If you are planning to head for a career with one of the top agencies, you do not need a portfolio.
For instance, Elite Model Management, probably the most famous agency, allow you to submit photos through their
website. Their scouts will look at them for a few seconds.
They make it clear that you do not have to spend a lot of money on photographs - if they take you on, their own photographers will shoot you and it won't cost you a penny.
Read about model agency scouts and spotter scams
Elite - I am using Elite purely as an example of agencies in their league - require four photographs: one headshot (a close-up of your face) with a smile, one without a smile. One full-length body shot and a half-length body shot.
continued below
You should not wear makeup and your hair should be natural and away from your face. You should be before a plain, light-coloured wall, you should not pose and you should wear a two-piece swimsuit for the full-length body shot.
Of course, only very few are lucky enough to be taken on by a model agency of this calibre.
If you are planning to sign up with one of the not-so-top modelling agencies, you will need to find out about their policy regarding portfolios. Before you do, read this page about agencies.
If you want to become a freelance model, offering your services on the Internet perhaps through your own site or one of the reputable modelling sites, such as OMP or Musecube, a portfolio is essential to get you started.