A recruitment company is a suitable type of business to open in a country like Portugal in which many companies seek human resource consulting services. When drafting the documents for your recruitment company in Portugal, we remind that it is recommended to ask for guidance in this concern from our company incorporation agents in Portugal. No matter the type of business you want to establish, our team of advisors can provide you with support.
Table of Contents
Steps for setting up a recruitment company in Portugal
Small or medium businesses in Portugal, including recruitment companies, can be incorporated as private limited companies for which a minimum share capital of EUR 5,000 is required. The stockholders can set up recruitment companies as soon as the following steps and conditions are met:
- verifying and registering the name of the recruitment company;
- registering for VAT;
- opening a bank account;
- registering for social contributions.
Entrepreneurs should consider having a web page once a business enters the market, including a recruitment company in Portugal. Given that company formation in Portugal has been simplified, our experienced team can supervise this process for you.
What services can a recruitment agency offer in Portugal?
Setting up a recruitment company in Portugal can be an excellent business idea for foreign entrepreneurs. They can fill varied niches where to offer their services. Here are some of the services that can be offered after opening a recruitment company in Portugal:
- recruitment and placement of experienced personnel in various companies, regardless of the activity sector,
- focusing on certain niches and placing local and/or foreign staff in vacant positions on the market,
- providing consulting services in matters of employment,
- providing training and/or courses for future employees,
- mass recruitment of personnel for large companies, such as those operating in the manufacturing/logistics/e-commerce sectors in Portugal,
- recruiting, interviewing candidates as well as preparing documents for incorporation into the company.
It is not difficult to open a recruitment company in Portugal, but we advise you to collaborate with our specialists from the very beginning. This is how you make sure that you comply with all the procedures for setting up a company in Portugal.
What is recommended before setting up a recruitment agency in Portugal
Starting a recruitment agency in Portugal should involve, first of all, a solid business plan. It should include information about the operating niche, business targets, investment tools, collaborations, accessing platforms and databases, etc. Moreover, such a company cannot function without a team of professionals in the field, namely recruiters with experience in sourcing and employing staff, among others. But, overall, it is important to know the niche where you want to be active as well as the competitors on the market.
GDPR obligations and candidate data for a recruitment company in Portugal
If you want to open a recruitment company in Portugal, you must comply with the GDPR, because you will handle CVs, sensitive personal data, and professional history of the candidates, so:
- you need to have a privacy policy;
- explicit consent of candidates;
- clear data storage/ deletion procedure.
Some information from CVs or the recruitment process may be considered sensitive data(e.g., health, political opinions, religious beliefs, etc.). For processing such data, the GDPR requires the individual’s explicit consent.
Non-compliance with GDPR can result in significant fines, administrative sanctions, remediation requirements, and even a ban on data processing without compliance.
Accounting and bookkeeping for a recruitment company in Portugal
In Portugal, all companies are required to keep accurate, up-to-date accounting records in accordance with local accounting standards (Sistema de Normalização Contabilística in Portuguese). These include:
- recording all financial transactions;
- keeping supporting documents (invoices, receipts, contracts, etc.);
- preparing financial statements and complying with auditing rules, where applicable.
These operations must generally be carried out under the responsibility of a certified public accountant/ auditor approved in Portugal, who ensures that the company complies with applicable laws and standards.
Therefore, if you are interested in opening a recruitment company, our accountants in Portugal can help you with the management of documents and specific procedures for this type of activity.
The legal difference between a recruitment agency and a temporary employment agency in Portugal
This is an essential but often overlooked aspect, and you must know that the legal regimes differ between these two types of agencies.
A recruitment agency (recruitment/ headhunting) mediates employment, does not become the candidate’s employer, and does not require a special license. While a temporary employment agency (empresa de trabalho temporário) hires staff and “rents” them out to other companies, it is heavily regulated, requires authorization from the Portuguese authorities (Instituto do Emprego e Formação Profissional – IEFP), and requires higher capital.
If you are interested in opening a recruitment agency, our expert in company formation in Portugal can provide any legal advice you need throughout this process.
Some statistical data about the labor market in Portugal
If you want to open a company in Portugal and be active in the recruitment field, you should know something about the labor market in this country. Here are some interesting facts:
- A peak of approximately 5.18 million active employees in Portugal is estimated in 2025.
- Most of the vacant jobs are found in sectors such as healthcare, agriculture, IT, construction, etc.
- An unemployment rate of approximately 5.8 – 6.5% is estimated until the end of 2025.
- EUR 870 is the minimum wage per month in Portugal.
We suggest you contact our team if interested in company incorporation in Portugal, including in the recruitment field. We also provide accounting services in Portugal, tailored to the needs of the business owner.