January often marks the time when recruiters decide to launch their own agencies. This is frequently driven by reflections on their future plans or dissatisfaction with their current roles, such as facing unrealistic targets or changes in expectations that affect their earnings.
These factors can prompt recruiters to consider starting their own businesses. While some take the time to thoroughly research and plan their new ventures, others may find themselves setting up their businesses more hastily and out of necessity.
Below is an indication of the timescales to get a recruitment agency up and running:
COMPANY FORMATION
Forming a company at Companies House will take around 2 hours to complete the online registrations and then a further 12-24 hours for the company to become registered. However, it is best to get some advice on the company set-up (directorships and shareholding) before the company is formed so that this can be done at the initial stages.
BANK ACCOUNT SET-UP
Online banks such as Revolut, Startling and Monzo can set up business bank accounts within 24 hours whilst high street banks can take 4-7 days depending on the company setup. There is also the time required to set up the online banking which depending on the number of users and the payment authorisation process.
HMRC REGISTRATIONS
When the company is formed, it will automatically be registered for Corporation Tax and HMRC will send the company UTR number via post. PAYE registrations can take between 5-20 days to become registered. VAT registrations should be done as soon as the bank account is set up, but they have been known to take up to 60 days to complete.
COMPANY INSURANCE
Working with a broker instead of directly with an insurance company will mean that the quoting process will cover the whole market and will find you the best product and price for your agency. This can take time to collate the quotes but should be in place within 48-72 hours.
CONTRACT TEMPLATES
Contract templates can be sourced very quickly either from a law firm that will have these templates prepared or by joining a recruitment association where they will have these templates available within their document library for a subscription fee.
TELEPHONE & DATABASE/CRM
The most important items required in a recruiter’s tool kit to get started are a telephone to speak to clients and candidates plus a database/CRM to hold the data. Phone set-up and getting a subscription to a database can be done within an afternoon, but it is best to shop around to get the best deal and the system that works best for you in the long run.
CONTRACTOR FUNDING
If the new agency requires funding to pay temporary/contract workers, then many of the Pay-And-Bill solutions on the market can set these facilities up over the phone and provide funding and administration services as soon as the first temporary/contract placement is made.
The process of setting up a recruitment agency is simple and quick to do but it is advisable to get some help and advice from someone who has done this process before and who can recommend reputable providers.
MAYACHI Ltd has many years’ experiences of working with recruiters looking to start their first recruitment agency and has helped over 250 recruiters on this journey. MAYACHI can provide help and guidance on the set-up process as well as provide contacts of industry suppliers who can provide quality services to new start recruitment agencies.
