Open a HR company in the UAE: a step-by-step guide

Open a HR company in the UAE: a step-by-step guide

June 30, 2022

Starting a HR company in the UAE

Recruiting the right staff is crucial for any UAE business. Poorly chosen hires hamper a firm’s progress while draining resources, and can even give a company a bad reputation. That’s why so many businesses choose to work with an HR company, to ensure access to bespoke talent.

This article shows you how to set up your HR company in the UAE, covering the following areas:

  • Benefits of starting an HR company in the UAE
  • Steps to open an HR company in the UAE
  • Cost of opening an HR company in the UAE
  • Documents needed to start an HR company in the UAE
  • Why choose UAQFTZ?

Benefits of starting an HR company in the UAE

Business in the UAE is booming, creating fertile ground for recruitment companies that can offer not just candidates but the best hires available. If you have the experience and skills to handle recruitment, there’s a rich market waiting for you here, in a region still buzzing in the aftermath of Expo 2020 Dubai.

If you’re setting up in a UAE free trade zone, UAQFTZ offers some significant advantages. Business incorporation in the zone is very simple, and the setup fees are low. Combined with the generally low costs in Umm Al Quwain and the region’s great infrastructure, it’s the perfect place to establish your HR company.

Steps to open an HR company in the UAE

Setting up an HR company in the UAE involves specific steps that apply across all licence and business types. The first thing you need to do is decide what your specific area of business activity will be. You will also need to appoint a manager for your company. This individual must hold a licence to perform specific recruitment-related activities, and they will act as your primary head-hunter.

Having established all this, these are the steps you will need to follow to apply for your trading licence:

Step 1: Submit three proposed names for the company, in order of preference, along with a statement of your business area and your request for a commercial licence. The application can be made direct to UAQFTZ. Names should avoid referencing other companies or including anything that might be judged blasphemous.

Step 2: Submit all the required documents, including the application form and a scanned colour copy of your passport.

Step 3: Sign and submit the original company incorporation documents to the FTZA.

Step 4: Send the required payment once the documentation has been approved.

Step 5: Take receipt of your HR company commercial licence. The process can take as little as one day, so you won’t have to wait long.

Cost of opening an HR company in the UAE

Licence packages in UAQFTZ start from AED 8,000 for a no-visa package and AED 13,500 for a two-visa package. Payment is flexible – for example, you can pay the total AED 8,000 in one lump sum or 12 AED 786 instalments, paid each month.

Contact UAQ Free Trade Zone for a personalised quote based on your specific requirements. The process is swift and straightforward, and your company could be incorporated in just one day.

Documents needed to start an HR company in the UAE

Obtaining your recruitment licence in the UAE is a simple process, and the red tape and documentation are kept to a minimum. To apply, you will need the following: 
  • Three proposed names for your consultancy business, listed in order of preference.
  • A completed application form.
  • A colour copy of your passport, plus two passport-sized photographs. The appointed company manager and any other named business partners will have to submit the same items.
  • Proof of residence – this should be your most recent utility bill and must include your name and address.


UAE recruitment agencies: success stories

HR companies come in all sizes in the UAE, and there are many success stories. One of the largest in the business is Jams HR Solutions, who claim to be pioneers of HR outsourcing in the region. With high staff numbers and long experience behind them, they are one of the primary HR specialists for large and medium-sized enterprises in the UAE.

Founded in 1997, Najma Consultancy specialises in all aspects of Human Resources, focusing on bringing Asian employees into the UAE. They are experts in the fine art of job specifications, defining roles for companies across all sectors in terms of job descriptions, qualifications, salary structure and benefits. They also offer health and safety training for candidates after selection prior to their arrival in the UAE.

It’s All About People demonstrate the effectiveness of keeping things small. The company employee count is in single figures and consists of UAE-based European HR consultants. One of their key claims is value for money – with limited overheads, they can charge relatively low rates, making them highly competitive compared to some of the bigger HR consulting companies. One of their specialisms is job evaluation, making sure that the salary fits the role, which in turn will attract top candidates.

Why choose UAQFTZ?

When you set up your business in UAQFTZ, you reap all the benefits of the UAE’s business-friendly approach and Umm Al Quwain’s super-modern infrastructure and low cost. There’s also a seaport here, and Dubai International and Sharjah International Airports are close by.

As a UAE recruitment company, you will also benefit from UAQFTZ’s low costs, zero tax, 100% company ownership, repatriation of all capital and profits, and no foreign exchange controls or currency restrictions.

You won’t need bank letters, capital proof documents, NOC or audit reports when you set up a UAQ Free Trade Zone company. You don’t even have to be physically present when setting up the company and applying for the HR company licence, and there’s no charge for your establishment card.

As the company owner and licence holder, you can use your existing visa on an ongoing basis, with no requirement for a specific Umm Al Quwain Free Trade Zone visa. What’s more, as a visa holder in UAQFTZ, you can sponsor their families. This applies to your company’s shareholders and employees, too.

The UAE needs recruiters


Businesses looking to expand and prosper in the booming UAE region rely on the expertise of recruitment agencies. They appreciate that matching candidates to job vacancies is a science rather than a blind leap of faith. There are hundreds of businesses out there waiting for your tailored recruiter skills.

And, with the zero tax and low-cost, high standard of living waiting for you in UAE, what better place to reap the benefits? Contact UAQFTZ today for a personalised quote based on your requirements, and your company could be incorporated within one day.

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