One of the most common questions asked by recruiters looking to start their agency is: “How much does it cost to start a recruitment agency?” While costs can vary depending on whether the company wants a flashy website or access to premium job boards, the overall cost of setting up a recruitment agency can be relatively lean.
The initial focus should be on getting the essentials in place—forming the company, securing a domain name and phone number, setting up a laptop and phone, and getting on the phones to make those all-important first placements.
Below is a list of key items new startup recruiters should consider, along with approximate costs:
COMPANY FORMATION
Registering a company with Companies House costs just £12 and takes a couple of hours of the director’s time. Some services can complete the formation for you for around £100, but this is something that can easily be done in-house.
COMPANY INSURANCE
Recruitment businesses typically require employers’ liability and public liability insurance to trade with clients. These can be sourced through an insurance broker, with costs depending on the level of cover. It’s advisable to start with the minimum required and increase the cover if requested by a client.
TELEPHONE AND COMPUTER
A recruiter’s key tools are a phone and a laptop or desktop computer. While starting with a mobile phone is fine, having a business number adds a level of professionalism. Purchasing a laptop or desktop is recommended, as it can be listed as a company asset. Reconditioned models offer great value. You’ll also need to budget for Microsoft 365 and antivirus software.

CRM
Most recruiters benefit from using a CRM system tailored to their industry, often one they’ve used before. There are free CRMS available, as well as subscription-based platforms charged per user. Since the business is starting from scratch, there should be no major setup costs involved.
DOMAIN NAME, LOGO AND WEBSITE
Buying a domain name that matches your company name is important and can cost as little as £10 per year, with a small additional cost to set up email hosting. Logos can be created online for a low cost and can be upgraded later as the business grows. Starting with a simple one-page landing site is advisable—it can include company details and contact information until a full website is developed.
BACK OFFICE AND ACCOUNTANCY
While many new recruitment directors see back-office and accountancy support as non-essential at launch, it should be considered early on. Partnering with a recruitment-specific accountant can help with VAT and PAYE setup, bookkeeping, expenses, and advice on how to take income from the business. This support can start from as little as £350 per month and is a valuable investment during the early stages.
MAYACHI has many years’ worth of experience in helping recruiters start their first recruitment business by providing advice and support on the set-up process. MAYACHI ensures that these new recruitment owners have a full understanding of VAT, CT, expenses, accounting and their responsibilities to turn them from being employees into fully fledged directors.