Entrepreneurs who want to open a recruitment agency in the UK will need to set up a business in the UK, in most cases under the form of a limited company.
Our agents who specialize in company formation in the UK can help you start your business and comply with the needed licenses or permits according to your type of activity.
For ongoing compliance with the business and commercial requirements, do not hesitate to reach out to our lawyer in London.
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Rules for setting up a recruitment agency in the UK
Some employment agencies in the UK need to be properly licensed before they can supply certain types of workers to other companies.
Investors who open a recruitment agency in the UK will need a license if their company will find staff for other companies that operate in certain industries. The following agencies are responsible for issuing licenses for recruitment companies:
- When providing staff for nursing and domiciliary care agencies: in England, the license is issued for companies registered with the Care Quality Commission; other agencies issue this license in Wales, Northern Ireland and Scotland;
- When finding workers in the fields of agriculture and horticulture, shellfish gathering, food processing and packaging and forestry: the license is issued by the Gangmasters and Labour Abuse Authority.
Our lawyer in England can give you more information about the licenses for employment agencies according to the types of services you will be providing and the key industries in which you will be supplying workers.
How to open a company in the UK
For those interested in setting up a recruitment agency in the UK, the entrepreneurial journey starts with business registration.
Several business forms are available for incorporation in the UK, and they can be set up by local and foreign investors alike.
In most cases, those who open a recruitment agency in the UK will form a limited company. This business form is separated from its founders and they can also be employees of the company. An important issue to keep in mind is that this business form has certain tax and reporting requirements.
An alternative to the limited company is the partnership, which is suitable for two business partners who share the same business goals. They will be running the business together and sharing the debts.
Below, you can read the essential steps for setting up a recruitment company in the UK as a private company limited by shares:
- Choose a company name;
- Decide on the shareholding structure. You will also need to identify the individuals who have significant control over the company (such as those who own more than 25% of the shares);
- Choose the company director(s) and secretary;
- Prepare the documents for registration. Our lawyer in the UK can help you draw up the Articles of Association;
- Register the recruitment agency with the Companies House.
Once you successfully follow the steps and open a recruitment agency in the UK the company will also be registered for Corporation Tax (this step is usually performed at the same time as the Companies House registration).
Recruitment company taxation in the UK
We remind investors that a recruitment agency set up as a limited company will be subject to the following taxes:
- A corporate income tax of 25% for companies with profits that exceed GBP 250,000;
- A corporate income tax of 19% for UK resident companies with profits below GBP 50,000;
- A standard VAT rate of 20%.
Our lawyers specialising in company formation in England can give you complete details about the business registration steps. We offer full assistance throughout the incorporation stages and our solutions are also available to international investors.
Contact our team for more information about the requirements for setting up a recruitment agency in the UK, as well as business taxation or management and compliance matters.
