If a stranger approaches you with a request to apply for a residence visa and Emirates ID through your company (i.e. “add to the staff” or “make a sponsorship”), this may have serious consequences. legal and reputational consequences. Employee registration 8,000–10,000 AEDHere are the main points to consider:
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1. Sponsorship and responsibility
- Role of the Sponsor:
- In the UAE, the company that sponsors the visa (work permit / residence permit) is responsible for its “resident” to the immigration authorities.
- If a person commits illegal acts, the sponsoring company may find itself involved in the investigation (at least as the party that issued the visa).
- Risk of violation of legislation:
- If your "candidate" is not actually employed/staffed, but requests a visa only to obtain an Emirates ID, this may be considered "fictitious" employment.
- In the event of an inspection or audit (for example, by MOHRE or immigration authorities), the company may be fined and the visa may be cancelled.
- KYC (Know Your Customer):
- In the modern conditions of compliance (AML/CFT) and Economic Substance Regulations, a company must understand who its employee or partner is, what they do, etc.
- Otherwise, if it turns out that a person is involved in illegal activities or is “spinning” dubious transactions through his (and your) structure, liability or, at least, questions from the authorities may arise for the company as well.
2. Employment contract and actual employment
- Availability of a real employment contract:
- To apply for a visa through a company, in most cases you need to enter into an agreement employment contract (if it is "Employee"), or register the person as share in the business (if it is "Partner / Investor").
- Without a real contract and salary calculation (through WPS – Wage Protection System in the UAE) there is a risk that the entire structure will be assessed as fictitious.
- Monthly payments/salary:
- The UAE has a wage payment system (WPS), especially if there are employees. If a person is registered as an "employee" but the salary is not actually paid or is paid "hand to hand", this is a violation of the law and can lead to fines.
3. Possible fines and sanctions
- Fines for fictitious visas:
- If it turns out that the company has issued a visa, but the person is not actually working, the authorities may impose a fine (the amount can reach several tens of thousands of dirhams) and cancel the visa.
- Blocking a company:
- In case of systematic violations, the company's license may be revoked or the ability to issue/extend visas may be frozen.
- Reputational damage:
- Information about violations may affect the ability to open bank accounts, obtain loans, enter into contracts with government agencies, etc.
4. Alternatives and recommendations
- Identity verification (due diligence):
- Before sponsoring a stranger, especially a “stranger,” you need to do some background checks – at a minimum, ask them to provide a resume, references, proof of financial stability, a current business profile, etc.
- If in doubt, it's better not to risk it.
- Register a person as a real partner/co-founder:
- If he really wants to run a business and share responsibility, then a partnership agreement is usually drawn up, a share in the company is acquired, and capital is contributed.
- But this is a more complex legal scheme: you will have to share management, profits, and make changes to the constituent documents.
- Official employment:
- If you really want to hire someone, you should sign a full contract, pay a salary, pay for a Work Permit, and do everything according to the law.
- Then you will have fewer risks - this is normal practice if the employee really brings benefit to the company.
- Consultation with a lawyer:
- Before you “simply” add a stranger to your staff, it is important to consult with a local lawyer or PRO agent to understand what risks and procedures are required in your particular emirate (RAK, Dubai, etc.).
5. Conclusion
If a person you don’t know approaches you and asks you to “just arrange” a visa for them through your company:
- Legally you become responsible for his actions within the UAE immigration field.
- Reputationally You risk being subject to audits and potential fines if it turns out that the person is not working and everything is fictitious.
- Financially You may be subject to fines and additional costs if you are found to be in violation of the law.
The safest option – this is either hiring a person as a real employee (with a salary, contract, control), or registering him as a partner with a real share, capital and responsibilities. Any schemes “for show” in the UAE are gradually becoming more stringent and controlled.
Apply for a resident visa and Emirates ID through your company for a stranger
If you really want to register a person in your company in the UAE legally, without “gray” schemes, that is, there are two main scenarios:
1. Official employment (Employee)
1.1 What are the steps?
- Conclusion of an employment contract
- A contract is drawn up between the company and the future employee.
- The position, responsibilities, salary, probationary period (if necessary), insurance, etc. are specified.
- Work Permit
- Application is submitted to MOHRE (Ministry of Human Resources and Emiratisation) to obtain a work permit.
- Once the permit is approved, you can sponsor a resident visa for the employee.
- Obtaining a Resident Visa
- Receiving Entry Permit (sometimes available online).
- Medical examination, biometrics, stamping visas into passports.
- Issuance Emirates ID after completion of all procedures.
- Regular salary payment via WPS
- In the UAE it is valid WPS (Wireless Protection System) to comply with labor laws.
- Salary must be transferred to the employee's account monthly, otherwise there may be claims from inspections.
- As an employer, you are responsible for timely payment.
- Insurance
- In a number of emirates (e.g. Dubai, Abu Dhabi) employers are required to provide a minimum package of health insurance for employees. RAK may have its own requirements, but insurance is still generally desirable.
1.2 Pros and Cons
- Pros:
- Everything is legal and transparent.
- Minimal risks of fines and blocking.
- The employee has a real job, the company receives real benefits.
- Cons:
- You are carrying responsibility for the employee and must pay real wages.
- More bureaucracy and expenses (contracts, WPS, insurance).
2. Registration as a partner/investor (Partner/Investor)
If a person wants to participate in a business and not just be fictitiously “registered”, he can be registered as co-founder (shareholder) or partner in the company.
2.1 Basic steps
- Adding a new shareholder
- The company’s constituent documents (M&AA – Memorandum & Articles of Association) specify the share of the new partner.
- A decision by directors/founders to expand the composition of participants is drawn up (if the structure allows).
- Authorized capital
- Some free zones (including RAKEZ) may require a declared share capital. Often it is not necessarily blocked in the account, but is formally indicated in the documents.
- It is advisable for the new partner to make an actual contribution or pay his share - this strengthens the legal position and shows the real economic substance.
- Investor/Partner Visa
- After re-registration of the company, the new partner has the right to Investor/Partner Visa.
- Similarly, first you get an Entry Permit, then a medical examination, etc., and finally a resident visa + Emirates ID.
- Participation in the company's activities
- It is desirable that the partner is not a "sleeper", but actually participates in decision-making (or at least contributes capital/receives dividends). Otherwise, it may again be assessed as a "fictitious" scheme during audits.
2.2 Pros and Cons
- Pros:
- Legal status of investor/partner in the UAE.
- There is no monthly "mandatory" salary and WPS (although there are cases where some banks may ask for proof of "income").
- A partner can officially dispose of a share, receive dividends, and can participate in management.
- Cons:
- It is necessary to change the constituent documents and conduct formal registration of shares.
- The partner receives certain rights in the company. In case of a conflict, it may be more difficult to "exclude" him.
- In the absence of real activity (the partner does not invest or the company does not conduct operational work), questions about economic substance may arise.
3. Risks and nuances if you do everything “for show”
- Immigration checks
- Proof of actual employment (employee) or actual investment/participation (partner) may be required at any time.
- Compliance (KYC / AML)
- Banks, government agencies, and even free zones themselves are increasingly demanding to see what a person does, where the funds come from, and how the company’s profit is generated.
- Responsibility for a foreigner
- If a person breaks the law, leaves, disappears, the company is still responsible for canceling the visa, closing the “work contract”, etc.
4. Recommendations on how to do it right
- Conduct due diligence per person
- Find out who he is, what he does, how reliable he is, whether he has a negative history in other countries.
- Formally (at least at the level of an internal procedure) document the results of the inspection.
- Enter into real legal agreements
- If this is an employee – employment contract + official salary via WPS.
- If a partner - a clear agreement on entering into a share, corporate documents, prescribe responsibilities and rights in the event of leaving the company.
- Comply with local laws
- If RAKEZ requires an annual audit at a certain turnover, then do not ignore it.
- If your company is ever audited, having real documents and transparent transactions will protect you.
- Contact a lawyer / PRO-consultant
- Especially if the person is a foreigner with an unusual situation (for example, he is outside the UAE with an expired visa).
- A specialist will help you correctly complete the documents and submit them to the relevant authorities, minimizing risks.
Advice: if you don't know this person and you don't plan to give him a real place in the business, it's better not to risk it and refuse. If there is a mutually beneficial partnership/cooperation, do everything transparently and legally.
- Can register a “stranger” in your company, but only if he or she either real employee with an official salary, or real partner/investor with share and capital.
- Any “semi-legal” or “for show” methods greatly increase the risks of fines, company blocking, and problems with banks.
- The UAE is actively tightening compliance, and such schemes can lead to negative consequences for the business owner.
Below is a summary cost calculation plan And list of documents, which We, as a sponsoring company, will request from the person wishing to apply for a visa and Emirates ID “for real”.
Plus an example, how to form a fee for support (consulting services, PRO services, etc.).
1. Cost (what is included)
1.1 State and mandatory payments
- License/Sponsorship (if a separate "vacancy" is required for the MOHRE quota):
- In some cases, MOHRE charges a fee for adding a new position or quota.
- The amount can vary from 1,000 to 5,000+ AED (depending on the company category, the employee’s skill level and the emirate’s policy).
- Work Permit:
- Official fee of MOHRE (Ministry of Human Resources and Emiratisation).
- Can range from ~300 to 5,000 AED, depending on the category of the worker (skilled/unskilled, company classification, etc.).
- Resident visa (Entry Permit, stamping):
- Typically ~1,000–2,000 AED (or more) for Entry Permit, status renewal (or entry), immigration fees, + visa stamping in passport.
- Medical commission / tests:
- Rate ~300–700 AED (depending on the type of urgency and emirate).
- Emirates ID:
- Fee from ~170–400+ AED for 1–3 years (depending on visa duration).
- Medical insurance (if required by law of a particular emirate):
- Can cost from ~600–1,500 AED and up for a basic policy (depending on age, coverage, etc.).
1.2 Our services (consulting/PRO fee)
In total, the minimum government expenses for the official registration of an employee (excluding unforeseen or higher categories) can start from 3,000–5,000 AED and reach 8,000–10,000 AED (or higher), depending on the company category, position, insurance, etc.
We will set a fixed amount or offer work on a daily/hourly rate.
- Fixed package: for example, 3,000–5,000 AED for a turnkey support for obtaining a work permit and visa, including coordination, paperwork, trips to government agencies, etc.
- Daily rate (e.g. AED 2,000 per day): You estimate how many days it will actually take to complete all procedures. Typically it could be 3-5 working days of active work.
If a person not your friend, and you take on the risks of verification, it is recommended to include in this amount additional payment for due diligence (KYC, document verification, legal support).
2. What is required from the person himself
To ensure that everything goes off without a hitch, necessary ask the candidate:
- Copy (scan) of passport:
- It must be clear, in color, with all personal data and expiration date (the passport must not be about to expire).
- Photos (in the format accepted in the UAE for visa applications).
- Resume / CV or Description of experience:
- This is especially important if you are applying for a qualified position.
- Diplomas/certificates (if necessary):
- For some categories of employees (teachers, doctors, engineers) legalization of diplomas is required.
- Proof of residential address (if needed for bank or KYC).
- Certificate of reliability (Police Clearance), if requested:
- In some cases (especially for highly skilled positions) Immigration or MOHRE may require a Police Clearance Certificate.
- Medical insurance:
- It can be issued separately, but you need to know the details (age, health status).
- Written consent/contract (Offer Letter or Employment Contract):
- Where the position, salary, and responsibilities are specified.
- This will also come in handy for MOHRE to get a Work Permit.
We also recommend:
- Do due diligence: ask questions about previous place of work, reasons for moving, sources of income, etc.
- Make surethat the person understands the responsibilities of an employee (or investor) and will comply with the laws of the UAE.
3. Example of payment structure
Let's say you decide to propose "turnkey package". It can be broken down like this:
- State fees:
- The client (real candidate) pays. You provide an estimate and receipts upon completion.
- Your service / PRO / consulting commission:
- Fix: let's say, 3,000–5,000 AED (average market price for full processing of an employee visa).
- Or at the rate 2,000 AED/day x number of days actually worked (usually 3-5 days). The total can be from 6,000 to 10,000 AED.
You can agree on prepayment (for example, 50%) and the remainder upon completion.
4. Final recommendations
- Transparency:
- Be sure to break the estimate down into “government fees” and “your services” so that the client does not have questions about “markups”.
- Agreement with the client:
- Enter into a Service Agreement, which specifies your responsibilities, deadlines, and payment procedure.
- Identity verification (KYC):
- If it is a stranger, it makes sense to ask for a deposit/guarantee so that you are not left without payment if the result is negative.
- Demonstration of real employment:
- It is important to remember that if you are registering a person as an employee, they must receive a salary (WPS). This is another point that needs to be discussed in advance: who will pay the actual salary and how.
Approximate budget from 6,000–10,000 AED (minimum)
- Approximate budget (government spending + your services) can start from 6,000–10,000 AED (minimum) and higher, depending on the category of the employee, insurance requirements, etc.
- From the man himself you demand passport, photo, resume, Educational documents, sometimes a certificate of no criminal record, and also conclude real employment contract (or investment agreement, if a partner).
- Our commission can be either fixed, or at a daily rate.
