7 Steps to Start Your UAE Recruitment Agency

Starting a recruitment agency in the United Arab Emirates (UAE) can be a most excellent business venture. After all, the region’s thriving economy and diverse workforce provide ample opportunity for success. To fill this need, it is necessary to take stock of what you must do and what is legally required as a precondition for starting a successful recruitment agency in this world. In this comprehensive article, we will guide you through the 7 essential steps to start your recruitment agency in the UAE.


Define the Type of Recruiting Agency 

It is essential to define the type of recruitment agency in UAE you wish to establish before you set out on your journey. Are you going to be specialized in certain areas, such as computer science or finance? Or do you prefer broad-based recruitment services across several industries? Your choice will influence how you tailor both service delivery and promotional materials.

Specializing in a certain industry can allow you to develop deep knowledge and expertise, which will differentiate your business from the competition. By focusing on one particular sector, you can build a strong network of clients and candidates within that sphere, making yourself the ‘go-to’ resource for specialized talent.

Conversely, if you choose a generalist approach you will have greater scope to meet a wide range of clients and job vacancies. At the start of your business especially, this flexibility could be advantageous as it will enable you to explore different sectors possibly even find those sectors that have the greatest demand for recruitment services.


Obtain Necessary Licenses and Approvals

In the UAE, the setting up and operation of businesses – including recruitment agencies – are strictly regulated. Before you start working, make sure you’ve had all the necessary licenses and approvals from relevant authorities.

The basic license required is a trade license from the Department of Economic Development (DED), or a corresponding free zone authority license should your business plan involve free zone operations. To obtain a trade license, several documents are required such as proof of meeting space, a passport copy of the principal shareholder (s) etc.

You will probably also need other licenses and approvals, depending on the nature of your recruitment services. For example, if you are recruiting for a particular industry like health care or education, there may be specific laws regulating this which necessitate obtaining yet more consent.


Choose a Legal Structure 

Decide on the legal structure for your recruitment agency. This can affect tax issues as well as being an important structural aspect of how it will operate. The most common legal structures in the UAE are a sole proprietorship, a limited liability company (LLC) and a branch office of a foreign company.

Many of the businesses deployed the advantage of a limited liability structure and ownership that suits several shareholders. It also proves a helpful mechanism for bringing in capital or investors as the business grows.


Prepare a Thorough Business Plan and Financial Projections

You need to plan carefully as this is a service business where sales are not based on price alone but also costs must be competitive. For your recruitment business to flourish, detailed business planning and financial projections will be the first line of effort. This material should be essential when you approach financial institutions or other potential investors for funding.

There are also ongoing costs accompanying running an agency, such as the cost of office rent, salaries of recruiters and supporting staff members marketing expenses necessary because no one will know about your good work if you don’t tell them to incorporate technology into the infrastructure (hardware and software).


A Professional Office

While the digital age has brought many breakthroughs to office staff on job locations, your physical workspace can become an important “Help” in recruiting and credibility. Selecting its location, make sure that it is convenient for clients and candidates. Cost and facilities also should be considered.

Depending on your budget and preference, you can consider a variety of options such as renting office space in a commercial building, co-working spaces, and services from the free zone. Each has its pluses and minuses so weigh them carefully based on your requirements.

For clients and candidates, make an environment seem professional. If you spend whatever your budget allows on appropriate furniture, technology and branding elements are another great way to impress.

With a great feeling everywhere inside your office from reception to restrooms, clients and job applicants will also receive a positive impression of your recruitment agency.


Create a Strong Team

The prospects for your recruitment agency are closely linked to the expertise and willpower of your team. You need to bring in a crowd of good and experienced recruiters who understand their job inside out, have excellent communication skills, or have a real dedication to providing superior service.

Hire recruiters with different backgrounds and skills to handle a wide range of industries and jobs. Areas such as sourcing, screening, interviewing, and negotiating job offers may require professionals with specialist know-how.

Apart from recruiters, you may need to hire support staff such as administrative assistants, HR professionals and IT people. A smooth operation will enable clients and applicants to feel no disruption whatsoever in their experience on our end–and make things easier for them, too!


Secure the Money and Raising Capital

Starting recruitment Agency, funding is necessary for initial startup cash flow, daily operation and creation of turnover to build up a working capital base. Look at your cash needs and assess different ways of obtaining funds, including personal savings, bank loans, and partner or investor investment.



Starting a recruitment agency or Outsourcing agencies in the UAE can be both rewarding and profitable, but it takes careful planning, compliance with local laws and regulations, as well as a dedication to providing superior service. With these 7 essential steps as your guide, you will be prepared to meet the challenges and take advantage of all opportunities offered by the dynamic recruitment industry of UAE.

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