Cost-effective:
Instead of keeping full-time recruiters, you can use manpower supply services when needed. This helps save money and still brings the right talent to your company.
Easy coordination:
Hiring new staff takes a lot of effort. Manpower agencies make this easier by acting as a middleman between the company and the workers.
Better quality:
These agencies have access to a wide network of skilled workers. They can quickly find people with the right training and experience for the job.
Quick service:
Manpower supply agencies can fill both small and large job needs fast, thanks to their strong database and contacts. They work faster than in-house hiring teams.
Every business wants to grow with lower costs and better results. Hiring the right person the first time helps increase productivity and avoids the cost of hiring and firing again and again.
How to start a manpower supply business in India?
1. Plan Your Business
Begin by planning every part of your manpower supply business. Decide on your business name, target customers, how you’ll get clients, your area of specialisation, office space, and location. Also, think about how you will grow and how much money you’ll need. Choose the industry you want to serve—such as IT, manufacturing, or finance—and decide whether to focus on junior staff, skilled workers, or management roles. To help with this, study the market and check what your competitors are doing.
Tip: Before finalising your budget, check your business loan eligibility online to see how much funding you qualify for, which can help you plan your capital needs better.
2. Business Registration
Registering your business gives you legal protection, more chances to grow, and easier access to funding. To start your manpower supply company, you must register with the relevant departments such as:
- Service Tax Department
- Employees’ State Insurance (ESI)
- Provident Fund Office
- Ministry of Overseas Indian Affairs (if you plan to recruit for international jobs)
You’ll need these documents:
- Passport-size photos of the owner(s)
- PAN Card
- Identity proof (Passport, Voter ID, Driving Licence)
- Address proof (Bank statement, Mobile/Electricity/Internet bill)
- Aadhaar Card
- Proof of office address
Also, decide your business structure—Private Limited Company, One Person Company (OPC), or Limited Liability Partnership (LLP)—based on your goals.
3. Tax Registration and Licences
After registering the business, you’ll need the following:
- GST Registration (required if yearly revenue is above Rs.40 lakhs)
- MSME Registration (for small businesses to get bank loans and tax benefits)
- Shop and Establishment License (within 30 days of opening your office)
- ESI Registration (if you hire more than 10 employees)
- PF Registration (if you hire more than 20 employees)
- Trademark Registration (to protect your business name and logo)
- Manpower Supply Licence
If you plan to recruit workers for overseas jobs, apply for a Recruiting Agent License from the Ministry of Overseas Indian Affairs. For this, you’ll need:
- Application form
- Demand Draft of Rs.25,000
- Passport-size photos
- Details of business owners
- Digital signatures
- Bank guarantee of Rs.50 lakhs
- Balance sheet
- Income tax returns
- Graduation certificates of directors
4. Investments
Starting a manpower supply company in India generally requires Rs.5 to 10 lakhs. This amount covers office rent, setup, staff salaries, marketing, and utilities. You can arrange funds through:
- Bank loans
- Angel investors
- Crowdfunding
- Venture capital
- Startup India schemes
Choose the funding method that suits your plan and budget.
5. Create Your Online Presence
An online presence is essential. Buy a domain name and build a website to show your services and attract clients and job seekers. Create official email IDs for professional communication.
6. Use Online Job Portals
You can use popular job websites like Naukri, Monster, and Indeed to find both clients and candidates. These platforms help you connect with qualified job seekers and businesses looking for staff.
What is the legal and regulatory framework for manpower services?
A manpower supply agency must follow certain legal rules to run smoothly and continue growing in the long term. Some key legal requirements include:
Company Registration:
You must register your agency as a Private Limited Company, Partnership Firm, or Sole Proprietorship, based on your preference and business needs.
ESI Registration:
The Employees’ State Insurance (ESI) scheme offers health and social benefits to workers. If your agency employs more than 10 people (in some states, the limit is 20), ESI registration is required.
GST Registration:
If your agency’s yearly income crosses the limit set by the government, you must register for GST. Manpower services usually attract 18% GST.
Labour Licence:
Under the Contract Labour (Regulation and Abolition) Act, 1970, any manpower agency supplying 20 or more contract workers must get a labour licence.
Codes for Tax and Filing:
For GST, manpower supply services fall under SAC Code 99851. For filing Income Tax Returns, the Business Activity Code is 16007.
What are the Sources of Manpower Supply?
Manpower agencies rely on a variety of channels to source skilled and semi-skilled workers for different sectors. Here are some of the key sources:
- Job portals and online platforms: Websites like Naukri, Indeed, and LinkedIn help source qualified professionals for staffing requirements.
- Local labour recruitment: Drives conducted in rural or semi-urban areas help tap into untapped labour pools for cost-effective manpower services.
- Skill development centres: Government and private training institutes offer access to job-ready candidates through organised recruitment campaigns.
- Worker referrals: Referrals from existing staff are common in sectors like housekeeping and logistics, where manpower demand is ongoing.
If your staffing business needs funds to expand recruitment efforts or manage payroll, consider applying for a business loan.
Conclusion
Starting a manpower supply business in India can be a rewarding opportunity, both financially and professionally. It allows you to support industries with their staffing needs while creating employment for skilled and unskilled workers. With proper planning, registration, and compliance with legal requirements, you can build a strong and reliable agency.
Remember to explore any pre-approved business loan offers to ensure you have the right financial support for growth and unexpected expenses.
By focusing on quality service, using digital tools, and staying updated with regulations, you can grow your business steadily and make a meaningful impact in India’s fast-evolving job market.
