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Starting A Recruitment Agency Business in Malaysia

How to Set Up a Recruitment Agency Business in MalaysiaA recruitment company is an important business entity, especially for candidates who are on the lookout for new jobs. Recruitment agencies play a crucial role in the job market because they help to match the right candidates to the right employers using their know-how and expertise, ensuring both parties are satisfied with the outcome.

Both locals and foreign investors can opt to establish a recruitment agency in Malaysia and all companies and registration procedures will have to go through the SSM or the Companies Commission of Malaysia.


Key Points to Remember

The first step to getting your recruitment agency is to first set up your company. Once that is done, you are going to require an Employment Agency License. If you are only handling payroll processing however, you will not need an Employment Agency License as this is applicable only if you handle staff recruitment.

Below are some key highlights of what an Employment Agency License Application requires:

  • All companies that operate as a private employment agency will be required to have this license.
  • The license can be obtained from the Ministry of Human Resources Malaysia.
  • Licenses must be obtained before the business commences.
  • This license is only applicable if you are operating a recruitment or executive search firm.
  • Licenses will not be granted for businesses of a private employment agency unless the following requirements are met:
    • The business is carried out by an individual who is a citizen of Malaysia
    • The business is carried on by a company and the majority of the shares in the company are held by Malaysian citizens.

If you don’t want your business name to begin with an “Agensi Pekerjaan” or “Recruitment Agency”, you will be required to pay a minimum paid-up capital of RM500,000.


What Documents Are Required to Start a Recruitment Agency Business in Malaysia?

To start a company, the following documents must be provided:

Documents from the company which include:

  • Certificate of incorporation
  • Certificate of name change
  • Return of particulars for the directors, managers and secretaries
  • Memorandum and articles of association
  • Return of allotment of shares
  • RM50,000 bank statement verification
  • Proposal for establishment of the employment agency
  • Cash flow for the first 6 months of the business operations


Additional documents which are required for branch openings include:

  • The latest audited financial statements
  • Additional increase of paid-up capital of RM50,000 for each branch


Documents which are required from all directors and shareholders include:

  • Personal details
  • Copies of NRIC or birth certificate or passport
  • Borang BE or the letter of acknowledgement from IRB
  • Testimonials from professionals or other well-known individuals
  • Statement of solvency from the Insolvency Department of Malaysia


Documents which are required from 2 guarantors (solvent) which include:

  • A letter from at least 2 guarantors who agree to be the guarantor for the employment agency
  • Copies of the NRIC or birth certificate and passport
  • Boring BE or the acknowledgement letter from IRB
  • Statement of solvency from the Insolvency Department of Malaysia.


How to Set Up a Recruitment Agency Business in Malaysia

Companies will also be required to have a physical office address space for the department to conduct site visits for inspection or the premise purposes. All directors are also required to be present for the interview to be conducted by the department.