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How to start a Manpower Agency | The Beginner's Guide

Author: Starteazy Tm
by Starteazy Tm
Posted: May 14, 2022

Learning about how to start a manpower agency can be a bit tiring but it surely is a more profitable and less work business.

A manpower agency is a form of intermediary between an employer looking for employees and a job seeker looking for work. The main objective is to locate the best candidate for the job that recruiters are seeking.

It is why it's vital for job seekers since they should consider using a manpower agency to find a job more quickly and without obstacles.

Any company in need of quick employment can easily and successfully increase the number of employees with the assistance of a manpower agency. However, to be on the top of their list, you should have a company registration online certificate to increase your reliability.

Type of Manpower Agency Services

  • Administrative Recruitment

Administrative recruitment is a manpower service that seeks highly qualified people for senior or executive jobs. Also, it is good option for how to start a Manpower Agency.

These are candidates with vast knowledge and experience.

In other words, it hires experts or highly talented people for specific and competitive job categories, like the finest Data Scientists.

Manpower Supply Agency Fees: For the first year of service, the typical charge for executive recruitment services is 25 to 35 per cent of the candidate's total yearly income.

  • Temporary Staffing

As the name implies, this manpower service focuses on finding workers for firms or organisations for a set period. This form of hiring is done on a fixed-term basis.

Temporary work is in high demand when a company has to expand its personnel due to increased workload or when full-time employees are on maternity or sick leave.

Companies may need temporary employees for particular initiatives that demand a certain skill set for a limited time.

Manpower Supply Agency Fees: The fees for temporary manpower services often range from 20% to 75% of the temporary employee's remuneration.

  • Recruiting for vertical or niche markets

Vertical recruitment refers to hiring for a niche market, such as companies that specialise in IT personnel. Niche recruiting takes things a step further by focusing on a specific niche. Consider a firm that specialises in "Executive Directors for Nonprofit Companies."

Manpower Supply Agency Fees: Fees vary according to the agency and speciality, although most charge a percentage of each candidate's annual package.

  • Large-scale recruitment

Consider fast-growing e-commerce enterprises like Amazon as an example of mass recruitment. Because of their quick expansion, there is always a great demand for fresh warehouse workers and delivery drivers.

The problem that mass recruitment companies are attempting to solve is the rapid recruitment of a large number of people for both permanent and contract roles.

Manpower Supply Agency Fees: Fees vary depending on the job and headcount for each position. But are typically computed based on each hired candidate's package.

  • Social Manpower Service

Other methods of recruitment use a different approach to applicant sourcing than social recruitment. Despite the fact that certain agencies have made it a point of focus, social recruitment is more often than not an additional channel that any agency can use rather than the exclusive candidate acquisition channel. You can consider this service to start a Manpower Agency.

Manpower Supply Agency Fees: Social recruitment agencies typically charge their clients on a placement basis, ranging from 15% to 25% of the candidate's annual package. After that, split a portion of the earnings with the referral.

5 Steps to Register a Manpower Agency

When learning how to start manpower consultancy, it is recommended to register as a private limited company.

It will give you the benefit of limited liability, trust, growth scope and legal benefits.

Step 1 - Choose a Business Name

Choose a unique and catchy name. The reason it has to be unique is that the government does not allow registering a company with the same name. Also, it has to be catchy so that people can easily remember you by your brand name.

So, when applying for company registration online, make sure you have at least 4 name suggestions. It will prevent any resubmissions or delays in the process.

Step 2 - Share The Necessary Documents

  • Passport size photo of all Owners
  • PAN Card
  • Identity Proof (Passport, Voter ID, Driving License)
  • Address Proof (Bank Statement, Mobile Bill, Electricity Bill, Internet Bill)
  • Aadhar Card
  • Address Proof of Business Office (Electricity Bill, Internet Bill, Mobile Bill)

Step 3 - Apply for Digital Signature Certificate and Director's Identification Number

If you already have DSC and DIN numbers, you can skip this step.

Otherwise, you will have to apply for a digital signature certificate to sign the company forms.

Also, the DIN is necessary for everyone who desires to be a director/owner in the manpower supply agency.

Step 4 - Preparation of Documents (MoA and AoA)

After that, create the MoA (Memorandum of Association) and AoA (Article of Association) of the company.

It will define the purpose and objects of the company.

Also, it plays a very important role, so make sure to get it drafted by a professional.

Because, after the company registration on the basis of submitted MoA and AoA, you can only deal in services and goods as mentioned in these two documents.

Step 5 - Filling the SPICe Form

It is the final step to start a Manpower Agency. Fill out the SPICe form on MCA Portal and attach all the documents.

Take assistance from a professional or business service provider.

They charge very reasonable fees and will do the task on your behalf.

Also, they will ensure that the information in the documents and form match.

However, if you do it yourself, you may get confused with the technical jargon and end up filling out the wrong information.

Also, this may slow down the process and even lead to rejection.

That's it!

Now sit back and relax.

It may take around 7-10 business days to receive the incorporation certificate from the Government.


Finally, consider the number of recruiters you should hire for starting a manpower agency based on the size of your company. It relates to the cost considerations you should make when starting a business.

After you've decided on the number of employees, you'll need to figure out how much each employee will be paid per month.

Eventually, when done correctly, launching a recruitment firm may be a tremendously successful and gratifying endeavour. Not without risk, but with careful planning, the appropriate technology to support your agency, and a well-crafted strategy, you may increase your chances of success.

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Author: Starteazy Tm

Starteazy Tm

Member since: Mar 17, 2021
Published articles: 11

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