Setting up a recruitment agency in Germany: a comprehensive guide

This comprehensive guide provides detailed instructions on how to set up a recruitment and staff leasing company. It covers the choice of legal form, costs, necessary permits and important steps for launching and building a successful business.

Starting a recruitment and staff leasing company is a promising way to enter the world of entrepreneurship while making an important contribution to shaping the labor market. This comprehensive guide explains in detail the steps involved in setting up such a company, including the recommended legal form, the costs involved and the necessary permits.

The choice of legal form

The choice of legal form is a crucial step in setting up a recruitment company. The most common legal forms for companies in this field are:

1. sole proprietorship:

A sole proprietorship is the simplest form of company formation. The founder is personally liable for all debts and liabilities of the company.

2. civil law partnership (GbR):

A GbR is a partnership of two or more people who run a company together. Here too, the partners have unlimited personal liability for the company's debts. (more information on the GbR legal form)

3. GmbH (limited liability company):

A GmbH offers the advantage of limited liability, which means that the personal liability of the shareholders is limited to the company's assets. This offers a higher degree of security for the founders. (more information on the GmbH legal form)

4. UG (haftungsbeschränkt) / Mini-GmbH:

The UG is a variant of the GmbH with a smaller share capital. It also offers the option of limited liability and is particularly suitable for founders with limited start-up capital.

The choice of legal form depends on various factors, including the personal liability of the founders, the start-up capital and the long-term business objectives. It is advisable to seek advice from a legal or business consultant before making a decision.

We generally recommend a legal form with limited liability such as a UG or GmbH.

Costs of founding

The costs of setting up a recruitment consultancy can vary depending on the legal form chosen and individual circumstances. Typical costs may include

• Notary fees for notarization of the articles of association (for GmbH or UG)
• Registration fees in the commercial register
• Foundation costs for consulting services or support in setting up the company
• Capital contribution for GmbH or UG (depending on the share capital).

It is advisable to carefully calculate all costs in advance and plan a financial buffer to cover unexpected expenses. A detailed business plan can help to structure the financial planning and convince potential investors or lenders.

(More information on the costs of founding a GmbH or UG)

Necessary permits and approvals

Various permits and authorizations may be required to operate a recruitment consultancy:

1. employment agency permit:

In principle, recruitment agencies do not require an employment agency permit in order to legally offer their services. Since 27.03.2002, a permit is no longer required for recruitment agencies. The trade is therefore not subject to licensing, but merely needs to be registered with the relevant trade office (§ 14 GewO). Certification (AZAV) is only mandatory for the settlement of placement vouchers with the Employment Agency.

2. permission in accordance with the Temporary Employment Act (AÜG):

If the recruitment agency also wishes to offer temporary employment services, a special permit under the Temporary Employment Act (AÜG) is required. This permit is usually issued by the labor authorities or trade supervisory offices and is subject to certain requirements regarding the reliability of the company and compliance with labor law regulations. (Information on applying for an AÜG permit)

3. requirements and costs of the AÜG permit:

The requirements for an AÜG permit may vary depending on the federal state or region, but the following aspects must generally be observed:

• Completed application (form from the employment agency)
• Copy of the extract from the commercial register
• Copy of the articles of association and list of shareholders
• Copy of the business registration
• Certificate of good conduct for the applicant who is a natural person or for the representative according to the law or the company's articles of association
• Information from the central trade register for the applicant who is a natural person or for the representative in accordance with the law or the company's articles of association (GZR 3)
• Information from the central trade register for the applicant who is a legal entity (GZR 4)
• Certificate from the employers' liability insurance association
• Certificate from the health insurance funds
• Extracts from all business accounts or credit confirmations (liquidity obligation) 
• Credit confirmations (liquidity obligation of at least EUR 10,000 and EUR 2,000 per temporary worker if there are more than 5 temporary workers)
• Sample temporary employment contract in accordance with § 11 AÜG
• Sample temporary employment contract in accordance with § 12 AÜG

The costs for applying for an AÜG permit can also vary and typically include administrative fees and, if applicable, costs for training or consulting services to prepare for the examination.

The authority charges a fee of EUR 377 for the initial application.

A fee of EUR 1,316 is charged for the required audit prior to the first renewal and a fee of EUR 2,060 is usually incurred for the first renewal application.

As a rule, no audit is carried out before the second renewal application and costs of only EUR 218 are incurred.

A fee of EUR 2,060 is charged again for the last application for an unlimited permit.

It is advisable to find out in advance about the specific legal requirements in your country or region and to obtain all the necessary permits in good time in order to avoid legal problems or delays in doing business. A careful review of the legal framework can help to identify potential risks and ensure legal compliance.

Market analysis and business strategy

Before starting your recruitment firm, it is advisable to conduct a thorough market analysis to understand the demand and competition in your target market. Analyze the trends in the world of work, the requirements of employers and employees and the potential for your business model.

Based on these findings, you can develop a solid business strategy that defines your unique selling points, target groups, marketing and sales strategies as well as your long-term growth targets. A clear positioning in the market and a differentiated service offering can help you to stand out from the competition and be successful.

Building a network and marketing activities

The success of your recruitment company depends largely on your network and your visibility in the market. Use your contacts and relationships to attract potential clients and candidates. Invest in targeted marketing activities to publicize your services and position your company as a competent partner in recruitment.

Online presence, social media marketing, networking events, trade shows and personal referrals are just some of the ways to promote your company and generate new business opportunities. A professional presence and a convincing marketing concept can help to gain the trust of your target group and build long-term customer relationships.

Conclusion

Setting up a recruitment consultancy for the placement of employees and temporary employment offers a wide range of opportunities, but also involves certain challenges. These challenges can be successfully overcome by carefully selecting the legal form, planning the costs and obtaining all the necessary permits. With a sound business plan, a clear vision for the company and a dedicated team, nothing stands in the way of a successful start-up and long-term development.