Back to Insights Back to Insights

If you love helping people find a job that they are passionate about and providing them with the opportunities they desire, starting a recruitment company may be the perfect career move. 

Whether your ambitions extend to freelancing or owning a full-blown agency with employees, the skill shortage challenges being felt by most employers ensure your services will be in high demand.

If you are wondering what setting up a recruitment agency involves, keep reading to discover the answers to some of the most common questions asked by our clients.

Should I work on recruiting for a niche market?

There are almost 28,000 recruitment businesses in the UK. To separate yourself from the competition, specialising in a niche market, preferably one that you have knowledge and experience of is a sensible idea. 

Although you may experience nervousness at first in terms of feeling like you have drastically narrowed your potential pool of customers, in the long run, concentrating on finding great people for specific employers increases your chances of becoming the ‘go to’ recruitment agency in your chosen sector.

How much does it cost to start a recruitment agency?

If you plan to grow your business organically at first (meaning you will invest any profits back into the business rather than seek outside investment), fortunately, the overheads attached to a sole recruitment agent are low. 

To get started, all you need is a laptop, a mobile phone, and a wealth of industry contacts. You will need to decide on the legal structure for your small business, for example, sole trader, partnership, limited liability partnership or limited liability company. You will then need to declare your structure in your Articles of Association.


Free Articles of Association template


Get legal assistance from LawBite

Starting a recruitment agency is an incredibly exciting step. However, like any new business venture, you will need the help of professional advisors, including solicitors and accountants to ensure your best interests are protected and you comply with relevant legislative and regulatory rules.

LawBite has years of experience helping startups and small businesses achieve their commercial ambitions. To find out how we can support you and your new recruitment agency, book a free 15 minute consultation with one of our lawyers today.


Book a free 15 minute consultation


Additional resources

In closing

Nothing in this article constitutes legal advice on which you should rely. The article is provided for general information purposes only. Professional legal advice should always be sought before taking any action relating to or relying on the content of this article. Our Platform Terms of Use apply to this article.