UAE free zone companies that hire employees must obtain a UAE work permit (from MOHRE or the free zone authority) and a UAE residence visa for each employee. Here is the employer’s complete guide.
Step 1: Establishment Card
Before hiring any employee, the company must obtain an Establishment Card from the free zone or MOHRE. The Establishment Card confirms the company’s authorisation to hire staff and sets the visa quota (number of employees the company can sponsor). Free zone establishment card: typically included in the licence package or obtained for AED 500–1,000. UAE mainland Establishment Card (MOHRE): AED 1,000–2,000.
Step 2: Labour Approval / Entry Permit
For each new employee, the company applies for a Labour Approval (for mainland companies through MOHRE) or an employment entry permit (for free zone companies through the free zone authority). The entry permit allows the employee to enter the UAE and start employment. Processing time: 3–5 business days. Cost: AED 500–1,000 per employee.
Step 3: Employee Medical Test and Emirates ID
Once the employee enters the UAE on their entry permit, they must complete the medical fitness test (AED 230–280) and Emirates ID biometrics. Results and ID: 3–7 business days.
Step 4: UAE Residence Visa Stamping
After medical clearance, the UAE residence visa is stamped in the employee’s passport by GDRFA/ICP. Visa duration: typically 2–3 years matching the employment contract. Cost: AED 1,500–2,500 in government fees.
Employer Obligations
- WPS (Wage Protection System): enrol all employees in WPS; salaries must be transferred via WPS on time or the company faces fines and potential labour ban
- Health insurance: mandatory for all employees in Dubai (DHA regulation) and Abu Dhabi (DOH regulation); other emirates: recommended
- DEWS (DIFC End of Service Benefits Scheme) or GRATUITY: calculate and accrue end-of-service gratuity from day 1