- Recruitment agencies work well because they solve a clear problem. Companies need talent quickly, and candidates need better job access.
- While starting one isn’t very capital-intensive, there are still essential costs like licensing, registration, and compliance requirements.
- Choosing a niche (e.g., tech, finance, healthcare) helps you stand out and build stronger expertise and client trust.
- Long-term success depends heavily on staying compliant with regulations and building strong relationships with both employers and candidates.
One of the biggest questions new entrepreneurs have is how to set up a recruitment agency in Singapore. With employers across industries always needing the right people, the opportunity is clear.
Running an agency goes beyond job matching. You need to decide on a niche, get the right MOM licence, and budget wisely. The advantage is that recruitment can be a lean business with relatively low overhead if you set it up correctly.
We’ll take you step by step to set up your agency. First, the basics.
Why start a recruitment agency in Singapore?
Singapore’s job market is very busy. Companies need good people, and job seekers want better jobs. Recruitment agencies help connect them.
Here’s why setting up a recruitment agency in Singapore works:
- High demand for talent: Employers turn to agencies to find qualified workers quickly in a crowded job market.
- Better opportunities for candidates: Agencies connect people to jobs they might not find by themselves.
- Time and cost savings: Businesses save time and money when agencies take care of sourcing, screening, and shortlisting.
- Singapore as a hub: Many global businesses and skilled workers come here, which keeps agencies busy.
- Option to specialise: Agencies may specialise in fields such as tech, finance, healthcare, or placing foreign workers.
- Profitable and meaningful: You can build a business that generates income while helping people advance their careers.
What ACRA does for business owners
ACRA plays a central role in ensuring that businesses in Singapore are properly set up, regulated, and maintained. While many founders see it as just a registration body, its responsibilities go much further, covering compliance, corporate governance, and the development of Singapore’s accountancy sector.
Here are the key functions of ACRA Singapore:
1. Registers new businesses
Whether you’re setting up a private limited company, sole proprietorship, or partnership, ACRA is the authority that legally registers your business in Singapore (unless specifically exempted).
This is the first step in making your business official and recognised.
2. Manages company filings via Bizfile
ACRA operates Bizfile, its official digital filing portal.
Through Bizfile, businesses can:
- File annual returns
- Update company information (directors, address, shareholders)
- Submit statutory filings and changes
This is the primary system for all ACRA-related transactions.
3. Enforces compliance with company laws
ACRA ensures that companies comply with the Singapore Companies Act and related regulations.
If your company:
- Misses filing deadlines
- Fails to maintain required records
- Submits incorrect information
You may face penalties, enforcement actions, or even a company strike-off.
4. Regulates public accountants
ACRA oversees the registration and regulation of public accountants in Singapore.
It sets:
- Qualification requirements
- Licensing standards
- Professional conduct expectations
This ensures audit quality and trust in financial reporting.
5. Sets and oversees accounting standards
ACRA works with relevant bodies to develop and enforce financial reporting standards in Singapore.
These standards apply to:
- Companies
- Charities
- Co-operatives
- Societies
This helps maintain consistency, transparency, and global credibility.
6. Develops Singapore’s accountancy sector
Beyond regulation, ACRA actively supports the growth of the accountancy industry by promoting:
- Professional training and certification
- Industry development initiatives
- High standards of practice
7. Provides public access to business information
ACRA maintains a public registry of companies, allowing stakeholders to verify key business details.
This includes:
- Company registration status
- Directors and shareholders (where applicable)
- Filing history
This transparency builds trust with customers, investors, and partners.
How to set up a recruitment agency in Singapore
Launching a recruitment agency isn’t as hard as it looks. You just need to break it into steps. Here’s what you need to know:
1. Choose a niche
Don’t aim to do every job placement. Just choose one area, for example, tech, finance, or healthcare, or one role type, such as executives, temp staff, or domestic workers.
Specialising helps you build trust, work with the right employers, and attract candidates who match your focus. For example, if you know IT well, both hiring managers and job seekers in that field will take you more seriously.
2. Setting up an employment agency with ACRA
Every agency must register with ACRA (Accounting and Corporate Regulatory Authority). You can set it up as a sole proprietorship, partnership, LLP, LP, or company.
When registering, use the correct SSIC code:
- 78104 for general recruitment
- 78105 for executive search
- 78103 for maid agencies
This ensures your business is legally recognised as an employment agency.
3. Apply for an EA licence
To operate, you must get an Employment Agency (EA) Licence from the Ministry of Manpower (MOM).
There are four licence types: Comprehensive (All), Comprehensive (Local), Comprehensive (non-FDW), and Select (workers earning > S$4,500/month).
Licences are valid for 3 years, and operating without one can lead to heavy fines or jail.
4. Complete CEI certification and staff registration
If you hold a Comprehensive licence, your Key Appointment Holders (KAHs) must pass the Certificate for Employment Intermediaries (CEI) course before registration. Other EA personnel need to complete the CEI within one month of joining.
For Select licence agencies, CEI is not required. No matter the licence, all KAHs and EA staff must register with MOM and have a staff card. This keeps both your agency and job seekers protected.
5. Budget for startup costs
Once you’ve learned how to set up a recruitment agency, remember it isn’t free to run. However, it takes less money to start than most businesses. Here’s what to expect:
- Company registration: S$315–1,200
- EA licence fees: S$400 application + S$100 issuance (total S$500).
- Security deposit: New Comprehensive-licence EAs must place S$60,000; new Select-licence EAs must place S$20,000. The range (S$20k–60k) depends on licence type and demerit points.
- Office rent: S$4,000–12,000+ (including deposit)
- Recruitment software (ATS/CRM): S$100–500/month
- Website and marketing: S$1,000–5,000+
- Professional services (legal, accounting): S$500–2,000
Have funds ready for at least six months of costs. It will help you avoid cash flow issues while waiting for income.
6. Set up office and systems
You don’t need a big office, but it should look professional. Choose a place near MRT or bus, and have a private room for interviews.
To work more efficiently, use an Applicant Tracking System (ATS) or recruitment CRM. It helps manage candidates, track applications, and keep client communication organised. This saves time and helps you scale.
7. Launch operations and market your agency
Once your paperwork and systems are in place, it’s time to find clients and candidates. Start by:
- Building a professional website with clear services
- Growing your LinkedIn presence and sharing useful hiring insights
- Attending job fairs or industry events to connect with HR managers
- Using paid ads or email newsletters to reach employers and job seekers
Recruitment is all about relationships. The stronger your network, the faster your agency will grow.
How Sleek helps with setting up a recruitment agency in Singapore
Starting a recruitment agency in Singapore in 2026 means following the rules while planning your business wisely. Choose a niche, meet MOM’s requirements, and grow strong networks with clients and candidates. Done right, your agency can quickly become a trusted partner in Singapore’s competitive job market.
At Sleek, we take care of the complex setup work so you can focus on building your network and winning clients:
- Company incorporation with ACRA – Get your business registered under the correct SSIC code (general recruitment, executive search, or maid agency) to ensure MOM acceptance.
- Employment Agency (EA) Licence application – We guide you through MOM’s requirements, security deposit setup, and licence submission.
- Compliance support – From CEI certification to Key Appointment Holder (KAH) registration, we help ensure your team meets MOM’s standards.
- Ongoing corporate services – Our team manages annual filing, accounting, and other obligations, leaving you free to grow your agency
- Practical advice – We help with budgeting, setting up your office, and organising your operations.
Set the foundation right with Sleek, and grow your agency into a trusted bridge between employers and talent.
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FAQs: How to set up a recruitment agency in Singapore
1. How do I start a recruitment agency in Singapore?
To start a recruitment agency in Singapore, you need to register your business, apply for the appropriate employment agency licence, and meet regulatory requirements set by the Ministry of Manpower. You’ll also need to set up basic operations, define your niche, and build a network of employers and candidates.
2. What licences are required to open a recruitment agency?
Recruitment agencies in Singapore must obtain either a Comprehensive Licence or a Select Licence, depending on the roles and salary levels they handle. Each licence has its own eligibility criteria, fees, and compliance obligations that must be met before operations begin.
3. How much does it cost to start a recruitment agency?
The cost of starting a recruitment agency is relatively low compared to other businesses, but it still includes expenses like business registration, licence application fees, security deposits, and operational costs such as marketing and software tools.
4. Is starting a recruitment agency profitable?
Yes, recruitment agencies can be highly profitable if managed well. Revenue typically comes from placement fees or commissions, and profitability depends on factors like niche focus, client relationships, and the ability to consistently place quality candidates.
5. Do I need experience to start a recruitment agency?
While prior experience in HR or recruitment is not always mandatory, it is highly beneficial. Understanding hiring processes, industry trends, and candidate management can significantly improve your chances of building a successful and sustainable agency.
