He made the admission in tonight's episode of the BBC One series, where the interviews took place.
The remaining five candidates faced business heavyweights Claude Littner, Claudine Collins, Linda Plant and Mike Soutar.
They return to grill the candidates on their business plans, CV’s and suitability for investment from Lord Sugar.
James found himself under the spotlight by Mike Soutar.
He started by telling James he’s impressed that he’s listed APSCo, the trade body for the recruitment business on his website – before revealing that he’s checked and James isn’t registered, leading to an uncomfortable look from James.
Mike Soutar then got to the bottom of James’ description of ‘leaving a previous company’.
Mike asked bluntly: “Did they sack you?”
James replied: “Yes they did”
He explained how he was let go from his previous company over claims he was speaking to clients with a view to launching his own business.
Elsewhere in tonight's show, Mike Soutar questions Sarah’s notion that her existing business sells a 'unique' product, by presenting her with a selection of almost identical products from competitor businesses.
Meanwhile, Elizabeth and Linda Plant clash in their interview, leading to Linda describing Elizabeth as ‘exceptionally aggressive’.
Elizabeth reacts: “Would you like me to go out and restart because it just appears that the tone here is getting a little bit confrontational?”
The Apprentice 2017 continues this Sunday night on BBC One with the grand final.