How to Start a Manpower Supply Company in Dubai

Thinking about how to start a manpower supply company in Dubai? You’re in the right place. Dubai’s fast-growing construction, logistics, hospitality, retail, and tech sectors rely heavily on outsourced staffing—creating a constant demand for compliant manpower providers. In this guide, you’ll learn the exact licensing steps, MOHRE approvals, visa setup, WPS payroll, and ongoing compliance you need to launch and scale a manpower supply business in the UAE. We’ll also cover the differences between mainland and free zone options, the documents to prepare, typical timelines, and the most common mistakes to avoid. Whether you plan to supply blue-collar workers, hospitality staff, or specialized white-collar teams, follow this step-by-step playbook to get operational—fast and fully compliant.
Starting a business in Dubai looks promising, but the steps are rarely straightforward. If you’re new to business formation, check our Guide to Setting Up a Company in Dubai

What Is a Manpower Supply Company in Dubai?

A manpower supply (or labor outsourcing) company recruits, sponsors, and deploys employees to client companies on a temporary or long-term basis under a services contract. Unlike a simple recruitment agency that matches candidates to employers, manpower suppliers typically employ the staff on their own visa, manage payroll via WPS (Wage Protection System), and remain responsible for contracts, benefits, and compliance.

👉 Note: Recruitment agencies and manpower suppliers are licensed differently in the UAE. A recruitment agency introduces candidates to employers, while a manpower supply company sponsors and deploys employees directly.

Mainland vs Free Zone: Which Is Right for You?

Mainland (Dubai Economy & Tourism License)

• Serve any client across the UAE
• Preferred for large-scale contracts and government tenders
• Requires MOHRE approvals, Ejari office lease, and higher compliance

Free Zone (e.g., JAFZA, DMCC)

• Faster setup, foreign ownership, flexible structures
• May limit deployment outside the free zone
• Suitable for specialized or niche outsourcing models

💡 If your plan is to supply manpower across Dubai and the UAE, a mainland license is usually more practical.

Learn more in our blog on Mainland vs Free Zone Companies in Dubai

Step-by-Step: How to Start a Manpower Supply Company in Dubai

1. Choose Your Business Model & Activities

Decide whether you will operate as a manpower outsourcing company (you sponsor and supply staff) or a recruitment agency (you connect candidates to employers).

2. Structure, Shareholding & Name Reservation

• Select your company type (LLC is most common).
• Reserve a trade name that fits your activity.
• Gather documents like passport/ID copies.

3. Initial Approval & External Approvals

• Apply for initial approval with DET or a free zone.
• Obtain MOHRE approvals if manpower outsourcing is included.

4. Office Lease (Ejari)

• Mainland setups require a physical office with Ejari registration.

5. Company Documents & License Issuance

• Draft and notarize the MoA (and LSA if applicable).
• Submit all documents and obtain your trade license.

6. Establishment Card, Bank Account & WPS

• Apply for your Establishment Card (immigration).
• Open a corporate bank account (essential for WPS).
• Register for Wage Protection System to pay staff salaries.

7. Visa Quotas & Employee Onboarding

• Request quotas for staff visas.
• Process work permits, medical insurance, and onboarding.
• Draft service agreements with client companies.

8. Build HR, Payroll & HSE Systems

• Use HR systems to manage attendance and payroll.
• Follow UAE HSE standards, especially for construction and logistics workers.

Key Compliance & Operational Requirements

• MOHRE regulations must be followed strictly.
• Salaries must be processed via WPS on time.
• Employment contracts must comply with UAE labor law.
• Medical insurance is mandatory for all employees.
• If you provide accommodation or transport, comply with UAE worker welfare standards.

Costs & Timelines

• Setup costs: License fees, office rent, MOHRE approvals, establishment card, bank account, and initial visas.
• Average timeline: 2–6 weeks, depending on approvals and inspections.

Taxes & Accounting for Manpower Firms

• Corporate Tax: Applies to profits above the UAE threshold.
• VAT: Manpower services are usually subject to VAT at 5%.
• Payroll: Salaries via WPS, end-of-service benefits, and leave entitlements must be accounted for.

Common Mistakes to Avoid

1. Choosing the wrong licensed activity (recruitment vs manpower supply).
2. Not securing MOHRE approval where required.
3. Underestimating WPS and payroll management.
4. Ignoring health and safety standards.
5. Weak client contracts without SLAs or clear terms.
6. No cash-flow buffer for salary payments.

FAQs

How do I start a manpower supply company in Dubai?
You need to obtain the right license, secure MOHRE approvals, lease an office, issue a trade license, register WPS, and process employee visas.

Do I need MOHRE approval?
Yes—most manpower outsourcing companies require approval from MOHRE.

Can free zone companies supply manpower to mainland clients?
Generally no, unless structured through specific agreements. Mainland licensing is usually required.

What is the difference between manpower supply and recruitment?
Manpower suppliers sponsor and deploy staff, while recruitment agencies connect candidates to employers who hire them directly.

How long does it take?
Typically 3–6 weeks, depending on the approvals.

Is VAT applicable?
Yes, manpower services in the UAE are subject to 5% VAT.

Starting a manpower supply company in Dubai is straightforward when you follow the right steps: license, approvals, payroll (WPS), and contracts. With demand rising across industries, the opportunity is huge for compliant providers.

👉 Ready to start? Contact our team today for a free consultation and get a customized roadmap for your manpower supply business in Dubai.

Read More: Low-Cost Business Setup in Dubai: Smart & Affordable Options for 2025