Once your UAE company is set up and your trade license is active, the next step for most entrepreneurs is hiring. Whether you are bringing on a co-founder, a first employee, or building a full team, you will need to sponsor their visa.
The employee visa sponsorship process in the UAE is straightforward once you understand the steps. But there are details that catch people off guard, especially around costs, visa quotas, and timing. This guide walks through the entire process so you know exactly what to expect before you start.
Employee visa sponsorship is the process through which your UAE company becomes the legal sponsor of a foreign worker's residence and work permit. As the sponsor, your company takes on certain legal and financial responsibilities for that employee during the term of their visa.
The full process typically takes two to four weeks from start to finish. Total costs range from AED 3,000 to AED 7,000 per employee, depending on your company location, visa type, and insurance costs. Under UAE labor law, the employer is responsible for covering all visa-related costs.
Who Can Sponsor an Employee Visa
Not every company is immediately eligible to sponsor employees. Before you begin the process, you need to confirm four things.
First, your trade license must be active and valid. Whether you are operating in a free zone or on the mainland, your license needs to be current and not expired or under renewal.
Second, your establishment card must be up to date. This card is issued by the Ministry of Human Resources and Emiratisation (MOHRE) for mainland companies, or by your free zone authority. It confirms your company is registered and authorized to employ workers.
Third, you need available visa quota. Every company in the UAE has a limit on how many employee visas it can sponsor. In most free zones, this quota is tied to your office space. A common formula is one visa per nine square meters of office space, though this varies by zone. Mainland quotas depend on your establishment card category and the size of your licensed premises. If you need more visas than your current quota allows, you can usually upgrade your office package or apply for a quota increase.
Fourth, your company must have no outstanding fines, labor complaints, or violations with MOHRE or the free zone authority.
Types of Employee Visas Available
The UAE offers several visa types for employees. The right one depends on your needs and the employee's qualifications.
The standard employment visa is the most common. It is valid for two years and is renewable. The employee is sponsored by and tied to the employer. This is what most companies use for regular hires.
The green visa is a newer option introduced in 2022. It is valid for five years and does not require employer sponsorship. It is available to skilled professionals earning above a certain salary threshold, freelancers, and investors. The green visa gives the holder more flexibility because they are not dependent on an employer for their residency status.
The golden visa is valid for ten years and is primarily for investors, specialized talent, entrepreneurs, researchers, and outstanding students. It offers long-term stability and does not require employer sponsorship. If your new hire qualifies for a golden visa, it may be worth pursuing as it reduces future renewal overhead.
For most standard hires, the two-year employment visa is the appropriate choice. The green and golden visas are worth considering if the employee meets the eligibility criteria, as they reduce your company's ongoing sponsorship obligations.
The Step-by-Step Sponsorship Process
Here is the full process, broken down into clear steps with timelines and costs for each.
Step 1. Check Your Visa Quota
Before making any job offer, confirm that your company has available visa slots. Contact your free zone authority or check your MOHRE portal for mainland companies. If your quota is full, you will need to upgrade your office space or apply for an increase before proceeding. This step takes one to two business days if you need to request an increase.
Step 2. Prepare the Employment Contract
Draft an employment contract that complies with UAE labor law. For mainland companies, MOHRE provides a standardized contract template that must be used. Free zone companies typically use their zone's template. The contract must include the job title, salary, benefits, probation period, working hours, and leave entitlements. Both parties sign the contract, and it must be submitted to MOHRE or the free zone authority for approval within 14 days. This step takes one to three business days.
Step 3. Apply for the Work Permit
Submit the work permit application through the MOHRE smart services portal (for mainland companies) or through your free zone authority's portal. Required documents typically include a copy of the employee's passport (with at least six months validity), the signed employment contract, passport-size photographs, attested educational certificates (if required for the role), and the company's trade license and establishment card. Processing time is typically three to five business days. Government fees for the work permit range from AED 300 to AED 500.
Step 4. Receive the Employment Entry Permit
Once the work permit is approved, an employment entry permit is issued. This permit allows the employee to enter the UAE legally for the purpose of employment. If the employee is already in the UAE on a visit visa, they can do an in-country status change instead of exiting and re-entering. The entry permit is valid for 60 days from the date of issuance. The employee must enter the UAE and complete the remaining steps within this window. Entry permit cost is approximately AED 300 to AED 500.
Step 5. Medical Fitness Test
After arriving in the UAE, the employee must undergo a mandatory medical fitness test at an approved health center. The test screens for communicable diseases including tuberculosis and hepatitis. Results are typically available within two to three business days. Cost is AED 500 to AED 800 depending on the testing center.
Step 6. Emirates ID Registration
The employee must register for an Emirates ID, which is the national identity card required for all UAE residents. This involves visiting a typing center or Federal Authority for Identity and Citizenship (ICP) service center to submit biometric data including fingerprints and a photograph. The Emirates ID card is usually issued within five to ten business days. Cost for a two-year Emirates ID is AED 370 to AED 570.
Step 7. Health Insurance
Health insurance is mandatory for all employees in Dubai and Abu Dhabi. The employer must arrange health insurance before the residence visa can be stamped. Many companies use group insurance plans. Annual premiums range from AED 600 to AED 1,500 per employee for basic coverage, with more comprehensive plans costing more.
Step 8. Residence Visa Stamping
With the medical test cleared, Emirates ID registered, and health insurance in place, the residence visa is stamped in the employee's passport. For mainland companies, this is done through the General Directorate of Residency and Foreigners Affairs (GDRFA). For free zone companies, it is handled by the free zone authority. Cost is approximately AED 500 to AED 700.
Step 9. Labor Card Issuance
The final step is the activation of the work permit and issuance of the labor card, which confirms the employee is legally authorized to work for your company. This is processed through MOHRE or the free zone. The labor card is typically issued within a few business days of visa stamping.
The entire process from Step 1 to Step 9 takes approximately two to four weeks if all documents are in order and there are no complications.
Cost Breakdown
Here is a summary of the costs you should budget for when sponsoring a single employee visa.
Entry permit fees: AED 300 to AED 500
MOHRE work permit fees: AED 300 to AED 500
Medical fitness test: AED 500 to AED 800
Emirates ID (two-year): AED 370 to AED 570
Residence visa stamping: AED 500 to AED 700
Health insurance (annual): AED 600 to AED 1,500
Typing and service center fees: AED 200 to AED 400
Total typical range per employee: AED 3,000 to AED 7,000
The actual amount depends on your location (Dubai tends to be slightly more expensive than other emirates), visa type, insurance plan, and whether you use a PRO service to handle the paperwork. Under UAE labor law, the employer is required to pay all visa-related costs. You cannot deduct these costs from the employee's salary.
Free Zone vs Mainland Sponsorship Differences
The core process is the same for both free zone and mainland companies, but there are practical differences worth knowing.
Free zone companies handle most of the visa process through their free zone authority, which acts as a one-stop shop. This often means faster processing, more digital-first workflows, and dedicated service teams. Visa quotas in free zones are typically tied to your office package size. Most free zones offer packages with a set number of visa allocations included.
Mainland companies process their visas through MOHRE and GDRFA. The process involves more touchpoints with government entities. Visa quotas are based on your establishment card category and licensed premises. Mainland companies can sponsor employees to work anywhere in the UAE without geographical restriction.
One important distinction: employees sponsored by a free zone company are technically permitted to work only within the free zone or on the company's approved business activities. In practice, this is rarely an issue for knowledge workers, but it is a consideration if your employees need to operate from mainland locations regularly.
Common Mistakes and How to Avoid Them
The most frequent mistake is not checking visa quota availability before making a job offer. If your quota is full, you will need to upgrade your office package before you can sponsor anyone, which adds time and cost. Always verify quota before committing to a hire.
Missing the 60-day window on the entry permit is another common issue. Once the entry permit is issued, the employee has 60 days to enter the UAE and complete the visa process. If this window expires, you need to apply for a new entry permit and pay the fees again.
Forgetting that health insurance is mandatory causes delays. The residence visa cannot be stamped without proof of active health insurance. Arrange this early in the process rather than at the last minute.
Not budgeting for the full cost is surprisingly common. When employers only budget for government fees and forget about medical tests, insurance, typing fees, and Emirates ID, the total comes as a surprise. Plan for AED 3,000 to AED 7,000 per employee.
Finally, contract discrepancies between the MOHRE-registered contract and the actual employment terms can create problems during inspections. Make sure the contract you register matches the real terms of employment.
What Happens When an Employee Leaves
When an employee resigns or is terminated, the employer is responsible for canceling their visa. The process involves filing a cancellation request through MOHRE or the free zone authority, settling all outstanding salary and benefits, paying end-of-service gratuity (21 days of basic salary per year for the first five years of service, and 30 days per year after that), and canceling the labor card.
Once the visa is canceled, the employee receives a 30-day grace period to either leave the UAE, transfer to a new employer, or change their visa status. If the employee wants to move to another company in the UAE, they will need a new employer to sponsor them. In most cases, a No Objection Certificate (NOC) from the previous employer is no longer required, following recent labor law reforms, but it is good practice to provide one to facilitate a smooth transition.
Frequently Asked Questions
Can I sponsor a family member as an employee?
Yes, you can employ and sponsor family members through your company. They must hold valid employment contracts and go through the same visa process as any other employee. Their salary must comply with minimum wage requirements for the role.
How many employees can I sponsor?
The number depends on your visa quota, which is determined by your office space (in free zones) or your establishment card category (on the mainland). If you need more visas than your current quota allows, you can usually upgrade your office package or request a quota increase.
Can a free zone company sponsor employees who work outside the free zone?
Technically, free zone visas are tied to work within the free zone or on the company's approved activities. However, for service-based businesses and knowledge workers, this is rarely enforced as a geographical restriction. If your employees need a permanent physical presence on the mainland, a mainland license or dual licensing arrangement may be more appropriate.
What happens if the medical test fails?
If an employee fails the medical fitness test due to a communicable disease, the visa application is typically denied. The employee may be given an opportunity to undergo treatment and retest, depending on the specific condition. In some cases, the application is rejected outright. This is rare but worth being aware of.
Can I sponsor remote employees who work from outside the UAE?
No. The UAE employment visa requires the employee to be physically present in the UAE. If you have team members working remotely from other countries, they do not need (and cannot receive) a UAE employment visa. They would be engaged as contractors under their home country's regulations.
How long does the entire process take from start to finish?
The typical timeline is two to four weeks if all documents are prepared and there are no complications. Delays usually happen when documents are missing, the medical test needs rescheduling, or there is a backlog at the processing center. Free zone processing tends to be slightly faster than mainland.
Do I need a physical office to sponsor employees?
Yes. In both free zones and on the mainland, you need a valid office address associated with your trade license to sponsor employee visas. Some free zones offer flexi-desk or virtual office packages that include a limited number of visa allocations. However, fully virtual setups with no physical presence typically do not qualify for employee visa sponsorship.
As of 2026, the UAE has introduced several digital improvements to the visa process, including remote sponsorship approval and corporate auto-renewal systems. These changes have made the process more efficient, but the fundamental steps remain the same.
If you are setting up a UAE company and planning to bring on your first hire, it pays to consider your visa quota needs from the start. The right company structure and office package can save significant time when you are ready to grow. Zola's setup process factors in your hiring plans when recommending a structure, so your visa capacity matches your growth timeline.