How to start an HR

Consultancy/Recruitment
Agency in India
Category Starting a Business
January 15, 2019

India presents a pool of talent making it a potential ground for many leading companies
across the globe to hunt for manpower in our soil. Besides, a major chunk of our population
resides abroad that amounts to a wooing total of over 25 million. However, there exists a lack
of proper channel that has kept the present population oblivion of the prospects available in
India and abroad.
This is where HR and Recruitment agency make their entry playing a major role in
channelizing today’s youth with better opportunities on the employment front unleashing
their talent and exploring their zeal.
[Want to start your own business and don’t yet have a plan? Here is an
article that can help you with the same: “12 Low Investment Business
Ideas In India With High Profit“]
Contents [hide]
 1 What does an HR Agency do?
 2 Tips to start a Recruitment Agency
o 2.1 How to select which sector to start with?
 2.1.1 Understand the Market Statistics
 2.1.2 Study your competitors
 2.1.3 Build Database
o 2.2 How to build a client list and how to get Jobseekers for those clients?
 2.2.1 Take part in Job Fairs
 2.2.2 Call your clients
 2.2.3 Stay updated
 2.2.4 Use every opportunity to network with people
 2.2.5 Connect through Social Media
 2.2.6 Google Search
 2.2.7 Create Website
  2.2.8 Advertise your Agency online
 3 What is the scope of technology in HR sector?
 4 Legal Formalities
o 4.1 Step 1: Register your Company
o 4.2 Step 2: Register Under GST and various Government Schemes
o 4.3 Step 3: Recruitment Agency (RA) Licensing
 5 Conclusion
 6 Need Help? Please fill below form to Get in touch

What does an HR Agency do?

HR Agency plays an important role in bridging the gap between companies, businesses, and
job seekers. It aids companies to find lucrative employees for their business and at the same
time assists job seekers in zeroing on a job that fits their educational qualification and
capabilities.
There has been a surge in recruitment agencies in India that has risen at a constant pace of
15% every year since 2014. The recruitment firm offers employment on contract, temporary,
part-time and full-time basis to the companies based on their need. At present, the agencies
concentrating on supplying temporary workforce dominates the market size by 75% and
fulltime corresponds to 12%.
Thus, the prospects of starting an HR/Recruitment agency in India is much higher deeming to
the various opportunities it lays out for businesses and workforce.
Tips to start a Recruitment Agency
How to select which sector to start with?
Understand the Market Statistics
Concentrating on a niche sector such as Finance, Banking, Lawyers, Freelance, IT, etc.
allows the recruiter to be sorted with the needs and build more contacts. An extensive R&D
about the current market trend and which sector generates maximum business is needed.
Ask these questions:
 Which sector must I choose? IT, Banking or Engineering?
 Is there a demand for these jobs?
Doing proper homework of the current market trend and understanding which industry will
generate fruitful returns is the crux of any business. And in the case of starting an HR/
Recruitment firm, it is a must. So, in case you are planning to start recruitment or HR
consultancy firstly decide on which industry you wish to concentrate and what type of
employment agenda you wish to follow.
For example – If you are planning to start an IT related recruitment agency decide whether
you will be targeting candidates on a contract, part-time, full-time basis or both.
[Want to know the benefits of Start-up India Programme? Here is the
article:  All about Startup India programme launched by the
Government of India]
Study your competitors
Do a quick study of other recruitment agencies that deal with the same sector as of yours.
Later try to understand the challenges and benefits it poses. This can be based on the owner’s
experience as well as the current market trend.
Build Database
A recruitment agency is nothing without Businesses and Job Seekers. Thus, building a
database of clients and potential job seekers is an important element for newbie agencies.
Now, how to generate clients and how to reach out to job seekers. Here are a few easy tricks:
How to build a client list and how to get Jobseekers for those clients?
Take part in Job Fairs
Get in touch with organizers of Job/ Career fairs as they are a lucrative medium of
introducing oneself with businesses who deal in your niche. Participate in Job fairs wherein
you can meet potential clients for your firm. You can also tie-up with few top colleges that
deal in your niche sector organizing job fairs in their premises. These fairs witness the huge
amount of crowd mostly of job seekers who are in look out for a job.
Example – Participate in the job fairs and offer them speeches on topics like How to use
Social Media for the Recruitment? How to find the Right Fitting Job? etc.
Call your clients
As a new agency, no clients or job seekers will approach you directly. It depends upon how
well you market your agency. As a new agency, you need to do some R&D and hard work
like checking through phone directories or Yellow Pages and calling up the clients who deal
in your niche.
Printing business cards, or pamphlets and distributing it in malls, business parks with your
agency details will aid businesses to get acquainted with you and reach out to you later if in
need making it a potential way of reaching out to job seekers and clients.
Stay updated
New into Recruitment business? In search of clients? Well, then keep your eyes and ears
wide open. Check out on Newspapers, Business Classifieds columns about which company
has published an ad for which position. Also, check if any new firms are opening in your
vicinity. If yes, grab the opportunity and without wasting time reach out to them. Contact
their management team and find out if there are any vacancies that they are trying to fill.
Use every opportunity to network with people
Suppose there is a recruitment agency in your vicinity which is to shut down soon, go and
approach them. Ask them if you can acquire their company database and list to continue with
the business. Try your best; you never know where it can reach you.

Marketing Strategy for HR Recruitment Business

Connect through Social Media
Social Media has been a growing potential field for recruiters, businesses and job seekers to
reach out to each other. Follow businesses and executives on Twitter, tweet about them, and
participate on the contents they post. LinkedIn is also a great platform where you can follow
them and stay updated regarding the latest openings and news. Message them on LinkedIn
and introduce yourself. Ask them whether there are any vacancies to be filled and how you
can help them in finding lucrative individuals for the position.
Google Search
Search for a growing business in your location, and enlist their contact numbers. Call up the
companies and pitch about your agency. Approach the companies personally and hand over
your Card with details to the receptionist pitching about your agency.
Create Website
Opening a website and selecting a domain is the best way of reaching out to the clients.
Choose a good name and URL that does justice to your Business Name. Get into contracts
with potential clients and job seekers through your website to make the reach easy.
Advertise your Agency online
Advertising is always useful whether for selling a product or a service. With the advent of the
internet and a number of tools, this task is much eased out. You can place ads on top
employment forums, groups and portals to attract clients and job seekers.
Use of Technology has been the latest technique in aiding recruitment and analyzing talent.
[Are you a new Start-up and are looking for a loan.  Here is the blog on:
“How to get Pradhan Mantri Mudra Yojana (PMMY) Loan“]
What is the scope of technology in HR sector?
The advent of technology has helped in easing the otherwise tiresome process of collecting
data, storing and its maintenance. Many start-up recruiting agency is tapping into bringing on
board advanced technology to meet their recruitment needs and address the mismatch of
Talent. Below listed are few examples explaining how technology is used by few HR startups
for easing the process of hiring and lessening talent mismatch.
1.  Darwin Box
A cloud-based HR solutions Firm, Darwin Box, offers authentic recruitment solutions to top
companies that includes meeting the core HR needs, employee engagement, performance
management and much more.
Using a cloud-based platform, the AI engine allows recruiters in shortlisting applicants by
analyzing the job description and the employee profile. Thus, in case there are 600 applicants
who have registered, the system will shortlist around 10 to 20 applicants picking the
keywords who will be later contacted by the firm. This is time saving, economical and brings
in better talent on board.
The firm is started by Chaitanya Peddi, Rohit Chennamaneni, and Jayant Paleti and serves to
over 100 companies including Spencer’s, ekart and much more.
2.   Belong
Established in 2014, Belong is an HR startup that offers high-tech recruitment solutions to
top companies. Currently, it serves Amazon, Cisco, Reliance Jio, Thoughtworks offering
them high-end talent using the technique of data science and predictive analysis.
Belong’s technology assists companies in discovering talent who fit perfect for the job profile
using algorithm techniques that aids in accelerating hiring cycle and engage in direct
interaction with candidates.
In 2017, the start-up launched by BITS alumnus Vijay Sharma raised a whopping series B
funding of $10 million aided by Sequoia Capital.
Legal Formalities
Step 1: Register your Company
The very first step is getting your company registered. Registering your company aids in
gaining benefits in matters of loans, transfer of shares in addition to limiting the liability on
each shareholder. You must thus register your firm as either Partnership, Proprietorship,
Limited Liability Partnership, Private Company or a One-person Company. Knowing well,
what is your requirement, you can register as either following the process required for each.
Step 2: Register Under GST and various Government Schemes
After registering the company, the next step is getting the necessary registrations done. This
includes GST registration and registering under MSME, and much more.
 Unlike before no service tax registration is required, it is replaced by GST, i.e.
Goods and Service Tax.
 If yours is a small, Medium or micro industry registering under MSME will
aid in gaining easy bank loans, easy repayment, tax benefits and exemption in
certain taxes.
[MSME is also known as SSI Registration. If you want to know more about it and
wondering why should one register for it, refer to our article “How to get online SSI
Registration in India  “]
Step 3: Recruitment Agency (RA) Licensing
Recruitment firm who provide employment to Indian citizens in overseas must hold the
Recruiting Agency License (RA) which is a mandatory license. They must get themselves
listed under the Protector General of Emigrants (PGE) by the Ministry of Overseas Indian
Affairs as per the Emigration Act, 1983.
Since the recruitment agency of Viraj deems to offer employment for Indian Citizens to the
overseas client, he must compulsorily avail for the RA License.
Process as follows
 The agency must submit an application for becoming a Recruitment Agent to
the Ministry of Overseas Indian Affairs.
 Submit a DD for an amount of Rs 25,000/- drawn in favor of PAO, MAIO,
New Delhi
 Submit a Bank Guarantee worth Rs 20 lakhs
 Submit the mentioned documents along with the application form
 Once the application is approved the agency will be provided a Recruiting
Agency License (RA)
Documents Required
 Colored Passport size Photograph of Promoters
 Document enlisting detail of business activity of the last five years
 A signature specimen of promotors
 Statement of Balance Sheet of promoters
 IT returns of Promoter
 Graduation Certificate
(The promoter of the agency must provide all the above documents)

Anonymous1 Recruitment agency registration is a systematic, stringent &

time consuming process. Applicants to comply with all the requirements
under the immigration rules strictly to obtain the registration certificate.
Following are the basic requirements under registration. 1) Applicant (MD,
Managing Partner, Proprietor) must be a full time degree/diploma
certificate holder minimum. 2) Applicant/firm or company must have net
assets worth 42 lac rupees (Net worth means: fixed assets + liquid assets -
liabilities) 3) 50 square metres' office (either owned or rented) for carrying
out recruitment activity. 4) 50 lac rupee worth bank guarantee as security
to government at final stage of registration. 5) Proof of personal & business
related documents of applicant and co-applicants including that of
firm/company. 6) Character & antecedent of applicant/co-applicant must
be good. NOTE: The registration aspirants having good financial strength,
healthy connections/sources in overseas market and ready business plan
for bagging immediate orders for manpower recruitment are encouraged to
go in for the registration process. We can be contacted for further
assistance in terms of 'applicant preparatory program, documentation,
proof reading, registration follow-up and advisory services'. E-mail: , Cell:
+91 92650 69396 23rd June 2018 From India, Mumbai read more at:
https://www.citehr.com/600464-how-obtain-recruiting-agent-ra-license-
license.html