Hi, Can any one help me know the procedure to start own recruitment consultancy.
I am in this field since last 4 yrs, I am strong with database & clients, I want to understand how do i go further with billing my clients.
1. I want to operate from my residence.
2. Will i need to open the current account?
3. Will i need to register my consultancy under some name, then what is the procedure for that?
4. Will i need to get the service tax no., if yes then how do i go for it?
5. Pls let me know if there is any thing else required for this business?

From India, Mumbai

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HI, Even i had a similar plan.But i was also not able to get these details,so i had to drop the idea of starting a consultancy.It would be nice if anyone could help out.
From India, Madras
First of all, as a requirement to any kind of business, which includes consulting services, you must have a feasibility study which shall initiate the business planning after. This is the procedure that is being followed in the set-up of any organisation, business or enterprise which will be able to detail all necessary requirements, procedures, systems, processes, legal, as well as financial and geographical viability of the business.
From Philippines

First of all heartiest congratulations on thinking of starting a new venture!

The first step will be to register your company, whether it will be a proprietory or partnership firm, as long as its proprietory you can operate a current or savings a/c, makes no difference.

However a CA will help you get your firm registered, as well as help you with the sevice tax no.

A CA can also help with information such as "maintaining books of accounts" and filing of service taxes.

You also need to have a written annual contract with your clients, to whom you will be providing manpower. Most of the clients will have a ready format which you need to legalise on stamp paper, in case the clients do not have a format you need to make one detailing payment terms and clawback period.

As you plan to start from home, you don't need to worry too much about accounts right now. Get your contract with the clients in place, start recruiting candidates, once you start raising invoices, any accounts professional can help you with the rest.

All the best.



From India, Mumbai
Dear friend,

It is not that easy to operate a recruitment agency specially when you cannot facilitate the complete recruitment and selection process and

specially nowadays the recruitment agencies are using the most advanced and sophisticated testing techniques for their clients.

In your case you can make clients those are small companies or establishments those cannot advertize or cannot afford to hire a CV scrutinizers and recruitment & selection specialist. To them you can propose CVs and contact information to conduct a recruitment & selection process by them using their trade-experts and senior employees.

So as per your query,

1. I want to operate from my residence.

Ans: As discussed above you need to have a lot of infrastructure so it is not possible but you can only propose candidates.

Note: There are lot of websites in the market that fulfills the requirement without being highly paid. So consider this as a major competition to your business.

2. will i need to open the current account?

Ans: It depends on your revenue and usage, contact a well established and recognized bank and discuss to come-up with a better account for you.

3. will i need to register my consultancy under some name, then what is the procedure for that?

Ans: Yes you have to, procedure different region wise so meet knowledgeable person or any advocate to register your firm since there are certain types of businesses that can be registered like single proprietor or multiple etc.

4. Will i need to get the service tax no., if yes then how do i go for it?

Ans: Yes, well meet a tax consultant and take his advise as this is very necessary also.

5. Pls let me know if their is any thing else required for this business?

Ans: As above said and many more things, may be some one else from our community would suggest you better than this.

Hopes replied to your query,

Khaiser Ali Shah


From Saudi Arabia, Riyadh
Hi Charu, Thanks for reverting to my query, I think i have atleast got a way ahead positively to think to find right direction to get in to this business. Thanks for your inputs.
From India, Mumbai

Following information may helpful to you in your new venture of recruitment business.

Recruitment Business is vast by nature...The various kind of Permanent Staffing, Temp Staffing, RPO.........Further more screen down to Executive Search/ Contigency Recruitment/ Turnkey Recruitment/Advertised Recruitment..........

Pl. note down the recruitment business process in Permanent Staffing solution...........

1. Your need to decide which vertical (IT/Manufacturing/Civil/Pharma/Chemical/Oil&Gas many more......) you would like to operate/start business.

2. Make client database according to selected vertical.

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

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

5, You can use the job portals like naukri / monsterindia / timesjob for getting candidates databse. You may upload job position also.

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

7. You can manage your database with specialised software so inventory of the resumes would be in good conditions. Whenever you want any resumes with matching to perticular skill sets, you can get it from internal databse, if Inventory of resumes 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. Accouting and Taxes (Income Tax as well as Service Tax). (Accountant will take care on taxation part).

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



From Singapore, Singapore

Here you go....

1.I want to operate from my residence.

You can always start it from home. No high-end infrastructure needed. All you need is good networking and market knowledge, PC with broadband and a phone.

2. will i need to open the current account?


3. will i need to register my consultancy under some name, then what is the procedure for that?

Its better to get it registered first than start operating. You can contact any Tax consultant who will help you out in firm registration and getting a service tax number for your firm. He can also suggest you the template of the agreement with clients ( though may clients prefers their own agreement template)

4. Will i need to get the service tax no., if yes then how do i go for it?

Already answered.

5. Pls let me know if there is any thing else required for this business?

Good market knowledge and contacts, one portal license and lots courage and patience. You may not see the return in the first day … Perseverance is the key …

All the Best !!

From India, Madras
Hi All, Thanks for giving good suggestion. I have my own consultancy but i have limited clients.Can anyone help me out for more clients.I have Good Database with me. Waiting for reply.
From India, Nagpur
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From India, Delhi

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