How to Get a HR Consultancy License in Dubai?

HR Consultancy License in Dubai

Dubai has become a center of trade and commerce supported by its progressive spirit toward development and advanced infrastructure. And that is probably why all kinds of ventures are thriving here, further attracting new investments and business ideas. More business means increased demand for human resources, which is why the need to open HR consultancy in Dubai is on the rise.

Human resources are an indispensable element of the business community that fills in the talent gap in any organization. Not only do they keep employees motivated but also promote healthy company culture. Thus, the scope for HR consultancy business in Dubai is quite wide and lucrative.

So, if you too wish to set up your career as an HR consultant in Dubai, then this blog will walk you through all the details.

Scope of setting up an HR consulting business in Dubai

The following are the advantages of getting into the HR consulting business in Dubai –

  • SMEs(Small and Medium Enterprises) established in Dubai contribute around 40% to the value-addition generated in its economy. Out of all the workforce in the Emirate, almost 42% are employed in these SMEs. Often, they are down and out of enough finances or infrastructure to possess a full-fledged HR department. That’s when they outsource this task to HR consultancy firms and both reap the benefits of it respectively.
  • Not just SMEs, but sometimes big-scale companies also find it a hassle to manage a fully running department. It costs them intensive time and effort to focus on several HR activities such as recruitment, payroll management, creating policies, learning and development, and many more. Therefore, big corporations also prefer outsourcing these tasks to HR consultancy agencies for ease of operations.
  • Several licenses issued by the Department of Economic Development (DED) have visa quotas. This means companies with those licenses have limitations in hiring employees as well as acquiring office space. This eventually leads to farming out an entire department to external agencies, thereby opening more opportunities for HR consultancy firms.
  • HR consultancies are most sought after by start-ups and new ventures as they hold the expertise to assure compliance with the law and also possess industry insight.
  • Growing as an industrial hub, Dubai is always in dire need of skilled or semi-skilled labor. This opens up a pool of opportunities for not only workers but also business aspirants who wish to establish their future in Dubai as human resource specialists.
  • As the recruitment procedure involve a lot of document formalities, companies tend to subcontract this job to HR consulting agencies in order to save trouble and time.

Roles and responsibilities of HR consultancy firms in Dubai

As a recruitment consultant, these are the roles and responsibilities you must carry out in your agency –

  • Human resource operation and management
  • HR strategy building
  • Organizational structuring
  • Payroll processing
  • HR Auditing
  • Manpower planning
  • Administration and restructuring planning
  • Handling company objectives and resolutions

For more information regarding HR consultancy services, contact the best business setup consultants in Dubai.

Types of licenses available for HR consulting business

There are basically two types of licenses available for this field of business –

1. Brokerage license

Companies engaged in activities related to employment relations between the UAE and foreign citizens and companies can obtain this license. Additionally, this license allows them to get applications and requests from citizens looking for employment, and companies searching for employees.

The license holder must make a database of available jobs and vacancies and post them regularly. They must also maintain a record of candidate and employer details and provide services to them as and when required.

2. Temporary recruitment license

With this license, a recruitment agency gets full responsibility for shortlisting, interviewing, screening, and retaining employees for job openings. For this purpose, they can outsource the workforce from inside as well as outside the country.

How do I register a consultancy company in Dubai?

Once you begin your career as an HR and start a consultancy in Dubai, you will be able to deliver all features of human resource management, including employee performance management, leadership transformation, and organization structure design. However, getting an HR consultancy license would be your first basic requirement.

Below given steps will help you understand the licensing procedure –

1. Plan your business

For a successful HR consulting business Setup in Dubai, one must have a well-researched business plan. Hence, before getting started, you must consider the following:

  • Sound knowledge of the target market
  • Find a USP (Unique Selling Point)
  • Work with non-local clients
  • Consider all the expenses such as office space, materials, etc.
  • Decide your fee charges for the services
  • Get your finances in order

2. Do financial planning

Planning your finances is vital before starting a business. During the initial period, you might need to make a significant amount of investment to speed up your business operations, including paying the employees and other taxes as well.

3. Networking

Try to connect with other HR consultants and service providers. Building a healthy relationship with fellow experts will help you create a jointly favorable bond where you can provide recommendations to each other and maintain a good rapport. Moreover, referrals from a leading client can help you get good revenue as well.

4. Understand the legal structure

To open an HR consultancy in Dubai, you need to understand the right legal structure for your business in view of your business plan as well as your financial plans. Choosing a suitable business structure facilitates efficient business operations leading to the successful accomplishment of organizational goals.

5. Register a name

Decide an appropriate name for your firm. However, make sure to stay away from prominent corporate names and abbreviations. Also, avoid using any rude or blasphemous words that might affect public order or morale. Moreover, cross-check with the registering authorities about the availability of the selected name.

If you feel all confused and exhausted about choosing the right trading name, speak with the consultants of UAE Expansion.

6. Choose a location

Next, you have to choose a location base for your business. Carefully study the available locations for setup and take time to learn about the perks and prospects, rather than rushing into a decision. Consider all the factors related to your business needs, such as quick and easy incorporation, business support, tax exemptions, currency restrictions, and budget.

7. Make the license application

Once you complete all the above steps in proper format and without errors, proceed to the license application. Submit the required documents and pay the fees to the concerned department. The authorities will review the application and documents, and further issue the license accordingly.

The HR consultant license cost in Dubai can be determined by a variety of criteria including the size of the company, the selected license, the chosen activities, and more. Hence, the precise figure may vary depending on these factors.

Open HR consultancy in Dubai with UAE Expansion

HR consultancy business formation in Dubai is quite simple. All you need to do is understand your needs, outline the procedure, and then approach it wisely. For better assistance, you can seek the help of business formation experts in the UAE.

UAE expansion has been helping clients with reliable guidance and support to set up their businesses in Dubai for the past few years. They provide a comprehensive range of services at an affordable cost. So, reach out to the team with your business idea.

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