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how to open a recruitment agency

How to Open A Recruitment Agency?


  • The recruitment agency serves as a go-between for an entity looking for employees as well as a job seeker looking for work.
  •  Any company that requires an immediate staffing solution can quickly and efficiently boost the number of staff with the assistance of a recruitment agency.
  • The people with weak communication and technology skills find it difficult to be recruited in different fields of work. Most face rejection due to the same.
  • There is a third party vendor between the corporate and the candidates.

Recruitment Agency: Task

  • A recruitment agency’s basic task is to find the best candidate for the job that recruiters are looking for.
  • This is why it is essential those who consider using a recruitment agency to find a job faster and with fewer obstacles.

The Need for a Recruitment Company

  • The process of recruiting the ideal individuals may become a difficult and time-consuming task for some business organisations.
  • It is quite useful when you have an external organisation working independently and balancing all of the errands of finding the candidate that the organisation is looking for.

The Dynamics:

  • This involves guiding the interested candidate to a particular job through the agency and the agency in return, receiving a commission from the corporate. This commission amounts to a hefty profit that is made.
  • There are primarily two sections: The Training section and the Job recruitment section.


1. Company Establishment

  • The first step in starting a Recruitment Cell Business in India is to register a company. Every business in India is required to have a business registration or company formation.
  • The One Person Private Limited Company Registration and Sole Proprietorship Registration are perfect for people starting out on a small scale.
  • If you are starting a business with a partner, you can register it as a Private Limited Company, an LLP, or a Partnership Firm.
  • Every one of these company formation options has advantages and disadvantages. You can consult our professional and knowledgeable team of Chartered Accountants to learn further about Company Registration that meets your requirements and may benefit your company in the long run.

2. Business Strategy

  • After you have registered your business and have a basic idea, it is time to write a business plan.
  • A thorough business plan is required to figure out how you will operate your enrolment cell and what your long-term and short-term goals will be.
  • Most importantly, a well-crafted business plan will assist you in identifying your company’s weaknesses and strengths.
  • Finally, if you need funding from a small business loan or from investors, you will require a Pitch Deck as well as a well-written Business Plan.

3. Registration for GST

  • To adhere to the laws, every business that provides goods or services must file taxes. The current taxation system in India is GST (Goods and Services Tax).
  • As a result, you should apply for GST Registration and file your GST Return.
  • GST Registration will assist you in paying taxes, claiming input tax credits, and participating in various government programmes.
  • Furthermore, having GST Registration for your recruitment cell business will assist you in developing a solid image in the eyes of transnational companies.

4. Registration of a Trademark

  • Though trademark registration is not required, it is recommended these days.
  • Trademark registration allows your company to protect its brand while also creating a valuable asset.
  • If you do not have Trademark Registration Online for your recruitment cell business, your rivals or others may misuse your branding and harm your business.
  • When you sign up a trademark in India, you gain exclusive rights to use your mark, whether it is retendered or audible.
  • You can also obtain International Trademark registration to protect your company’s branding around the world.

5. Recruiting Agent (RA) Certification

  • To recruit Indians for work overseas, the Protector General of Emigrants (PGE) of the Ministry of Overseas Indian Affairs (MOIA) must be registered under the Emigration Act of 1983.
  • International “Recruiting Agents” are those who have registered with the Ministry of Overseas Indian Affairs to recruit.
  • In other words, if your company provides services to foreign companies working abroad, you require a Recruiting Agent License.
  • The Indian government has mandated that all recruitment agencies operating in India obtain a licence.
  • The licence is issued by the Government of India’s Ministry of Labour and Employment.
  • The licence is valid for two years and can be obtained online.
  • You can do so by submitting an application form along with all necessary documents such as proof of identity, address, PAN card information, and photos of your office building.

6. Taxation:

  • In terms of taxation, a recruitment firm must obtain GST registration once its annual sales turnover exceeds Rs. 20 lakhs.
  • When the annual sales turnover exceeds Rs. 10 lakhs, the recruitment company is required to levy service tax at the rate of 14.00% and remit the same amount to the government.
  • Furthermore, when the number of employees employed exceeds ten, a recruitment firm must register for ESI (Employee State Insurance).
  • When the number of participants exceeds 20, PF (Provident Fund) registration is required.


Finances frequently determine how reasonable your plans are. As a result, we are going to share the costs you should think about right away:

  • Registration of a recruitment agency Mobile phone and an affordable call and internet plan
  • Insurance for recruitment agencies, surety, and liability
  • Domain name for a website
  • Purchasing or renting office space Website development and upkeep.
  • Logo design and other branding materials.

Finally, when done the right way, establishing your own recruitment agency can be a highly profitable and fulfilling endeavour. When you have everything in order, it is time to launch your agency. Legalite has you guarded throughout every step of the way Contact us and we will guide you to the future you desire while also establishing a thriving business in the market.



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