Inquiry: Establishing a Recruitment Agency in Abu Dhabi
I’m looking for guidance on how to establish a recruitment agency in Abu Dhabi. Specifically, I would like to know the legal requirements and registration procedures involved in this process. Furthermore, I would appreciate insights into the current commission rates for recruitment services in the UAE market. Thank you!
RCadmin
Setting up a recruitment firm in Abu Dhabi involves several steps and adhering to various legal requirements. Here’s a detailed overview of the process you will need to follow:
Steps to Set Up a Recruitment Firm:
Outline your business strategy, target market, services offered, and financial projections. This will guide your business and help attract potential investors or partners.
Choose a Business Activity:
Clearly define the type of recruitment services you want to provide, such as permanent staffing, temporary staffing, or executive search.
Select a Business Structure:
Decide whether you want to set up as a sole proprietorship, limited liability company (LLC), or another structure. For a recruitment firm, an LLC is a common choice as it limits personal liability.
Register Your Business Name:
Choose a unique name for your recruitment firm and register it with the Abu Dhabi Department of Economic Development (DED).
Legal Requirements and Licensing:
Ensure compliance with any specific regulations set by the Ministry of Human Resources and Emiratisation (MoHRE).
Open a Corporate Bank Account:
After obtaining your commercial license, set up a corporate bank account in the UAE to manage your business finances.
Recruitment and HR Policies:
Establish internal recruitment policies, onboarding processes, and other HR-related functions to ensure smooth operations.
Gather Marketing Materials:
Create a professional website and marketing materials to promote your recruitment services.
Networking and Client Acquisition:
Legal Requirements:
Commission Percentages in UAE Market:
In the UAE, commission percentages for recruitment services typically range from 15% to 25% of the candidate’s first-year salary, depending on the industry and the level of the position being filled. Specialized roles or executive placements might command higher fees, sometimes reaching 30% or more. It’s also common for firms to have structured pricing for different types of services, so it’s beneficial to conduct market research to align your rates competitively.
Additional Tips:
Consulting with a local business adviser or legal expert can further streamline this process and ensure compliance with all regulations. Good luck with your recruitment firm!