How to Open a Recruitment Agency in the UAE: MOHRE Licence, Bank Guarantee and Requirements

A recruitment agency in the UAE needs two licences: a trade licence from the economic authority and a recruitment or mediation licence from the Ministry of Human Resources and Emiratisation (MOHRE). The MOHRE licence also requires a bank guarantee, and the amount depends on the type of agency you open. This guide explains the three licence types, the requirements, the documents, the fees and the steps.

Key takeaways

• Federal Decree-Law No. 33 of 2021 says no one may run mediation or recruitment activity without a licence from the Ministry.
• MOHRE issues three types of licence: mediation, temporary employment and outsourcing, and a combined licence.
• The MOHRE fee is AED 25,000, AED 50,000 or AED 75,000 depending on the type, and processing takes 10 working days.
• The bank guarantee is at least AED 300,000 for a mediation agency and at least AED 1,000,000 for temporary employment, outsourcing or the combined licence.
• You need initial approval from the Department of Economic Development, a trade licence and several personal documents such as a police clearance and a credit report.

The Three Types of Agency Licence

MOHRE separates agencies by how they place workers. Pick the type that matches your business model, because the fee and the bank guarantee both change with it.

The fees exclude tax and collection charges, according to MOHRE. Applying through the MOHRE website or app is free, while a business centre can charge a commission of up to AED 72.

What each type does

• Mediation agency: finds candidates for employers, and the employer hires them directly.
• Temporary employment and outsourcing agency: employs the workers itself and supplies them to client companies.
• Combined licence: does both, which is why it carries the highest fee and the same top guarantee.

Agencies that recruit domestic workers follow separate rules under Ministerial Resolution No. 676 of 2022. Ask us before you plan a domestic worker agency, because that route has its own requirements.

How to Choose the Licence Type

Start with the service you will sell. If you search for candidates and hand them to employers, a mediation licence is the lightest option. If you want to employ workers on your own payroll and place them with clients, you need the temporary employment and outsourcing licence, and its guarantee is more than three times larger.

You can open with a mediation licence and add the other activity later. That keeps the guarantee and the fee lower while you build clients, but any change to the licence details needs MOHRE’s written approval. If you already know you will supply workers, apply for the right licence from the start.

Think about your clients too. Large employers ask for proof of the licence and the guarantee before they sign. Keep copies of both ready when you pitch.

Who Can Apply

MOHRE sets conditions on the owner or partners of the agency. These checks protect workers and employers, and they decide whether your application is accepted.

• The applicant, whether a sole proprietor or partners, cannot be a MOHRE employee or a second-degree relative of one, unless the legal representative gives a written acknowledgement.
• The applicant needs a clearly identifiable business address, unless MOHRE permits electronic recruitment.
• The applicant must not be an owner or partner in an establishment that closed for violating the labour law or its decisions.
• Owners and partners must not have been convicted of crimes such as breach of trust or human trafficking, unless rehabilitated or enough time has passed after a fine.
• The legal representative must submit a written statement acknowledging the agency regulations.

Any change to the partners or the licence details needs MOHRE’s written approval, so plan the ownership structure before you apply.

Documents You Need

MOHRE lists nine documents for a new licence. Prepare them early, because the credit report and the police clearance come from other authorities.

1. Initial approval from the Department of Economic Development.
2. A diagram showing the location of the establishment.
3. Copies of the licensee’s passport and Emirates ID.
4. A copy of the valid trade licence.
5. The acknowledgement of the agency regulations.
6. Credit reports on the applicant or each partner, issued by the competent authority.
7. A valid police clearance certificate.
8. A certificate of financial solvency.
9. The licensee’s property report.

The Application Steps

You apply online, and MOHRE checks the requirements before it issues the licence certificate. Here is the order MOHRE describes.

1. Log in with a username and password or with UAE Pass.
2. Submit the application through a service centre, the website, the mobile app or Tawseel.
3. MOHRE checks the requirements and documents and reports any shortfall for you to complete.
4. Receive approval and the licence certificate, then pay when you are notified.
5. Pay the federal fees and provide the bank guarantee or the insurance, depending on the activity you chose.

MOHRE lists the processing time as 10 working days. That counts from a complete application, so the initial approval and the personal documents decide your real timeline.

The Bank Guarantee

The guarantee is the biggest financial commitment. MOHRE says it must stay valid for the whole licence period, and it must be renewed automatically or replaced by an insurance system.

MOHRE can use the guarantee or the insurance to cover amounts the agency owes or to cover non-compliance. A guarantee of AED 300,000 or AED 1,000,000 ties up credit with your bank, so talk to your bank before you choose the licence type. Our guide to corporate bank account opening explains how banks assess a new company.

Set Up the Trade Licence First

The MOHRE application asks for a valid trade licence and the initial approval from the Department of Economic Development. That means you form the company, choose the activity and secure the premises before you approach MOHRE. Our Dubai mainland business setup page shows how we handle that stage.

Compare the routes in our guide to mainland, free zone and offshore setup. Recruitment is a workforce-regulated activity, so confirm with us that your chosen authority will license it before you pay for a lease.

After You Get the Licence

The licence is the start of your compliance duties, not the end. You will hire your own team, register for taxes and run payroll like any other employer.

• Hire your team: our guide to hiring your first employee covers the work permit, contract and payroll steps.
• Pay salaries on time: read about the Wages Protection System (WPS).
• Know the Emiratisation rules: see our guide to the 30 June Emiratisation deadline.
• Complete your registrations: our guide to what to register after your licence lists the next steps.

If you only want to place workers in the UAE without forming a company, compare your options in our guide to employer of record versus company formation.

The sister site companyformationinuae.com explains the establishment card your company needs before it can sponsor visas, and its home page lists its other UAE guides.

What to Budget For

The MOHRE fee is only one line. Plan for the company costs, the guarantee and the running costs together, and ask for written quotes before you commit.

• Trade licence: our starting price for a Dubai mainland company is AED 14,626, and your quote depends on the activity and the premises.
• MOHRE licence fee: AED 25,000, AED 50,000 or AED 75,000, excluding tax and collection charges.
• Bank guarantee or insurance: AED 300,000 or AED 1,000,000 held for the licence period, plus your bank’s charges.
• Premises: MOHRE asks for a clearly identifiable business address, so budget for a lease.
• Visas and payroll: your own team’s work permits, medical tests and salaries.
• Renewal: the licence renews, and MOHRE has a separate renewal service, so confirm the renewal fee.

A Realistic Timeline

Plan the work in stages. Form the company and get the trade licence first, then collect the personal documents while the initial approval is processed. Apply to MOHRE once the file is complete, and arrange the bank guarantee in parallel so you can provide it as soon as MOHRE approves.

MOHRE’s 10 working days is the review time, not the whole project. A founder who waits to request the credit report or the police clearance can lose weeks. Start those documents on day one.

Compliance and Tax

A recruitment agency is a normal UAE company for tax purposes. It must register for Corporate Tax and file a return, and it must register for VAT once its turnover passes the threshold. Our guide to annual UAE company compliance lists the yearly tasks.

Keep clear records of every placement, every invoice and every client contract. MOHRE can use the guarantee to cover amounts an agency owes, so good records also protect your guarantee if a dispute arises.

Common Mistakes

1. Choosing the wrong licence type. A mediation licence does not allow you to employ and supply workers.
2. Underestimating the guarantee. A guarantee of AED 300,000 to AED 1,000,000 must stay valid for the whole licence period.
3. Applying before the trade licence exists. MOHRE asks for the trade licence and the initial approval.
4. Changing partners without approval. Any change needs MOHRE’s written approval first.
5. Delaying the personal documents. The credit report, police clearance and solvency certificate take time to obtain.

Next Steps

Tell us which type of agency you plan to run, who the owners will be and which bank you use. We will confirm the licence type, set up the trade licence and prepare the MOHRE application. Fees and conditions change, so confirm every figure on the current MOHRE service page before you pay.

Frequently Asked Questions