When starting a recruitment agency there are only a few things a new director needs to set up in order to start trading - all of which can be done on a budget.

There are the obvious tools a recruiter requires such as a telephone and email address, both of which can be set up very quickly. Next is setting up the company correctly to avoid paying out unnecessary costs straight away, this is until the agency starts making placements and profits.

Below is a list of some of the initial costs of starting a recruitment agency and with our tips on how to implement them successfully:


There are two main ways of setting up your new recruitment agency at Companies House. First option you can use a formation company to register it for you, they will however charge you a fee to set the company up on your behalf. Second option you can go to the Companies House website and pay a smaller fee to do this yourself. However, if your new company has multiple directors and varying size shareholdings it may be a good idea to use a formation company to avoid making changes at a later date. If your company has one or two directors with equal shareholding then it can be done yourself.

TBOS TIP – If you set the company up yourself it is advisable to set the company up with at least 100 shares to allow you to move shares around at a later date.


Having a secure set of contract templates when you start your new agency is important to protect yourself when making placements to secure important early income.  Employment lawyers can provide the required templates for recruitment agencies at varying costs so it is advisable to shop around.  The other alternative is to look at joining a recruitment network or association like APSCo or TEAM who can provide you with contract templates as part of their membership fee.

TBOS TIP – Avoid copying contracts from your previous employer or from another agency as the contracts may not always be up to date with current legislation.


Every agency needs to ensure they have at least Employers Liability and Public Liability Insurance in order to trade.  Depending on the industry you are recruiting for or the requirements within your clients’ contracts there may also be a requirement for Professional Indemnity insurance.  It is advisable to use an insurance broker who has experience of providing advice on insurances required for the recruitment industry, they can take care of acquiring quotes from numerous providers to negotiate the best price for your agency.

TBOS Tip – When getting quotes, always get your broker to quote on the lowest level of liability required and then top up the insurance later when required.


When starting your own agency, you need to decide on the role of your website before engaging with a web designer.  It is recommended to start with an easy accessible website with pages giving a clear message on the types of roles you recruit for as well as a clear contact us page for people to reach you.  You may want to consider having the ability to post your own jobs, allowing candidates to apply directly through your website. This will lower your job board costs and if your jobs posts are optimised correctly for SEO purposes, these should hopefully be viable on Google Jobs.

TBOS Tip – There are a number of recruitment specific web designers who can create a website for posting jobs directly and that also interact with your agencies CRM system. It’s worth shopping around and finding testimonials of other good recruitment websites before forking out for a web designer. Sometimes web designers will sign their logo on the websites they have designed, so look out for these on your search (normally located in the footer).


Keeping records of client and candidate data is important for an agency to match the two together in order to make a successful placement. In the early days an agency may use something simple such as an excel spreadsheet or outlook contacts to manage their data, however as the data grows it is beneficial to use a CRM system to hold such records. There are many CRM & data companies that offer single user cloud based monthly subscriptions for new start up agencies, these can be upgraded as you build your team.

TBOS Tip – Some CRM systems work better for certain industries or certain placements (i.e. temp agencies requiring shift booking systems) so it is important to get one that you may have used previously or has similar functions to what you are used to.

How TBOS can help you start your own recruitment business

TBOS have helped many new directors to form their own recruitment agency by helping with the company formation process, arranging their business bank account, registrations with HMRC and introducing them to reputable suppliers.

As we approach our 10th birthday we look back on the many recruitment agencies we have helped on their journey, be it things like insurance, legal services, websites, CRM systems or job boards, we have introduced them to the best suppliers to give them the best possible start.

For more information on how TBOS can help you start your own recruitment agency then please contact our office on 0345 504 6333 alternatively you can email


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