How do you start a recruitment consultancy in India?

To start a recruitment consultancy in India, pick a niche, choose a business form such as a proprietorship, LLP or company, get a PAN and bank account, register for GST when required, write client and candidate agreements, and never charge candidates. If you place workers abroad, you need a registered recruiting agent status through the Government of India.

Indian central rules as of 31 October 2026. State rules differ.

At a glance

• Start with a niche: a role family, an industry or a city.
• Registration choices depend on your plans. Ask a chartered accountant or company secretary.
• The general GST registration threshold for service suppliers is Rs 20 lakh turnover (Rs 10 lakh in special category states), with exceptions. Confirm the current figure.
• Overseas placement is regulated. Check a recruiting agent's licence on eMigrate.

Steps

1. Pick a niche. Specialization wins clients faster than generic hiring.
2. Choose a business form. The Ministry of Corporate Affairs registers companies and LLPs. A proprietorship needs fewer formalities. Ask an adviser.
3. Get a PAN and open a current account in the business name.
4. Check GST. If your turnover will pass the threshold, register. The CBIC FAQ states the thresholds and exceptions.
5. Check state requirements. Many states require registration under their shops and establishments law. Ask your state labour department, and whether any state licence applies to recruitment.
6. Write agreements. A client fee agreement and a candidate consent form. See the fee agreement template.
7. Set fee terms. Percentages are by agreement. See recruitment commission in India.
8. Set up tools. Track clients, jobs, candidates, notice periods and invoices.
9. Find the first clients. Start with small and medium firms in your niche. See how to get clients as a recruiter.
10. Get paid properly. See per-closure payout.

What is the rule on candidate fees?

Do not charge candidates. Fees from candidates are a standard sign of a scam. The employer or client pays the fee. For overseas placement, eMigrate lists registered recruiting agents and notices of illegal ones; see how to check a recruiting agent.

How do you win trust?

• Be transparent about the role and employer.
• Respond to candidates, even with a no.
• Do not post fake or duplicate jobs.
• Keep candidate data private.

Freelance or consultancy?

If you want to start small, working as a freelance recruiter first can help you learn without registering a company.

FAQ

Do I need a licence? For domestic placement it depends on your state; ask the state labour department. For overseas placement, registered recruiting agent status applies.

How much money do I need? It depends on your model. A laptop, a phone, a niche and an agreement are enough for a freelance start.

Can I use LiveRec? The Live Recruiter portal supports client management and candidate sourcing. See how to join.

Sources

• CBIC, FAQ on GST - https://cbic-gst.gov.in/aces/Documents/faq-on-gst.pdf (accessed 31 October 2026)
• Ministry of Labour and Employment, Labour Codes - https://labour.gov.in (accessed 31 October 2026)
• MEA, eMigrate - https://www.emigrate.gov.in/ (accessed 31 October 2026)
• Ministry of Corporate Affairs - https://www.mca.gov.in (accessed 31 October 2026)

This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.