For private recruitment and placement agencies licensed by DOLE. A local recruitment agency finds, screens and endorses job applicants to companies in the Philippines, and earns a fee from the employer for each hire. Most start as a small office serving a few client companies; the money is made on repeat job orders, good matches that pass probation and fees collected on time.

This guide walks through what it takes to start a local recruitment agency in the Philippines: the capital, the monthly costs, the permits and the first 90 days. The peso figures are sample estimates for a small licensed office in Cebu as of October 2026; get your own quotes before you decide.

How much capital you need

The sample comes to about ₱385,200 including one month of fixed costs kept as a cash buffer. It splits into office setup (₱173,000), licence and papers (₱37,000), deposits (₱60,000), recruitment tools (₱22,000) and working capital (₱93,200). Other ways to start: niche agency for one industry at ₱500,000 + DOLE capital and agency with a branch and job fairs at ₱1 million + DOLE capital.

Monthly costs and break-even

Fixed costs in the sample are ₱93,200 a month; the biggest are recruiters and admin (₱46,800), office rent (₱20,000) and SSS, PhilHealth and Pag-IBIG (₱6,500). Each placement sold earns about ₱13,661 after its own costs, so the break-even is 6.9 placements a month, and the startup capital takes about 9 months to come back at full sales.

Permits and registration

Register the business name with DTI (or SEC or CDA), then get the barangay business clearance, the Mayor's permit through the city or municipal BPLO, and BIR registration; register with SSS, PhilHealth and Pag-IBIG once you hire. A local recruitment agency also needs: licence for private recruitment and placement, authority for any branch office, contractor registration (if you supply staff) and separate licence for jobs abroad. Requirements and fees differ by city, so ask each office for its checklist first. DTI Negosyo Centers help for free.

Where to set up

  • Near business districts and IT parks, where the clients are
  • Along jeepney routes applicants can reach cheaply
  • A second-floor office with room for interviews and tests
  • Near the economic zones, if you serve factories

Mistakes to avoid

  • Illegal recruitment or prohibited fees. Recruit only with a valid licence, charge only what the rules allow, and give a receipt for every payment.
  • Hires leave within the guarantee. Check references and fit, describe the job honestly to applicants, and keep a backup shortlist.
  • Clients pay late. A signed agreement with payment terms, invoices on the start date and follow-up when due.
  • Leaked applicant personal data. Get consent, lock paper files, protect laptops with passwords and keep only what you need.

Plan it with the starter kit

The Local Recruitment Agency · Negosyo Starter Kit has every worksheet behind this guide in a 26-page PDF, plus an Excel calculator: type in your own quotes and it works out your capital, break-even, profit and payback month. It costs ₱499 and downloads right after payment.