Inquiry: Setting Up a Recruitment Firm in Abu Dhabi

Inquiry: Establishing a Recruitment Firm in Abu Dhabi

I’m looking for guidance on how to establish a recruitment firm in Abu Dhabi. Could someone share the necessary steps involved in this process? I would particularly appreciate details on the legal requirements and registration procedures. Additionally, I would like to know about the current commission percentages for recruitment services in the UAE market. Thank you!

One thought on “Inquiry: Setting Up a Recruitment Firm in Abu Dhabi”

RCadmin

March 8, 2025 at 12:22 pm

Setting up a recruitment firm in Abu Dhabi involves several key steps and legal requirements. Here’s a step-by-step guide to help you navigate the process:

1. Business Plan Development

Outline your business model, target market, services offered, and financial projections. A well-structured business plan is vital for securing funding and navigating the setup process.

2. Legal Structure Selection

Decide on the type of company you wish to establish (e.g., LLC, sole proprietorship, or free zone company). Each has different implications for ownership, liability, and taxation.

3. Trade Name Registration

Choose a unique name for your recruitment firm and ensure it complies with Abu Dhabi’s naming conventions. You can register the name with the Department of Economic Development (DED).

4. Obtain Necessary Licenses

Apply for a recruitment agency license through the DED. This includes fulfilling specific requirements such as submitting your business plan, proof of address, and relevant qualifications.

5. Office Space Lease

Secure a physical office space as per the regulations. This is often required for the licensing process and must meet local zoning laws.

6. Local Sponsor or Partner

If you are a foreign investor, you may need to engage a local sponsor or service agent who can be a UAE national and hold 51% ownership unless you establish in a free zone that allows 100% foreign ownership.

7. Register with the Ministry of Human Resources and Emiratization

As a recruitment agency, you must register with the Ministry of Human Resources and Emiratization (MoHRE) to comply with labor regulations and to be able to operate legally.

8. Open a Corporate Bank Account

Once your business is registered, open a corporate bank account in the UAE to manage your finances and handle client payments.

9. Hire Employees

Depending on your business model, hire staff to assist with recruitment, administration, and business operations.

10. Insurance and Compliance

Obtain necessary insurances (e.g., liability insurance) and ensure compliance with other local laws and regulations.

11. Marketing and Networking

Develop a marketing strategy to promote your recruitment services. Networking with businesses and professionals in Abu Dhabi will also help establish your reputation and client base.

Commission Percentages in the UAE Market

Commission percentages for recruitment services in the UAE typically range from 15% to 25% of the candidate’s first annual salary. However, this can vary depending on the industry, the level of the position being filled, and the specific agreement negotiated with clients. Some niche or higher-level roles may attract higher fees.

Conclusion

Setting up a recruitment firm in Abu Dhabi requires careful planning and adherence to regulatory requirements. Consulting with a local business advisor or legal expert may be beneficial to ensure compliance with all local laws and to streamline the process. Good luck with your venture!