HR Consultancy License in Dubai Mainland: Benefits & Requirements

HR Consultancy License in Dubai Mainland Benefits & Requirements

Obtaining an HR Consultancy License in Dubai mainland is a lucrative opportunity for foreign investors. Most small and medium businesses in the emirate outsource their recruiting requirements to HR consultancies due to a lack of resources, which means setting up an HR consultancy in Dubai makes business sense. Moreover initiating the process of business setup in Dubai comes with a lot of perks including low taxation, robust infrastructure, ease of doing business etc. Most importantly, you can obtain the license quickly by applying through business setup consultants in Dubai.

However, the process of company formation in Dubai requires you to understand the country’s immigration laws and labour laws. Moreover, investors also must have sufficient knowledge about the licensing procedures and relevant regulations. Apart from the benefits, this article will also let you know about the requirements to obtain an HR consultancy license in Dubai. Read ahead to know further:

Understand the HR Consultancy License

The HR consultancy license in Dubai mainland is being issued by the Department of Economic Development (DED). It is a professional license with Activity Code 7020008. The license permits activities such as studying the functional technical, psychological or behavioural problems facing the employee, diagnosing problems and providing solutions, including preparing reports, and advice, designing professional and administrative programs and proposing the training that helps overcome problems and enhance performance. Consult with business setup consultants in Dubai to understand the activities covered by an HR consultancy license.

How to Obtain an HR Consultancy License in Dubai?

You need to follow a set of streamlined steps to start an HR consultancy in Dubai. Business setup consultants in Dubai can help you with each step designed by the DED. The steps given below will help you understand how to apply for an HR consultancy license in Dubai:

1. Register a Company Name

A key step of business setup in Dubai is to get approval for your company’s proposed name. The name of your HR consultancy should align with the naming guidelines issued by the DED or other relevant entities. You must avoid offensive or blasphemous words and they should not resemble the name of famous companies. Business setup consultants in Dubai can help you to get the approach for your company name.

2. Decide a Company Structure

In the next step, you should determine the structure of the company based on the number of shareholders. The most popular company structures in Dubai include Sole Establishment, Limited Liability Company (LLC), Branch of a UAE Company, Branch of a Foreign Company etc. Company setup consultants in Dubai can help you to determine an appropriate legal structure for your HR consultancy.

3. Choose a Location & Rent a Space

You have to choose an appropriate location where your business will operate from. The location must have excellent connectivity so that your clients and employees can easily reach you. Also, try to choose a location that offers an affordable rental structure for your business. After renting an office space in Dubai, you must obtain a tenancy contract from your landlord and get it attested (Ejari). Consult with business setup consultants in Dubai to choose an office space and get the Ejari registered.

4. Submit license application

At this stage, you need to submit the license application along with key documents. Some of the documents required to obtain an HR consultancy license are listed below:

  • ID proof for directors and shareholders
  • Passport copies of directors and shareholders
  • Copy of trade name approval
  • Memorandum of Association (MOA)
  • Articles of Association (AOA)

Why you Should Start an HR Consultancy in Dubai?

Starting an HR consultancy business in Dubai comes with the following benefits:

  1. SMEs contribute about 40% to the value-addition generated in Dubai’s economy. Such companies may not have adequate finances or infrastructure to have a full-fledged HR department.
  2. Big companies that find maintaining a fully running department may outsource it to an HR consultancy that can manage key activities such as recruitment, handling of payroll, creating policies, learning and development, etc. instead of focusing on their core competencies.
  3. DED trade licenses come with specific quotas on the number of visas allotted. This visa quota limits the number of employees a company can sponsor under its visa. Outsourcing the HR requirements to an HR consultancy will allow employers to navigate such limitations
  4. Lastly, HR consultancies help businesses to reduce the cost of maintaining and scaling up an entire department

Consult with Business Setup Consultants in Dubai, UAE

Formation of an HR Consultancy business in Dubai is a simple process but it requires the foreign investors to know the regulations and requirements. This is where the services of business setup consultants in Dubai such as Jitendra Business Consultants (JBC) come into play. JBC has a team of highly qualified business setup advisors in Dubai who are well-versed in the UAE immigration and Labour laws. We can handle all the relevant procedures and help you obtain the license within a few weeks.

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