Insights on Starting a Recruitment Business and Firm Setup

Hi Everyone,

This is Puja from Delhi. I am a new entrant to this site. I am very keen to start my own Executive Search Firm. I have a few questions wherein I need your expert guidance:

1. What are the legal requirements to open a company?
2. What is the best way to get clients on board?
3. How many minimum clients should one have to start the company?
4. By when is one expected to see returns coming their way?

Looking forward to your helpful tips and information.

Thank you in anticipation,
Puja

Hi Pooja,

I am not aware of how many years of experience you have in your domain, but the following information would definitely be helpful to you in your new venture.

Recruitment business is vast by nature. The various kinds of Permanent Staffing, Temp Staffing, RPO, and furthermore, narrow down to Executive Search, Contingency Recruitment, Turnkey Recruitment, and Advertised Recruitment.

Please note down the recruitment business process in Permanent Staffing solution:

1. Your friend needs to decide which vertical (IT/Manufacturing/Civil/Pharma/Chemical/Oil & Gas, and many more) he would like to operate/start a business in.

2. Make a client database according to the selected vertical.

3. Prepare a contract document. Before starting any recruitment assignments, you need to sign a contract with the client.

4. Recruitment charges may vary from 8.33% to 20% of the CTC value of selected/joined candidates. Normally in India, recruitment organizations are charging from the organization.

5. You can use job portals like Naukri, Monster India, and TimesJob to get candidates' databases. You may also upload job positions.

6. There are a few techniques for getting candidates like Head Hunting, Reference, and Database.

7. You can manage your database with specialized software so that the inventory of resumes would be in good condition. Whenever you need any resumes matching particular skill sets, you can get them from the internal database if the inventory of resumes is maintained in good condition.

8. Training could be imparted on Communication Cycle, Candidate Cycle, Pitching & Client Meeting, Campaign Management, Candidate Development, and Client Cycle.

9. Accounting and Taxes (Income Tax as well as Service Tax).

10. Infrastructure Set up: Company Registration, Office Rent, Computer - Infra Cost, Employee salary, Job portals contract fee.

Enjoy!!! 😄

DN

Hi, Pooja,

I am not aware of how many years of experience you have in your domain, but the following information would definitely be helpful to you in your new venture.

Recruitment business is vast by nature, encompassing various kinds of Permanent Staffing, Temp Staffing, RPO, and more. Furthermore, it can be segmented into Executive Search, Contingency Recruitment, Turnkey Recruitment, and Advertised Recruitment.

Please note the recruitment business process in Permanent Staffing solution:

1. Your friend needs to decide which vertical (IT/Manufacturing/Civil/Pharma/Chemical/Oil & Gas, and many more) he would like to operate/start a business in.
2. Create a client database according to the selected vertical.
3. Prepare contract documents. Before commencing any recruitment assignments, you need to sign a contract with the client.
4. Recruitment charges may vary from 8.33% to 20% of the CTC value of selected/joined candidates. Typically, recruitment organizations in India charge organizations for their services.
5. Utilize job portals like Naukri, Monster India, and TimesJobs to access candidate databases. You can also upload job positions.
6. There are a few techniques for sourcing candidates, such as Head Hunting, References, and Databases.
7. Manage your database with specialized software to ensure the inventory of resumes is well-organized. When you need resumes matching specific skill sets, you can retrieve them from the internal database if the resume inventory is well-maintained.
8. Provide training on Communication Cycle, Candidate Cycle, Pitching & Client Meetings, Campaign Management, Candidate Development, and Client Cycle.
9. Accounting and Taxes (Income Tax as well as Service Tax).
10. Infrastructure Setup: Company Registration, Office Rent, Computer Infrastructure Costs, Employee Salaries, Job Portal Contract Fees.

Enjoy!!! :D :D :D

DN

Hi Devnanda,

That was so informative. Thanks a lot! Presently, I am a freelance recruiter based in Bangalore and have plans of quitting my job in a few months to focus full-time on recruitment.

Thanks a lot!

Mohan

Hi Mohan,

Thank you very much. Are you planning to do a full-time job in the recruitment business, or are you planning to open a recruitment consultancy firm?

Regards,
DN

Hi Dev,

I got your mail notification. So far, I have been successful in screening candidates and placing them in companies. Yes, I want to go full-time into recruitments because I have realized there is so much potential in terms of earnings and opportunities.

I am basically a Six Sigma professional working with an Insurance BPO and am 40 years old with 18 years of cumulative experience in marketing administration and business excellence. I had been thinking about the idea of going solo, and I came across your details which gave me a good insight into setting up a recruitment company. Now I am in the process of streamlining things and coming up with a blueprint.

I would be grateful if I got more inputs and guidance from you. Cheers!

Mohan
mpothur@yahoo.com
BANGALORE

Recruitment business has good potential in India as the government has already started to emphasize infrastructure setup in the country.

You may get in touch with me at devnandha@gmail.com.

Wishing you all the best in your endeavor for a new venture.

Regards,
DN

Hi Neeti,

I am very keen to start my own Executive Search Firm. I have 5 years of experience in IT recruitments. I need expert guidance. Please help me with the same.

Regards,
Neeti

Hi Dear,

I can help you with the required resume database access for your placement firm, which is a primary tool you should have to give your business a quick start. You may call me or email me at zinoorfarooqui@gmail.com.

Take care...

Hi, dear,

I can help you with the required resume database access for your placement firm, which is a primary tool you should have to give your business a quick start. You may call me or email me at [IMG]https://www.citehr.com/misc.php?do=email_dev&email=emlub29yZmFyb2 9xdWlAZ21haWwuY29t[/IMG].

Take care...

Hi Dear,

I can help you with the required resume database access for your placement firm, which is a primary tool you should have to give your business a quick start. You can call me or email me at [IMG]https://www.citehr.com/misc.php?do=email_dev&email=emlub29yZmFyb2 9xdWlAZ21haWwuY29t[/IMG].

Take care...

Hi,

I would like to know about (Infrastructure Setup: Company Registration) - like where to register the company name, what the cost is, what documents are required, and any additional information needed.

I am in Gurgaon, Haryana.

Regards,
Nimesh

Hi,

Very good information for anyone who is willing to start a recruitment company.

Regards, Shyam

Career Forum - Career Forum

Hi Puja,

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Hi, I'm looking for a business partner on a profit-sharing ratio. If anyone is interested, please mail me your profile.