Own a company in the UAE? Here is how you can get 80 per cent discount on government service fees

Dubai: Companies that abide by the UAE’s labour law, Wage Protection System, workers' rights protection and have higher Emiritisation rates can benefit from an 80 per cent reduction in fees for government services. The benefits you get as a business owner depend on the classification under which your company falls.

So, if you are an entrepreneur or business owner in the UAE, you would need to check your company’s classification with the Ministry of Human Resources and Emiratisation (MOHRE). MOHRE first introduced the company classification system in May 2022 and the classification system came into effect this month.

What exactly is a company classification and how can you check which category your company falls under? Here is all you need to know.

MOHRE has classified companies in the UAE based on their compliance with the UAE’s Labour Laws, the Wage Protection System and the establishment’s Emiritisation rates and have been divided into three categories. The three company classifications as per MOHRE are:

A company that abides by the UAE Labour Law and its resolutions, aside from fulfilling one of the following criteria:

Raise Emiratisation rate at least three times above the target. (In May this year, the UAE Cabinet approved increasing the Emiratisation rate to 2 per cent annually from high-skilled jobs in establishments that employ 50 workers or more. The step aims at creating more than 12,000 job opportunities annually for citizens in all economic sectors.)

A company is defined as a second category if it abides by the following standards set by MOHRE:

A company is automatically classified within the second category, according to MOHRE, if it complies with the laws and policy of promoting cultural and demographic diversity in the UAE.

Companies in the second category benefit from discounted government service fees related to work permits and transfer fees not exceeding Dh1,200 for two years.

For in-depth breakdown on the definition of each classification, read our detailed guide here.

The third category is for companies found violating the Labour Law and executive regulations, and the standards for protecting labour rights. Some of the violations highlighted in the ministerial resolution are:

Companies in the third category will be penalised by MOHRE and the establishment will not benefit from any incentives for fee discounts.

To read how work permit costs can vary based on which category your company falls under, read our detailed guide here.

You can check your company’s classification using the mobile application ‘MOHRE UAE’, which is available for both Android and Apple devices.