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UAE Company Setup and Hiring from Abroad

uae company setup and hiring from abroad

The UAE is a preferred destination for entrepreneurs and businesses looking to expand globally. With its attractive business environment, straightforward company formation process, and access to a diverse talent pool, the country makes it easy for businesses to hire employees from abroad. One of the advantages of issuing an employee visa for someone outside the UAE is that it is more cost-effective compared to hiring someone already in the country. Since the employee enters on a work visa, there is no need for a status change, which reduces administrative fees. This streamlined process helps businesses manage their hiring budget efficiently while ensuring compliance with UAE regulations.

Steps to Issue an Employee Visa from Outside the UAE

1. Obtain a UAE Business License

The first step to hiring employees from outside the UAE is to establish a legally registered company. Businesses can either set up in a UAE free zone, which offers 100% foreign ownership and simplified procedures, or on the Dubai mainland, which allows direct trade within the local market. The choice between the two depends on business activities, target market, and operational needs. A valid business license is essential before applying for employee visas, as it determines the company’s ability to sponsor workers.

2. Apply for an Employment Entry Permit

Once the company is set up, the employer can apply for an employment entry permit for the employee residing outside the UAE. This permit serves as a temporary visa, allowing the employee to enter the country legally for work purposes. The application is processed through the UAE’s immigration system and is typically approved within a few days, with a validity of 60 days to complete further visa formalities upon arrival. One of the major benefits of hiring from outside the UAE is the cost savings, as employees already inside the country on a visit or tourist visa require a status change to convert their visa type, which comes with additional costs. By hiring employees directly from abroad, businesses can avoid these extra expenses while ensuring a smooth visa process.

3. Employee Arrival and Residency Procedures

Once the employee arrives in the UAE, the remaining steps for completing the visa process include a government-mandated medical examination, which involves bloodwork and a chest X-ray to confirm fitness for work, followed by Emirates ID registration, where biometric data is collected for the issuance of an official identity document. The final step is visa stamping, where the UAE residency visa is officially placed in the employee’s passport, granting them the right to live and work in the country. Since all of these steps must be completed within the UAE, issuing the visa before arrival ensures a faster and more structured onboarding process, allowing employees to start their roles without unnecessary delays.

4. Work Permit and Labor Contract

For mainland companies, employers must register employees and issue a formal labor contract outlining salary, job responsibilities, and employment conditions. Free zone companies handle employment contracts within their respective regulatory authorities, often providing a simplified process. Having a well-defined contract ensures clarity for both employer and employee while meeting UAE labor law requirements.

Key Considerations When Hiring International Employees

  • Cost-Effective Visa Processing – Issuing a visa for employees outside the UAE eliminates the need for a status change, making it a cheaper and more efficient option.
  • Visa Quotas – Free zones allocate a specific number of visas per company based on office space, while mainland companies must adhere to labor regulations and workforce requirements.
  • Processing Time – While most visas are processed within a few days, timelines may vary depending on company structure, free zone authority, or government approvals.
  • Legal Compliance – Businesses must ensure that all visa applications follow UAE regulations to avoid potential fines, delays, or visa rejections.

 

 

How Can Choose UAE Help

Hiring employees from abroad while starting a company in the UAE is a cost-effective and efficient approach. At Choose UAE, we handle the entire process—from company formation to securing employee visas—ensuring a smooth, compliant, and cost-effective setup.

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