or corporate tax, along with free profit repatriation, helps maximise ROI and operational efficiency.
Challenges in the Manpower Supply Industry
Like any business, manpower companies face challenges that must be managed strategically.
Strict Regulatory Requirements
Government approvals from MOHRE and compliance with WPS can be time-consuming, but they ensure fair treatment of employees.
Recruitment Costs
Recruiting and relocating staff from other countries involves costs for visas, flights, and onboarding.
Competition
Dubai’s manpower sector is highly competitive, with several established agencies. Focusing on quality, reliability, and niche sectors gives a competitive edge.
Labour Market Fluctuations
Economic slowdowns or project delays can temporarily reduce manpower demand. Diversifying client portfolios helps mitigate this risk.
How to Promote Your Manpower Supply Business
Marketing plays a key role in building a strong reputation in the manpower industry.
Build a Professional Website
Create an informative, SEO-optimised website showcasing your services, industries served, and client testimonials.
Network with Businesses
Join Dubai Chamber of Commerce and attend business expos to meet construction, hospitality, and logistics companies in need of staff.
Digital Marketing
Use Google Ads, LinkedIn, and local SEO to target employers searching for manpower agencies in Dubai.
Focus on Client Retention
Providing consistent, compliant, and high-quality services builds long-term contracts and word-of-mouth referrals.
Renewal and Maintenance of Manpower License
Renewing your license is crucial for uninterrupted operations.
Renewal Procedure
Submit updated documents, renewed Ejari, and pay renewal fees to the DED or Free Zone authority. Renewal usually takes 3–5 working days.
Compliance During Renewal
Ensure all employee visas are valid, WPS records are up-to-date, and bank guarantees remain active before renewal submission.
Late Renewal Penalties
Delays in renewal can result in fines or temporary suspension. Always renew 30 days before expiry.
Conclusion
Starting a manpower supply company in Dubai is a rewarding venture with strong market potential and government support. The UAE’s diverse economy ensures consistent demand for qualified workers across industries.
By following the right licensing steps, maintaining MOHRE compliance, and offering quality staffing services, your company can thrive in Dubai’s competitive market.
For expert assistance in setting up your business smoothly, consult Business Setup Consultants in Dubai, UAE for complete guidance — from documentation to license issuance.
FAQs
How do I start a manpower supply business in Dubai?
You need to register your company with DED, obtain MOHRE approval, submit required documents, and secure a manpower supply license.
How much does it cost to start a manpower company?
Costs range between AED 50,000 and AED 80,000 depending on office space, visas, and government approvals.
Can foreigners own a manpower supply company in Dubai?
Yes, foreign investors can now own 100% of their company under new UAE investment laws.
Do I need approval from MOHRE?
Yes, all manpower companies must be registered and approved by the Ministry of Human Resources and Emiratisation.
Can I supply workers to government projects?
Mainland-licensed manpower firms can supply workers to both government and private projects.
How long does it take to get the license?
It typically takes 3–6 weeks, depending on document completion and authority approvals.
What are the main challenges in this business?
Strict compliance, recruitment costs, and market competition are key challenges for manpower agencies.
What is the difference between manpower supply and recruitment?
Recruitment agencies hire employees for other companies, while manpower suppliers provide temporary or contractual workers.
Can Free Zone companies supply manpower to the mainland?
No, Free Zone companies cannot directly supply workers to mainland businesses without special approval.
Do I need a local sponsor for a manpower company?
Mainland companies may require a UAE national as a local service agent, while Free Zone setups allow full foreign ownership.
