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Starting an HR Consultancy Business in Dubai: Challenges and Requirements

It is critical to understand that starting your own HR consultancy business in Dubai will be one of the most difficult practises that will undoubtedly push you to your limits on all sides; one must be motivated, persistent, and very tolerant.

Wondering how to start your HR consulting business?

Despite the rise of HR technology, artificial intelligence, and machine learning, there is still a large market for new start-up HR consultancies to assist businesses in getting the most out of their employees.

There is plenty of potential business in all areas of HR consulting, including generalist HR consulting, recruitment and selection, employee assignment, training, learning and expansion, employment law, and many others.

Many consultants provide general HR support and information, but they also specialise in one or two areas where they have more in-depth knowledge.


What are the Documents Required to Start an HR Consultancy Business in Dubai?

  • Brief Project Description
  • Office Tenancy Contract (Ejari)
  • Passport Copy of the Proposed Shareholder(s)
  • Photo of the Shareholder (with white background)
  • Entry stamp, residency visa, or tourist visa of proposed shareholder
  • Attested bachelor’s degree in HR from the UAE embassy in India and Ministry of Foreign Affairs UAE
  • 3 years of local or 5 years of international experience
  • American university certification in Dubai
  • Background information on shareholder(s)
  • Copy of UAE national’s passport
  • Copy of UAE national’s family book
  • Copy of UAE national’s Emirates ID

How to start an HR Consultancy Business? Advice for aspiring HR consultants

Plan your Business

Many HR consulting firms fail in part because they don’t have a well-researched business plan. So it’s better to plan your business well before executing.

Things to be considered before starting-

  • Have sound knowledge about the target market
  • Must have a unique selling point
  • Plan for working with non-local clients
  • Consider all the expenses such as office space, materials, tourism, dues, etc.
  • Decide your charge fee for the services
  • Attract your clients
  • Being your own boss is great, but it’s also much more challenging to get your finances in order.

Five Legal steps to apply for the consultancy License

  • The DED application form must be completed
  • Authority approval is required
  • Obtain a No-Objection Certificate (NOC)
  • Obtain permission from relevant authorities for advertising materials such as banners, pamphlets, etc.
  • Submit all forms with attestation and make the payment to receive the license, a payment receipt will be provided.

It takes 5-6 working days to receive the license and you can start your consultancy business in Dubai. Although competition is fierce, there is high demand for consultancy services.

Understand the legal structure for new HR consulting business

You must understand the importance of the proper legal structure for a new Human Resources consulting business when considering business and financial plans.

Whether you are from Dubai or somewhere else in the UAE, you must follow some legal steps before starting your HR consultancy business.

Financial Planning

A proper financial plan also must be ready. You have to be ready with at least quarterly taxes. In the initial time period of any business, a financial investment is needed, because the business will not speed up in the starting and this could be applied to any business. For paying the employees to pay and other taxes, the HR consultant must be ready priory and be ready with a financial plan as well as a business plan.

Networking is must

Try to build good relationships with the other HR consultants or service providers who are expertise in areas. This creates a chance for a jointly favorable relationship where you provide recommendations and vice versa. You should not miscalculate the potential value of referrals from a leading client, whose firm works mostly with small- to medium-sized businesses because best experiences have come from referred clients.

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