What are the minimum requirements to open a private employment agency?
You must meet four key requirements:
- Company requirements
- Premise requirements
- Director requirements
- Capital requirements
What are the company requirements?
Your company must:
- Be at least 51% owned by a Malaysian citizen
- Use a name starting with “Agensi Pekerjaan”
- Include private employment agency services in its business activity description
- Meet the paid-up capital requirements for your license category
- Have a suitable business premise
What are the premise requirements?
Your office must:
- Be accessible and located in a public area
- Not be near premises associated with immoral activities
- Display a clear signboard with company name and license number
- Be a commercial premise (SOHO/SOVO allowed)
Note: Co-working spaces may be risky as approval is subject to discretion.
What are the director requirements?
Directors must:
- Be Malaysian citizens
- Not be bankrupt
- Provide a sworn declaration confirming no involvement in human trafficking or forced labour offences
What are the capital and financial requirements?
There are three license categories:
Category A
- Paid-up capital: RM50,000
- Money guarantee: RM5,000
Category B
- Paid-up capital: RM100,000
- Money guarantee: RM100,000
Category C
- Paid-up capital: RM250,000
- Money guarantee: RM250,000
Additional guarantees are required when opening new branches.
What is the money guarantee for?
It acts as a financial safeguard to ensure compliance and pay for any penalties incurred. If used, it must be topped up to the minimum required amount.
Which APS license category should I choose?
- Category A: Local recruitment only
- Category B: Local + foreign domestic workers + overseas placement
- Category C: Full recruitment including non-citizens
What activities are allowed under each license?
Category A
- Recruit local workers
- Conduct short training (≤ 3 days)
- Organise career-related events
Category B
- Recruit local + foreign domestic workers
- Handle foreign worker applications
- Place Malaysians overseas
Category C
- Full recruitment scope (local + foreign + non-citizens)
- Represent employers in hiring processes
- Overseas placements
How long does the setup process take?
A typical process is as follows:
- Company incorporation: 3–5 working days
- Premise license: 15–30 working days
- JTK license: ~30 working days
- Employee registration: ~30 working days
What are the typical fees involved?
- Company incorporation: RM1,010
- JTK license application: RM300
- Employee registration: RM50 per employee
- License renewal: RM100
- Premise license: Varies by local authority
How long is the APS license valid?
Two years.
How much it cost to renew my APS license?
JTK license renewals incur two fees:
- A processing fee of RM100
- A license fee of RM500