Manpower Supply License Cost in Abu Dhabi (2025 Guide)

Abu Dhabi has become one of the fastest-growing hubs for industries like construction, oil and gas, hospitality, and facility management.

With this growth comes a rising demand for skilled, semi-skilled, and unskilled workers. To meet this demand legally, businesses require a manpower supply license.

If you are planning to start a manpower supply company, the first question that comes to mind is:
 How much does it cost to get a manpower supply license in the UAE, specifically in Abu Dhabi?

In this guide, we’ll cover everything you need to know from license costs, requirements, and legal procedures, to benefits, challenges, and FAQs.

 

What is a Manpower Supply License in the UAE?

A manpower supply license allows a company to legally provide human resources to other businesses across the UAE. This includes supplying workers for industries such as:

• Construction
• Oil & Gas
• Hospitality
• Cleaning services
• Security services
• Logistics & transport

🔹 Important Note:

• A manpower supply license is different from a recruitment agency license.
• A recruitment license covers hiring and job placements, while a manpower supply license focuses on outsourcing labor to companies.

Entities involved in approvals:

• Department of Economic Development (DED) Abu Dhabi – For trade license approval
• Ministry of Human Resources and Emiratisation (MOHRE) – For labor approvals and worker quotas

Cost of Manpower Supply License in Abu Dhabi

Setting up a manpower supply company requires both initial investment and ongoing annual costs.

1. Initial Setup Costs

• Trade License Fee (DED Abu Dhabi): AED 10,000 – AED 15,000
• MOHRE Registration Fees: AED 2,000 – AED 5,000
• Local Service Agent / Sponsor Fees: AED 8,000 – AED 15,000 annually (if required)
• Bank Guarantee / Security Deposit: AED 300,000 – AED 500,000 (mandatory)
• Office Rent: AED 25,000 – AED 50,000 (depends on size and location)
• Document & Approval Charges: AED 5,000 – AED 10,000

 Total Initial Cost Estimate: AED 350,000 – 600,000

2. Annual Renewal Costs

• Trade license renewal: AED 10,000 – AED 15,000
• MOHRE renewal fees: AED 2,000 – AED 5,000
• Sponsor / Local service agent renewal: AED 8,000 – AED 15,000

 Annual Renewal Estimate: AED 20,000 – 40,000

3. Additional Costs

• Employee visas (AED 3,000 – 5,000 per visa)
• Labor quotas based on company size
• Ejari / Tenancy contract fees
• Insurance (health + workmen’s compensation)

Attributes to Remember:

• Cost range: AED 350,000 – 600,000 initial setup
• Renewal fees: AED 20,000 – 40,000 annually
• Bank guarantee: AED 300,000 – 500,000
• Processing time: 2–4 weeks depending on approvals

Legal Requirements for a Manpower Supply License in Abu Dhabi

To operate legally, businesses must follow these rules:

• Local Sponsor or UAE National: A UAE citizen is required as a partner or service agent.
• Bank Guarantee: Mandatory deposit with MOHRE (AED 300K–500K).
• Physical Office Space: Virtual offices are not allowed.
• Trade License: Must be issued by DED Abu Dhabi.
• MOHRE Approval: For recruitment of workers and labor quotas.

Documents Required:

• Passport copy of owner(s)
• Emirates ID (for UAE nationals involved)
• Tenancy contract for office space
• Trade name reservation certificate
• Bank guarantee slip

Step-by-Step Process to Get a Manpower Supply License

Step 1: Choose the Business Structure

• The most common legal structure for a manpower supply company is a Limited Liability Company (LLC).
• An LLC allows you to operate legally on the mainland, which is a requirement for manpower supply.
• You’ll need a UAE national sponsor/partner holding at least 51% of shares (as per UAE regulations), while you maintain 49%.

Tip: Partner with a reliable local sponsor who can support your business legally and strategically.

Step 2: Reserve a Trade Name with DED Abu Dhabi

• Choose a business name that follows UAE naming conventions (no offensive or religious words, and must reflect business activity).
• Submit the trade name application to the Department of Economic Development (DED) Abu Dhabi.
• Once approved, you’ll receive a trade name reservation certificate, which is valid for a limited time and required for further approvals.

Step 3: Apply for Initial Approvals from DED and MOHRE

• Submit your application to DED Abu Dhabi for preliminary approval to conduct manpower supply activities.
• Register with the Ministry of Human Resources and Emiratisation (MOHRE) to obtain labor-related permissions.
• At this stage, the authorities review your documents and business activity to ensure compliance.

Documents Needed:

• Passport copies of shareholders
• Emirates ID (for local partner)
• Trade name certificate
• Business activity details

Step 4: Rent Office Space and Prepare Tenancy Contract

• A physical office is mandatory for manpower supply businesses; virtual offices or flexi-desks are not allowed.
• Sign a lease agreement and register your tenancy contract under the Abu Dhabi municipality system.
• The tenancy contract (Ejari equivalent in Abu Dhabi) must be submitted with your license application.

Step 5: Deposit Bank Guarantee with MOHRE

• One of the major requirements is a bank guarantee/security deposit.
• Typically, this ranges between AED 300,000 and AED 500,000, depending on the scale of operations.
• This deposit acts as a financial safeguard to ensure workers’ salaries and rights are protected.
• Without this bank guarantee, MOHRE will not issue the manpower license.

Step 6: Submit Final Documents and Pay License Fees

• After securing your office and depositing the bank guarantee, submit the full set of documents to DED and MOHRE.
• Pay the necessary trade license issuance fees, which generally range between AED 10,000 – AED 15,000.
• At this stage, your business setup consultant (if you hire one) can help ensure all paperwork is in order to avoid delays.

Step 7: Receive Your Manpower Supply License

• Once approvals are granted, you’ll receive your official manpower supply license.
• This license legally allows your company to provide workers to other businesses in Abu Dhabi and across the UAE.
• You must keep your license renewed annually to remain compliant.

Step 8: Apply for Labor Quotas and Employee Visas

• With your license issued, the next step is to apply for labor quotas through MOHRE.
• Labor quotas determine how many employees your company can sponsor at one time.
• Apply for residence visas and work permits for your staff to begin operations.
• Depending on your business plan, you can expand quotas later as your manpower needs grow.

By following these 8 steps, you’ll be able to establish a fully licensed manpower supply company in Abu Dhabi.

While the process requires time, financial investment, and strict compliance, the business potential is highly profitable due to the ongoing demand for manpower across multiple sectors in the UAE.

Benefits of Having a Manpower Supply License in Abu Dhabi

• High demand: Constant requirement for manpower across industries.
• Legal compliance: Avoids penalties and ensures smooth business operations.
• Flexibility: Supply workers for multiple industries.
• Profitability: Strong ROI due to consistent demand.
• Reputation: Builds trust with clients who prefer licensed manpower providers.

Challenges & Things to Consider Before Applying

• High initial investment: The bank guarantee requirement is significant.
• Strict regulations: Non-compliance can lead to heavy fines.
• Local sponsorship: Finding the right UAE national partner is crucial.
• Competition: The manpower supply sector is competitive in Abu Dhabi.

Alternatives: Free Zone vs Mainland License

Many entrepreneurs ask if a manpower supply license can be obtained in free zones.

• Free Zones: Typically allow recruitment and consultancy, but NOT manpower supply.
• Mainland (Abu Dhabi): Mandatory for manpower supply businesses.

👉 Therefore, if you want to legally provide workers, you must register on the Abu Dhabi Mainland.

Conclusion

Getting a manpower supply license in Abu Dhabi is an investment-heavy process, but the returns are substantial due to the city’s booming demand for labor.

On average, the cost ranges from AED 350,000 to 600,000 for setup, with AED 20,000 – 40,000 annually for renewals.

While the process may seem complex, with the right documentation, approvals, and guidance from business setup experts, you can establish a profitable manpower supply company in Abu Dhabi.

FAQs: Manpower Supply License Cost 

Q1. How much does a manpower supply license cost in Abu Dhabi?
The cost ranges between AED 350,000 – 600,000, depending on approvals, office rent, and business scale.

Q2. What is the minimum capital required for manpower supply in UAE?
There is no fixed capital requirement, but a bank guarantee of AED 300,000 – 500,000 is mandatory.

Q3. Can expatriates get a manpower supply license in Abu Dhabi?
Yes, but they need a UAE national sponsor or partner to obtain the license.

Q4. Do I need a local sponsor for a manpower supply license in UAE?
Yes, a local Emirati partner or service agent is required.

Q5. How long does it take to get a manpower supply license in Abu Dhabi?
The process usually takes 2–4 weeks, depending on document approvals.

Q6. Can manpower supply business be done in UAE free zones?
No, manpower supply licenses are only issued on the mainland.

Q7. What are the penalties for operating without a manpower supply license in UAE?
Fines can range from AED 50,000 to AED 100,000, along with possible business closure and visa bans.