How to start a Recruiting Business in India?

What is a recruitment business?

A recruitment business is a company that specializes in helping organisations find and hire employees. Recruitment businesses, also known as staffing agencies or employment agencies, offer a variety of services to help organisations fill job openings, including sourcing and identifying potential candidates, conducting initial screenings and interviews, and providing temporary staffing solutions.

Recruitment businesses may specialize in specific industries or types of positions, such as temporary or contract work, executive search, or technical roles. They may also offer additional services such as background checks, salary benchmarking, and onboarding support. Recruitment businesses typically charge a fee to the organisations they work with, either as a percentage of the employee’s salary or at a flat rate.

How to start a recruiting business in India?

Starting a recruiting business in India can be a challenging but rewarding venture. As a recruiter, you will help companies and organisations find the best candidates for their open positions, and you will also assist job seekers in finding the right opportunities for their career goals.

To succeed in this competitive industry, it’s important to carefully plan and prepare for the launch of your business. This includes developing a business plan, choosing the right business structure, obtaining necessary licenses and permits, building a strong network, and staying up to date on industry trends.

By following these steps and being proactive in building your business, you can set the foundation for a successful recruiting business in India. It will take time and effort to build your business, but with hard work and determination, you can succeed in this exciting and rewarding industry.

Here are the steps to follow to start a recruiting business in India:

  1. Develop a business plan

Developing a business plan is an essential step in starting a recruiting business in India. A business plan is a detailed document that outlines your goals, target market, and strategies for success. It serves as a roadmap for your business, helping you to stay focused and on track as you work towards your goals.

In your business plan, you should include information about your target market, including the types of companies and industries you plan to work with, as well as the types of candidates you will recruit. This will help you to define your target audience and develop strategies for reaching and engaging with them.

Your business plan should also include information about your marketing and sales strategies, as well as details about your financial projections and operating expenses. This will help you to understand the costs associated with starting and running your business and to plan for future growth.

Finally, a business plan is essential for securing funding and attracting investors. If you plan to seek financing from banks or investors, you will need to present a detailed and professional business plan that clearly outlines your goals and strategies for success. A strong business plan can help you to secure the funding you need to get your business off the ground and help you to attract the right partners and investors to support your growth.

  1. Choose a business structure

In India, you have several options for structuring your recruiting business, including a sole proprietorship, partnership, or limited liability company (LLC). Each structure has its own advantages and disadvantages, so it’s important to choose the one that best fits your needs and goals.

  • Proprietorship: It is managed or owned by a single person. It is the simplest and least expensive business structure to set up, and it offers complete control and flexibility to the owner. However, a sole proprietorship also exposes the owner to unlimited liability, meaning that they are personally responsible for all debts and obligations of the business.
  • Partnership: It is a type of business that is owned and operated by two or more individuals. Mainly there are two types of partnerships: general partnerships and limited partnerships. In a general partnership, all partners are equally responsible for the management and operations of the business and are personally liable for its debts and obligations. This means that if the business incurs any debts or liabilities, the partners’ personal assets may be at risk. On the other hand, a limited partnership involves one or more general partners who are responsible for managing the business and are personally liable for its debts and obligations, as well as one or more limited partners who are only responsible for providing capital and are not personally liable for the business’s debts and obligations.
  • Limited Liability Company (LLC): It is a business structure that combines the liability protection of a corporation with the tax benefits of a partnership. LLCs offer limited liability protection to their owners, meaning that the owners are not personally liable for the debts and obligations of the business. LLCs also offer flexibility in terms of management and ownership, and they can be taxed as a partnership or corporation, depending on the circumstances.

When choosing a business structure for your recruiting business in India, it’s important to consider factors such as liability protection, tax implications, and management and ownership structure. It’s a good idea to seek the advice of a legal or financial professional to help you choose the structure that best fits your needs.

  1. Obtain necessary licenses and permits

In order to operate legally in India, you may need to obtain various licenses and permits depending on the nature of your business. Some common licenses and permits that may be required for recruiting business include:

  • Goods and Services Tax (GST) registration: GST is a value-added tax that is applied to most goods and services in India. If your business has an annual turnover of more than INR 40 lakhs (approx. $54,000), you will need to register for GST.
  • Professional tax registration: Many states in India require businesses to pay a professional tax, which is a tax on certain professions or trades. If you operate a recruiting business, you may need to register for professional tax and pay this tax on a regular basis.
  • Other licenses and permits: Depending on the specific nature of your business and your location, you may need to obtain other licenses and permits to operate legally. This could include a trade license, shop and establishment registration, or other licenses required by the state or local government.

It’s important to research the specific licenses and permits that are required for your business and to obtain them before starting operations. If the necessary actions are not taken, the business may be subject to fines or other penalties. It’s a good idea to seek the advice of a legal or financial professional to ensure that you have all the necessary licenses and permits in place.

  1. Build a strong network 

As a recruiter, your network of connections will be a valuable asset to your business. Building relationships with potential clients and candidates, as well as industry professionals, can help you to grow your business and find new opportunities.

Here are some tips for building a strong network as a recruiter:

  • Start early: Building a strong network takes time, so it’s important to start building relationships as early as possible. This includes reaching out to industry professionals, joining relevant professional organisations, and attending events and conferences.
  • Be proactive: Don’t wait for opportunities to come to you – take the initiative to reach out to potential clients and candidates, and seek out new connections. This could involve networking at events, joining industry groups or forums, or simply reaching out to people you admire or respect in the industry.
  • Foster relationships: Building a strong network is not just about collecting business cards – it’s about building genuine, mutually beneficial relationships. Take the time to get to know the people in your network, and be willing to offer help or support when needed.
  • Stay connected: Building a network is an ongoing process, so it’s important to stay connected with the people in your network. This could involve regularly checking in with your contacts, attending industry events, or simply staying in touch through social media or email.

By building a strong network and fostering relationships with potential clients, candidates, and industry professionals, you can lay the foundation for a successful recruiting business in India.

  1. Utilize social media and online platforms 

In today’s digital age, it’s important for businesses of all types to have an online presence. For a recruiting business, having an online presence can be particularly useful for reaching a wider audience and connecting with potential clients and candidates.

One way to establish an online presence is through social media platforms. There are numerous social media platforms that businesses can utilize to reach their target audience and establish an online presence, each with its own unique features and user base.

For example, LinkedIn is a professional networking site that is popular among recruiters and job seekers. You can use LinkedIn to advertise your services, connect with potential clients and candidates, and share industry news and insights. Other popular social media platforms, such as Facebook and Twitter, can also be useful for building your online presence and connecting with potential clients and candidates.

In addition to social media, job boards and online job search sites can be useful tools for recruiting businesses. Many job seekers use these sites to search for job opportunities, so it’s a good idea to have a presence on these platforms. You can use job boards to advertise your services, post job openings, and connect with potential candidates.

By utilizing social media and online platforms, you can reach a wider audience and connect with potential clients and candidates in a more efficient and effective way. It’s important to regularly update your online presence and engage with your audience to build your reputation and establish your business as a trusted resource in the industry.

  1. Offer value-added services 

In a competitive market, it can be challenging for a recruiting business to stand out and attract clients and candidates. One way to differentiate your business is by offering value-added services in addition to traditional recruitment services.

Value-added services are additional services that go beyond the basic services offered by your business. They can help to set your business apart from competitors and provide additional value to your clients and candidates. Some examples of value-added services that a recruiting business might offer include:

  • Resume writing: Many job seekers struggle with creating a professional and effective resume. Offering resume writing services can help to set your business apart and provide a valuable service to your clients.
  • Career coaching: Career coaching can help individuals to clarify their career goals, identify their strengths and weaknesses, and develop a plan for success. Offering career coaching services can be a valuable addition to your business and can help you to attract clients who are looking for more comprehensive support in their job search.
  • Job search assistance: Job search assistance can include services such as resume review, interview coaching, and job search strategy development. These services can be particularly valuable for job seekers who are struggling to find employment and are looking for additional support and guidance.

By offering value-added services in addition to traditional recruitment services, you can differentiate your business and provide additional value to your clients and candidates. This can help you to stand out in a competitive market and attract a wider range of clients and candidates.

  1. Stay updated on industry trends 

The recruiting industry is constantly evolving, with new technologies, tools, and best practices emerging all the time. To stay competitive and provide the best service to your clients and candidates, it’s important to stay up to date on the latest trends and best practices in the industry.

There are several ways to stay informed about the latest developments in the recruiting industry:

  • Attend industry conferences and events: 

Industry conferences and events are a great way to learn about new developments in the industry, network with other professionals, and gain valuable insights and knowledge.

  • Join professional organisations: 

Many professional organisations offer educational resources, webinars, and other opportunities for learning about the latest trends and best practices in the industry.

  • Follow industry blogs and publications: 

There are many blogs and publications that cover the recruiting industry, and reading these can help you to stay up to date on the latest developments and best practices.

  • Stay connected with other professionals: 

Building relationships with other professionals in the industry can be a valuable way to stay informed about new developments and trends. This could involve joining industry groups or forums, attending networking events, or simply staying in touch with colleagues and peers.
By staying up to date on the latest trends and best practices in the recruiting industry, you can position your business as a leader in the field and provide the best possible service to your clients and candidates.

Conclusion

By following these steps, you can set the foundation for a successful recruiting business in India. It will take time and effort to build your business, but with hard work and determination, you can succeed in this competitive industry.

Top 10 Recruitment Companies in India 2024


Placement Agencies are the power boosters in the field of recruitment. Their multifaceted roles play a great role in generating employment by attracting candidates and matching them to positions with client companies. They screen candidates, interview them, do background checks, and finally match them to their clients’ requirements. Placement Agencies play the key part in connecting the potential candidates with the companies fulfilling their manpower requirements. After briefly explaining the advantage of working with search firms in India, we have brought to you a list of Top 10 Recruitment Consultants in India

Advantages of Working with Placement Agency

  1. Providing Adequate Manpower: Placement Agency plays a pivotal role in getting adequate manpower towards providing fruitful utilization of job seekers to their maximum potential and service to the company’s goals and objectives by easing the selection process which involves moving from application scrutiny and sorting for the best match.  However, it comforts the HR department to focus on important projects going parallel at hand along with hiring.
  2. Demand draft for employees in the particular specialization: It is also a great advantage for a company to draft a demand for employees in a particular specialization.  The consultant identifies the needs of the client and makes the best candidate viable who best fits a particular job.
  3. Time Conservation: A placement agency eases the hiring steps by saving important human hours of the company’s as through direct candidate selection by the placement agencies are better than direct normal recruitment procedure as they scrutinize the right candidate at the very first stage of interview.
  4. Deeper Pool of Resources: Local hiring is always best handled by a placement agency because it’s not practical that a company might reach its existence everywhere especially in near outskirts So in order to cater the remote areas for potential candidates placement agency is the best solution as they are a viable communicator between the company and the candidates.
  5. Company’s Brand Promotion: Placement agency is known to also inculcate branding to a company. Since they have a broader zone to source the candidates for employment, they promote the company’s goodwill and products which makes the company’s brand more popular amongst all.
  6. Seasonal Employment Purposes: Some companies only require a temporary workforce when the demand permits.  In that scenario, they can always get the services of a consultant offering part-time or seasonal candidates.  Some companies also require labor-intensive workers on daily or monthly wages saving money for the year. 

Top 10 Recruitment Companies in India 

  1. ABC Job placement: ABC Job placement is one of the pioneer and best job consultancy in India, founded by Dr Bish Agrawal in 1969. With rich experience of 44 years in this industry with a motto of ‘Building Careers, Building Organisation’. They are the most preferred talent acquisition firm with more than 500 consultants for providing best and custom-tailored recruitment solutions and makes around 75% of its revenue from their existing client base. ABC mostly ties-up with leading organizations and MNCs all across India with 9 offices spread over 8 major Indian cities as well as they have their presence in other countries too.
  2. Zigsaw Consultancy: Zigsaw is a Human Resource oriented company that is one of the fastest-growing recruitment firms of India. Zigsaw collaborates with companies to help fulfill their hiring requirements in the least and best possible time & manner. It delivers end-to-end recruitment solutions for hiring the “best-fit” talent. Zigsaw is currently operational in all the major cities of India and has its stronghold in tier-2 & tier-3 cities. Zigsaw offers flexible Hiring Plans for companies to choose from and has the best Turn Around Time. Zigsaw also has a FREE Hiring Model to engage with SME’s
  3. Randstad: Randstad is one of the oldest placement agencies founded back in 1992 as “Ma Foi” which was later changed to “Randstad” in 2008. Randstad has established themselves in this industry by providing quality recruitment services to their clients over all these years and today they are one of the leading HR service providers in India with their presence across 20 cities. Randstad is also the world’s second-largest placement consulting agency having headquarters in Chennai, India. The company offers various HR services like temporary and permanent contracts of staffing, various HR based solutions, In-house services, and recruiting professionals, etc.
  4. TeamLease Services: TeamLease Services is one of the leading human resource consultants in India established in the year 2002 with more than 1700 employees and 2500 clients across the Nation. TeamLease is also listed at 8th rank in Fortune India magazine in both BSE and NSE markets. As on date, they have almost 2 lakh associates spread across the nation in their 6,600+ locations and have given employment to more than 1.7 million people with a vision statement of “Putting India to work”. They have a huge list of clientele working including SMEs, MNCs, government firms, and many educational institutions. They also provide a host of services that include corporate training programs in payroll outsourcing, assessments, permanent staffing, temporary staffing, and regulatory compliances, etc. They have their registered office in Bangalore at Koramangala.
  5. Kelly Services: Kelly Services was first founded in 1946 by William Russell Kelly in America and soon they spread themselves in other countries. Kelly service commenced their operations in India in 2001 and today they are one of the leaders in offering workforce solutions like recruitment of candidates, serving clients, and staffing solutions across the industries. They have their presence in 6 locations across the Nation and their HR staffing arm has been recognized for their practices, quality processes, community involvement, and supplier diversity. Kelly services have a considerable mark in the present staffing industry and they are specialized in scientific hiring, mid-senior level hiring, engineering recruitments, IT recruitments, financial services, and functional recruitments. They have their registered office at Gurgaon in Haryana
  6. Adecco India: Company has provided recruitment to more than 1,00,000 employees and helped them to achieve their life goals. Adecco India has entered within the Indian market after the acquisition of People one Consulting (a leading Bangalore based company) through a deal of 200 crores. From 2004 the company has scaled its services and achieved incredible results by providing world-class services according to the need of customers.
  7. United HR Solutions: Established in 1986 by Dr. O.P Pahuja, he started as United Consultants later in 1996 then it became United Placement Consultants Pvt Ltd and in 2007 it became United HR Solutions. Initially, they catered only to textile industries in Nigeria and later extended to other countries. United HR Solution is an ISO certified consultancy that served over 450 clients in 15 countries.
  8. Brain Behind Brand: Brain Behind Brand founded in 2008 by Mr. Amitava Banerjee and from then it successfully provides satisfactory service to its clients. They provide a complete recruiting solution including starting from interview, screening, and shortlisting candidates. They later expanded branch offices in four major cities to provide better service to the maximum.
  9. Sutra HR: Company was started in 2008 and has more than 500 clients that have been associated with different industries. Sutra HR has clients across Malaysia, Singapore, Middle East, Indonesia, and UK.  Sutra HR has grown 200% times under the leadership of Waqar Azmi and therefore the annual revenue of the corporate is within the range of $8.6 million.
  10. Career Net: Company has its head office in Bangalore and they started their journey in the year 1999. The company provides cost-effective staffing solutions to clients across the globe. The company mainly has clients from the following fields that include FMC, IT sector, knowledge services, banking, financial services, and insurance.

Recruitment Companies Connect Employers with Relevant Job-seekers. They are the easiest & fastest way for any organization to hire the best talent. If you think we missed someone in our list of Top 10 Recruitment Agencies in India, do let us know in the comments below and we would be happy to include it in our list.