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How to start a recruitment agency:
launch checklist

Starting a recruitment agency in the UK means setting up the company, meeting the agency regulations and data protection rules, getting insured, and building a brand, website, systems and client pipeline before your first placement. This checklist covers all 46 steps in nine groups. Tick items off as you go; your progress stays in this browser.

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The checklist

How to start a recruitment agency, step by step

This is a planning checklist, not legal advice. Official links go to GOV.UK, legislation.gov.uk and the ICO; check them for the current rules and take professional advice on your own set-up.

46 items
01Company & banking6
  • Most agencies trade as a private limited company; your accountant can confirm what suits you.GOV.UK: set up a limited company ↗
  • You'll need a registered office address, at least one director and a SIC code.GOV.UK guide ↗
  • Keeps company money separate and is expected by clients, insurers and finance providers.
  • Corporation Tax, VAT, payroll and year-end accounts all start from day one.
  • Registration is compulsory over the £90,000 taxable turnover threshold, and you can register voluntarily below it.GOV.UK: VAT registration ↗
  • You must register before the first payday to get a PAYE reference, and not more than 2 months before.GOV.UK: register as an employer ↗
02Legal & compliance10
  • The Act that governs employment agencies and employment businesses in Great Britain.legislation.gov.uk ↗
  • The Conduct of Employment Agencies and Employment Businesses Regulations 2003 set the day-to-day rules: terms, fees, checks and records.GOV.UK guidance ↗
  • Permanent placements and temporary supply (where you pay the worker) carry different obligations.GOV.UK: agencies and businesses ↗
  • Most agencies don't need a licence, but supplying workers in agriculture, horticulture, shellfish gathering or food processing does, and nursing or care agencies may need to register.GOV.UK: licences ↗
  • GOV.UK lists charging a work-seeker a fee for work-finding services among the things agencies cannot do.GOV.UK overview ↗
  • Workers need written terms before you start finding them work; clients need terms of business covering fees and rebates.
  • Employment businesses must give every new agency worker a Key Information Document before they agree terms.GOV.UK KID guidance ↗
  • Employers must carry out right to work checks as set out in the Home Office employer's guide; work out how they apply to the people you engage.GOV.UK employer guidance ↗
  • Agencies in the chain have responsibilities, including passing on status determination statements; small agencies are not exempt.GOV.UK: off-payroll rules for agencies ↗
  • The Conduct Regulations require agencies and employment businesses to keep records.GOV.UK: record keeping ↗
03Data protection5
  • Organisations, including sole traders, that use personal information must pay unless exempt. The ICO has a 5-minute self-assessment.ICO self-assessment ↗
  • People must be told how you use their details, including when you get them from somewhere else, such as a job board.ICO: B2B marketing ↗
  • Legitimate interests is common for recruitment and B2B marketing but needs the ICO's three-part test.ICO: legitimate interests ↗
  • Decide how long you keep data and make sure your ATS can delete it on schedule.
  • PECR treats companies and sole traders differently, and every message needs your identity and an opt-out.ICO: electronic mail marketing ↗
04Insurance3
  • A legal requirement for most employers, with at least £5 million of cover from an authorised insurer.GOV.UK: employers' liability ↗
  • Many clients ask for it in their terms. Ask a broker who knows recruitment.
  • Especially if candidates or temps visit client sites. A broker can advise on what your model needs.
05Brand & name4
  • Check it's free at Companies House, as a domain and on LinkedIn, and check existing trade marks.Naming a recruitment agency →
  • A domain email looks credible to clients and helps your BD emails get delivered.
  • Clients compare you with established agencies from the first email.Brand creation →
  • Clients and candidates will check it before replying.
06Website & job pages4
  • It's where every BD email, advert and LinkedIn post sends people.What a recruitment website costs →
  • That's what Google for Jobs needs to list your adverts.Google for Jobs checker →
  • Vacancy briefs and CV uploads shouldn't sit in an inbox.
  • Your website collects personal data from the first CV upload.
07Systems4
  • It holds candidates, clients, jobs and compliance records; switching later is painful.Best ATS for UK agencies →
  • Pick the boards your candidates actually use and budget for them.
  • Sourcing and outreach on LinkedIn usually need a paid seat; check the current plans before you commit.
  • A consistent signature with your company details on every email.
08Business development & first clients5
  • Clients choose specialists. A narrow niche makes every other decision easier.
  • Start with businesses that hire your roles regularly.
  • Contact companies when they're about to hire, not at random.Hiring signals library →
  • Short, specific emails tied to a reason to talk.BD email templates →
  • Decide percentages, payment terms and replacement or rebate periods before your first negotiation.
09Finance & contractor payroll5
  • Permanent fees can take months to land after your first calls.Recruitment agency start-up costs →
  • Chase on time, every time: cash flow decides how long you can keep going.
  • An employment business must pay workers for all hours worked even if the client hasn't paid yet.GOV.UK overview ↗
  • Holiday pay, the National Minimum Wage and the 48-hour week all apply to temps you supply.GOV.UK: agency workers' rights ↗
  • HMRC publishes guidance for agencies and workers on umbrella companies.GOV.UK: umbrella companies ↗

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Go deeper

Costs, naming and your first website

Read our full guide on how to start a recruitment agency, the breakdown of recruitment agency start-up costs, and tips on naming a recruitment agency. When you're ready for a brand and site, see brand creation and what a recruitment website costs.

Official starting points: GOV.UK: employment agencies and businesses, guidance for employment businesses and agencies and the ICO data protection fee self-assessment.

FAQs

Starting an agency, answered.

All FAQs →
Related
GuideHow to start a recruitment agency ↗GuideRecruitment agency start-up costs ↗GuideNaming a recruitment agency ↗ServiceBrand creation & redesign ↗PricingHow much does a recruitment website cost? ↗

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