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Application for Private Employment Agency License

Updated: Mar 30, 2023

No person shall carry on any recruiting activity unless he has been granted an employment agency licence.


Application for a Licence


An applicant for a licence shall submit an application made in accordance with the category of licence.


Category of Licence


Licence A — Job placement for a job seeker within Malaysia


Licence B — Job placement for a job seeker (local and foreign nationals) within and outside Malaysia, and foreign domestic servant within Malaysia


Licence C — Job placement for a job seeker within and outside Malaysia, and non-citizen employee within Malaysia


Conditions for Licence Application


The applicant must comply with the following conditions:


(a) the applicant is a body corporate incorporated under the Companies Act 2016—


(i) with minimum paid-up capital as specified; and


Paid-up capital

Licence A — RM50,000

Licence B — RM100,000

Licence C — RM250,000


(ii) at least fifty-one per cent of the total shares of the company are held by citizens of Malaysia;


(b) the director of the company, who is named in the application form who is in charge of the affairs of the private employment agency—


(i) is a citizen of Malaysia;


(ii) is not an undischarged bankrupt; and


(iii) has not been convicted of any offence under any written law in relation to anti-trafficking in persons and forced labour;


(c) the applicant has suitable premises for carrying on recruiting activity; and


(d) the applicant shall have the words “Agensi Pekerjaan” (Employment Agency) precede the name of the company.


Grant of Licence


If the application is approved, the applicant shall, within thirty days from the date of the notice, pay the licence fee and deposit the money guarantee in accordance with the category of licence as specified for the purposes of granting the licence:


Licence A — RM5,000

Licence B — RM100,000

Licence C — RM250,000


Deposit the guarantee money in cash/postal money/bank draft in the name of 'Ketua Pengarah Tenaga Kerja' (the Director General of Labor) or Bank Guarantee. The validity period of the Bank Guarantee shall be at least 3 years from the date of approval letter.


Identification Document


A private employment agency which has been granted a licence shall apply for an identification document of its employees who carry out recruiting activities.


The private employment agency shall give the identification document to its employees who carry out recruiting activities.

List of Particulars, Information or Documents Required for Applications of New License


1. Employment Agency Information


  • Name of Agency

  • Mailing Address

  • Business Premise Address

  • Contact No.

  • Fax

  • Email

  • Company Registration No.

  • Company Category

  • Paid-up Capital (RM)

  • Financial Guarantee (RM)

  • Shares held by Malaysia Citizens (%)


2. Board Member Information


  • Name 

  • Citizens           

  • Card Identification / Passport No.                  

  • Share Value (RM)


3. Director Information Responsible for Agency Management


  • Name 

  • Citizens           

  • Card Identification

  • Whether the bankrupt has not been released (if applicable) Whether convicted of an error (if applicable) (Included with Pledge Declaration)

  • Details of conviction

  • Penalties


4. Latest Finance / Capital Company

  • Bank Name

  • Account Number

  • Bank Address

  • Balance Money (RM)


5. Agency Profile Information

  • Latest Company Information (SSM E-INFO.)

  • Latest Statement of Bank Account


6. Agency Director Information

  • Copy of Identity Card / Passport

  • Board of Directors Biodata

  • Copy of Form BE (Return Form of an Individual (Resident who does not carry business) or Copy of E-Daftar LHDN

  • Solvency Statement from Jabatan Insolvensi Malaysia (Malaysian Department of Insolvency)

  • Letters of Accounts (available from Commissioner For Sale)

  • Copy of Original Pihak Berkuasa Tempatan (PBT) License (Local Authority (PBT) License) or Complete Copy of the Rental Agreement (Tenancy Agreement) (No SOHO / SOVO Premise Types)


7. Proposal


Containing:

  1. Agency Background

  2. Objective as in SSM E-INFO

  3. Experienced Director's Name Responsible for APS

  4. Premise Address and Information about Selected Location

  5. Categories of Functional Search Provided

  6. Master Category / Sector of Employer

  7. Proposed Placement Rates Applied to Work Finders & Employers


Fees for services


No private employment agency shall charge for any service rendered a fee on the job seeker and non-citizen employee other than or in excess of that as specified and for every fee received a receipt shall be issued.


Registration Fee


A private employment agency may impose registration fee on any job seeker for all categories of employment within or outside Malaysia upon the registration of the job seeker with the private employment agency.


(i) Fee imposed for registration of all categories of employment within Malaysia to a job seeker, the registration to be valid for all categories of employment for a period of twelve months - RM30 and below


(ii) Fee imposed for registration of all categories of employment outside Malaysia to a job seeker, the registration to be valid for all categories of employment for a period of six months - RM50 and below


Placement Fee


A private employment agency may impose placement fee on any job seeker or non-citizen employee upon the acceptance of an offer of employment by them.


The placement fee imposed may be paid by an employer of the job seeker or non-citizen employee. If the placement fee is paid by an employer, no placement fee shall be demanded by the private employment agency from the job seeker or non-citizen employee.


(i) Job seeker who is employed within Malaysia - Placement fee not more than 25% of the basic wages for the first monthly wages


(ii) Job seeker who is employed outside Malaysia - Placement fee not more than 25% of the basic wages for the first monthly wages


(iii) Non-citizen employee who is employed within Malaysia - Placement fee not more than one month of the basic wages for the first monthly wages


Duration of Licence


Every licence granted shall be valid for a period of twenty-four months from the date of granting of the licence.


Types of Fee


Name search: RM10.00 each

Application for licence processing fee: RM300

Private employment agency licence fee: RM500

Identification document processing fee: RM50


If you have any enquiries or need clarification, please contact Bestar.



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