Why employee visas matter when you build a team in Dubai
Australia’s start-ups and scale-ups are increasingly opening an office in Dubai to serve the Middle East, Africa and South Asia. Yet many founders discover—often too late—that hiring staff in the UAE is impossible without correctly sponsoring their visas. Fines of AED 50,000+ per worker, company blacklisting and frozen bank accounts are very real risks. This guide breaks down the 2025 visa rules every Australian founder needs to know before they issue their first offer letter.
1. Understanding the main work-residence visa options
| Visa type | Who issues it | Typical validity | Key advantages | Things to watch |
|---|---|---|---|---|
| Mainland Employment Visa | Ministry of Human Resources & Emiratisation (MOHRE) + General Directorate of Residency & Foreigners Affairs (GDRFA) | 2 yrs | Access to all UAE markets and on-shore clients | Emiratisation quotas apply from Jan 2025 for companies with 20+ staff |
| Free Zone Employment Visa | Individual free-zone authority (e.g. DMCC, IFZA) | 2–3 yrs | Streamlined portals, no corporate tax on qualifying income until 2030 | Staff can work only within or for the free zone unless extra permits purchased |
| Green Visa | GDRFA | 5 yrs | No employment sponsor needed—ideal for senior contractors | Minimum AED 15,000 salary + bachelor’s degree |
| Golden Visa | The Federal Authority for Identity & Citizenship (ICP) | 10 yrs | Long-term certainty for investors, scientists, outstanding talent | Requires real estate worth AED 2 million or other qualifying criteria |
Most tech or services SMEs will rely on either a mainland employment visa or a free-zone visa for each employee they hire.
2. Sponsorship prerequisites most foreign founders overlook
- Trade licence in good standing: Your commercial, professional or industrial licence must be renewed annually. Any lapse stops visa services instantly.
- Establishment card: Think of it as your immigration account number. Without it, no entry permits will be issued.
- Quota allocation: MOHRE or your free zone allocates a specific number of visas based on office size, business activity and, on the mainland, Emiratisation rules.
- E-channel or smart portal registration: Mandatory for uploading offer letters, paying fees and tracking status.
- Bank guarantee & WPS registration: A refundable AED 3,000 per employee (or an approved insurance scheme) plus Wage Protection System enrolment protects workers’ salaries.
Neglecting any of the above delays the first hire by weeks.
3. Step-by-step process to sponsor an employee in 2025
- Issue a digital offer letter through MOHRE or the free-zone portal and obtain preliminary approval.
- Pay for the entry (e-)permit. The employee can now enter the UAE or change status if already inside.
- Complete the medical fitness test (blood work + chest X-ray) within 7 days of entry.
- Submit biometrics for the Emirates ID at an ICP centre.
- Sign the labour contract online. MOHRE must receive it within 14 days of entry.
- Residence visa stamping: Since 2022 the “stamp” is an e-document, but the passport must still be uploaded.
- Provide compliant health insurance—mandatory in Dubai and Abu Dhabi.
Average timeframe: 10–15 working days if paperwork is correct.
4. Mainland vs free-zone hiring: which route suits your growth plan?
| Factor | Mainland MOHRE | Free zone (e.g. DMCC, IFZA) |
|---|---|---|
| Scope of activity | Any UAE customer | Inside free zone + permitted external activities |
| Visa quota basis | Office size + Emiratisation | Office size only |
| Mandatory PRO/attestation fees | Higher | Lower, often bundled |
| Employee costs | Lower annual licence renewal | Higher per-visa package price |
| Audit & reporting | VAT returns, corporate tax | Simplified for qualifying entities |
Tip: Some founders obtain a dual structure—free zone for IP holding and regional invoicing, mainland branch for on-shore sales staff.
5. 2025 cost snapshot (AED)
| Item | Mainland | DMCC Free Zone |
|---|---|---|
| Entry permit | 650 | 1,000 |
| Change of status (in-country) | 680 | 800 |
| Medical test & Emirates ID (2 yrs) | 1,300 | 1,300 |
| Labour contract fee (skilled) | 600–1,200* | N/A (included) |
| Visa stamping | 500 | 550 |
| Bank guarantee / insurance | 3,000 or 420 p.a. | 3,000 or 420 p.a. |
*Depends on company classification under MOHRE (A to C) and employee skill level.
6. Penalties that can sink an early-stage venture
- Overstay fines: AED 50 per day after the entry permit expires.
- Late contract registration: AED 100 per day up to AED 5,000 per employee.
- Incorrect professional title: Additional AED 1,000 fine and forced amendment.
- Non-compliance with WPS: Salary delays over 15 days trigger a system block and eventual suspension of all future visas.
In 2024 MOHRE collected over AED 1.2 billion in fines according to Gulf News. Avoid adding to that statistic.
7. Five compliance tips for Australian founders
- Attest degrees before arrival: DFAT notarisation → UAE embassy in Canberra → Ministry of Foreign Affairs in Dubai.
- Budget for housing allowance: A practical way to reach skilled visa salary thresholds (AED 4,000 per month minimum in 2025).
- Track renewal dates in a shared calendar: The Emirates ID and licence rarely expire on the same day.
- Offer private health cover above the Essential Benefits Plan to entice top talent and speed medical approvals.
- Document every WPS transfer; Australian bank outward-remittances must match local payroll for expats seconded from home.
8. How Dubai Invest simplifies the process
Dubai Invest’s local PRO team handles each immigration step—offer letter, attestations, medical bookings, Emirates ID scheduling and final delivery of the visa. Australian founders manage approvals from home through our secure portal, eliminating the learning curve and missed deadlines.
Need more face-to-face insights? Meet our experts at the Grand Business Conference this November in Sydney.
Frequently Asked Questions (FAQ)
Can I sponsor employees before my company bank account is open? No. Both MOHRE and free-zone portals require proof of an active UAE bank account or a letter of undertaking from a recognised bank.
What is the maximum age to sponsor a worker? As of 2025, new visas can be issued up to 65 years. Fees increase after 60.
How long can an employee stay outside the UAE without cancelling the visa? 180 days. Exceeding this automatically voids the residence permit.
Do part-time employees need a separate visa? They can receive a secondary work permit if they already hold a primary UAE residence visa; otherwise you must sponsor them fully.
Is the UAE’s new unemployment insurance scheme mandatory? Yes. All foreign workers in the private sector must subscribe within 30 days of visa issuance.
Ready to build your Dubai dream team without visa headaches? Book a free 30-minute consultation with Dubai Invest today and get a personalised sponsorship roadmap.
