How to Get HR Consultancy License in Dubai
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The HR consultancy market in Dubai is expanding rapidly due to the need for effective human resource management. A growing demand for HR consultancy services is driven by companies seeking to attract and retain top talent.
Obtaining an HR consultancy license in Dubai is essential for those looking to capitalize on this emerging market. This license allows individuals to meet the rising demand for HR services and work with clients across various industries. Services such as recruitment, training, employee relations, and HR strategy development can be provided with this license to support businesses in Dubai’s competitive market.
If you are interested in obtaining an HR consultancy license in Dubai, here’s a helpful guide to get you started.
What is an HR consultancy license in Dubai?
A Human Resources (HR) consultancy license in Dubai enables you to operate a business that offers HR services to other companies. These services may involve:
- Establishing and implementing HR policies and procedures
- Managing recruitment and onboarding processes
- Providing employee training and development programs
- Overseeing performance management
- Administering compensation and benefits
- Supporting organizational development
An HR consultancy business in Dubai assists companies with various HR responsibilities, allowing them to concentrate on their core activities. The Department of Economic Development (DED) is the primary authority for HR consultancies in Dubai. They manage the licensing procedure and ensure that businesses comply with legal regulations.
The Ministry of Human Resources and Emiratisation (MOHRE) oversees all employment matters in Dubai, including recruitment and labor standards. Additional permits may be necessary for certain activities, such as recruiting individuals from overseas.
What are the benefits of an HR consultancy in Dubai?
Once you have an HR consultancy license in Dubai, you will have the expertise to handle various aspects of human resource management. This may involve evaluating employee performance, developing leadership skills, designing organizational structures, and assisting companies in managing employee compensation and benefits.
- According to the UAE Human Resource Report 2019 by KPMG, 86% of HR executives recognize the need for workforce transformation. Your HR consultancy can lead this change with cutting-edge solutions tailored to the evolving demands of businesses.
- Setting up your HR consulting business in a Dubai free zone comes with significant advantages. You gain complete ownership of your company and enjoy 100% repatriation of both profits and capital. Additionally, free zones offer a tax-free environment, meaning zero corporate taxes or personal income tax obligations.
- With Dubai embracing advanced technologies, your HR consultancy can leverage the latest tools to offer top-tier services. The city’s commitment to a tech-driven future opens up tremendous opportunities for a modern, innovative HR business.
- Moreover, Dubai’s diverse and skilled labor market provides access to top talent from around the globe, creating fertile ground for your consultancy to thrive and deliver exceptional value to clients.
Eligibility criteria for getting an HR consultancy license
You do not need UAE nationality to own 100% of the consultancy company as an expat. Usually, relevant educational qualifications are required, such as a bachelor’s degree in HR, business administration, or economics. Experience in HR management is also typically necessary, with three years being a common requirement.
Steps to get the HR consultancy license in Dubai, UAE
To get an HR consultancy license in the UAE, follow these simple steps:
Here’s a quick look at the pros and cons:
- Define your business activities
Specify the HR services you intend to provide, such as recruitment, training, or policy development. This will help you select the appropriate license code.
- Choose a business structure
Select a legal structure for your business, such as a sole proprietorship, LLC (Limited Liability Company), or a branch office. Each option has different rules for ownership and liability. An LLC is the most popular choice for entrepreneurs.
- Choose your location
Decide whether to establish your business in Dubai’s mainland or a free zone. Mainland locations provide access to a larger market, while free zones offer benefits like tax exemptions.
Mainland:
- Pros: Access to a broader market, including government contracts and the ability to trade directly with the UAE market.
- Cons: Higher setup costs and more regulations to follow.
Free Zone:
- Pros: Tax benefits, 100% foreign ownership, and easier setup processes.
- Cons: Limited to operating within the free zone or internationally; restrictions on trading directly with the UAE market.
Choose the option that best fits your business needs and goals.
- Reserve a trade name
First, verify if your desired trade name is available. Then, select a name that aligns with your consultancy’s brand and adheres to the Department of Economic Development (DED) regulations. Ensure that the name is distinctive and meets their criteria.
- Documents needed for HR consultancy setup in Dubai
To get an HR consultancy license, you’ll need to provide the following documents:
- Completed application form
- Passport copies and visas of shareholders/partners
- Passport-size photos
- Educational certificates of the license holders
- Proof of relevant experience (if applicable)
- Business plan
- Trade name approval certificate
- Office space lease agreement
6. Submit your application
Submit your license application and all necessary documents to the Department of Economic Development (DED) or the relevant authority. The DED will review your submission, and this process may take several weeks. To prevent any delays, please ensure that all your documents are complete and accurate.
7. HR consultancy license issuance
After your application is approved by the relevant authorities, the Department of Economic Development (DED) will issue your HR consultancy license. If you intend to engage in specific activities, such as recruiting from abroad, you may require additional approvals from the Ministry of Human Resources and Emiratisation (MOHRE).
8. Visa requirements
You and your employees may need work visas to operate in Dubai. Check visa options based on your needs and the DED guidelines. Consider working with a business setup consultant in Dubai. Our experts can make the process easier, help you stay compliant, and speed up getting your license.
Cost of obtaining an HR consultancy license in Dubai
The starting fee for an HR consultancy license in Dubai is usually around AED 12,900*. Costs can vary based on the location and business setup you choose.
Fees might differ if you set up in a free zone compared to the Dubai mainland. Some free zones offer special packages for HR consultancy licenses.
Keep in mind that these are just estimates. The actual cost may be higher or lower depending on your specific situation. For a precise cost estimate, contact our business setup experts in Dubai to find out about the best packages for obtaining an HR consultancy license.
Benefits of getting an HR consultancy license in Dubai, UAE
- High demand
Dubai’s growing business environment creates a strong need for HR services. Many companies, especially small and medium-sized ones, outsource HR functions because they don’t have their own HR departments. - Ease of doing business
Dubai has simplified the business setup process, making it relatively easy to get your HR consultancy license and start operating. - Global reach
Dubai’s strategic location and international connections make it an excellent base for reaching clients in the Middle East and beyond. - Complete business ownership
Setting up in Dubai allows you to own 100% of your HR consultancy business. - Tax advantages
Although corporate tax has been introduced in the UAE, some free zones still offer attractive tax benefits, including no personal income tax.
Conclusion
In conclusion, starting an HR consultancy business in Dubai offers immense potential for growth, especially when you take advantage of the city’s free zones, tax incentives, and access to a global talent pool. By embracing Dubai’s progressive approach to technology and innovation, your consultancy can stay ahead in the competitive HR landscape. Whether you’re navigating the setup process or looking for ongoing support, Khidmath Corporate Services is here to guide you every step of the way, ensuring your business is well-positioned for success in this thriving market.
