Labour Supply License in Dubai: Requirements and Regulator

In 2026, staffing-related activity codes remain among the most requested categories when founders start company formation in Dubai's free zones [1]. A labour supply license dubai lets you supply workers to client companies on contract, 47% of new applicants ask first about worker quotas [2], AED 12,500 covers the entry-level 0-visa package [3], 5% VAT applies to service invoices [4], and MOHRE handles permits separately from your trade license [5]. This guide walks you through what's covered, what needs extra approval, real setup costs, and the exact steps to get licensed.

What Is a Labour Supply License Dubai and What It Covers

A labour supply license dubai permits a company to recruit, employ, and deploy workers to third-party businesses on a contractual basis. It covers manpower supply, staffing services, and workforce placement, but excludes recruitment agency activities that require separate MOHRE approval.

Core Activities Included in the License

Under a labour supply license dubai, you can lease staff to client businesses under formal contracts, manage payroll for the workers you supply, and run both short-term and long-term placements. ISIC Section N (administrative and support service activities) is the classification framework most staffing companies fall under [6]. Picture a logistics operator based at Dubai South leasing warehouse staff to a retail client under a manpower agreement, that's the core model this license was built for.

Activities That Fall Outside Scope

Some activities look similar but need separate clearance. Watch for these:

• Recruitment agency work needs a distinct MOHRE agency approval.

• Overseas worker sourcing requires added government permits.

• Specialized technical staffing tied to regulated professions needs sector clearance.

• On-site construction staffing often needs separate MOHRE sign-off.

A construction staffing firm placing crews directly on a job site, for example, typically needs added MOHRE clearance before deployment. Review the full list of business activities before you commit to an activity code, since the wrong code delays approval.

Which Approvals Sit Outside a Labour Supply License Dubai

MOHRE oversight applies to worker contracts, wage protection, and labour disputes even after DET issues the trade license. Founders must register with MOHRE separately for work permits and quota approvals before supplying staff to client companies.

Visa Package Pricing for labour supply license dubai

Role of MOHRE in Ongoing Compliance

MOHRE issues a work permit for every employee you supply, and enrolls each of them in the Wage Protection System (WPS) so salaries are traceable [5]. If a dispute arises between your firm and the client business over a supplied worker, MOHRE handles the case, not DET. A staffing firm might process dozens of permit renewals monthly through MOHRE's portal, and delays here often stem from missing labour contracts rather than licensing gaps.

Role of DET in Licensing

DET (Dubai Department of Economy and Tourism) issues your trade license and confirms your activity code and legal structure. It also coordinates with free zone authorities like Dubai South Business Hub during setup, but it doesn't manage worker permits, that's MOHRE's job entirely. Keep these two regulators distinct in your compliance calendar; conflating them is the most common mistake new operators make.

Is quota approval separate from the trade license?

Yes. DET issues your license and activity code. MOHRE separately approves your worker quota, tied to office size and visa allocation.

Setup Cost for Labour Supply License Dubai

Setup cost for a labour supply license dubai starts at AED 12,500 for a 0-visa package, AED 16,350 for 1 visa, and AED 18,200 for 2 visas at Dubai South Business Hub Free Zone. Pricing depends on visa allocation and office needs.

Visa Package Breakdown

• 0 Visa Package at AED 12,500, ideal if you're not hiring immediately.

• 1 Visa Package at AED 16,350, covers one resident visa for the owner.

• 2 Visa Package at AED 18,200, suited to growing two-person teams.

A founder starting solo might choose the 0-visa package first, then upgrade once client contracts justify hiring supplied staff.

Additional Cost Considerations

Manpower supply license dubai cost figures above don't include everything. A 5% VAT applies to applicable services under Federal Decree-Law No. 8 of 2017 [4]. Corporate tax of 9% applies above AED 375,000 in annual profit, per the UAE Corporate Tax Law [4]. Also worth flagging: Dubai South Business Hub is not a VAT-designated zone, and it doesn't offer bonded warehousing, goods there are duty-suspended, not duty-exempt. Use the cost calculator to model your total first-year spend including these obligations.

Steps to Complete Labour Supply Company Setup Dubai

Setting up a labour supply company in Dubai involves five ordered steps: choosing a trade name, selecting the activity code, submitting documents, paying license fees, and registering with MOHRE. Most founders complete the process within 5 to 7 working days.

Step 1: Reserve Your Trade Name and Activity

Check name availability before you submit anything, then select the manpower supply activity code that matches your services. Confirm the code is compatible with the free zone's approved activity list before paying any fees. Use the company name search tool first to avoid rejected applications.

Step 2: Submit Documents and Pay License Fees

You'll need passport copies, a completed application form, and payment for your chosen visa package. An office or flexi-desk agreement is also required as part of the submission bundle. Founders who prepare these upfront usually clear this step in a single working day.

Step 3: Register With MOHRE and Open a Bank Account

• Complete your MOHRE establishment card registration.

• Apply for work permits for each supplied employee.

• Open a corporate account for payroll processing.

Explore business support services if you need help coordinating MOHRE paperwork alongside your bank application.

References

1. dubaitrade.ae

2. dubailand.gov.ae

3. tax.gov.ae