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    Starting a manpower consultancy is a difficult but lucrative venture. There is an issue with locating the suitable individual for the job. This is where human resource consulting comes in. So, if you’re wondering how to start a personnel consultancy in India and need assistance, we’ve got you covered.

    In fact, if you have a successful business plan, you may expect a considerable quantity of earnings.

    8 Steps to Start Manpower Consultancy

    Step 1 – Plan your business

    You may omit this step. If you’ve already selected what types of jobs you’ll fill and how.

    If not, preparation before beginning a business is the best option.

    So, how should a workforce consultancy business be organised?

    Simply put, you must pick on the following:

    • What will you name your business?
    • What will be your market?
    • How will you attract customers?
    • What will you specialize in?
    • What will be your business strategy?
    • How much funds do you need?
    • How will you get the funding?
    • What will be your unique approach to provide the solutions?
    • Where will you set up the office?
    • What is your growth plan?
    • What are the other necessary things?

    Having answers to all of these issues before beginning a personnel consulting will help you operate the firm successfully.

    Then, decide the industry you want to work in.

    ABC Consultants, for example, supplies senior and middle-level management with a workforce.

    International Manpower Resources Private Limited, on the other hand, offers candidates for Offshore Manpower Recruitment.

    Instead of offering various forms of manpower consulting, focus on one and become an expert in it.

    The second question is how to pick a sector.

    The three most significant factors to consider while selecting a sector are:

    • Understand the Market
    • Analyze your Competitors
    • Build a Database

    As a result, if you’re wondering how to establish a manpower consulting, start by deciding on an industry. Whether you’ll be working in IT, tax consulting, manufacturing, or anything else.

    Step 2 – Business Registration

    The next stage in establishing a manpower consulting is to register as a firm.

    The first step is to register your business.

    Private Limited Company Registration 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)

    You can also form a One Person Company or a Limited Liability Partnership. It is determined by your needs. Set up a consultation call with us to help you decide. You can contact our specialists by filling out the form on the right.

    In fact, a registered business has less liability, more room for development, and easier access to capital.

    Furthermore, it must register with numerous government agencies, including:

    • Service Tax Department
    • Ministry of Overseas Indian Affairs
    • Employer State Insurance
    • Provident Fund

    Step 3 – Tax Registration and Licence

    There are a few more registrations you must obtain after registering for your labour consultancy.

    GST Registration: If a company’s yearly revenue exceeds Rs.40 lakhs (Rs.20 lakhs in northeastern states), it must register for GST.

    MSME Registration: MSME (Micro, Small, or Medium Enterprise) will assist you with easy bank loans, tax incentives, and tax relief.

    Shop and Establishment Act License: A registered office is required to start a personnel consultancy. So, within 30 days of opening your establishment, apply for a shop act license.

    ESI (Employees’ State Insurance) Registration: If your personnel consultancy employs ten or fewer individuals, you do not need to register with ESI. It is, however, required if you additionally provide contract labour.

    PF Registration: Similarly, if your organisation has more than 20 employees, you must register for PF.

    Trademark Registration: Apply for trademark registration online to increase the value of your brand. It will shield your company from competitors. Furthermore, no one can provide services in your name.

    Recruiting Agent License

    Apply for a Recruiting Agent Licence with the Ministry of Overseas Indian Affairs to start a personnel consultancy.

    However, if you take on Indian applications for international companies, you would need a recruiting agent licence.

    Documents Required for Recruiting Agent License
    • Application for the recruiting agent in the set format
    • Demand Draft of Rs. 25,000/- in favour of PAO, MAIO, New Delhi
    • Passport size photo of Business Owners
    • Details of Business Owner, including business activities in last 5 years
    • Digital Signature Certificates
    • Bank Guarantee of Rs. 20 lakhs
    • Balance Sheet Statement
    • IT returns of Directors
    • Graduation Degree

    Step 4 – Investment 

    A manpower consulting requires a minimum investment of Rs. 5 lacs to Rs. 10 lacs.
    You may need to invest more money at the start-up stage.
    Rent an office, pay for repairs, set up systems, pay salaries, utility bills, marketing bills, create a profile, and so on.
    However, there is no upper limit to maximum investment.
    It is determined by the size of your company and your growth objectives.
    You can also add more dollars afterward.
    Also, if you already have money, that’s great.
    Otherwise, you have the following funding options:

    • Business Bank Loans
    • Angel Investors
    • Crowdfunding
    • Loan from Family and Friends
    • Venture Capital Funds
    • Startup India Fund

    Step 5 – Create your Online Presence

    The expanding influence of the internet encourages people to seek solutions online.
    As a result, having an internet presence will assist your firm in growing.
    Above all, it will raise the company’s profile and reach.
    That is, purchase a domain name and create a website to go online.
    A website can provide you with an excellent database of companies and candidates.
    Meanwhile, purchase formal email addresses for workers to use when communicating with clients and prospects.
    Official emails aid in building confidence.

    CALL: +91 9145399499

    Step 6 – Sign in to Online Job Search Engines

    Now, let me address your main concern.

    Where are you going to find clients and candidates?

    Purchase logins to job search websites such as Naukri,, and Indeed for this reason.

    These portals can provide you with a regular, qualified, and thorough candidate list.

    In fact, you can learn about the most recent employment openings.

    Step 7 – Set up the Office

    You will also require an office to conduct a workforce consultation business.

    The office space must be at least 50 square metres.

    It should include the following spaces:

    • Waiting hall for 30 people or more
    • Sound proof room for interviews
    • Space to set up laptop, computers, furniture, phones and other office supplies.

    Step 8 – Hiring!

    Employees are critical to productivity.

    As a result, it is critical to hire qualified individuals for each role.

    The following positions must be filled for a personnel consultancy:

    • Consultants (Degree in Human Resource Management)
    • Sales Person
    • Relationship Managers
    • Accountant
    • Operation Manager
    • Lawyer (For contract drafting)
    • HR
    • Team of Job Finders
    • Interviewers
    • Security Guard
    • Others (as needed)

    Make certain that you have an adequate and well-trained workforce.

    Also, have a proper setup for candidate skill assessment.

    Following that, recommend jobs depending on the results and their interest.

    Aptitude tests are the finest alternative for this aim.

    Start your Manpower Consultancy

    To summarise, you are now an expert on how to start a manpower consultancy.

    Furthermore, do not be concerned about whether or not this business will profit you.

    Companies might pay a flat price to a staffing consultancy.

    Alternatively, they can charge 15% – 20% of the candidate’s annual pay.

    In fact, if the position is difficult to fill, it can rise to 30%.

    If you require assistance or have questions about the process, please contact OurStartUpIndia.

    FAQs :-

    How do I start a manpower contract?

    Documents Required PAN Card and Aadhar Card of Owner. Bank Details. Address Proof of Registered Office. LLP Certificate (in case of Limited Liability Partnership) Partnership Deed (in case of Partnership Firm) MOA/AOA/Incorporation Certificate of Company (in case of Private Limited Company or One Person Company)

    How to start a HR manpower consultancy firm?

    Legal Formalities Step 1: Register your Company. The very first step is getting your company registered. … Step 2: Register Under GST and various Government Schemes. After registering the company, the next step is getting the necessary registrations done. … Step 3: Recruitment Agency (RA) Licensing.

    How do I start a consultancy?

    How to start a consulting business in 9 steps Step 1: Assess your strengths and skill set. … Step 2: Figure out what your market needs. … Step 3: Ride the organic marketing train. … Step 4: Invest in the tools of the trade. … Step 5: Staff wisely. … Step 6: Practice your elevator pitch. … Step 7: Write client proposals.

    How can I get manpower consultancy license in India?

    Eligibility Criteria for Manpower Supply License in India The applicant must have an office in India. The company must have a bank guarantee of Rs 25 lacs. You must have an office with a minimum area of 150 sq ft in India or abroad. The applicant must have been doing business for at least five years.

    Is Labour contract profitable?

    Labour ContractSaving in Cost due to Saving on Profit on Material’s Cost: The owner can save on the amount of profit considered by the contractor on all materials’ cost. But this is tricky and not always true and sometimes it may prove costlier also.

    Do I need a Licence to start a recruitment agency in India?

    Recruitment agencies must apply for a Recruiting Agent license with the Protector General of Emigrates.

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