5 Steps To Setting Up Your Own Recruitment Agency

Step 1 – Registration

Register your new recruitment business. https://www.gov.uk/limited-company-formation/register-your-company

This costs £12 and will usually be registered within 24 hours. Think carefully about the name – will it still be suitable for your business as you expand or enter new markets?

Step 2 – Insurance

Ensure your business has the correct insurances that it needs. Any recruitment business, especially those providing temporary workers division, needs: Public Liability (PL), Professional Indemnity (PI), and Employers liability (EL). Your end clients will require this and may wish to see the certificates. QUBA Solutions partners with Sutton Winson who specialise in providing insurance for established and new recruitment businesses.

Step 3 – Banking

As a limited company is a separate legal entity, it needs to have its own business bank account. We partner with Tide bank who will give you £50 and 1 year of free bank transfers when you open a business account through our promotion.

Step 4 – Finance and Back Office

Sign up with QUBA solutions. We take care of your invoicing, credit control, payroll, debt insurance, terms of business to your clients, assignment schedules to workers, clients and HMRC reporting. Essentially we enable you to grow your recruitment business without the worry of the back office. http://quba.solutions/contact/

Step 5 – Accountant

You will need an accountant to help manage your finances and ensure compliance with regulations. Some areas of recruitment are more complex especially when it comes to construction recruitment. Talk to the experts at Aviso Business Services

You will need them to register you for VAT, PAYE & if supplying into the construction sector register you for NET status.

Additional requirements but not essential from day one:

  • CRM – QUBA solutions has a financial management platform called DynamiQ, this can be used as a basic CRM.
  • Website – Huge range in cost, the basic principle is the more functionality built into the website the more the cost.
  • Business plan – Need to differentiate the business from your competitors and produce a three to five year financial plan, this will highlight headcount and sales data.
  • Shareholders agreement – Essential for any partnership, need to differentiate the rules and restrictions around a good and bad leaver. Highlight the basic details such as weekly working hours, holiday entitlement etc etc One way of thinking about it – it’s a Prenup setting out what happens if it all goes wrong!