In this study we use a very rich panel dataset that allows us to identify new firms at founding and follow them over time. We provide a comprehensive characterization of the dynamics of firm entry and firm exit in Portugal, in the period between 2005 and 2012. In particular, we analyze the distribution of new firm creation and survival by sector of activity, size class, and over the business cycle. The results suggest that entry rates are fairly high while survival rates are small. Moreover, the share of new entrants' sales on total sales and the employment share suggest that new firms are in general small. Entry rates and employment rates show as pro-cyclical for smaller firms.