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Starting a recruitment firm in Singapore

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Recruitment Mandy
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Starting a recruitment firm in Singapore

Postby Recruitment Mandy » Fri, 26 Feb 2010 9:10 pm

I have plans to start my own recruitment firm specialising in a niche industry and have some questions regarding how to go about doing it. Appreciate if someone who has done this could provide me with some info.

(1) Must I register with ACRA as a company or LLP? Does it mean that I cannot register as a sole proprietorship?

(2) Is it necessary to get approval from URA or HDB for use of premise as operating address? I saw on the website that you need to but my friend told me that there is no need for a real physical operating address.

(3) The bankers' guarantee of 20K is some sort of bond, in case I default on payment etc? If I close the recruitment firm, will I get back my 20K or I can only get it back when the fixed deposit matures after 15 months?

Thanks
Mandy

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Re: Starting a recruitment firm in Singapore

Postby sundaymorningstaple » Fri, 26 Feb 2010 9:38 pm

Recruitment Mandy wrote:I have plans to start my own recruitment firm specialising in a niche industry and have some questions regarding how to go about doing it. Appreciate if someone who has done this could provide me with some info.

(1) Must I register with ACRA as a company or LLP? Does it mean that I cannot register as a sole proprietorship?

You can register as a sole proprietorship if you want. It's not advisable as when you fall foul of the law, you, personally can be sued for everything you own. If your company is a Pte Ltd one, then only the company can be sued in "most" instances and your personal property is protected.

(2) Is it necessary to get approval from URA or HDB for use of premise as operating address? I saw on the website that you need to but my friend told me that there is no need for a real physical operating address.

Yes. Most definitely. I was the first to actually get an agency license and operate from my HDB flat. That was in 2005. You must apply for and get "written" permission from HDB. Having a business in your flat mean you CANNOT have any walk in traffic nor can you advertise on your door or anywhere else on the outside of the flat (like in windows, etc.). You friend is setting you up for disaster. If she hasn't done it, then don't believe anything she says. Trust me on this.

(3) The bankers' guarantee of 20K is some sort of bond, in case I default on payment etc? If I close the recruitment firm, will I get back my 20K or I can only get it back when the fixed deposit matures after 15 months?

You can actually buy a 20K bond using a bank and and insurance company so that you only pay for the insurance to cover the cost of the bond. Cost you around 150 or so a year. I don't think anybody actually sets up a fixed deposit payable MOM.

Thanks
Mandy


Frankly, I would think very strongly against something like this as there are already currently 1100+ agencies licensed here. The profit margins are slim and if you have a niche industry then it's not going to provide you with too much future as other agencies are probably already covering the majority of it and without a rep, you will have a hard time going forward without a track record.

You will also have to take a class and pass it before MOM will issue you a license. (Certificate of Employment Agencies)

If you bothered to read the link on the MOM site it told you you can open up a business/company/LLP (for your information business=sole proprietorship )

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Re: Starting a recruitment firm in Singapore

Postby mitlan » Sat, 27 Feb 2010 10:11 pm

(3) The bankers' guarantee of 20K is some sort of bond, in case I default on payment etc? If I close the recruitment firm, will I get back my 20K or I can only get it back when the fixed deposit matures after 15 months?

You can actually buy a 20K bond using a bank and and insurance company so that you only pay for the insurance to cover the cost of the bond. Cost you around 150 or so a year. I don't think anybody actually sets up a fixed deposit payable MOM.

Thanks
Mandy[/quote]
i don't think there is such insurance coverage. I tried asking around but am always told there are no such things. anyone knows of any such insurance please let me know as i am also looking high and low for it but have no success.

thanks in advance!!

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Postby sundaymorningstaple » Sat, 27 Feb 2010 11:34 pm

Mitlan,

I told you what to do several months ago. It would seem you are not the best person to set up an agency as you don't seem too resourceful at best and I wont even think about worst!

I went rummaging through my old files a little while ago and found the information I was looking for.

I don't know whether or not this company is still around or not as I've not used him recently but you can try. The company was called InsureMaster Agency and they were at 7500A Beach Road #08-302, The Plaza (S) 199591 His name was Mervyn Lee (Mktg Mgr) (that was in 2005 so I don't know if they are there or are even still in business). Emails was imagency@singnet.com.sg Phones: 62910828/97578218. If they are not in business then you can call most any insurance broker and they will handle it.

In my case the Insurer was Mayban Assurace (Insureasia). The Class was "Banker's Guarantee" for $20K. I was wrong on the cost though. In 2005 it cost me $488.25 for a year. So, before you continue to look like an arse, maybe you want to ask some question, either at an insurance broker or even at MOM.

:roll:

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Postby mitlan » Tue, 02 Mar 2010 1:53 pm

sundaymorningstaple wrote:Mitlan,

I told you what to do several months ago. It would seem you are not the best person to set up an agency as you don't seem too resourceful at best and I wont even think about worst!

I went rummaging through my old files a little while ago and found the information I was looking for.

I don't know whether or not this company is still around or not as I've not used him recently but you can try. The company was called InsureMaster Agency and they were at 7500A Beach Road #08-302, The Plaza (S) 199591 His name was Mervyn Lee (Mktg Mgr) (that was in 2005 so I don't know if they are there or are even still in business). Emails was imagency@singnet.com.sg Phones: 62910828/97578218. If they are not in business then you can call most any insurance broker and they will handle it.

In my case the Insurer was Mayban Assurace (Insureasia). The Class was "Banker's Guarantee" for $20K. I was wrong on the cost though. In 2005 it cost me $488.25 for a year. So, before you continue to look like an arse, maybe you want to ask some question, either at an insurance broker or even at MOM.

:roll:


thanks for pointing although too late as i have paid the 20k in cash. will change to these recommendations and get my 20k cash back. i tried all the other more major insurance and they all said they do not do so i never tried anymore and went ahead with getting my bank to issue it from my account.

on the recruitment, i think even though there are more than 1000 agencies, it does not mean anything. considering there are billions of people around the world who needs to look for jobs and of all positions. what one agency's focus might not be another's. more competition is better so companies will be more competitive.

you running an agency too?

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Postby ksl » Tue, 02 Mar 2010 4:48 pm

SMS what is this bond? Is it not just a business insurance? I'm a little confused, though all businesses need indemnity insurance, if that's what you mean.

Many businesses do not have it here, that's why they say, do not touch, if broken consider sold.

I also think the term bond, should be indemnity insurance, or public liability insurance, for the business. That's probably why Mitlan cannot find it, if he asks for indemnity insurance for the business he will find it easier to find. many of the insurance companies don't understand the term bond. Which is probably used all the time in USA.

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Postby sundaymorningstaple » Tue, 02 Mar 2010 5:23 pm

All wrong ksl.

It is a bond required by the MOM for holding a Recruitment License. The Banker's guarantee is a mean's of guaranteeing the bank that, even without the "fixed deposit", if for some reason, I've lost my bond due to impropriety as a recruiter, the Insurer will guarantee that bank that they will pay the bank 20K, (The bank still has to pay MOM the 20K). This covers the not having an actual fixed deposit.

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Postby ksl » Tue, 02 Mar 2010 6:00 pm

sundaymorningstaple wrote:All wrong ksl.

It is a bond required by the MOM for holding a Recruitment License. The Banker's guarantee is a mean's of guaranteeing the bank that, even without the "fixed deposit", if for some reason, I've lost my bond due to impropriety as a recruiter, the Insurer will guarantee that bank that they will pay the bank 20K, (The bank still has to pay MOM the 20K). This covers the not having an actual fixed deposit.
So if this is just for recruitment licence?


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Postby mitlan » Tue, 02 Mar 2010 11:25 pm



we have to fork out the 20k if MOM faults us. its just the convenience of not having to fork out 20k in cash upfront and likelihood you would want to do some illegal business with the licence is not there, so this premium is very worth it.

am i right? sundaymorningstaple

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Postby sundaymorningstaple » Tue, 02 Mar 2010 11:37 pm

You would be surprised at the numbers that have lost their deposit. This is especially true with recruiters specializing in WP types and maid agencies.

Those who recruit for higher level positions aren't so bad.


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