5 Steps to Set Up Your Recruitment Agency

Making the decision to set up your recruitment agency is the beginning of an exciting journey. To help you get up and running, we’ve outlined everything you need to do in 5 easy steps.

Setting up your recruitment agency involves determining your niche, assessing finances, researching regulations, and setting business goals. Key points to consider:

  • Choosing a name for your recruitment agency
  • Key considerations to register with Companies House
  • Key infrastructure and legal requirements
  • Branding your agency – website and social media
  • Planning, budgeting and setting your year one plan

If you need support with funding, back-office work or timesheets, Sonovate can help. Get Started to scale your agency with smart tech and funding solutions.

#1 Choosing a Name for Your Recruitment Agency

Coming up with a name can be trickier than expected. Consider these key points:

Keep it legal – Check naming rules at gov.uk.

Check availability – Verify name availability on the Companies House website.

First impressions count – Your name should convey the right message for your target market.

Consider the future – Choose a name that allows for expansion and works internationally.

Download our complete guide for more expert advice.

#2 Register Your Recruitment Agency with Companies House

Registering your company is quick and easy – it takes just 15 minutes. Have this information ready:

  • Company name and UK office address
  • Director’s name, address, nationality, date of birth and occupation
  • Share capital details
  • Subscriber details and address
  • Currency and number of stocks/shares held
  • Payment method (£12 fee)

#3 Establish Your Agency’s Infrastructure

Key elements to set up before trading:

  • Business bank account
  • Accounting system
  • Legal requirements
  • Business insurance
  • Terms and conditions

Accountancy

Consider hiring an accountant to help with:

  • Business plan and legal structure
  • Regular financial reviews
  • Annual tax return
  • Growth planning
  • Tax planning
  • Exit strategies

Business Insurance

Essential policies to consider:

  • Professional Indemnity insurance
  • Public Liability insurance
  • Employers’ Liability insurance
  • Cyber and data risks insurance

Terms and Conditions

Best practices:

  • Get professional help creating your T&Cs
  • Have separate T&Cs for contract and permanent placements
  • Get T&Cs signed before beginning work

Legal Requirements

  • Income Tax (Pay As You Earn) Regulations
  • Data Protection Act
  • Agency Worker Regulations (AWR)
  • UK Code of Non-broadcast Advertising
  • Equality Act 2010
  • IR35

#4 Get Your Website Online

Choose a platform that suits your needs:

Top tips:

  • Make Calls to Action obvious
  • Ensure contact details are easy to find
  • Set your domain to auto-renew

Consider:

  • SEO-optimized content
  • Social media presence – focus on platforms your candidates use

#5 Planning, Budgeting and Setting Year One Objectives

Free Templates

Download our business plan and budget templates.

Setting Objectives

Break targets into key areas:

  • Sales targets
  • Personal targets
  • Perm/contract deals
  • Average fee/margin
  • Client/candidate referrals
  • Key metrics to track

Our Platform

Sonovate is an invoicing platform designed to reduce admin, save time, and help grow your recruitment business. Choose from:

  • All-in-one funding and back-office platform
  • Funding-only to complement existing systems

Book a demo to see how Sonovate can help your business grow.