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MOHRE Quota vs. Freezone Visa Space: Key Differences

Understanding the Differences Between MOHRE Quota and Freezone Visa Space

When you are thinking about starting a business in Dubai or anywhere in the UAE. It is very important to understand the differences between the MOHRE QUOTA and VISA SPACE you might need for your employees. These two categories are MOHRE Quota for mainland business setup and Visa Space for Freezone Business Setup. Let’s explore of this for our clear understandings.

MOHRE Quota: For Mainland Business Setups

1. What is MOHRE Quota?

MOHRE stands for the Ministry of Human Resources & Emiratisation. The MOHRE Quota is a system used mainly for businesses located on the mainland of Dubai and other emirates within UAE. It helps regulate the number of employment visas a company can have or can hire new employees.

2. How Does It Work?

• Application and Approval: To get MOHRE Quota a company needs to apply through the government MOHRE system. This application is subject to approval by the MOHRE.

• Office Space Requirement: Sometimes the Ministry will check if your office space is enough to accommodate the number of employees you want to hire. This means they might look at how big your office is and decide if it is suitable for the number of people you want to employ. If they think it’s too small they might not approve your quota request.

• Flexibility: The MOHRE is usually flexible and approving quotas is generally easy. Newly incorporated businesses often receive 3 to 6 quotas quickly or instantly. Which can be increased with a new quota request. This flexibility makes it easier for new companies to start their operations without any delays.

• One Time Use: Each MOHRE Quota is used upto once a visa is issued. If the employee leaves and their visa is cancelled the quota is consumed and cannot be reused. To hire a new employee you have to apply for a new quota. This means you need to be strategic about how you use your quotas to ensure you don’t run out when you need them the most.

3. Practical Example:

Imagine you have a mainland company and you want to hire 5 employees. You will apply for 5 quotas and get them approved by the MOHRE. You use these quotas to get visas for your 5 employees. After some time if one employee leaves and once their visa is cancelled the quota they used is also gone. Now if you want to hire a new employee you need to apply for another quota request. This process ensures that the MOHRE keeps track of employment and makes sure that businesses are using their resources effectively.

Freezone Visa Space: For Freezone Companies

1. What is Freezone Visa Space?

Freezone Visa Space is used for companies located in special areas known as free zones authorities. These free zones offer benefits like tax exemptions and easier business setup processes. Free zones are designed to attract foreign investment by offering different opportunities like less expensive that are not available on the mainland. Like General Trading and investment businesses.

2. How Does It Work?

• Specified Space: Freezone companies have a specified number of visa slots. When an employee leaves and their visa is cancelled. The same visa space can be used again for a new employee. It means that visa slot is not lost making it easier to manage your workforce.

• No Reapplication: Unlike MOHRE Quota you don’t need to apply again for visa space each time you hire a new employee as long as you haven’t exceeded your allocated slots. This can save a lot of time and administrative effort allowing businesses to focus more on their operations and growth.

• Upgrades and Downgrades Visa Space: Companies can upgrade or downgrade their visa spaces depending on their needs. This is usually based on office space or specific regulations of the freezone authority. For example if your business grows and you need more employees you can apply to upgrade your visa space. Conversely if your business scales down you can reduce your visa space to better fit your current needs.

3. Practical Example:

Consider a company in a freezone with 5 visa slots. They hire 5 employees and use up all their visa spaces. If one employee leaves their visa is cancelled but the slot becomes available again. The company can then hire a new person without needing to apply for additional visa space. This system provides a lot of flexibility especially for businesses that experience high turnover or seasonal fluctuations in staffing needs.

Key Differences Summarized

Location:

MOHRE Quota is for mainland companies while Freezone Visa Space is for freezone businesses. This distinction is important because the rules and regulations governing visas can vary significantly between these two areas.

Quota vs. Space:

MOHRE Quota requires a new application each time you need more visas while Freezone Visa Space allows for reuse of slots when employees leave. This difference can impact how businesses plan their hiring strategies and manage their administrative processes.

Flexibility:

Freezone companies have more flexibility in adjusting their visa spaces according to their changing needs. This can be a significant advantage for businesses that need to adapt quickly to market conditions or changes in their workforce.

Our Services:

We are a Company Formation Corporate Service Providers registered in Dubai UAE. Our aim is to help new business set up. Whether they choose to operate on the mainland or in a freezone.

Company Formation:

Assistance in setting up new businesses in Dubai and across the UAE. We help you navigate the complex process of establishing a company. We ensuring you comply with all local regulations and requirements. Our team of experts will guide you through every step from choosing the right business structure to registering your company with the appropriate authorities.

PRO Services:

Professional services to handle all governmental procedures and ensuring smooth business operations. Our PRO services include processing visas, renewing licenses and handling other essential administrative tasks. By outsourcing these functions to us you can focus on growing your business while we take care of the paperwork.

Employment Visas:

We help with obtaining employment visas for your employees whether your business is on the mainland or in a freezone. We assist with the entire visa process from application to approval and making it easier for you to bring in the talent you need to succeed.

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