HR Consultancy License in Dubai: Requirements & Costs

Workspaces culture is transforming with HR consultancies. They are around to motivate the employees, fill any glaring talent gaps and promote a healthy work culture. HR consultancies assist in business identifying and recruiting truly qualified candidates.

Planning to open an HR consultancy in Dubai? You are going to need a UAE HR consultancy license. Connect Business Center brings you this valuable resource today where you will come to know everything you need. We have got it all covered: the requirements to get a license and the exact application steps.

Benefits of Obtaining an HR Consultancy License in Dubai

There are many benefits to getting a license for your HR consultancy. We share some of them:

• A certainly high demand
• Business operations are easier
• Global reach
• Complete business ownership
• Tax advantages

1. High Demand

There is a high demand for HR consultants in the UAE. Organizations need HR consultants to keep their workforce more organized and motivated. 

2. Ease of Doing Business

HR consultancies enjoy more ease and freedom when operating their business in Dubai.

3. Global Reach

Setting up your HR consultancy in Dubai translates to a global reach. Your consultancy gets extended reach. You can work with clients and companies from anywhere in the world.

Your business gains a global reach attracting different organizations coming to you for their HR consultancy.

4. Complete Business Ownership

Avail the freedom of having complete business ownership over your HR consultancy firm. 

5. Tax Advantages

Get tax advantages of Dubai. You won’t have to worry about paying taxes ever again because of tax exemption in Dubai.

Types of HR Consultancy Licenses

There are two different types of licenses in Dubai. They depend on where you are establishing the office of your consultancy firm.

The two types are for mainland and freezone.

Mainland HR Consultancy License

HR consultancy license in Dubai mainland is issued when you choose the location of your business in the mainland of Dubai. The Department of Economic Development (DED) issues it.

This license lets you take part in these activities: identifying problems and giving solutions, giving advice, preparing reports, conducting administrative and professional programs, training staff, and improving the workforce performance.

Free Zone HR Consultancy License

With a license for freezone, you get the freedom to operate without restrictions. Setting up your HR consultancy opens up opportunities to a variety of clients from freezone.

Eligibility Criteria for Obtaining an HR Consultancy License

Eligibility criteria varies. It depends on the specific requirements.

This is the eligibility criteria for obtaining an HR consultancy license UAE:

1. Educational Qualifications: Have a relevant educational background: a bachelor’s degree in human resources, business administration, or management.
2. Professional Experience: You need to have a certain number of years of experience in the field of human resources or consultancy ranging from 2 to 5 years.
3. License and Certification: You will have to obtain a license from the relevant authorities. Having certifications from Society for Human Resource Management (SHRM) or the Chartered Institute of Personnel and Development (CIPD) enhances credibility.
4. Knowledge of Local Laws and Regulations: It’s important to have a good understanding of local labor laws, regulations, and cultural norms. This helps in providing accurate and effective consultancy services to clients.
5. Language Proficiency: Considering the diverse nature of Dubai’s workforce, you need to be proficient in English. Proficiency in Arabic is also advantageous.
6. Financial Stability: Some licensing authorities may require proof of financial stability or a certain level of financial resources.
7. Recommendation: Applicants may be required to provide a letter of recommendation or testimonials from previous employers or clients.
8. Business Plan: Provide a detailed business plan outlining the services you will be offering, your target market, marketing strategies, and financial projections as part of the application process.

Steps to Get the HR Consultancy License in Dubai, UAE

The steps to get your license are actually pretty simple. Here are the exact steps to get your license:

1. Define Your Desired Business Activities

Properly define your desired business activities. This will be the first step of your application.

2. Choose an Appropriate Business Structure

Select an appropriate business structure that best suits your HR Consultancy The business structure can be any of these:

• Limited Liability Company (LLC)
• Sole proprietorship
• Branch of a foreign company

3. Select Your Location

Put a lot of thought into selecting the location of your business. Weigh your options by considering the factors of restrictions, advantages, process, and support.

Choose from either the freezone or mainland. Once you have made your selection, look for the optimum office location.

4. Reserve a Trade Name

Get approval for your company’s name. The name should align with the DED guidelines. Avoid any conflicting names.

5. Gather Required Documents

Gather all your required documents in one place to submit the application for HR consultancy license in Dubai. Some of the documents you need to get an HR consultancy license UAE are:

• ID proof for directors and shareholders
• Copy of trade name approval
• Articles of Association (AOA)
• Passport copies of directors and shareholders
• Memorandum of Association (MOA)
• Two passport size photographs
• Entry visa
• Stamp pages

6. Submit Application

Apply for the correct license that corresponds to your business activities. Submit your documents along with the license fee in order to apply for your license.

7. HR Consultancy License Issuance

After you have completed all the above steps, your HR consultancy license in Dubai will be issued.

8. Visa Requirements

You need a residence visa or visit visa. If you have a visit visa already, we can help you in that case to achieve your residence visa. This way, you can get started on your license application.

Conclusion

Setting up your HR consultancy firm in Dubai benefits both you and the organizations you will be working with. The first step is to choose where you want to start your business. Whether you choose freezone or get an HR consultancy license in Dubai mainland, the process is even simpler with Connect Business Center at your side.