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Setting Up an APS in Malaysia

Setting up a Private Employment Agency (APS) in Malaysia involves several important steps. Here's a breakdown of the key procedures:

1. Understand the Regulations:

  • The primary regulation governing APS in Malaysia is the Private Employment Agencies Act 1981 (Act 246). Ensure you thoroughly understand its requirements and implications for your agency's operations.

  • Familiarize yourself with any additional state-specific guidelines or regulations that may apply.

2. Obtain a License:

  • Operating an APS without a license is illegal. Apply for the appropriate license category with the Ministry of Human Resources Malaysia (MoHR).

  • License categories:

  • License A: Job placement within Malaysia (RM50,000 paid-up capital)

  • License B: Placement within/outside Malaysia + foreign domestic servants (RM100,000 paid-up capital)

  • License C: Placement within/outside Malaysia + non-citizen employees (RM250,000 paid-up capital)

  • The application process involves fulfilling specific documentation requirements and paying fees. Refer to MoHR's website for details.

3. Company Incorporation:

  • Your APS must be a registered company, incorporated under the Companies Act 2016 (Act 777).

  • Key requirements:

  • At least 51% ownership by Malaysian citizen(s)

  • Company name begins with "Agensi Pekerjaan"

  • Business activity description specifies recruitment and placement services

  • Meets paid-up capital requirement based on chosen license category

  • Suitable premises for recruitment activities

4. Additional Considerations:

  • Financial requirements: Besides paid-up capital, be prepared for ongoing compliance costs, operational expenses, and potential insurance requirements.

  • Recruitment practices: Ensure your agency adheres to ethical and legal recruitment practices.

  • Technology and infrastructure: Invest in appropriate technology (e.g., applicant tracking system) and infrastructure to support your operations.

  • Marketing and networking: Develop a strategy to target job seekers and employers, building relationships within your chosen industry.

For specific guidance and support, consult with Bestar business professionals. Bestar specializes in setting up APS in Malaysia.


How Bestar can Help

Here's how Bestar can help you set up a Private Employment Agency (APS) in Malaysia:

1. Streamlining the process:

  • Navigating regulations: Bestar, with their expertise in the field, can guide you through the complexities of the Private Employment Agencies Act 1981 and any relevant state regulations, ensuring you meet all legal requirements.

  • License application: We can assist with preparing and submitting your application for the appropriate license category to the Ministry of Human Resources Malaysia (MoHR), saving you time and effort.

  • Company incorporation: Bestar can help you incorporate your company under the Companies Act 2016, fulfilling all requirements like paid-up capital and company name guidelines.

2. Expertise and knowledge:

  • Industry insights: Bestar's experience in setting up APS in Malaysia can provide valuable insights into the industry, helping you make informed decisions about your target market, recruitment practices, and operational strategies.

  • Best practices: We can advise you on ethical and legal recruitment practices, ensuring your agency operates with integrity and complies with regulations.

3. Additional support:

  • Financial guidance: Bestar may offer assistance with understanding financial requirements, budgeting, and potential funding options.

  • Technology setup: They might help you choose and implement appropriate technology like an applicant tracking system to support your recruitment activities.

By effectively utilizing Bestar's expertise, you can increase your chances of successfully setting up your Private Employment Agency in Malaysia. Contact Bestar today!


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