Recruitment and placement is a different activity from manpower supply, though the two get confused often. A manpower supply company employs workers directly and deploys them to client companies — we've covered that model in our manpower supply business guide. A recruitment agency instead acts as an intermediary, matching candidates to employers for a placement fee, without ever employing the candidate itself. MOHRE regulates both, but with meaningfully different bank guarantee tiers depending on whether you're placing candidates already in the UAE or sourcing workers from overseas. This guide covers the recruitment and placement model specifically.
What "Recruitment Agency License Cost" Actually Covers
This guide covers DET licensing, MOHRE registration, and bank guarantee requirements for recruitment and placement agencies. It doesn't cover manpower supply, where you employ workers directly — that's a distinct activity with its own licensing structure covered in the guide linked above.
DET Trade License Fee for a Recruitment Agency
A mainland DET trade license covering recruitment or employment agency activity typically costs AED 15,000 to AED 25,000 in year one. Trade name reservation runs AED 620 to AED 1,000, and DET initial approval around AED 120, both one-time fees ahead of the license itself. Recruitment licensing is a mainland-only activity — free zones generally can't hold the MOHRE approvals recruitment agencies need, so this isn't a free-zone-versus-mainland decision the way it is for many other activities in this guide series.
MOHRE Recruitment Agency Registration
MOHRE registration and permit approval, required before you can legally place candidates, typically runs AED 5,000 to AED 12,500, with annual renewal at the higher end of that range. MOHRE also expects a dedicated, professionally fitted office — a minimum of roughly 20 square meters, or 30 square meters for agencies placing domestic workers — with separate interview and waiting space. Virtual offices and co-working addresses are routinely rejected at inspection, so this is worth planning for at the premises stage rather than after your MOHRE application is already in progress.
Bank Guarantee: The Cost That Varies Most by License Category
This is the figure most worth confirming directly with MOHRE before you commit to a business plan, since it varies meaningfully by activity scope and sources aren't fully consistent. Agencies placing candidates already based in the UAE — general or local recruitment — typically sit toward the lower end, while agencies handling international or overseas worker placement typically require a larger guarantee, with figures cited across AED 100,000 to AED 300,000 depending on category. It's worth noting this is tied-up capital rather than a direct expense — it's refundable when you close or surrender the permit — but it still needs to sit in a bank account rather than fund operations, which matters for cash flow planning even though it isn't a true cost. The actual out-of-pocket cost is the annual bank guarantee fee, typically 0.5% to 1% of the guarantee amount, or roughly AED 1,500 to AED 3,000 a year on a guarantee in the lower tier.
Additional Costs That Can Add to Your License Cost
Depending on your agency's model, a few situational costs can add to the base licensing cost above:
- Staff visas — each residence visa typically costs AED 4,000 to AED 7,000. Our PRO services team handles visa processing alongside your license setup.
- Recruitment software / applicant tracking system — a modest but recurring cost for most agencies managing candidate pipelines at any real volume, typically a few thousand dirhams a year depending on the platform.
- Overseas sourcing partnerships — agencies handling international placement may pay local sourcing partners or agents in candidate-origin countries, a cost that scales with placement volume rather than a fixed fee.
None of these apply to every recruitment agency, but each is worth checking against your specific placement model before you finalize a budget.
Recruitment Agency License Cost by Business Type
Local / Corporate Recruitment Agency
Placing candidates already based in the UAE, typically with the lower bank guarantee tier, totals roughly AED 25,000 to AED 40,000 in year-one licensing cost, excluding the guarantee itself.
International / Overseas Recruitment Agency
Sourcing and placing workers from abroad carries the same DET and MOHRE licensing structure but sits in the higher bank guarantee tier, meaningfully increasing the capital you need to have available even though the guarantee itself is refundable rather than spent.
Total Recruitment Agency License Cost in Dubai: Summary
A local or corporate recruitment agency typically runs AED 25,000 to AED 40,000 in year-one licensing cost, before the bank guarantee. An international recruitment agency carries the same licensing structure but a meaningfully larger guarantee requirement. Across both, the bank guarantee is refundable capital rather than a spent cost — the real annual expense is the guarantee fee, typically AED 1,500 to AED 3,000 a year, on top of your standard license and MOHRE renewal costs.
How to Keep Your License Cost Down
The clearest lever is confirming which guarantee tier your specific placement model actually requires before you set aside capital — agencies that assume the higher international tier when their business is genuinely local end up tying up more capital than necessary. Confirming your exact category with MOHRE early, rather than budgeting off a generic online figure, is worth the extra step given how much this number varies by source.
License Renewal Cost
The DET trade license and MOHRE registration both renew annually, keeping your fixed regulatory cost close to your first-year spend each year going forward. The bank guarantee itself doesn't need annual renewal in the sense of new capital — it stays in place — but the annual guarantee fee recurs each year the guarantee remains active.
Why Get Your License Cost Confirmed by Takween Advisory
The exact cost for your recruitment agency depends heavily on which MOHRE category your placement model falls under — a local corporate recruiter and an international labor placement agency carry meaningfully different bank guarantee requirements. Takween Advisory manages the full setup process across DET and MOHRE, and gives every client an itemized cost breakdown before any work begins, so there are no surprises once you've committed to a placement model. Book a free consultation to get an accurate, activity-specific quote for your recruitment agency license.
Recruitment Agency License Cost in Dubai: Fee Summary Table
Here's a quick-reference summary of every fee covered in this guide, from the DET trade license through MOHRE registration and bank guarantee costs.
| Fee | Estimated Cost (AED) | Frequency |
|---|---|---|
| Trade name reservation | 620 – 1,000 | One-time |
| DET initial approval | ~120 | One-time |
| DET trade license (recruitment agency) | 15,000 – 25,000 | Annual |
| MOHRE registration/permit | 5,000 – 12,500 | Annual |
| Bank guarantee (local/corporate recruitment) | ~100,000 | Refundable, held |
| Bank guarantee (international recruitment) | Up to ~300,000 | Refundable, held |
| Annual bank guarantee fee | 1,500 – 3,000 | Annual |