A Full Guide To Opening A Training Centre In Malaysia

In Malaysia, training centres are a specific category of private education institutions (PEIs) offering short-term technical and vocational courses that do not go over three months / 20 credit hours per level, though there can be multiple levels.

They are regulated by the Education Act 1996 and Malaysian Ministry of Education (MOE), and for those interested, our guide breaks down how to open a private training centre in Malaysia, covering:

• key requirements
• mandatory licenses, and
• a step-by-step guide to registration

Note: Foreigners should note they cannot fully own a training centre in Malaysia and need a local partner.

Let’s begin.

Requirements to open a training centre

Training centres in Malaysia have specific requirements regarding their:

1. Business entity & shareholding
2. Paid-up capital
3. Naming convention
4. Management
5. Teachers / trainers, and
6. Premises

Business entity & shareholding

Training centres must operate as a Sdn Bhd or private limited company which can have 20 – 51% foreign ownership based on the Free Trade Agreement (FTA) between Malaysia and the foreign owner’s country.

Additionally, 30% of the local equity must be Bumiputera-owned.

For the benefit of foreign readers, a Bumiputera is a segment of Malaysians including:

• 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, which has direct implications the partnership structure of your Malaysian company.

Paid up capital

The business must have at least RM50,000 in paid up capital to register a training centre in Malaysia.

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 Latihan’, and
• contain education-related terms

It‘s possible to use an English name ending with ‘Training Centre’, but in our experience a Bahasa Melayu name means a smoother application which means being operational faster.

Management

As a PEIs under the Education Ministry, training centres must be managed by a chairman / principal and board of five governors, all of whom must be local Malaysians.

Although company shareholders and directors can hold these positions, board members cannot also serve as chairman or principal. Additionally, the chairman / principal must hold suitable qualifications related to the courses offered.

Teachers / trainers

Teachers / trainers must be Malaysians who hold:

• an SPM certificate or its equivalent, and 
• a valid Teaching Permit

Qualifications in field related to the courses offered is not mandatory but definitely encouraged and can be a difference maker for highly technical fields.

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 to a related PEI, 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 training centre

Your training centre must be certified by 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 training 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 centre in a commercial premise with licenses from MOE and the Local Authorities.

That’s it from us – we wish you all the best with your training centre, and if you need professional help with getting started, our team is always here 🙂

Let MISHU help register your training centre

Our team of Company Secretaries and license consultants are here to help you navigate MOE and SSM requirements to set up your training centre as quickly as possible. Speak to us today!