How To Start a Recruitment Agency in Singapore

Starting a recruitment agency in Singapore can be a rewarding business venture, but it requires proper registration, licensing, and compliance with local regulations. Singapore’s Ministry of Manpower (MOM) and Accounting and Corporate Regulatory Authority (ACRA) oversee the setup and operations of all employment agencies.

Here’s a detailed step-by-step guide on how to start and operate your own recruitment agency legally in Singapore.

1. Register Your Company with ACRA

Before you can apply for an Employment Agency License, you must first register your business with the Accounting and Corporate Regulatory Authority (ACRA).

• Business Structure: Choose a structure suitable for your operations — most commonly a Private Limited Company (Pte. Ltd.) for recruitment agencies due to limited liability and credibility.

• Business Activity Code: Select SSIC Code 78104 (Employment Agencies) when registering.

• Company Name: Choose a unique name that reflects your brand and complies with ACRA’s naming guidelines.

• Registered Address: Provide a valid local address for correspondence and licensing purposes.

After registration, you will receive your Business Profile and Unique Entity Number (UEN), both required for MOM licensing.

2. Apply for an Employment Agency (EA) License from MOM

All recruitment agencies in Singapore must hold a valid Employment Agency (EA) License issued by the Ministry of Manpower (MOM). This license allows your agency to legally place candidates in jobs and charge fees for recruitment services.

There are two types of EA licenses depending on your business scope:

Key Notes:

• The security deposit must be submitted in the form of a banker’s guarantee.

• The license is typically valid for three years and renewable upon compliance.

• MOM assesses each application to ensure your agency meets professional and financial standards.

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3. Appoint and Qualify Key Personnel

MOM requires every licensed agency to appoint Key Appointment Holders (KAH) or Key Executive Officers (KEO) who are responsible for daily management and regulatory compliance.

Requirements for Key Personnel:

• Must be Singapore Citizens, Permanent Residents, or valid Employment Pass holders.

• Must have no criminal record and not be bankrupt.

• Must complete the Certification for Employment Intermediaries (CEI) course:

  • 40-hour CEI course for Key Appointment Holders.

  • 32-hour CEI course for other operational staff.

• The CEI certification must be obtained before the EA license is approved.

The CEI ensures that agency staff understand MOM regulations, ethical hiring practices, and dispute resolution processes.

4. Set Up an Office Compliant with URA and SCDF Standards

Every recruitment agency must operate from a physical office that complies with Singapore’s land use and safety standards.

Office Requirements:

• Location Approval: Check with the Urban Redevelopment Authority (URA) to ensure your premises are zoned for office use. If operating in residential or mixed-use buildings, you may need additional approval.

• Fire Safety Compliance: Obtain the necessary fire safety clearance from the Singapore Civil Defence Force (SCDF).

• Signage Approval: Apply for signage permits through the Building and Construction Authority (BCA) if your office displays signs or logos externally.

• Accessibility and Professional Setup: Your office should have a professional appearance suitable for client meetings and interviews.

5. Submit Your Employment Agency License Application

Once your business and personnel are ready, you can submit your EA License application to MOM.

Documents Typically Required:

• ACRA Business Profile and Certificate of Incorporation

• CEI Certificates of Key Personnel and Staff

• Banker’s Guarantee for the security deposit

• Declaration of non-bankruptcy and clean criminal records

• Tenancy or lease agreement for office space

• Organizational chart and internal compliance plan

Application Fees:

• Application fee: Around SGD 200

• License fee (upon approval): Around SGD 400
  Both fees are non-refundable and the approval process can take a few weeks, depending on the completeness of your documents.

6. Register All Recruitment Staff with MOM

All employees performing employment agency work must be registered with the Ministry of Manpower and hold valid registration cards.

These staff members must:

• Carry their registration cards when dealing with clients and job seekers.

• Adhere strictly to MOM’s Employment Agency Regulatory Framework, which governs recruitment fees, job advertising standards, and candidate protection.

Agencies must ensure no unregistered staff conduct employment-related activities.

7. Maintain Compliance and Renew Your License

Compliance is an ongoing responsibility once your agency is operational. MOM conducts periodic audits to ensure agencies continue to meet all standards.

Ongoing Obligations Include:

• Maintaining the security deposit (banker’s guarantee).

• Ensuring CEI certificates of key personnel remain valid.

• Submitting renewal applications before license expiry.

• Keeping accurate placement records, contracts, and financial statements.

• Abiding by MOM’s fair employment and anti-discrimination policies.

Non-compliance can lead to fines, suspension, or revocation of your Employment Agency License.

Summary Table

How Counto Accounting Services Can Help

At Counto, we understand that starting a recruitment agency involves more than just getting a license. It also means maintaining compliance, handling payroll for placements, managing corporate taxes, and ensuring accurate accounting for both agency fees and staff salaries.

Here’s how Counto can support your recruitment business:

• Company Formation Assistance: We’ll help register your business with ACRA and ensure your business codes and structure meet MOM’s licensing requirements.

• Financial Statement Preparation: We prepare detailed and compliant statements needed for your EA license and renewals.

• Payroll and Tax Management: Our experts handle CPF contributions, staff payroll, and corporate income tax filings seamlessly.

• Compliance Tracking: We keep you updated on MOM and ACRA deadlines, license renewals, and any financial obligations.

• Accounting Automation: With smart automation tools, you get real-time tracking of agency fees, commissions, and operating expenses — all reviewed by expert accountants.

Whether you’re a new or growing agency, Counto ensures your business remains compliant, financially sound, and ready for expansion.

Summary

Starting a recruitment agency in Singapore requires thorough preparation and adherence to government regulations. You’ll need to register your company with ACRA, obtain the appropriate Employment Agency License from MOM, appoint qualified personnel with CEI certification, and maintain continuous compliance with office, safety, and financial requirements.

Your trusted partner for company incorporation and compliance in Singapore

At Counto, we empower entrepreneurs with seamless business registration and expert company secretary services. Our all-in-one platform ensures your business stays ahead of Singapore’s regulations. Let’s simplify your business journey. Speak to us directly on our chatbot, email [email protected] or use our  contact form to get started.

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