A Dubai HR consultancy licence costs AED 15,000–30,000 all-in and requires approval from the Dubai Economy and Tourism (DET) department and the Ministry of Human Resources and Emiratisation (MOHRE). Setup takes 3–5 weeks. You’ll need a local partner or agent, a premises address, and submitted qualifications. Both mainland and free-zone registration are available.
What is a Dubai HR Consultancy Licence?
An HR consultancy licence in Dubai permits your business to provide human resources advisory, payroll processing, workforce planning, and talent management services to clients across the Emirate. This falls under activity code 7020 (Human Resources Consultancy Activities) within the Department of Economy and Tourism (DET) classification. Unlike a recruitment agency licence, an HR consultancy focuses on strategic HR services rather than direct job placement. If you’re exploring Dubai business setup options, HR consultancy is one of the most accessible professional service routes.
Licensing Authority: DET and MOHRE
Two regulatory bodies oversee HR consultancy operations in Dubai: the Dubai Economy and Tourism (DET) authority, which issues the commercial licence, and the Ministry of Human Resources and Emiratisation (MOHRE), which provides sector-specific approval. MOHRE clearance is mandatory before DET can finalise your licence. Both approvals must be in place before you trade. The DET handles the general business registration, while MOHRE ensures your HR credentials and compliance meet national labour law standards.
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Cost Breakdown: All-In Pricing for 2026
| Cost Item | Typical Range (AED) |
|---|---|
| DET Commercial Licence (one year) | 2,000–4,500 |
| MOHRE Approval & Certification | 1,500–3,000 |
| Office Registration & Premises Deposit | 3,000–8,000 |
| Visa Sponsorship (if applicable) | 2,000–5,000 |
| Professional Consultancy & Document Prep | 5,000–10,000 |
| Total All-In Cost | AED 15,000–30,000 |
This range covers the complete package from application to licence issuance. Costs vary based on whether you choose mainland registration (under DET) or a free-zone option such as Dubai Airport Free Zone (DAFZ) or Dubai Outsource Zone (DOZ). Free-zone setup may push costs toward the higher end due to zone-specific fees.
Mainland vs. Free Zone Setup
You have two registration routes: mainland and free zone. Mainland HR consultancies operate under DET oversight, require a local UAE sponsor (usually a local service agent), and can serve any Dubai or UAE client. Free-zone options—such as DAFZ, DOZ, and Jebel Ali Free Zone (JAFZ)—offer 100% foreign ownership and simplified compliance but typically serve corporate clients within the zone. Free-zone set-ups often cost AED 18,000–30,000 due to zone licence fees and administrative charges. Mainland registration is generally more cost-effective at AED 15,000–22,000 if you have a local partner. Both require MOHRE approval; free zones have faster approval timelines (2–3 weeks vs. 3–5 weeks mainland).
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Required Documents and MOHRE Approvals
MOHRE requires certified copies of your educational and professional qualifications (Bachelor’s degree minimum, preferably in HR or a related discipline), a clean visa status verification, completed application forms, a business plan outline, and proof of office premises. You must also provide a letter of intent and your CV. If you are a non-UAE national, you’ll need a valid passport copy and emirates ID or residence visa documentation. The DET simultaneously requests trade name approval, premises lease agreement (or purchase deed), and a completed application form. Processing takes 3–5 weeks from full document submission. Incomplete files extend this timeline by 2–3 weeks.
Visa Eligibility and Headcount Quota
HR consultancy licences allow visa sponsorship for employees. As a new company, you may sponsor 1–2 staff members in year one, depending on DET discretion and your business plan credibility. MOHRE quota rules permit scaling to 3–5 staff by year two if annual revenue exceeds AED 500,000. Visa costs are typically AED 2,000–5,000 per employee (initial sponsorship and renewal). Non-UAE nationals can obtain an investor or freelancer visa if they hold 51% or more of the business, though most HR consultancies operate with a local UAE partner holding the controlling stake and a foreign consultant as a manager or director. Partner eligibility criteria include valid UAE residency, no active visa sponsorship conflict, and no concurrent directorship restrictions.
Timeline and Next Steps
Standard timeline from application to licence issuance is 3–5 weeks. Week 1: DBS gathers and vets all documentation. Week 2: Submit to DET and MOHRE in parallel. Weeks 3–4: Regulatory review and approvals. Week 5: Licence issuance and payment. Expedited routes (10–14 days) are available through some free-zone authorities but cost an additional AED 2,000–4,000. Start your application now if you aim to launch by Q2 2026. Early engagement with Dubai Business Services ensures document readiness and reduces rework cycles.
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Frequently asked questions
What licence do I need to start an HR consultancy in Dubai?
You need a commercial licence issued by the Dubai Economy and Tourism (DET) department under activity code 7020 (HR Consultancy Activities), plus approval from the Ministry of Human Resources and Emiratisation (MOHRE). Both are mandatory. Mainland registration costs AED 15,000–22,000; free-zone set-up ranges from AED 18,000–30,000 depending on the zone.
How is an HR consultancy licence different from a recruitment agency licence?
An HR consultancy licence (code 7020) permits strategic HR advisory, payroll processing, and workforce planning. A recruitment agency licence (code 7411) is limited to job placement and candidate sourcing. HR consultancies can offer broader services and command higher fee structures. Both require separate regulatory approvals; an HR consultancy cannot legally recruit on behalf of clients without an additional recruitment permit.
How much does an HR consultancy licence cost in Dubai in 2026?
All-in cost is AED 15,000–30,000. This includes DET licence (AED 2,000–4,500), MOHRE approval (AED 1,500–3,000), office registration (AED 3,000–8,000), visa sponsorship if needed (AED 2,000–5,000), and professional consultancy fees (AED 5,000–10,000). Free-zone options skew toward the higher end; mainland setups are typically lower.
Does an HR consultancy need MOHRE approval?
Yes. MOHRE approval is mandatory before the DET can issue your licence. MOHRE verifies your HR qualifications, checks your visa status, and confirms compliance with national labour law. Processing takes 2–3 weeks. Without MOHRE sign-off, DET will not proceed with your commercial licence application.
Can a free zone company offer HR services to mainland clients?
Yes, but with limits. Free-zone HR consultancies (e.g. DAFZ, DOZ, JAFZ) can serve mainland clients if they have a valid free-zone HR licence and comply with zone regulations. However, some zones restrict service scope to zone-based clients. Check with your chosen zone authority first. Mainland registration typically offers broader market access and costs less (AED 15,000–22,000 vs. AED 18,000–30,000).
How long does it take to set up an HR firm in Dubai?
Standard timeline is 3–5 weeks from completed application to licence issuance. Week 1 involves document gathering; weeks 2–4 cover DET and MOHRE review; week 5 includes final approvals and payment. Expedited free-zone routes can compress this to 10–14 days but incur additional fees (AED 2,000–4,000). Early document prep shortens overall time.
What qualifications and documents are required for MOHRE approval?
MOHRE requires a Bachelor’s degree (minimum) in HR, management, or a related field, certified educational transcripts, a clean visa status check, completed application forms, a business plan outline, office lease agreement, and your CV. Non-UAE nationals must provide passport, residence visa or emirates ID copy, and proof of identity. Processing takes 2–3 weeks with complete documents; missing items add 2–3 weeks delay.
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