Opening a recruitment company in Estonia is quite simple, as it does not require the acquisition of any special license. However, it must comply with the Labour Market Measures Law which provides for the notification that must be filed after registration.
Below, our company formation consultants in Estonia explain the procedure for opening a recruitment agency, as well as the notification to commence its activities. Please note that the notification replaces a recruitment license in Estonia. You can rely on us for both proceedings.
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Registering a staffing agency in Estonia
The establishment of a recruitment company in Estonia is fairly simple from an incorporation point of view. The most popular business form is the private limited liability company which can also be registered through Estonian e-residency. Our local consultants can assist with both remote incorporation of your company, as well as helping secure residency here.
Also, it is recommended to appoint a representative who will handle the recruitment activities and who must reside in Estonia, if you do not want to move here.
Documents required to open a recruitment agency in Estonia
In order to create an employment company in Estonia, you need to prepare various documents. Among them, the most important ones are:
- the company details, which includes the Articles of Association;
- the address of the recruitment agency which must be a dedicated office in which recruitment operations can be properly conducted;
- the contact of the agency representative who will also be responsible for the relationship with the authorities;
- a business plan which must provide for the activities to be completed by the agency (as there are several operations such a business can cover);
- the date of initiation of the operations.
You can rely on our Estonian company formation consultants for support in gathering and filing the documents with the Trade Register. Then, you can also count on our support in filing for the notification replacing the recruitment license in Estonia.
Types of employment agencies in Estonia
An important aspect to consider when opening a recruitment company in Estonia is that it can operate:
- on a permanent basis;
- as a temporary staffing agency.
For both types of businesses, you need to file a notification, which replaces the regular business license, with the Ministry of Economic Affairs and Communications.
Recruitment activities in Estonia
Estonia has a favorable business environment and the companies incorporated in this country benefit not only from a great location in the Baltic region but also have certain tax advantages. A large percentage of the country’s workforce activates in the service sector and many Estonian companies make efforts in attracting and training their employees.
Recruitment companies in Estonia make it easier for the employer and the employee to find the best option for their needs. These types of companies handle the recruitment process, evaluate the candidate, and recommend him or her for a suitable job. Those who open a recruitment company in Estonia need to pay attention to the market trends and have a solid knowledge of Estonian employment laws. Our company registration experts in Estonia can help you open a recruitment company in this country. They can also help you open a branch or a subsidiary of an international recruitment firm.
A recruitment company can be registered as a private limited company in Estonia.
Working in Estonia
The Estonian workforce is highly educated and the employees are skilled. Most of the labor force can be found in the services sector, but the industry and agriculture sectors are also well-staffed. Depending on the type of company and their business needs, Estonian employers will have different demands from a future employee. A recruitment company will need to balance the requirements of the company with the qualifications of the employee.
The recruitment process needs to be efficient throughout all of its stages: the research part and the assessment part. A recruitment company in Estonia can offer services for all categories of employees and numerous business fields or it can target niche employment, such as executive search. When hiring foreign employees in Estonia, a recruitment company may also offer services and counselling for obtaining work and residence permits.
Employment statistics in Estonia
According to the most recent statistics, in the second quarter of 2024:
- the labor participation rate of people aged 15 to 74 was 75.4%;
- the employment rate for people in the same age group was 69.7%;
- the unemployment rate was 7.6%.
If you want to open a company in Estonia in another field, such as cryptocurrency, you can also rely on us for support in filing for a crypto license in Estonia. No matter the activities you will undertake, you can rely on our accountants in Estonia for assistance in financial matters.
We can provide detailed information about how to open a staffing company and apply for a notification serving as a recruitment license in Estonia. Do not hesitate to contact our company formation agents in Estonia for more information.