How to Start a Manpower Business
With the country’s abundant supply of jobseekers, starting a manpower business could very well spell profit
If you want to try a business where you can start with a small capital and then grow big, then the Manpower Agency business has huge potential. The service you will be marketing is the skill and labor of our workforce of which there is more than an abundant supply in our country.
Note, however, that the kind of workers needed is rapidly changing. Now more and more of the job orders abroad are for those with professional training like nurses, engineers, and teachers. Lower wage countries like India are taking over more of our traditional markets for low cost labor.
There are basically two kinds of manpower agency with regards to the registration requirements. One is for the local and the other is for the international market. To make it clearer I list the respective requirements separately.
For Manpower Agencies that will cater abroad:
1. Register your business name with the Department of Trade and Industry (DTI) for single proprietor or with the Securities and Exchange Commission (SEC) for corporations or partnerships.
2. Get a barangay clearance and then proceed to the Municipal or City hall to get your business permit.
3. Register with the Bureau of Internal Revenue and get your TIN, Certificate of Registration, and authority to print receipts.
4. Apply for license with the Philippine Overseas Employment Agency (POEA). Some of the critical requirements here are:
a. At least 75 percent of the company must be owned and controlled by Filipino citizens.
b. Minimum capitalization for single proprietor, partnership, or corporation is Php 2,000,000 with a bank certified savings account balance of Php 500,000 (as of 2010).
c. Proof of marketing capability as supported by the following:
i. Duly executed Special Power of Attorney and / or duly concluded Recruitment Agreement authenticated by the Philippine Embassy nearest the prospective employer;
ii. Manpower request or visa certification from new employers for not less than 100 workers duly verified by the Philippine Overseas Labor Office nearest the jobsite;
iii. Certification from the POEA Pre-Employment Services Office
d. Proof of possession by the single proprietor, partners, the company President or the Chief Executive Officer, as the case may be, of a Bachelor’s Degree and three years of business experience.
e. NBI clearance issued not earlier than 6 months prior to filing of application and clearance from the POEA Anti-illegal Recruitment Branch of the proprietor, partners or members of the Board of Directors, as the case may be, officers and employees who will be involved in recruitment and placement activities. Foreign directors or partners shall submit clearance from their country of origin in lieu of the NBI clearance.
f. At least a 100 square meter size office as evidenced by a contract of lease or proof of building ownership.
g. Proof of publication in a newspaper of general circulation on the notice of the application with the name of the proprietor, partners, incorporators and officers.
h. Attendance of Pre-licensing seminar conducted by the POEA.
i. A filing fee of Php 10,000 and a license payment of Php 50,000.
For Manpower Agencies for the domestic market only:
The requirements for the local market are much easier to comply with. You only need to follow the steps in numbers 1 to 3 since you no longer have to deal with the POEA. There is no more need to raise two million capitalization or to do anything required by the POEA since it will no longer fall under their jurisdiction. Besides your ordinary office set up expenses there are no major cash outlays if you will just focus on the domestic market.
Note that the rules may change especially for those who want to deploy abroad. It is advisable to always check on the POEA website before proceeding.
For those who wish to go into this business, unless you already have sure clients abroad, I advise that you first try the local market before you invest the substantial amount needed to put up a manpower agency for foreign placement.
For newbies who want to learn more about this promising business, BusinessCoach Inc., a leading business seminar provider offers a one-day seminar. Click here to view details of the training program on: How to Start and Manage a Manpower Agency »
*Originally published by the Manila Bulletin. Written by Ruben Anlacan, Jr. (President, BusinessCoach, Inc.) All rights reserved. May not be reproduced or copied without express written permission of the copyright holders.
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