If you want to open a recruitment company in Germany, you need to comply with several requirements, among which is also obtaining a specific business license. Our local agents can help you with its registration.
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What do I need to consider when starting an employment agency in Germany?
The most important aspect is to establish from the beginning whether you want to operate your business on a temporary or permanent basis. This will determine the type of license you must apply for. Also, you need to have a physical space where you will work from (conduct interviews, meet with clients, etc.).
Is full foreign ownership possible in a German employment company?
Yes.
What are the steps to open a staffing agency in Germany?
Opening a German recruitment company implies the following steps:
- choosing the business form of the staffing agency;
- selecting a suitable trading name;
- drafting the incorporation papers;
- filing the documents with the Trade Register;
- opening a German bank account;
- registering the company for tax payment;
- applying for a labor leasing license.
Our German company formation specialists are at your disposal during the entire registration procedure.
What business form do you recommend for setting up a staffing agency in Germany?
We advise on the private limited liability company, as it is one of the most versatile and easy-to-register entities in Germany. Plus, we offer company formation packages that start at EUR 3,050 (licensing phase excluded).
What is the minimum capital to open a recruitment company in Germany?
Here is what you need to know from this point of view:
- for the business form, you need EUR 25,000 if you decide on the private limited liability company;
- for a temporary staffing license, you need at least EUR 10,000;
- if you employ more than 5 temporary workers, you need at least EUR 2,000 per worker.
Where do I apply for a labor leasing business license in Germany?
German labor licenses are issued by the Federal Employment Agency in Nurnberg. We can assist with the application for a labor leasing permit, also known as AUG in German.
What are the documents required to obtain a business license for a recruitment company in Germany?
The following:
- standard application form;
- an extract from the Company Register;
- a copy of the company’s statutory documents;
- a copy of the Business Registration Certificate;
- information about the shareholder;
- a certificate of good standing for the officer appointed as a liaison with the German authorities;
- a certificate proving registration with the liability insurance association;
- a certificate indicating registration for health insurance funds;
- documents proving the deposit of the EUR 10,000;
- employment contract samples;
- proof of suitable operating facilities.
What is the validity of a German leasing license?
The first license will have a validity of one year during the first 3 years of activity, followed by the issuance of a definitive AUG. With respect to how long the procedure takes, you can expect to get the permit within 3 to 4 weeks.
What activities can a German recruitment agency undertake?
Recruitment can carry out various activities, which is why you can select the operations to undertake through your company. Some of the most common services include:
- matching German employees with the local workforce;
- recruiting foreign citizens who want to work in Germany on behalf of the company itself or at the specific request of a client;
- leasing personnel to clients for temporary work;
- job advertisement on online employment portals.
When operating as a private placement agency, the recruitment company must draft specific placement contracts in which the terms of employment, fees, and services are clear to all parties involved.
If you need further information on the recruitment agencies established in Germany, please contact our team of German company formation consultants, who can offer guidance related to this matter.