Formation Advice

Forming a recruitment company – the advice you need to get it right, first time

Starting a recruitment company is a time for excitement and optimism, but it’s worth talking to company formation specialists to get the right structure and plan in place from day one.

TBOS can give you the advice and support you need, on directorships and shareholding, partners’ agreements, company registration, tax issues, infrastructure, recruitment licensing – in fact everything to do with starting up a recruitment company.

Advice on Directorships, partner agreements and shareholding

Many people start up a recruitment agency with a close colleague or friend, which is all the more reason to get clear agreements in place so that everyone knows where they stand.

Your relative shareholdings for example will determine who has the final say in the business and potentially who gets the greater rewards, while partnership agreements define tax liabilities, acceptable behaviour and contributions.

Time and again these are the kind of areas that derail businesses if the issues aren’t discussed at the start. TBOS can guide you through starting up a recruitment company so that you have a sound basis for long-term growth.

Legal requirements of starting up a recruitment agency

Limited companies and partnerships must register their details with Companies House and with HMRC for Corporation Tax purposes, PAYE, CIS and where applicable VAT (the threshold for VAT registration is a turnover exceeding £73,000)

Any start up recruitment agency must also be licensed to operate and must satisfy the stringent requirements of the Information Commissioner in handling people’s personal data. Again, TBOS can help with contractor employment law information and advice.

Download our free PDF Guide to Legal Pension Obligations.

Advice on insurance

When starting a recruitment agency, if you employ people other than Directors you must have Employer’s Liability Insurance and display the certificate prominently in your office.

Trade Indemnity cover offers vital protection, guarding you against financial claims from your clients due to your company’s negligence. This can and does extend to claims for losses incurred due to incorrect advice.

Professionally written employment and supply contracts are essential too, so that your rights and interests are protected when dealing with clients, contractors and the permanent staff you place.
TBOS can advise you on all aspects of protecting your new start up recruitment agency.

Structuring your start up recruitment company

Aside from the legal aspects of starting up a recruitment agency, it’s important to build an infrastructure of people, systems and processes with which to run it.

This can involve significant upfront capital investment, not to mention a steady drain on your revenues as you maintain and expand your back office.

The TBOS outsourcing alternative removes most of the upfront costs and all of the uncertainty relating to building and running your back office. Competitive and scalable, it lets you run your start up recruitment agency – while we operate the rest.

Download our free PDF Guide to Business Structures.

Contact us to learn how to start up a recruitment company.