How to Start Manpower Consultancy | Startup Guide

Starting a manpower consultancy is a hard but a rewarding business. There is a problem of finding the right person for the right job. This is where manpower consultancy comes into picture. So, if you are looking for how to start manpower consultancy in India and seek help, we have got you covered.

 

In fact, you can expect good amount of profit if you have a good business model. 
 

8 Steps to Start Manpower Consultancy

 

Step 1 - Plan your business

 

You can skip this step If you have already decided on what kind of positions you'll fill and how. 

 

If not, then planning before starting a business is the best thing to do. 

 

So, how to plan a manpower consultancy business? 

 

Simple, you need to decide on these things :

• What will you name your business?
• What will be your market? 
• How will you attract customers? 
• What will you specialize in?
• What will be your business strategy? 
• How much funds do you need? 
• How will you get the funding?
• What will be your unique approach to provide the solutions? 
• Where will you set up the office? 
• What is your growth plan?
• What are the other necessary things? 

 

Having an answer to all these questions before starting manpower consultancy will benefit you to run the business successfully.

 

After that, select the sector for which you will provide manpower. 

 

For example, ABC Consultants provides a workforce for senior and middle-level management. 

 

On the other hand, International Manpower Resources Private Limited provides candidates for Offshore Manpower Recruitment. 

 

So, instead of providing all types of manpower consultancy, always stick to one and be an expert in that.

 

Now, the next question is how to select a sector?

 

The three most important things for choosing a sector are:-

• Understand the Market
• Analyze your Competitors
• Build a Database 

 

Therefore, if you are thinking of how to start manpower consultancy, first choose a sector. Whether you'll be working for IT, Tax Consultancy, Factories etc.

 

Step 2 - Business Registration

 

The next step for starting a manpower consultancy is business registration.

 

The first step is to register your company.

 

Documents for Private Limited Company Registration

 

• Passport size photo of all Owners
• PAN Card
• Identity Proof (Passport, Voter ID, Driving License)
• Address Proof (Bank Statement, Mobile Bill, Electricity Bill, Internet Bill)
• Aadhar Card
• Address Proof of Business Office (Electricity Bill, Internet Bill, Mobile Bill)

 

Also, you can register as a One Person Company or Limited Liability Partnership. It depends on your requirements. Schedule a consultation call with us to help decide that. You can fill out the form on the right and get in touch with our experts. 

 

In fact, a registered business has limited liability, scope of growth and better access to funds.

 

Moreover, it also has to register with many government departments, such as:

 

• Service Tax Department 
• Ministry of Overseas Indian Affairs 
• Employer State Insurance 
• Provident Fund 

 

Step 3 - Tax Registration and Licences

 

After registering your manpower consultancy, there are a few more registrations you must get.

 

• GST Registration: A business that deals in goods or services must register for GST if the annual income cross Rs.40 lakhs (Rs.20 lakhs in northeast states).

 

• MSME Registration: MSME (Micro, Small or Medium Enterprise) will help you with easy bank loans, tax benefits and relief from some taxes.

 

• Shop and Establishment Act License: For starting a manpower consultancy, you will need to have a registered office. So, apply for the shop act license within 30 days of starting the business.

 

• ESI (Employees' State Insurance) Registration: If your manpower consultancy has 10 or less people, you do not need ESI registration. However, if you also provide contract workers, it is necessary. 

 

• PF Registration: Similarly, if your company employs more than 20 employees, apply for PF Registration.

 

• Trademark Registration: To grow the brand value, apply for trademark registration online. It will protect your business from competitors. Moreover, no one can give services under your name.

 

Recruiting Agent License

 

For starting a manpower consultancy, apply with the Ministry of Overseas Indian Affairs for the Recruiting Agent License. 

 

However, you will need a recruiting agent license only if you take on Indian applicants for foreign companies. 

 

Documents Required for Recruiting Agent License

 

• Application for the recruiting agent in the set format
• Demand Draft of Rs. 25,000/- in favour of PAO, MAIO, New Delhi
• Passport size photo of Business Owners
• Details of Business Owner, including business activities in last 5 years
• Digital Signature Certificates
• Bank Guarantee of Rs. 20 lakhs
• Balance Sheet Statement 
• IT returns of Directors
• Graduation Degree

 

Step 4 - Investment 

 

The investment to start a manpower consultancy is a minimum of Rs. 5 lacs to Rs. 10 lacs.

 

You may have to invest more at early stage to set up the business. 

 

For example, rent an office, pay for the repairs, set up the systems, pay salaries, utility bills, marketing bills, build a profile etc.

 

But, there is no limit to maximum investment. 

 

It depends on the scale of your business and growth goals. 

 

You can also bring in more funds later.

 

Also, if you already have money, well and good. 

 

Otherwise, you can also go for these options for funding:- 

 

• Business Bank Loans
• Angel Investors
• Crowdfunding
• Loan from Family and Friends
• Venture Capital Funds
• Startup India Fund

 

Step 5 - Create your Online Presence

 

The growing effect of internet motivates people to look for solutions online.

 

So, having an online presence will help your business grow. 

 

Above all, it will increase the business's status and reach.

 

That is to say, buy a domain name and website to go online.

 

Having a website will help you with a good database of companies and candidates. 

 

Meanwhile, buy the official emails for employees to speak with clients and candidates. 

 

Official emails helps in gaining the trust.

 

Step 6 - Sign in to Online Job Search Engines

 

Now, let me answer your biggest question.

 

Where will you find the clients and candidates?

 

For this purpose, buy logins to job search portals like Naukri, Monster.com, Indeed etc.

 

You can get a regular, qualified and a complete candidate list from these portals. 

 

In fact, you can know about the latest jobs that companies are hiring.

 

Step 7 - Set up the Office

 

For starting a manpower consultancy business, you will also need an office to operate.

 

The office area must not be less than 50 sq. meters.

 

It should have the following rooms:

• Waiting hall for 30 people or more
• Sound proof room for interviews 
• Space to set up laptop, computers, furniture, phones and other office supplies. 

  

Step 8 - Hiring!

 

Employees are the key to productivity. 

 

Therefore, hiring skilled people for each job is important.

 

The jobs you need to hire for a manpower consultancy are:

 

• Consultants (Degree in Human Resource Management)
• Sales Person
• Relationship Managers
• Accountant
• Operation Manager
• Lawyer (For contract drafting)
• HR
• Team of Job Finders
• Interviewers 
• Security Guard
• Others (as needed)

 

Make sure that you have enough and well trained staff. 

 

Also, have proper set up for skill testing of candidates.

 

After that, suggest the jobs based on the result and their interest. 

 

For this purpose, aptitude tests is the best option. 

 

Start your Manpower Consultancy

 

To sum up, you are now an expert yourself and know how to start manpower consultancy. 

 

Further do not worry about if this business will give you profit or not. 

 

A manpower consultancy can charge a flat fees from the Companies.

 

Or, they can also charge 15% - 20% of the candidates annual salary.

 

In fact, if the position is hard to hire for, it can go up to 30%.

 

If you need any help or have confusion with the process, get in touch with our experts at StartEazy.