India is a booming market for recruitment and HR agencies. Thus, with the right business plan, marketing strategy and direction, it can be a successful business venture.
The Indian market is diverse and offers opportunities to recruit candidates from all industries, sectors, and backgrounds.
Moreover, with an increased demand for jobs in India, there also has been a rise in the demand for recruitment agencies.
So, if you are one of them looking for how to start a recruitment agency, you are at the right place.
Recruitment agencies source and recruit people having the skills, experience, and qualifications needed to fill positions in their client's organization.
The first step is to understand the challenges of the Industry.
A recruitment agency can provide services such as:
Also, the key resource here is the large networks of applicants and expertise in identifying qualified candidates.
Some recruitment agencies specialize in specific industries or professions such as engineering, teaching or hiring business development executives.
Meanwhile, others recruit for particular cities such as Delhi, Mumbai or Bangalore.
Further, the recruitment process is as follows :
If you have done your research or have found your clients, then its time to register your business.
Starting a recruitment agency in India is not as easy as it sounds.
It requires a lot of hard work and dedication.
But, that could all be a waste if you do not fulfill the legal guidelines to run a recruitment agency.
So, start by registering your business.
Registration is required when starting a new business in India.
The recruitment agency can be registered as:-
Most preferably, go for private limited company registration for a recruitment agency.
Private companies can be registered by any person who wishes to carry on commercial activity.
There is no minimum share capital requirement.
However, private companies are a bit rigid in their requirements of company law compliance.
To know what structure you should go for, talk to an expert at StartEazy.
We will assist you regarding all the legal rules to start a recruitment agency in India and help you with starting your business easily.
Also, if you want to go for a private limited company and are worried about the compliance, we have got you covered.
Our experts will guide you through all the post incorporation compliances and ensure that they are done before due dates.
The Indian government has made it mandatory for all the recruitment agencies operating in India to have a license.
The license is issued by the Ministry of Labour and Employment, which is under the Government of India.
The license is valid for two years and you can apply for it online.
You can do so by submitting an application form with all the documents like proof of identity, address, PAN card details and photos of your office premises.
Also, you must submit the resume of all employees who will be working at your agency.
The next step to starting a recruitment agency is finding a location where you can set up your office.
Some popular office locations include:-
However if you are a little tight on the budget, you can also go for a virtual office. You can choose a prime location like a virtual office in Connaught Place. This way you can work from home, while having a premium business address.
Note:- To get a commercial space with low rents, you will have to negotiate a rent amount yourself or with the help of a broker.
Once you have found the perfect office, you will need to get it ready for opening.
For this purpose, purchase the furniture and equipment you need to start your new business.
The most common question that every business owner has is “Where are my Clients”?
Here is the answer for recruitment agency owners:
Once you find a potential client or query, do not miss to follow up on them. This is the most common mistake that most people make and end up losing the opportunity.
Pitching recruitment services to clients is not an easy task.
It requires a lot of convincing and strong presentation skills to convince the client that they need your services.
Preparing a candidate database is the most important step for any recruiter business.
A recruiter needs to know who the potential candidates are and then filter them from there.
It can be done by creating an online database of candidates that can be filtered by various parameters like location, education, experience, etc.
The recruitment process starts with a good pitch to the client.
This pitch should be concise, professional, and clear enough for the candidate to get an idea of what they are going to expect.
It should also include a job description that is specific and detailed enough for them to understand what this role will entail.
Therefore, it is where you need to be creative to make your company stand out from others in the market.
You can do this by detailing the company's culture and values or telling them about their benefits package - something that will make them want to join your company over others.
The profit margin in the recruitment services industry is relatively high.
The average profit margin of recruitment services companies is around 20%.
However, that depends on the following factors:-
In fact, the future of recruiting services will be heavily influenced by AI and automation.
AI will help recruiters to find candidates faster and automate parts of their job like screening candidates or scheduling interviews. Thus, alongside, also work on taking your business online and automating the process.
Here are some tips that will help you start your recruitment agency in India:-