How to start a manpower supply company in the UAE?

Manpower supply company

The demands for jobs in the United Arab Emirates are increasing due to the companies that are formed. This is due to the great opportunities offered by places like Dubai and Abu Dhabi, as well as other emirates. Therefore, it is an ideal opportunity for the formation of a manpower supply company in the UAE.

In this article, we will expose what are the advantages of forming this type of company in the UAE. Likewise, you will know each of the steps that you must follow to be able to establish your company and the necessary considerations. Below, you can see in detail all these aspects of the formation of this type of company:

  1. What is a manpower supply company?
  2. Benefits of starting a manpower company in the UAE
  3. How can you start a manpower supply company in the United Arab Emirates?
  4. Are there conditions to start this type of company?
  5. How can PEO Middle East help you start a manpower supply company in the UAE?

1. What is a manpower supply company?

manpower supply company

A manpower supply company provides services related to hiring employees for a business. In addition, these companies ensure that their clients obtain the best workforce based on what they are looking for. Thus, a manpower provider guarantees you one of the essential elements of any company.

Likewise, the human capital must be the most qualified to ensure the effectiveness and efficiency of the work. Not only will the maintenance of your business depend on this but also on its growth. Therefore, a manpower supply company in the UAE guarantees committed and qualified workers.

Likewise, this company takes into account all the conditions that your company demands and begins the search process. Therefore, this type of company works as a link between a business and aspiring employees. In addition, it not only provides help to employers but also to employees.

2. Benefits of starting a manpower company in the UAE

Starting a manpower supply company in the UAE is a smart decision. This is due to its ever-growing economy, ease of doing business, and strategic location. Additionally, there are many benefits associated with forming this type of company in this part of the world.

2.1 Tax benefits

Both Dubai and Abu Dhabi have proven to be tax havens for investors from most of the world. this is because the tax rate is 0%. This means that your company will be free from paying income taxes, both personal and corporate.

2.2 Operating costs are low

The operating costs of a company in the UAE are characterized by being quite low. These costs are lower than in many major cities around the world.

2.3 There is no exchange control

In the United Arab Emirates, there are no restrictions regarding currencies, as the exchange rate is fixed. This has served to promote the stability of the local currency and confidence in it.

2.4 The government favors business

To attract companies to invest in the UAE, the government of the country has established business-friendly regulations. For example, it has managed to establish a series of international trade treaties, as well as laws to prevent commercial crimes. It has also created policies to make it easier for companies to obtain business licenses.

2.5 High-level infrastructure

When setting up a manpower supply company in the UAE, you will not have to worry about finding the best place. This is because this country offers the most modern infrastructure in terms of offices, business parks, and warehouses.

2.6 Excellent location for world trade

When choosing a place to set up a company, the United Arab Emirates is a great option. This is thanks to its strategic location in the world, nestled between Africa, Europe, and Asia. Thus, it has easy access for the transport of goods between the great markets of the world.

3. How can you start a manpower supply company in the United Arab Emirates?

mapower supply company

To start a manpower supply company in the UAE you need to know the steps. The stages include choosing a name, obtaining a license, and registering employees, among others. Below you will find the detailed steps to establish your company in the UAE.

3.1 Choose a trading name for your company

Once you have decided to establish your company, the first thing is to choose an appropriate name for it. This must be carried out at the UAE Registry Office and must comply with the regulations established by the government. Some considerations to take into account when choosing a name for your company are:

  • The name must be unique, that is, it must not be registered by another company.
  • Company names beginning with “Middleast”, “Universal”, or “International” or their corresponding Arabic translation are not permitted.
  • If you choose to name your business, it must contain your first and last name, not just your last name.
  • It may not include the name of Allah or any name that represents him, nor should it refer to Islam.
  • Likewise, it may not contain references to any religion.
  • Names containing a trademark, region, Arabic names, abbreviations, or foreign words have an additional cost.
  • You cannot use a name that contains icons or special characters.

The name request can be made in person at any office of the Department of Economic Development (DED). You also have the option of registering online through the web portal of this same department. In the case of the second option, the steps to follow are:

  1. Go to the DED website.
  2. Select the option to reserve a new business name.
  3. At this point, select the business activity.
  4. Enter the name you want for your company. The system will show you if the one you have selected is available.
  5. When you find a valid name you can select “reserve name”.
  6. In this way, a trade name certificate will be issued.

3.2 Notarize the required documentation

The next step in starting your manpower supply company in the UAE is to apply for a Memorandum of Association (MOA) notarization. Likewise, the Articles of Association of the company you wish to register must also be notarized. As with name registration, this process must be carried out by the Department of Economic Development.

The Memorandum of Association is a corporate contract where all the founders or partners agree to the formation of the company. Likewise, this document must be signed by all the partners involved in the formation of said company, according to the established regulations.

The Articles of Association are the documents that specify the laws that regulate the management of an organization.

3.3 Sending multiple documents

Other documents that you must submit to continue with the process are:

  • Duly completed application form.
  • Initial business plan.
  • Proof documents of identification and address, both managers and shareholders.
  • Passport copies of shareholders and directors.
  • Photocopy of the approval of the commercial name of the company.
  • The Memorandum of Association (MOA).
  • Articles of Association (AOA).

You must also register your business with the Ministry of Human Resources and Emiratization. Also, if you want to bring workers from abroad, you will need to pay a deposit of AED 2,000 per employee.

3.4 Get a business license

After getting initial approval, the next step is to obtain a business license for your business to operate. This license is issued by the United Arab Emirates Department of Economic Development. At this point, you should have already obtained certain necessary documents such as the company name, MOA, and AoAs.

In addition, you must submit the following documents:

  • A rental agreement for the registered address of the company.
  • An application form filled out correctly and signed by the legal representative of the business.
  • DED approval on the establishment of the company.
  • Copies of passports of all shareholders of the company.

All of these documents must be filed with the Trade License and Commercial Registration Department, which is part of DED.

3.5 Obtain the labor card

After obtaining the business license, the next step is to get the labor card and the establishment card. In both cases, the UAE Ministry of Labor issues both cards. In this way, you will be able to hire employees, obtain work permits and opt for visas for your workers.

Also, these cards are evidence that your company is registered with the mentioned ministry. This will give you, in addition to the aforementioned benefits, a registration number in the UAE. Prerequisites include having a business license, and a PO Box address.

In addition to proof of the above, you must bring the following documents:

  • Copy of the MOA.
  • Copies of the passports of the partners of the company.
  • Map of the municipality with the exact location of the company.
  • Declaration of legalized power.
  • AED 2,000 plus typing fees.

3.6 Register your employees

The last step of registering your manpower supply company in the UAE is employee registration. You must first register your native employees with the UAE Ministry of Labor (MOL). Similarly, you must register them with the General Authority for Pensions and Social Security or GAPSS.

3.7 Find a local organization to carry out the process.

All the procedures described above will take time and may seem complicated to you. However, you can look into hiring the services of a local agency specializing in business creation. Therefore, you can trust these professionals to do everything you need to successfully establish your business.

In this sense, these organizations manage all aspects of the formation process of your company.

4. Are there conditions to start this type of company?

Before starting a manpower supply company in the UAE there are certain things to consider. Among these are:

  • Only citizens of the country can apply for a manpower supply license in the UAE.
  • The director of the company must be a citizen of the UAE, and also should have a registration within the Ministry of Labor.
  • The person making the request must have a professional degree or at least have graduated from high school.
  • An expatriate can set up a manpower supply company in one of the established free zones.
  • The established company has to possess an appropriate number of administrative employees so that it can perform its business functions.
  • An important part of worker protection is that these companies must deposit AED 2,000 for each employee. This law’s name is MR1283.
  • The partners of the company must be citizens of the UAE over 21 years of age. In addition, they must have a clean record.
  • If you make any changes within the company, you must notify the Ministry of Labor.
  • Another important point is that for the duration of the business license, the company must show a bank guarantee of AED 300,000 to this same Ministry.

5. How can PEO Middle East help you start a manpower supply company in the UAE?

Setting up a company that does this type of work in the United Arab Emirates is a good idea. This is due to the growing economy of the UAE, which sees the number of businesses constantly growing. Establishing this company can bring you many benefits if you have the right help. And helping you is what we do.

As specialists in company formation in the Middle East, we will help you establish and develop your business quickly. We also offer you great immigration services so you can count on a diverse workforce.

Moreover, we also have HR management and payroll outsourcing services in the UAE to help you make the most out of your company. We cover all of your HR needs!

Do you want to know more about forming a manpower supply company in the UAE? We can answer all your questions. For this, contact us by email at [email protected]. Likewise, you can reach us through the telephone number +971 43 316 688 where we will gladly assist you.

Alternatively, if you would like to work with our team that values your effort, you can submit your resume on thetalentpoint.com website. You can also send an email to [email protected] with your experience.

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