How to start a manpower agency in India
From registration and licences to your first client and payroll, the practical steps to launch a manpower supply agency in India.
Key takeaways
- Register the entity, then GST, PF, ESIC and a labour licence.
- Contracts with PSUs and government come through tenders: that is your pipeline.
- Payroll and PF/ESIC compliance is where new agencies fail, automate it early.
Starting a manpower agency in India is mostly a compliance exercise followed by a sales one. You register the business, obtain labour and tax registrations, then win contracts and deploy staff you can pay and manage on time. Here is the sequence that works.
Choose and register your business entity
Most agencies start as a private limited company or an LLP for the liability protection and the credibility that tenders and large clients expect. Register the entity and get your PAN and TAN.
Get your tax and labour registrations
You will need GST registration, EPFO (PF) and ESIC registration, and a contract labour licence once you cross the worker threshold. These are non-negotiable for winning government and PSU work.
Build a compliant payroll and deployment system
Manpower is a low-margin, high-headcount business. The moment you deploy staff, you owe accurate wages, PF and ESIC on time. New agencies most often fail on this, not on sales, so put a system in place before your first deployment, not after.
Win your first contracts
Private clients come through referrals and outreach. Government and PSU contracts, the steady, high-volume work, come almost entirely through tenders. Tracking manpower tenders and bidding consistently is how you build a durable pipeline.
Frequently asked questions
How much does it cost to start a manpower agency?+
Beyond registration and licence fees, your main cost is working capital: you pay staff wages and statutory dues before clients pay you, so plan for a wage float of at least one to two months.
Do I need a licence to supply manpower?+
Yes. Once you deploy contract labour above the threshold in the Contract Labour (Regulation and Abolition) Act, a labour licence is mandatory, and most tenders require it.
manpowertenders Editorial Desk
Research on tenders, staffing and labour compliance. This guide is general information, not legal or tax advice; confirm specifics against the official rules before acting.