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How to start a recruitment agency

Having grown continuously since 2010, the recruitment industry is continuing its reputation as a leading sector within the UK. With this in mind, now is the right time to start a recruitment agency.

 

If this is something you had considered doing, there are a lot of steps to take before you can officially launch. So, to help you out, we’ve created a quick guide of some of the key actions to take to speed up the process and start your new venture.

 

  1. Get the name of your business right

First impressions count, especially in recruitment, So, when you start a recruitment agency, every first point of contact with potential customers counts – which includes the name of your agency.

Here are some things to consider when picking the right name for you:

  • Make sure your name complies – there are are number of dos and don’ts when it comes to picking a name, so make sure you check out the regulations on Companies House
  • Check that no one else has the same name that you would like to use, before you start the registration process – you can also find this information on Companies House
  • As we said before, first impressions count. So, when it comes to picking your agency’s name, think about:
    • If it truly reflects how you want your business to be perceived
    • how it sits next to your competitors
    • whether it will still work in the future
    • how it look on your marketing collateral, as well as online

 

  1. Register your business with Companies House

For just £12, and in just 15 minutes, you can officially register your business as a legal entity. And, when you start a recruitment agency, it’s a vital action to take.

Once you understand all the jargon in the application process, it’s actually relatively simple to do.

Here’s what information you need to know before you start applying, to speed up the process:

  • Company name and UK office address
  • New director name, address, nationality, date of birth and business occupation
  • Share capital details
  • Subscriber details and address
  • Currency and number of stocks/shares held
  • Preferred form of payment

 

Once you have this information to hand, you’re ready to register! And, if you need any help, you can check out our useful guide.

 

  1. Set up your website

Building a presence online is so important, especially when you start a recruitment agency.

Your first priority is to build a website. This used to be a pretty expensive process, due to the need to employ a professional to do it for you. However, with websites like Wix and WordPress, setting your website up when you start a recruitment agency has become a lot cheaper, and easier, to do.

Here are some things to remember when creating your website:

  • Make sure you have clear call-to-actions (CTAs) that stand out across your website
  • Your contact details should be easy to find, and communicating with you should feel easy to do
  • Put your domain name on auto-renew, otherwise you might end up losing your company URL
  • Don’t forget SEO – writing content that attracts potential clients and candidates are searching for a recruitment agency is key
  • Link your social accounts (business only, obviously) to your website – the role of social media is playing a bigger role in recruitment, so it’s important that you include them

 

  1. Make sure you remain compliant

As with any business, when you start a recruitment agency, there are lots of rules and regulations in place that you must comply with.

To help you, here are some of the key regulations you need to know:

 

HMRC: The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2015

After you start a recruitment agency, you are required to report on all payments made (in relation to the supply of staff) where they don’t deduct employment taxes and NI at source.

 

Data Protection Act

When you start a recruitment agency and start getting clients and candidates on your books, you need to treat their data fairly and professionally. This includes keeping personal data accurate and up-to-date, and only using it for the purpose for which it was intended.

 

Agency Worker Regulations (AWR)

Designed to stop the discrimination of people who work for employment agencies, this regulation states that agency workers should be treated no less favourably than their permanent counterparts and covers things such as pay rates, working time and benefits.

 

UK Code of Non-broadcast Advertising, Sales Promotion and Direct Marketing (CAP Code)

Enforced by the Advertising Standards Authority (ASA), this code ensures every job ad you post represents a real job and is fair and non-discriminatory.

 

Equality Act 2010

The Equality Act combines the Sex Discrimination Act, Race Relations Act and the Disability Discrimination Act into a single Act and is basically designed to ensure people are treated fairly.

 

This isn’t a definitive list of everything you need to do when you start a recruitment agency, but it’s a very good place to start!

 

Our free business plan and budget templates are available to download, and will help you create a strong, clear strategy for launch.

Guide to setting up your recruitment agency

As the UK job market continues to go from strength to strength now is the perfect time to start your own recruitment agency.

Discover everything you need to know in our eBook.

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