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Unlock Your Path to Success: Your Comprehensive Guide to Launching a Private Employment Agency in Malaysia [2024]

Discover the Lucrative Opportunities in the Private Employment Agency Sector with 1156 Registered Agencies Nationwide. This guide offers entrepreneurs a step-by-step roadmap, covering requirements, registration process, and associated fees. Condensed from the Private Employment Agencies Act 1981, it equips aspiring agency owners with essential insights to embark on their journey confidently. Let's Dive In!





Company Requirements:

  • Incorporate a company adhering to the Department of Labour's conditions:

  • At least 51% Malaysian ownership

  • Company name must start with 'Agensi Pekerjaan'

  • Business activity description must specify operating as a Private Employment Agency for worker recruitment

  • Meet paid-up capital requirements for intended license

  • Have suitable premises for recruitment activities:

  • Easily accessible by public transport

  • Located in a public place away from immoral activities

  • Display a visible signboard with agency name and license number

  • Commercial premise required (SOHO or SOVO residences allowed)

  • Co-working spaces, while not prohibited, may complicate the application process, subject to Labour Department discretion.


Directorship Requirements:

  • Directors must meet specific criteria:

  • Malaysian citizenship

  • Not a discharged bankrupt

  • Provide a sworn statement confirming no convictions related to human trafficking or forced labor.


Capital Requirements:

Private employment agencies are categorized into three license types, each with distinct capital requirements:


Category Brief Description Minimum Paid-up:


A Placement for job seekers within Malaysia

  • Capital Money RM50,000

  • Guarantee Money RM5,000

  • Guarantee To Open New Branch RM5,000


B Placement for job seekers within and outside Malaysia, including foreign domestic servants in Malaysia

  • Capital Money RM100,000

  • Guarantee Money RM100,000

  • Guarantee To Open New Branch RM30,000


C Placement for job seekers within and outside Malaysia, including non-citizen employees in Malaysia

  • Capital Money RM250,000

  • Guarantee Money RM250,000

  • Guarantee To Open New Branch RM100,000





Determining the appropriate license for your needs is crucial. Here's a breakdown of the permitted activities for each license category:


Category A License: Conduct recruitment activities solely for local workers, organize training sessions for employees (up to three days), and hold career seminars, counseling sessions, and job fairs.


Category B License: Conduct recruitment activities for local workers and foreign domestic workers, represent employers in various matters including recruitment, placement of foreign domestic workers, and dealing with government agencies. Additionally, place local workers in overseas jobs, organize training sessions, and hold career seminars and counseling sessions.


Category C License: Conduct recruitment activities for local workers, foreign domestic workers, and non-citizens. Represent employers in matters related to applications, hiring, and placement of foreign domestic workers and non-citizens, including dealings with government agencies. Additionally, place local workers in jobs abroad, conduct training sessions, and organize career seminars, counseling sessions, and job fairs.





Here's a streamlined summary of the process and timeline for opening a private employment agency:


Step 1: Company Incorporation (3-5 working days)

  • Look for a reliable Company Secretary (Cosec) to register your Sdn Bhd with SSM

  • The Cosec will require you to provide necessary information such as company name, type of business, registered office address, director details, and declarations.


Step 2: Apply for Premise and Signboard License (15-30 working days)

  • Obtain licenses from the Local Authority where your premise is located.

  • Submit required documents including SSM documents, agreements, identity proofs, office layout plan, premise photographs, and other relevant certificates.

  • Fees vary depending on municipalities.


Step 3: Apply for JTK License with Department of Labour (30 working days)

  • Complete necessary documents and submit physically at the nearest Labour Department branch.

  • Required documents include the Private Employment Agency License Application Form and Sworn Statement.

  • Fee: RM300


Step 4: Register Agency Employees with Department of Labour (30 working days)

  • Submit application documents physically at a Labour Department branch.

  • Required documents include the Application for Identification Document.

  • Fee: RM50 per employee


Step 5: Submit Monthly Reports

  • Every registered agency must submit monthly reports to the Labour Department, including records of jobseekers, employers, vacancies, and acknowledgments of acceptance.


Step 6: Renew JTK License (30 working days)

  • Renew the agency license every 24 months.

  • Submit renewal application documents physically at a Labour Department branch.

  • Fee: RM100


Ensure compliance with the Labour Department's official document list for a comprehensive understanding of the processes involved in running an employment agency.



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