Starting an HR consultancy in Dubai has become one of the most attractive business opportunities for entrepreneurs and professionals who want to enter the UAE’s booming human resources sector. With Dubai being a global hub for talent acquisition, corporate recruitment, and workforce solutions, obtaining an HR Consultancy License in Dubai, UAE is the first step toward legally providing recruitment, staffing, and HR advisory services.
This guide explains everything you need to know about eligibility, process, costs, benefits, and best practices for setting up an HR consultancy license that meets legal requirements while positioning your business for long-term success.
What is an HR Consultancy License in Dubai?
An HR consultancy license is a legal permit issued by Dubai’s authorities that allows individuals or companies to provide services such as recruitment, staffing, and human resources advisory to businesses across different sectors. Unlike a general trading license, this license is industry-specific and ensures that all HR activities comply with local labor laws and Ministry of Human Resources and Emiratisation (MOHRE) regulations.
Scope of Services Under HR Consultancy License
Businesses holding an HR consultancy license in Dubai can engage in:
- Talent recruitment and headhunting for local and international companies.
- Staffing services for permanent, temporary, and contractual roles.
- Payroll and HR outsourcing support.
- HR advisory, including compliance with UAE labor laws.
Eligibility Criteria for Obtaining an HR Consultancy License
Before applying for an HR consultancy license in Dubai, UAE, it’s important to understand the eligibility requirements set by the authorities.
Individual Eligibility
- The applicant must be at least 21 years old.
- A clean criminal record is mandatory.
- Certain HR qualifications or prior experience in human resources may strengthen the application.
Business Entity Eligibility
- The company must have a registered office address in Dubai.
- Ownership structure can be 100% foreign-owned in a free zone, while mainland businesses may require alignment with UAE licensing rules.
- Compliance with MOHRE approval is mandatory if overseas recruitment services are provided.
Steps to Get an HR Consultancy License in Dubai, UAE
Setting up an HR consultancy license in Dubai involves multiple steps, each requiring attention to detail and compliance with government regulations.
Define Your Business Activities
Start by identifying whether you plan to focus only on HR advisory, local recruitment, or overseas recruitment. Each activity has different approval requirements.
Choose the Right Business Structure
Select between a Limited Liability Company (LLC), sole proprietorship, or a free zone entity. An LLC is suitable for larger operations, while free zone setups are ideal for full ownership and reduced setup costs.
Select Your Location – Mainland vs Free Zone
- Mainland: Allows working directly with UAE government and private firms but requires additional compliance.
- Free Zone: Offers 100% ownership, tax benefits, and lower costs but may limit direct mainland contracts without a local agent.
Reserve a Trade Name
Your chosen business name must comply with the UAE’s naming guidelines, avoiding restricted words and ensuring uniqueness.
Prepare and Submit Documents
Key documents include:
- Passport copies of shareholders.
- Emirates ID or UAE residence visa (if applicable).
- Proof of qualifications and experience.
- Tenancy contract for office space.
Apply for the License
Submit the complete application to the Department of Economic Development (DED) for mainland businesses or the respective free zone authority.
Receive the License and Apply for Visas
Once approved, you will be issued your HR consultancy license. You can then apply for investor visas and employee visas to start operations.
Cost of Obtaining HR Consultancy License in Dubai
The cost of HR consultancy license in Dubai varies depending on whether you set up in a mainland or free zone.
Free Zone Costs
- Setup packages often start from AED 12,000 to AED 18,000.
- Includes trade license, business registration, and sometimes a flexi-desk office.
Mainland Costs
- Costs typically range from AED 15,000 to AED 25,000.
- Additional approvals from MOHRE may apply for overseas recruitment.
Benefits of Obtaining HR Consultancy License in Dubai, UAE
An HR consultancy license in Dubai comes with multiple advantages that make it attractive for entrepreneurs.
High Market Demand
Dubai’s position as a global business hub ensures ongoing demand for recruitment and HR advisory services.
Ease of Doing Business
The UAE provides streamlined licensing processes and advanced digital systems, making business setup straightforward.
Global Reach and Networking Opportunities
Operating in Dubai connects you with multinational companies, enabling regional and international expansion.
Full Ownership and Tax Advantages
With 100% foreign ownership in free zones, plus zero corporate tax (under specific thresholds), investors benefit from maximum profitability.
Documents Required for HR Consultancy Setup in Dubai
For a smooth application process, prepare the following documents:
- Passport copies of owners and partners.
- Proof of professional qualifications.
- No Objection Certificate (NOC) if employed in the UAE.
- Tenancy contract for business office.
- Completed application form from DED or free zone authority.
Challenges in Setting Up an HR Consultancy in Dubai
While obtaining an HR consultancy license in Dubai, UAE is achievable, entrepreneurs should be aware of certain challenges.
Regulatory Approvals
Overseas recruitment services require additional approvals from MOHRE and sometimes from the Ministry of Foreign Affairs.
Competition in the Market
Dubai already hosts several established HR consultancies, making differentiation essential.
Ongoing Compliance
Annual license renewals, visa processing, and maintaining compliance with labor laws require ongoing administrative efforts.
Conclusion
Obtaining an HR consultancy license in Dubai, UAE is a strategic move for entrepreneurs who want to tap into the region’s growing demand for recruitment and HR services. With the right preparation, business structure, and compliance, you can build a successful consultancy that supports Dubai’s vibrant workforce ecosystem. Working with trusted Business Setup Consultants in Dubai, UAE also ensures that you enjoy the benefits of 100% ownership, global reach, and tax advantages.
FAQs
How much is HR consultancy license in Dubai?
The cost ranges between AED 12,000 to AED 25,000 depending on whether you set up in a free zone or mainland.
How to start HR consultancy in Dubai?
By defining your business activity, selecting a structure, registering with DED or a free zone, and obtaining approvals.
How to open an HR consultancy?
You need an HR consultancy license, office space, and approvals from relevant authorities.
How to become a consultant in the UAE?
Apply for a professional license in your chosen field, meet qualification requirements, and register with DED or a free zone.
How do I start my own consultancy?
Choose your activity, register your business, reserve a trade name, and obtain the required license.
Do I need a qualification to be a consultant?
While not always mandatory, relevant professional qualifications strengthen your credibility and license approval chances.
Which certification is best for consulting?
Certifications such as SHRM, CIPD, or PMP are highly regarded in HR and consulting industries.
How do I register as a consultant?
Register with DED for mainland or a free zone authority, submit documents, and obtain your license.
How much do consultants charge per day?
Rates vary widely but range from AED 1,000 to AED 5,000 per day depending on experience and specialization.
