A Full Guide To Opening A Language Centre In Malaysia
Malaysians are no strangers to learning additional languages for their practical benefits.
From young learners preparing for overseas studies to adults who want to improve job prospects, there is clear demand in Malaysia for professionally taught language courses.
For readers who want to capture this market, our guide provides a full breakdown of how to open a private language centre in Malaysia, covering:
- key requirements
- mandatory licenses
- a step-by-step guide to registration, and
- the risks of operating an unlicensed centre
Note: Foreigners should note they are not allowed to fully own a language centre in Malaysia but may co-own one with a local partner.
Let’s begin.
Requirements to open a language centre
The Malaysian Ministry of Education recognises language centres as private education institutions (PEIs) offering language courses that do not go over three months / 20 credit hours per level, though there can be multiple levels.
Language centres in Malaysia fall under the Education Act 1996 and the Malaysian Ministry of Education recognises them as a separate category of private education institution (PEI) with specific requirements regarding their:
- Business entity & shareholding
- Paid-up capital
- Naming convention
- Management
- Teachers
- Premises
Business entity & shareholding
Language centres must operate as a private limited company which can have 20 – 51% foreign ownership depending on the Free Trade Agreement (FTA) between Malaysia and the foreign country in question.
Additionally, 30% of the local equity must be Bumiputera-owned. For foreign readers, a Bumiputera is a category of Malaysians that includes Malays, Orang Asli, and indigenous people of Sabah and Sarawak – in other words, every Bumiputera is a Malaysian, but not every Malaysian is a Bumiputera.
Paid up capital
Requirements vary by state, but we can confirm that the business must have at least RM100,000 in paid up capital to register a language centre in Kuala Lumpur and at least RM50,000 to register a language centre in Selangor.
Naming convention
For the best chance of approval when registering your business as a language centre, it should:
- be in Bahasa Melayu
- begin with ‘Pusat Bahasa’, and
- contain education-related terms
It‘s possible to use an English name ending with ‘Language Centre’, but in our experience a Bahasa Melayu name means a smoother application which means being operational faster.
As the picture above shows, you can always use other languages on your actual signboard and marketing materials later, so for practical purposes we’d recommend registering with a Malay name.
Management
As language centres are treated as PEIs by the Education Ministry, it must be managed by a chairman, principal, and board of five governors.
While the governors can be foreigners, the principal and chairman must be Malaysian citizens who are not already board members, and many states require them to have a valid Teaching Permit and several years of experience in education.
Teachers
Teachers can be both Malaysian or foreigner as long as they possess:
- an SPM certificate or its equivalent, and
- a valid Teaching Permit
Governors and principals can be teachers if they meet these requirements, but not if they are the company owners or directors.
Premises
The general rule is that language centres can only operate on commercial premises unless with written permission from the Local Authority.
Commercial or not, the premise cannot be located near:
- potentially dangerous chemicals or waste materials
- leisure centres, recreational areas, or markets
- fire hazards, or
- other learning centres offering identical services
For reference, here are the premise requirements for tuition centres by the Kuala Selangor Local Council.
An officer from your District Education Office will inspect your premises and ask for renovations to align it with MOE requirements.
Required licenses
Premise & signboard license
These are needed to operate on a physical premise and display advertising, issued together by the Local Authorities (known as PBT) under what is called a composite license.
Specific licenses for language centre
Language centres in Malaysia are classified as a Private Education Institution (PEI) under the Education Act 1996, which means it must register with the Ministry of Education as a Private Education Institute.
An MOE license costs approximately RM150.00 and is valid for four to five years.
Step-by-step language centre registration
There may be slight differences based on state requirements so treat the following steps, timelines, and documents / fees as a general guideline.
| Step | Time Taken | Necessary Documents / Fees |
| 1. Company Incorporation | 3 – 5 working days | Register for an account on MyCoID and carry out name reservation + incorporation. Provide information on: 1. Proposed company name 2. Status (private or public) 3. Type of business 4. Registered office address 5. Business address 6. Details of directors and promoter 7. Declaration from director and promoters 8. Declaration of compliance from individuals responsible for incorporation. Fee: RM1,010 |
| 2. MOE license application | n/a | Fill in a PEI pplication form, which asks for: 1. Your background details 2. The centre’s proposed name 3. The premise location and proof of ownership 4. The curriculum taught, and 5. Details on the Principal, governors, and teachers Fee: RM150 |
| 3. Assessment by MOE officers | 6 – 8 months | MOE officers conduct assessment, checking for: 1. SSM documents 2. Layout plan 3. Company stamp with address 4. Additional case-specific issues They may make requests for further renovations to the premises |
| 4. Receive MOE approval | n/a | Upon approval, applicant has two years to setup their centre |
| 5. Apply for composite license (premise + signboard) | 15 – 30 working days | Obtain from Local Authority where premise is located, providing: 1. SSM documents 2. Sale and Purchase Agreement or Tenancy Agreement 3. Applicant’s identity card or passport photo 4. Office layout plan 5. Photographs of business premises 6. Certificate of Completion and Compliance or Certificate of Fitness 7. Quit Rent and Assessment receipts 8. Fire Department’s support letter/Bomba Certificate 9. Photographs of outer part of premises showing signboard location 10. Color visual of signboard design, colors, and physical measurement. Undergo premise inspection by Local Authority officers. Fee: Differs between municipalities |
In total, expect it to take about ten to eleven months and up to several thousand Ringgit to set up a tuition centre in a commercial premise with licenses from MOE and the Local Authorities.
Risks of operating an unlicensed language centre
Illegal learning centres are extremely common in Malaysia, and some who read our guide may be tempted to start operating a language centre without a license or proper premise.
Just know that under Section 132 of the Education Act, running an unregistered Private Education Institution make you liable to face:
- a fine of up to RM30,000
- Imprisonment for up to two years, or
- Both!
Yes, many illegal centres fly under the radar, but all it takes is one neighbour to complain.
We’ll just say you should carefully evaluate the potential cost of your actions – consider the worst case scenario and whether you can really live with it.
If you decide to open your tuition centres the right way and need help, our team will be here waiting 🙂
Let MISHU help register your language centre
Our team of Company Secretaries and license consultants are here to help you navigate MOE and SSM requirements to set up your language centre and help Malaysians watch Korean dramas without subtitles as soon as possible. Speak to us today!