How to Start a Manpower Supply Company in Dubai
Build your staffing business around the correct licence, a funded payroll plan and clear client agreements. Understand the difference between introducing candidates and employing workers to supply their services to another business.
What is a manpower supply company?
A manpower supply business typically employs workers and makes their services available to client businesses. The private-sector agency framework distinguishes temporary employment and outsourcing from recruitment mediation. Classify your proposed work by what the company actually does, rather than the name used in marketing.
| Model | How it works | Planning priority |
|---|---|---|
| Recruitment mediation | The agency brings candidates and employers together without becoming a party to their employment relationship. | Placement terms, candidate handling and the applicable mediation licence. |
| Temporary employment and outsourcing | The agency hires workers and outsources their services to a beneficiary business. | Agency licensing, worker administration, payroll funding and deployment arrangements. |
| Both activities | The business intends to offer recruitment mediation alongside temporary employment and outsourcing. | Approval for the combined scope and the applicable financial requirements. |
Scope of this guide: private-sector employment agency and workforce supply planning. Domestic worker recruitment follows a separate regulatory framework. Specialist sectors may also require additional approvals.
Does a manpower supply company need MOHRE approval?
For activities regulated under the federal private-sector employment agency framework, the relevant Ministry of Human Resources and Emiratisation licence is required. An ordinary business licence or HR consultancy activity should not be treated as permission to carry out regulated agency work.
Business formation and licensing
Confirm the legal structure, ownership eligibility, activity wording and economic licensing authority. Prepare the formation documents and premises information required for that route.
Employment agency authorisation
Check the Ministry's applicable agency category, applicant conditions, supporting documents and financial security requirements. Follow the current application sequence.
Mainland or free zone: check the proposed deployment
Tell the authorities where your clients and workers will be located. Obtain confirmation that the proposed entity can undertake the intended activity and deployment arrangements. Avoid choosing a jurisdiction solely because its formation package is cheaper.
A mainland licence does not remove sector or site-specific requirements. A free zone licence should not be assumed to authorise unrestricted worker deployment elsewhere. Read our Dubai mainland business setup guide and external approvals guide for the wider formation process.
Financial security: plan separately from licence fees
Article 9 of Cabinet Resolution No. 1 of 2022 provides for a bank guarantee maintained throughout the agency licence period:
| Agency category | Minimum bank guarantee |
|---|---|
| Recruitment mediation | AED 300,000 |
| Temporary employment and outsourcing | AED 1,000,000 |
| Combined activities | AED 1,000,000 |
The framework provides for an insurance alternative. Confirm the currently accepted arrangement and its conditions with MOHRE; do not assume an ordinary business insurance policy satisfies this requirement.
A guarantee is different from a setup fee. Ask the bank about collateral, charges and renewal conditions. Keep the security arrangement separate from the cash needed to pay workers and operate the business.
Obtain a current government fee schedule for your exact new licence application. Budget separately for economic licensing, agency licensing, renewals and worker-related applications rather than presenting one advertised package as the total investment.
How to start a manpower supply company in Dubai: seven steps
- Define the services. List the roles you intend to supply, client sectors, work locations and expected workforce size. State whether the business will employ workers, introduce candidates or offer both services.
- Confirm eligibility and the approval route. Check the chosen activity, ownership and applicant conditions with the licensing authority and MOHRE. Identify specialist or site approvals before applying.
- Prepare company and applicant documents. Arrange identification, ownership details, proposed names and formation documents. Obtain the Ministry's current supporting-document checklist.
- Arrange premises and financial security. Confirm the premises requirements for the proposed activity. Discuss the guarantee or accepted insurance arrangement with the relevant institutions before committing funds.
- Complete the required licences. Follow the authorities' current sequence for economic licensing and agency authorisation. Record outstanding conditions and renewal obligations.
- Establish workforce administration. Arrange banking, payroll, employee records and the relevant establishment, work permit and immigration procedures. Prepare employment and client agreements.
- Check readiness before deployment. Verify the permissions for each worker and assignment. Confirm the client site, duties, supervision, safety responsibilities, attendance process and payroll funding.
There is no reliable universal end-to-end setup timeline. Applicant review, documents, premises, financial security and workforce permissions can affect the schedule. A service processing period for one application does not describe the whole business launch.
See our Dubai business setup timeline guide for planning separate approval milestones.
What documents should you prepare?
Use the following as a planning folder, then match it to the official checklist for your application. It is not a universal list of mandatory documents.
Company and applicant file
- Shareholder and authorised representative identification.
- Proposed services, ownership information and formation documents.
- Economic licensing or initial approval documents as requested.
- Premises information and applicant declarations.
Financial and operating file
- Credit and financial evidence requested for the agency application.
- Guarantee or accepted insurance documentation.
- Workforce, payroll and recruitment plans.
- Draft client agreements and employee administration procedures.
Confirm police clearance, credit report, financial evidence and declaration requirements directly against the current agency service checklist. Check document validity, translation and attestation requirements before submitting.
How much does a manpower supply company cost to start?
The investment depends on the approved model, financial security, workforce size and operating commitments. Build the estimate from official fees and written quotations, then add a realistic payroll reserve.
| Category | Include in the plan |
|---|---|
| Formation and licensing | Economic and agency applications, documentation, professional fees and renewals. |
| Agency financial security | The approved guarantee or insurance arrangement, bank charges and any required collateral. |
| Workforce onboarding | Applicable work permits, immigration procedures, medical requirements, insurance and recruitment administration. |
| Operating infrastructure | Premises, staff, payroll systems, transport or accommodation where relevant, and client management. |
| Working capital | Wages and operating payments due before client invoices are collected, including delayed or disputed bills. |
Payroll funding is central to the business model
Client payment terms and employee pay dates are separate obligations. Build a weekly cash forecast using actual pay dates, invoice cycles and realistic collection dates. Model late client payment before accepting a contract.
This is a hypothetical example, not a required reserve or an estimate for your company. It excludes onboarding, benefits, transport, accommodation, overheads and agency security. Your forecast should include the actual costs and timing of those items.
Check the margin after all delivery costs. A headline difference between the client charge and basic wages can overstate profitability if overtime, leave, insurance, benefits and idle time are omitted.
Payroll compliance and worker administration
MOHRE-registered establishments must pay wages when due through the Wages Protection System or another system approved by the Ministry, subject to the applicable rules and exceptions. Keep payroll records consistent with employment terms and investigate failed payments promptly.
Maintain a worker file
Track employment terms, applicable permissions, assignment details, attendance, wage payments, leave and relevant expiry dates. Protect personal information and restrict access to authorised staff.
Maintain a client assignment file
Record the site, job duties, start and end dates, supervisors, safety arrangements and approved hours. Keep client-approved attendance evidence connected to the payroll and invoicing process.
Under the federal private-sector labour law, employers must not charge workers recruitment and employment fees or costs, directly or indirectly. Build those costs into the business plan rather than recovering them from employees.
Review applicable health insurance, workplace safety, accommodation, transport, benefits and Emiratisation obligations for your operation. Do not assume that every staffing category or jurisdiction has identical requirements.
Put clear terms in every client agreement
- Assignment scope: roles, skills, work locations, permitted duties and contract duration.
- Attendance and billing: how hours are approved, invoice deadlines, overtime pricing and disputed timesheets.
- Payment protection: deposits, credit limits, collection procedures and lawful responses to overdue invoices.
- Operational responsibilities: supervision, equipment, site access and safety coordination.
- Changes and termination: replacement requests, notice, redeployment and treatment of outstanding amounts.
Have the agreement reviewed for your actual operating model. A commercial contract should not be used to bypass worker rights or the agency's regulatory obligations.
Accounting, VAT and Corporate Tax
Use client and assignment codes to track income, wages and other delivery costs. Reconcile payroll records to payment confirmations, and compare invoiced hours with approved attendance. Review overdue receivables alongside the next payroll requirement.
VAT registration
For UAE-resident businesses, mandatory VAT registration applies when taxable supplies and imports exceed AED 375,000 in the previous 12 months or are expected to exceed that amount in the next 30 days. Foreign businesses follow different registration rules. Review the VAT treatment of each supply and invoicing arrangement.
Corporate Tax registration
Companies subject to UAE Corporate Tax must register within the applicable FTA timeline. Registration should not be delayed solely because the company has not made a profit. Confirm the tax period and filing obligations for the entity.
Explore our accounting and bookkeeping services, VAT services and UAE Corporate Tax guidance. Our corporate banking guide explains account preparation.
Frequently asked questions
Is manpower supply the same as recruitment mediation?
No. Mediation connects candidates and employers. Temporary employment and outsourcing involves the agency employing workers and supplying their services to a beneficiary business.
Can I use an HR consultancy licence to supply workers?
Do not assume that consultancy covers regulated employment agency activities. Confirm the approved scope and agency authorisation for the intended work.
Can a free zone company supply workers anywhere in Dubai?
Confirm the company's permitted activity, deployment locations and employment arrangements with the competent authorities. A free zone licence alone should not be treated as unrestricted permission.
Does the agency guarantee cover my payroll budget?
Plan agency financial security and payroll funding separately. Check the guarantee or insurance conditions, then forecast the cash needed to pay workers while awaiting client collections.
How long does setup take?
The schedule depends on the application, document readiness, financial arrangements and required permissions. Obtain a plan for the complete approval sequence rather than relying on a fixed launch promise.
What should I check before signing the first client?
Confirm authorised scope, worker permissions, site responsibilities, pricing, attendance approval and payment terms. Ensure the cash forecast supports the assignment before deploying staff.
Plan your manpower supply business with Business & Beyond
Share your proposed services, client locations and workforce size. Discuss the company formation route and the accounting foundation for payroll, invoicing and cash flow.
Official references
References checked on 7 October 2026. Obtain the current activity-specific application checklist, fees and accepted financial security arrangement from the responsible authority before applying.
