Short answer: You can hire in the UAE without setting up a UAE company by using an employer of record (EOR). A licensed EOR becomes the legal employer, sponsors the work visa, registers the contract with MOHRE or the relevant free-zone authority (free zones such as ADGM and DIFC have their own regulators), pays salary through the Wage Protection System (WPS) and accrues end-of-service gratuity, while you manage the work day to day. For genuine freelancers, a contractor arrangement may work, but UAE rules on misclassification are strict.
Your options at a glance
| Employer of record | Mainland LLC | Free-zone entity | Freelancer or contractor | Staffing agency | |
|---|---|---|---|---|---|
| Legal employer | The EOR | Your UAE company | Your free-zone company | Nobody (self-employed) | The agency |
| Where staff can work | Depends on the EOR’s licence: across the UAE with a mainland licence, generally within the zone with a free-zone licence | Across the UAE | Generally inside the zone only | Depends on the permit | Depends on the agency’s licence |
| Visa sponsorship | By the EOR | By you | By you, within zone limits | Not applicable | By the agency |
| Best for | 1 to 10 hires, fast start | Larger teams, mixed locations | Teams in one zone | Genuine project work | Short-term cover, seasonal peaks, fixed-end projects |
| Main risk | Service fee | Setup and compliance burden | Zone restrictions on mainland work | Misclassification penalties | Agency markup, often 15 to 30% above base pay; worker is not your employee so you cannot offer your benefits or equity |
Option 1: Hire through an employer of record
The EOR employs your worker in the UAE and handles the legal and administrative load.
What the EOR handles
- Written employment contract registered with MOHRE or the relevant free-zone authority before the employee starts
- Work permit and residence visa sponsorship
- Payroll through WPS
- Mandatory health insurance
- End-of-service gratuity accrual
- Compliance with UAE labour law (Federal Decree-Law No. 33 of 2021 on employment relations)
What you still handle
- Choosing the person and defining the role
- Day-to-day management
- Agreeing salary and benefits
Mainland or free zone? Where your employee works decides which licence is needed. A mainland licence allows work anywhere in the UAE, while a free-zone licence generally covers work within that zone. A free-zone EOR is a valid way to employ someone, as long as the person works within that zone’s scope. Ask your provider which entity will employ your worker and whether it covers your location.
Option 2: Set up a mainland company or free-zone entity
A mainland LLC gives you full control and cross-Emirate visa sponsorship, but you become responsible for MOHRE (or free-zone authority) registration, WPS, visas, insurance and gratuity. Free zones simplify licensing and allow 100% foreign ownership, with the limit that employees are generally tied to the zone. Employers with 50 or more employees on the mainland face Emiratisation quotas, with significant fines for breaches.
Option 3: Freelancers and contractors
The UAE has a freelance permit framework, and misclassifying an employee as a freelancer can bring fines, back pay and permit consequences under UAE labour rules. Check the current penalties on the MOHRE website. If the person works set hours, under your direction, as part of your team, treat them as an employee.
Option 4: Staffing agencies
A staffing agency holds its own UAE licence and places workers with your business, acting as the legal employer of those workers. The agency handles the work permit, residence visa sponsorship and payroll for the placed staff.
Staffing agencies can be a quick solution for short-term or project-based needs, but they are expensive for long-term hires and tend to produce weak retention: the placed worker’s employment relationship is with the agency, not with your business, which limits your ability to build culture, offer equity or tailor benefits.
What hiring in the UAE costs
- No personal income tax and no employer social security for expatriate employees. UAE nationals have separate GPSSA pension contributions.
- End-of-service gratuity: roughly 21 days of basic salary per year for the first five years, then 30 days per year, subject to a cap of two years’ salary.
- DIFC employees are covered by the DEWS savings scheme, with employer contributions of 5.83% of basic salary in years 1 to 5 and 8.33% from year 6.
- Visa, residency and health insurance costs vary by emirate and by provider.
- WPS late payment: salary paid late can lead to fines and work-permit restrictions. See the MOHRE website for current rules.
EOR fees: RemotePass UAE EOR starts at $549 per employee per month, for both ADGM (Abu Dhabi) and other jurisdictions including Dubai. The monthly management fee is the service charge for employing a team member on your behalf and excludes any immigration-related costs. Immigration fees vary by individual circumstances, so ask for a tailored quote.
Step by step: hire in the UAE through an EOR
- Decide where the person will work. Mainland or a specific free zone.
- Choose an EOR and ask for its MOHRE establishment ID or free-zone licence number. Verify it on the official register.
- Agree the package. Salary, allowances, health insurance, leave and notice.
- Sign the EOR service agreement.
- EOR issues the contract, registers it with MOHRE or the relevant free-zone authority and starts the visa process.
- Employee completes medical and Emirates ID steps once the visa is issued.
- Onboard the employee and give access to your systems.
- Run payroll monthly through WPS. Late payment carries penalties, so confirm the cut-off dates.
- Manage changes and exit through the EOR, including final settlement and gratuity.
How to choose a UAE EOR
- Verifiable licence. Ask which entity will employ your worker and check the official MOHRE or free-zone register to confirm it exists.
- Visa scope. Does its sponsorship cover your work location?
- Fee transparency. Is the price public, and are visa and insurance included?
- Payment speed and local currency options for the employee.
- Gratuity handling. How it is accrued and funded.
- Local compliance expertise on MOHRE, WPS and Emiratisation.
- Contractor support if you also need to pay freelancers.
Hiring in the UAE with RemotePass
RemotePass acts as the legal employer in 150+ countries with no entity required on your side. In the UAE, RemotePass employs through ADGM (Abu Dhabi), Dubai free zone and mainland entities, so your hire is placed with the entity that fits where they will work. The UAE country guide is focused on ADGM and notes differences for other jurisdictions where they apply.
Key features of the RemotePass EOR service:
- Country-specific contracts reviewed by local legal experts
- Right-to-work and identity checks carried out on your behalf
- Payroll, tax and benefits on one monthly invoice, with WPS and GOSI-compliant processing in the GCC
- Workers paid in local currency
- Named customer success manager with a response commitment under 4 hours
- SpendCards for team members
- Rated 4.8/5 on G2 with a G2 Leader badge (Summer 2026)
How setup works with RemotePass
- Tell RemotePass the role, salary and where the person will work.
- RemotePass confirms which entity (ADGM, Dubai free zone or mainland) will employ them.
- RemotePass issues the contract and starts the work permit and visa process.
- Once the required employee documents are received, onboarding takes a minimum of 2 working days.
- Payroll, WPS and gratuity accrual run through RemotePass from the start date.
RemotePass UAE EOR starts at $549 per employee per month for both ADGM (Abu Dhabi) and other jurisdictions including Dubai. Globally, RemotePass EOR starts from $349 per employee per month, versus $599 for Deel, as stated on the RemotePass comparison page. These are RemotePass’s own published prices.
Lean (fintech, KSA) reports AED 60k+ saved on entity setup costs using RemotePass.
Work permit and residence visa process
Every expatriate employee needs both a MOHRE work permit and a UAE residence visa before starting work, even if they are already resident in the UAE under a different visa (such as a family visa or a previous employer’s sponsorship). UAE nationals do not need work permits but still require a registered employment contract.
The sequence for expatriate employees is:
- The sponsoring employer (or EOR) applies for MOHRE work permit approval.
- The employee submits the required documents (passport, qualifications, medical history).
- MOHRE approves the work permit.
- The residence visa is processed and stamped.
- The employee completes a medical test and registers for an Emirates ID.
Working on a visit visa while waiting for the work permit is illegal. Doing so risks fines, deportation and re-entry bans for the employee, and liability for the sponsoring employer.
The employment contract must be registered with MOHRE or the relevant free-zone authority as part of the hiring process.
Offboarding through an EOR
When an employee leaves, the EOR manages the full exit process on your behalf:
- Work permit and residence visa cancellation — the EOR notifies MOHRE and initiates cancellation of the work permit and residence visa.
- Final settlement calculation — unused annual leave pay and end-of-service gratuity are calculated in line with UAE labour law.
- Final payroll run — the last salary payment, including any settlement amounts, is processed through WPS.
- Labour card cancellation — the employee’s labour card is cancelled with MOHRE.
- Experience certificate — the EOR issues a letter of experience confirming the employee’s role and tenure.
Common mistakes
- Hiring under a free-zone licence for mainland work. The permit may not cover it.
- Treating a full-time worker as a freelancer. Misclassification penalties are heavy.
- Missing WPS deadlines. Late salary payment triggers penalties.
- Ignoring gratuity in the budget. It builds up every year of service.
- Signing before checking the EOR’s licence. The entity named in the contract is the one that counts in a dispute.
Frequently asked questions
Can I hire in the UAE without a trade licence? Yes, through an employer of record that holds the licence and acts as the legal employer. You do not need your own trade licence for the people it employs for you.
Can I hire in Dubai without a company? Yes. An EOR can employ staff in Dubai through a Dubai free-zone or mainland licence, depending on where the person will work. Confirm the licence scope before signing.
Do I need a free zone to hire in the UAE? No. You do not need your own free-zone entity. An EOR employs the person through its own licensed entity, in a free zone or on the mainland, depending on where they will work.
How does visa sponsorship work through an EOR? The EOR sponsors the work permit and residence visa as the employer. RemotePass lists a minimum onboarding time of 2 working days for the UAE, assuming all required employee documents have been received. RemotePass can also sponsor and support work visa or permit applications in the UAE. Ask your provider for typical processing times on complex cases.
How much does an EOR cost in the UAE? Fees vary by provider and scope. RemotePass UAE EOR starts at $549 per employee per month, covering both ADGM and other UAE jurisdictions. Visa, insurance and gratuity accrual affect the total; see RemotePass pricing for details.
What is end-of-service gratuity? A payment owed to employees when they leave, based on salary and years of service. The EOR accrues it and settles it at exit.
Is an EOR legal in the UAE? Yes, provided the EOR is a properly licensed entity. Verify its registration before you sign.
Is it illegal to work in the UAE without a work permit? Yes. Every employee needs a MOHRE work permit and residence visa before starting work. Penalties can include fines, deportation and re-entry bans. Check current penalties on the MOHRE website.
Is it legal to work for a company without a contract? No. Federal Decree-Law No. 33 of 2021 requires written contracts for employees.
