How to Hire Employees in UAE Without a Local Entity: A Guide for Global Employers

Expanding into the UAE is an exciting opportunity for global businesses. The region offers access to a skilled, multilingual workforce and a thriving economy. But one common hurdle for international companies is figuring out how to hire employees in UAE without a local entity.

Fortunately, there are legal and efficient solutions. In this guide, we’ll show you exactly how to hire in UAE legally, even if you don't have a registered business there.

Why Expanding into the UAE Makes Business Sense

The UAE has become a key hub for trade, finance, technology, and innovation. With a strategic location, modern infrastructure, and pro-business policies, it offers a compelling launchpad for Middle East operations.

Many global companies want to test the waters or build a remote team before committing to a full local setup. Hiring employees allows you to explore opportunities and establish presence without immediate heavy investment.

And that’s where hiring without setting up a local entity makes sense. It gives you access to UAE talent while keeping your operations lean and flexible.

The Challenge: Legal Limits Without a Local Entity

To directly hire employees in the UAE, a company typically needs a valid UAE business license. This license authorizes you to employ staff under your company name, process payroll, and sponsor visas.

Setting up a registered business in the UAE involves time and cost. You must choose between free zone or mainland structures, secure office space, and comply with licensing requirements.

Without this setup, companies cannot legally sponsor employees or manage local employment matters. That’s why many businesses explore alternative options that support compliance without requiring full incorporation.

The Solution: Use an Employer of Record in the UAE

If you're looking for a way to hire employees in UAE without a local entity, an Employer of Record (EOR) offers the ideal solution.

An Employer of Record UAE is a third-party organization that legally employs workers on your behalf. They handle employment contracts, visa processing, payroll, local tax contributions, and HR compliance.

You manage the employee’s work and performance, while the EOR manages the legal and administrative side. This arrangement ensures full compliance, without the need to set up a company or obtain a UAE business license.

With this model, you can quickly enter the UAE market, hire key talent, and scale as needed. It’s a streamlined, cost-effective way to expand into UAE without setting up a company.

Other Hiring Options: Contractors and Staffing Agencies

Aside from using an EOR, some businesses consider hiring independent contractors in the UAE. While this may seem simpler, it presents legal risks.

UAE labor laws have strict criteria for worker classification. If you treat a contractor like an employee (such as providing a full-time schedule or exclusive work), they might be reclassified as an employee. That could lead to legal, tax, or visa issues.

Another route is to work with UAE staffing agencies. These agencies can help find temporary or project-based staff. However, they often act as the legal employer, similar to an EOR but with limited scope. Staffing firms may not offer the long-term flexibility or compliance security that EOR solutions provide.

While these alternatives exist, the most reliable path for long-term hiring and full compliance is to hire workers in UAE using an Employer of Record.

Benefits of Hiring in UAE With an Employer of Record

Choosing an Employer of Record to hire employees in UAE without a local entity offers several strategic advantages:

Speed and simplicity  

An EOR can onboard employees in a matter of days. Since they already hold the required licenses and infrastructure, you can skip lengthy paperwork and focus on business growth.

Compliance and peace of mind  

EORs ensure you stay fully compliant with UAE labor laws, from visa sponsorship to payroll, benefits, and taxes. This reduces the risk of legal exposure and protects your brand.

Cost savings  

Avoid expenses tied to office space, legal registrations, and administrative overhead. With an EOR, you only pay for the talent you hire—not the cost of running a separate UAE entity.

Flexibility to scale  

Whether hiring a single expert or a full local team, an EOR makes it easy to scale up or down based on your project needs and growth plans.

These benefits make EORs an ideal solution for global businesses looking to expand into UAE without setting up a company.

What to Look for in a UAE EOR Partner

If you decide to hire employees in UAE using Employer of Record services, choosing the right provider is essential. A strong EOR becomes an extension of your business, so careful selection matters.

Here’s what to look for in a UAE EOR partner:

• Deep knowledge of local employment law and compliance  
• Proven experience managing UAE-based teams  
• Transparent pricing without hidden fees  
• Flexible contracts and customized solutions  
• Capability to support onboarding, payroll, benefits, and visa arrangements  

Make sure your EOR can sponsor various visa types and support a wide range of roles, from tech professionals to sales and marketing staff. A reliable provider should make the process smooth and ensure your team is fully supported from day one.

Hiring in UAE Without a Local Entity Is Possible

You can absolutely hire employees in the UAE without setting up a local entity. The most effective and compliant way is to work with an Employer of Record.

An EOR allows you to recruit, onboard, and manage talent while they take care of contracts, payroll, and visa processes. You stay compliant with UAE labor laws without the need for a UAE business license.

This model is perfect for testing new markets, setting up regional teams, or running remote operations in a cost-effective and low-risk way. Just be sure to partner with a reputable EOR that understands the local landscape.

FAQs

1. Is it legal to hire in the UAE without a business entity?  

Yes. You can legally hire employees in the UAE by using an Employer of Record. The EOR is recognized as the legal employer and ensures full compliance with UAE employment laws.

2. Can I hire independent contractors in the UAE as a foreign company?  

You can, but it involves risk. UAE law has strict rules regarding contractor classification. If a contractor performs similar duties to an employee, legal issues may arise. Using an EOR is a safer and more compliant long-term solution.

3. What is the fastest way to hire someone in the UAE without setting up a company?  

The fastest and most reliable way is to hire workers in UAE using Employer of Record services. An EOR can onboard employees quickly, usually in a few business days, all while maintaining legal compliance.