First, let's know what a labour establishment card is and why we have to apply for one. The establishment is not the only name for it; it is also known as a labour establishment card, which is used for labour purposes. It is almost like your bank debit or credit card, where on the establishment card, you will have your company's name, expiration date, and card number. This card is issued by the immigration authority where you have registered your company.
You must know that it isn't issued by the registration authority but by the immigration authority. For example, if you register your company with the Ajman Free Zone, then it is not the Ajman Free Zone that will issue it. The registration authorities will ask the Ajman Immigration Authority to issue it. The benefit one gets after applying for a labour card is that the individual can apply for an employment visa for your employees; this card is issued by the Ministry of Labour. It also permits you to hire staff, get work permits, and apply for visas on behalf of their employees.
The card shows that the company has been registered with the Ministry of Labour and has a registration number.
The company owners manage to register with the authorities in a day or so, but the card is released only after 8–10 days, for which the company has to wait to get it. There are some delays in the card releases, which is why it is important for the company to be prepared for such delays and accordingly arrange all of them in a systematic manner rather than getting into panic mode. If one has a small company in Dubai and you want the company establishment card, the company has to independently visit the Al Manara centre in Dubai by themselves.
When you visit by yourself and register for the establishment card, you will be issued the card immediately after you have signed the required forms and submitted the documents for proof. To conclude the process, if your company is hugely set up in Dubai, your company will be established automatically after you hand over the required documents to the immigration authorities, and you will get the establishment card.
If you have a local or small business, you will have to go individually, therefore registering and signing the papers to get your card in hand from the immigration authorities.
When your company is issued an establishment card, it is always linked with a certain payment that your company will have to pay as a government fee. You wouldn't be aware of the charges as your company has been registered under a free zone, and all charges are being included while the company is being established, and all the renewal and other charges are mentioned in the package costings.
At the same time, some free zones do mention the charges separately. For local companies, the charges are paid separately, as the issuance is done independently by the immigration authority. The charges differ from free zones to free zones and can be approximately around AED 650 to 1,500 a year, whereas the local companies will be charged AED 4,940 to 5000 approximately. For free zones, the card has been issued for one year by itself, but for local companies, the establishment cards have been issued for three years.
Then the answer is very obvious: one cannot apply for a resident visa for them or the company's employees without a labour establishment card. The passport authorities require the company's establishment card with the application document while you are applying for a resident visa. An individual applying for a resident visa will have to be patient with the issuance of the establishment card of their company, as it takes 8–12 days to issue, and so he or she will have to be prepared accordingly.
Whereas when it is concerned for the local companies, if they lose their card, then they will have to visit the registration authorities to apply for the labour establishment card or will have to pay separately for the replacement of the card. To avoid extra charges and visits to the authorities for requesting a new card or a replacement, the local companies should be cautious and keep the card and paperwork in place.
The local companies, as mentioned above as well, will have to apply for renewal by themselves. They have to maintain a separate file to track the renewal and expiration dates in line. The local companies should apply for renewal weeks before their cards expire.
If the company fails to apply for the renewal in advance of the expiry, they will have to bear the penalties charged for the late renewal of the labour establishment card.
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