How to start a recruitment business in india


A recruitment business provides services of recruiting/hiring an absolute employee for a given job post. This requires a bunch of different steps from making a thorough job post mentioning the exact skills and values needed for the role, to selecting candidates after a thorough check of their resumes. It is important for the resumes to match the giving postings, while looking for additional skills that might come in the favour of the company.

Some employers also use what I like to call a trial and error’ method where, they give a trial assignment to selected candidates and vet out the most ideal one, hence hiring that one candidate.

Types of sizes of businesses:-

  • Small-size business:- we have different sizes of business. The small size business is usually operated by the small group of people or by an individual. It includes family restaurants, small clothing business, some home-based companies etc. The profits here are not very high but are enough to manage the business operations.
  • Mid-size business:- this size of business gathers millions of dollars in their revenue. The dollars ranges from $50 million to $1 billion. This business is better that the small-size business. The employee count in this business ranges from 100 to 999 people. For example, the colorbar cosmetics are a middle-size business.
  • Large-business:- in this type of business, it operates as a corporation. The employee count in these business ranges 1000 and above. The revenue generated in this type is more than $1 billion. Their finance is operated by the corporation stock. Therefore, it is traded publicly and that is why it has to operate restrictions in its trading. But, it is opposite in case of small-size business where they are independent of the regulators. Some examples of large-businesses are- amazon and walmart.


Building a recruitment business in India:

While above are the basics of how a recruitment business works, there are certain steps required to build it. These may be different, from country to country.

In India, this business requires the following steps:

The type of business registration

The first step is to select a type of business. The type of firm or company it will identify as. Generally it’s best to go for private limited company as it has certain policies of protecting the promoters of the company from liability.

Registration of tax

Because this is a service providing business, one would need to have a service tax registration, and further along a GST tax registration may be necessary too.

Esi/pf registration

Esi registration becomes necessary when a corporation has more than ten employees, likewise when a business exceeds twenty employees; a pf registration is required too.

Ra (recruiting agent) license

The recruitment agents are those, who are registered with the ministry of overseas Indian affairs, for recruitment. As the emigration act (1983) entails, to hire Indian recruits for abroad, the registration is required.

Keeping in mind the above steps, it would be favourable to have some capital, when starting a recruitment business.

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