Inquiry: Setting Up a Recruitment Firm in Abu Dhabi

Setting up a recruitment firm in Abu Dhabi involves several steps and adhering to various legal requirements. Here’s a detailed overview of the process you will need to follow:

Steps to Set Up a Recruitment Firm:

1. Business Plan Development:

2. Outline your business strategy, target market, services offered, and financial projections. This will guide your business and help attract potential investors or partners.

3. Choose a Business Activity:

4. Clearly define the type of recruitment services you want to provide, such as permanent staffing, temporary staffing, or executive search.

5. Select a Business Structure:

6. Decide whether you want to set up as a sole proprietorship, limited liability company (LLC), or another structure. For a recruitment firm, an LLC is a common choice as it limits personal liability.

7. Register Your Business Name:

8. Choose a unique name for your recruitment firm and register it with the Abu Dhabi Department of Economic Development (DED).

9. Legal Requirements and Licensing:

10. Obtain a commercial license. This typically involves:
    • Submitting a completed license application.
    • Providing documentation such as proof of residence, passport copies, and a No Objection Certificate (NOC) if required.
    • Paying the associated fees.

11. Ensure compliance with any specific regulations set by the Ministry of Human Resources and Emiratisation (MoHRE).

12. Open a Corporate Bank Account:

13. After obtaining your commercial license, set up a corporate bank account in the UAE to manage your business finances.

14. Recruitment and HR Policies:

15. Establish internal recruitment policies, onboarding processes, and other HR-related functions to ensure smooth operations.

16. Gather Marketing Materials:

17. Create a professional website and marketing materials to promote your recruitment services.

18. Networking and Client Acquisition:

19. Start building relationships with potential clients for sourcing candidates. Networking is crucial in the recruitment industry.

Legal Requirements:

• Licenses: As mentioned, you will need a commercial license from DED and possibly specific approvals from MoHRE.
• Documentation: Required documents usually include:
• Passport copies of the owners/partners.
• Lease agreement for the business location.
• Business plan.

Commission Percentages in UAE Market:

In the UAE, commission percentages for recruitment services typically range from 15% to 25% of the candidate’s first-year salary, depending on the industry and the level of the position being filled. Specialized roles or executive placements might command higher fees, sometimes reaching 30% or more. It’s also common for firms to have structured pricing for different types of services, so it’s beneficial to conduct market research to align your rates competitively.

Additional Tips:

• Understand Local Market Dynamics: Familiarize yourself with the job market, industry demands, and legal requirements specific to the sectors you wish to serve.
• Consider Free Zone Options: Depending on your business model, you might consider setting up in one of Abu Dhabi’s free zones, which can offer benefits like 100% foreign ownership and tax exemptions.

Consulting with a local business adviser or legal expert can further streamline this process and ensure compliance with all regulations. Good luck with your recruitment firm!