What is a Manpower License?
A manpower license is a legal requirement for businesses in the UAE that want to legally hire staff. The license is issued by the Ministry of Human Resources and Emiratisation (MOHRE) and is necessary to ensure compliance with UAE labor laws and regulations.
Who Needs a Manpower License?
All businesses that want to hire employees in the UAE must obtain a manpower license. This includes companies of all sizes and industries, from small startups to large multinational corporations.
How to Obtain a Manpower License?
The process of obtaining a manpower license can vary depending on the type of business and the industry it operates in. Generally, the process involves the following steps:
Submitting an application to the MOHRE:
Businesses must submit an application to the MOHRE, which includes details about the company, the number of employees it plans to hire, and the job positions it plans to fill.
Providing the necessary documents:
Businesses must provide ,
a copy of their business license, along with other required documents, such as proof of financial stability and a list of the job positions the business plans to fill.
Paying the required fees:
There are fees associated with obtaining a manpower license, which must be paid during the application process.
Approval and issuance of the license: Once the application is approved, the MOHRE will issue the manpower license to the business.
What Are the Benefits of Having a Manpower License?
There are several benefits to having a manpower license in the UAE, including:
Legal compliance:
A manpower license ensures that businesses are in compliance with UAE labor laws and regulations, which can help avoid legal penalties and fines.
Improved hiring process:
Having a manpower license streamlines the hiring process, making it easier for businesses to recruit and hire employees.
Increased credibility:
A manpower license can help businesses establish credibility with customers, partners, and investors, which can lead to increased opportunities and growth.
What Are the Consequences of Not Having a Manpower License?
Failure to obtain a manpower license can result in significant fines and legal penalties, including:
Fines:
Businesses that operate without a valid manpower license can be fined up to AED 50,000.
Legal action:
Businesses that continue to operate without a valid manpower license can face legal action, including closure and imprisonment of the business owner.
Immigration issues:
Hiring employees without a valid manpower license can result in immigration issues for both the employer and the employee.
In summary, obtaining a manpower license is a crucial step for businesses in the UAE that want to legally hire staff. By following the proper procedures and maintaining compliance with labor laws and regulations, businesses can ensure a smooth hiring process and avoid legal penalties.
Costs associated with obtaining a Manpower license in the UAE:
To acquire a manpower license in the UAE, you must take into account various expenses. Firstly, you need to pay a business registration fee around AED 3,000 depending on legal structure of your business. Additionally, you have to pay an MOHRE approval fee of around AED 5,000, along with a manpower license fee of around AED 10,000.
You also have to pay an annual renewal fee of around AED 10,000. It is important to note that these costs are approximations. They may differ based on the specific requirements of your business and legal structure. There may also be additional expenses associated with obtaining a manpower license, such as legal and administrative fees.
Manpower License in the UAE with Business Diaries
A manpower license in the UAE is an essential legal permit for businesses that operate in the recruitment, staffing, and outsourcing industry. At Business Diaries, we can assist you in obtaining a manpower license in the UAE efficiently and effectively.
By partnering with Business Diaries, you can benefit from our extensive knowledge and experience in the industry. We can guide you through the entire process of obtaining a manpower license.
It covers everything from determining your business activity to renewing your license annually.
Our team of experts can help you choose the legal form that best suits your needs, register your business with the DED, and obtain approval from the MOHRE.
By partnering with us, you can ensure that your manpower business is operating legally and efficiently in the UAE.
Contact us today to learn more about how we can assist you in obtaining a manpower license in the UAE.