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Recruitment agency or manpower supply licence?

Recruiting or supplying workers in the UAE needs a MOHRE agency licence. Whose payroll they sit on sets the category.

Recruiter interviewing a candidate across a desk in a bright office
Usual route
Mainland (DET)
Extra approval
MOHRE
Timeline
Weeks to months
AML
Not a DNFBP activity
At a glance

A recruitment or manpower supply agency holds a trade licence from the Department of Economy and Tourism (DET). It also needs an agency licence from the Ministry of Human Resources and Emiratisation (MOHRE). Matching candidates with employers is intermediation, and deploying workers on your own payroll is temporary employment, with a larger bank guarantee. MOHRE also expects a dedicated office.

Covers
Sourcing, screening and placing candidates; supplying workers to clients
Not covered
Domestic workers (separate MOHRE office licence); HR advice alone
Premises
Dedicated office used solely for the agency; no flexi-desk
Timeline
Weeks to months, led by MOHRE vetting and the guarantee

Where recruitment work stops

The edge is the kind of worker you place, who they are for and whose payroll they join once the placement is made.

Covered

Not covered

  • Covered by a domestic worker recruitment office
  • Covered by Management consultancy
  • Covered by a separate HR provision activity

Intermediation and temporary employment are separate MOHRE categories, and a combined licence holds both, so we set the category with you before you apply.

Route for a recruitment agency

Where your client employers sit decides the route, since placing or supplying workers into mainland jobs runs through MOHRE and its agency licence.

Likely route by where most of your clients are
If most of your clients areLikely routeWhy
Mainland companies hiring staff in the UAEMainland (DET)Placing workers into mainland jobs needs the MOHRE agency licence
Clients using workers on your payrollMainland (DET)Temporary employment is the MOHRE category with the larger guarantee
Companies inside free zonesFree zoneA free zone licence suits search and placement for free zone clients
Employers abroad hiring senior peopleEither routeSearch for overseas employers can sit on a free zone licence

A free zone company can reach mainland clients through a DET branch licence or permit (Executive Council Resolution 11 of 2025). Placing workers into mainland jobs is MOHRE-regulated, and mainland income can affect QFZP status.

Several free zones license this activity; we match the zone to your visas, office and banking. Compare free zones

Who approves a recruitment agency

DET issues the trade licence. MOHRE then vets every partner, checks the office and requires the bank guarantee before the agency licence. A partner linked to a business closed for labour violations can block it.

  1. Before the licence

    • Trade name and initial approvalDET
    • Dedicated agency officeMOHRE condition
  2. The licence

    • Trade licenceDET
  3. After the licence

    • Partner vetting and credit reportMOHRE
    • Bank guarantee or approved insuranceThe bank, in MOHRE's favour
    • Agency licenceMOHRE
    • Corporate bank accountThe bank

We line up the office, the partners and the guarantee before MOHRE sees the file.

Whose payroll is the worker on?

That one answer sets the MOHRE category, the size of the guarantee the agency must hold and, for households, a separate licence altogether.

A combined licence holds both business categories under the AED 1,000,000 guarantee. Long-term employer of record work is confirmed case by case.

Who are the workers for? by On whose payroll does the worker sit?
The employer'sYours
BusinessesEmployment intermediation MOHRE agency licence, with a bank guarantee of AED 300,000 or approved insurance.Temporary employment MOHRE agency licence, with a bank guarantee of AED 1,000,000 or approved insurance.
HouseholdsDomestic worker recruitment A separate, stricter MOHRE licence for offices recruiting for households.Domestic worker supply Sits under the domestic worker regime; we confirm the model per case.

What banks ask an agency

Bank viewCloser look: the guarantee, client contracts and payroll flows

The guarantee comes first, because it either ties up cash or needs a bank facility. A temporary employment model then moves large payroll sums every month through the Wage Protection System. Expect questions on client contracts, on payroll flows and on who funds the guarantee, and on whether the first clients are already signed. We prepare the bank file around the client contracts and the payroll plan, so the reviewer sees signed work behind every monthly payroll run.

AMLNot a DNFBP activity; the bank's own customer checks still apply.

Where agency files stall

  1. Licensed as a consultancy, trading as an agency

    An HR consultancy licence does not cover placing candidates or deploying workers. MOHRE limits recruitment to licensed entities, publishes lists of licensed offices and acts on unlicensed recruitment, so clients and candidates can check before they sign anything.

  2. Planning a MOHRE agency on a flexi-desk

    MOHRE asks for a clearly identifiable address used solely for the agency's business. A shared or virtual desk falls short, and the lease has to be right before the agency application, so we check the space before you sign.

  3. A fee model that charges candidates

    UAE labour law bars charging workers recruitment or employment costs, directly or indirectly. Recovering costs from candidates through salary deductions or registration charges breaks that rule, and agency revenue has to come from the employer side.

Recruitment and manpower licence questions

A question about your plan? Describe your recruitment agency plan and an advisor replies on WhatsApp.

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Do I need a MOHRE licence to open a recruitment agency in Dubai?

Yes, if you place candidates into mainland jobs or supply workers to clients. The agency licence is separate, and it needs a dedicated office, vetting of every partner and a bank guarantee or approved insurance. HR advice that places nobody sits outside that regime.

What is the difference between recruitment and manpower supply in the UAE?

Payroll. Recruitment, which MOHRE calls employment intermediation, introduces candidates who then join the employer's payroll. Manpower supply, or temporary employment, keeps the workers on your payroll and deploys them to clients. The second carries the larger MOHRE bank guarantee, and a combined licence covers both if the business does each.

Can a free zone recruitment company place candidates with mainland employers?

Rarely on the free zone licence alone, because placing or supplying workers into mainland jobs is MOHRE-regulated. A DET branch licence or permit lets free zone companies reach mainland clients, but its first phase covers non-regulated activities. A free zone licence suits search for free zone or overseas clients.

Can a recruitment agency charge candidates a fee in the UAE?

No. UAE labour law bars charging workers any recruitment or employment costs, directly or indirectly, and limits recruitment mediation to licensed entities. The fee comes from the employer. Salary deductions or registration charges count as indirect fees, and MOHRE enforcement against agencies that take them is active.

Can a recruitment agency work from a virtual office in Dubai?

No, for a MOHRE agency licence. The ministry asks for a clearly identifiable address used solely for the agency's business, unless it permits electronic recruitment. Shared or virtual desks fall short of that. A search firm serving overseas clients from a free zone works to that zone's office rules.

Set the MOHRE category for your agency before the guarantee is arranged

Thirty minutes on your payroll model and the clients you expect. You leave with the MOHRE category, the route and the approvals in order.

On the call

  1. The activity wording that fits your plan
  2. The route, and the approvals in order
  3. A written scope, agreed before any work starts
Portrait of your advisor
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