The massive population of India makes it an ideal location to start an agency for recruitment, and hiring agencies located in Mumbai are constantly in need. With such a vast number of talented people to choose from, the possibilities of starting the business are very appealing indeed. So let’s take a peek at some of the regulations that must be followed when creating a recruitment company in Mumbai:
Business Constitution
Typically, it is essential for a recruiter to have an agreement with the businesses they work for to provide a specific amount of human resources as well as be in a contractual relationship with people who are seeking jobs to offer opportunities for employees to work. Additionally, all recruitment companies in India are required to register with Service Tax Department, the Employer State Insurance (ESI) Corporation / Provident Fund, and the Ministry of Overseas Indian Affairs. Therefore, when considering the volume of contracts that are involved, as well as the risk factor, it makes the most sense for these organizations to be established as a corporation (for instance, a Private Limited Company/person Company / Limited Company) or as a Limited Liability Partnership. The reason it is necessary for an organization to get limited Liability status is that the people accountable for promoting the company are protected from liability claims arising out of business. In addition to limiting liability, this structure also makes credit access easier and is beneficial for the business starting up.
Tax Registration
Any service that a recruiting agency offers are taxed in accordance with the service tax schedule, and the tax rate is 12.36 per cent. But, manpower consultants of small size in India who don’t provide services that are tax-deductible, exceeding ten lakhs per year, are not required to pay service tax. Additionally, any services provided for those who work for the Foreign Diplomatic Mission / Consular Post or UN Agencies, or export of services or products, etc. Also, they do not need to pay an amount of tax for service.
Registering as Recruiting Agent With Ministry of Overseas Indian Affairs
It’s true that the title might sound like a lot of words; however, what’s actually required isn’t tricky at all. An agency for recruitment that intends to seek Indian citizens to work overseas is required to register at the Ministry of Overseas Indian Affairs as a Recruiting Agency. They must submit to the office of the Ministry of Overseas Indian Affairs an application along with supporting documents and the Demand Draft that covers the fee of Rs.25,000 and assurance from a bank of Rs.20 lakhs. Only agents who have been licensed by the Ministry of Overseas Indian Affairs are permitted to hire Indian citizens for employment abroad as stipulated in the Emigration Act of 1983.
This is merely a sample of the regulations and rules that agencies for recruitment in Mumbai must adhere to. They will provide some guidelines if you’re contemplating opening an organization in India. It appears that this type of venture might be a great idea provided you have the funds to properly manage it as India’s growing population is filled with enthusiastic youngsters who’re eager to put in the effort in the event of a possibility.