diff --git a/recruitment/forms.py b/recruitment/forms.py
index 77dde09e1..b90937206 100644
--- a/recruitment/forms.py
+++ b/recruitment/forms.py
@@ -352,6 +352,7 @@ class CandidateCreationForm(ModelForm):
 
     def __init__(self, *args, **kwargs):
         super().__init__(*args, **kwargs)
+        self.fields["source"].initial = "software"
         self.fields["profile"].widget.attrs["accept"] = ".jpg, .jpeg, .png"
         self.fields["profile"].required = False
         self.fields["resume"].widget.attrs["accept"] = ".pdf"
diff --git a/recruitment/models.py b/recruitment/models.py
index 73c0385a4..ca275c02d 100644
--- a/recruitment/models.py
+++ b/recruitment/models.py
@@ -251,8 +251,15 @@ def create_initial_stage(sender, instance, created, **kwargs):
     This is post save method, used to create initial stage for the recruitment
     """
     if created:
+        applied_stage = Stage()
+        applied_stage.sequence = 0
+        applied_stage.recruitment_id = instance
+        applied_stage.stage = "Applied"
+        applied_stage.stage_type = "applied"
+        applied_stage.save()
+
         initial_stage = Stage()
-        initial_stage.sequence = 0
+        initial_stage.sequence = 1
         initial_stage.recruitment_id = instance
         initial_stage.stage = "Initial"
         initial_stage.stage_type = "initial"
@@ -266,6 +273,7 @@ class Stage(HorillaModel):
 
     stage_types = [
         ("initial", _("Initial")),
+        ("applied", _("Applied")),
         ("test", _("Test")),
         ("interview", _("Interview")),
         ("cancelled", _("Cancelled")),
diff --git a/recruitment/views.py b/recruitment/views.py
index ad5c692e2..8cce6c016 100644
--- a/recruitment/views.py
+++ b/recruitment/views.py
@@ -1227,8 +1227,8 @@ def application_form(request):
             candidate_obj = form.save(commit=False)
             recruitment_obj = candidate_obj.recruitment_id
             stages = recruitment_obj.stage_set.all()
-            if stages.filter(stage_type="initial").exists():
-                candidate_obj.stage_id = stages.filter(stage_type="initial").first()
+            if stages.filter(stage_type="applied").exists():
+                candidate_obj.stage_id = stages.filter(stage_type="applied").first()
             else:
                 candidate_obj.stage_id = stages.order_by("sequence").first()
             candidate_obj.save()
diff --git a/recruitment/views/surveys.py b/recruitment/views/surveys.py
index 1514e2bed..27a8f2971 100644
--- a/recruitment/views/surveys.py
+++ b/recruitment/views/surveys.py
@@ -358,8 +358,8 @@ def application_form(request):
             candidate_obj = form.save(commit=False)
             recruitment_obj = candidate_obj.recruitment_id
             stages = recruitment_obj.stage_set.all()
-            if stages.filter(stage_type="initial").exists():
-                candidate_obj.stage_id = stages.filter(stage_type="initial").first()
+            if stages.filter(stage_type="applied").exists():
+                candidate_obj.stage_id = stages.filter(stage_type="applied").first()
             else:
                 candidate_obj.stage_id = stages.order_by("sequence").first()
             messages.success(request, _("Application saved."))
diff --git a/recruitment/views/views.py b/recruitment/views/views.py
index 1f32ecc80..17f2e2af3 100644
--- a/recruitment/views/views.py
+++ b/recruitment/views/views.py
@@ -1272,6 +1272,7 @@ def candidate(request):
         if form.is_valid():
             candidate_obj = form.save(commit=False)
             candidate_obj.start_onboard = False
+            candidate_obj.source = "software"
             if candidate_obj.stage_id is None:
                 candidate_obj.stage_id = Stage.objects.filter(
                     recruitment_id=candidate_obj.recruitment_id, stage_type="initial"