complete guide to opening a tuition centre in malaysia

The Complete Guide To Opening A Tuition Centre In Malaysia

The rise in the number of tuition centres in 2024 strongly suggests the private tuition market in Malaysia is not just firmly established but growing.

Additionally, there is a surge in demand for online tuition due to the convenience factor.

online tuition demand growth to show healthy maarket for those who want to open a tuition center in malaysia
Now they can spend 25 hours a day studying!

Point is, Malaysian parents are ready to pay for supplemental education, and If you’d like to address this with your own private tuition centre, our guide explains how!

Here’s how we’ll break it down:

  • requirements to open a private tuition centre
  • the licenses needed
  • a step-by-step guide to registering a tuition centre, and
  • the risks of operating an illegal tuition centre

Note: Specific requirements vary by state, so treat our post as a general guide. For state-specific details, get in touch with us. Also, foreigners should note that they are not allowed to fully own a tuition centre in Malaysia but may co-own one with a local partner.

Let’s begin.

Requirements to open a tuition centre

Tuition centres in Malaysia fall under the authority of the Education Act 1996 and are subject to requirements regarding their:

  1. Paid-up capital
  2. Management
  3. Teachers
  4. Centre name
  5. Premise location and condition

Paid up capital

A business must have at least RM10,000 in paid up capital to register a tuition centre in Malaysia.

Management

As tuition centres are treated as PEIs by the Education Ministry, it must be managed by a board of governors and a principal.

The minimum number of governors differs by state, while the principal must be a Malaysian citizen and many states require them to have a valid Teaching Permit and several years of experience in education.

Teachers

All teachers must possess:

The governors and principal can be teachers if they meet these requirements, which is pretty much how it works in smaller tuition centres.

Premises

The general rule is that tuition 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.

Naming conventions

Your tuition centre’s name must be relevant and begin with ‘Pusat Tuisyen’, and for the best chance of approval, your proposed name should:

  • be in Bahasa Melayu, and
  • contain Malaysian elements / references

You should also avoid using the following prohibited words:

  • names of living dignitaries, places, or streets
  • abbreviations
  • nonsensical names
  • well-known local and international education institutions
  • ‘yayasan’ / ‘foundation’
  • ‘politeknik’./ ‘polytechnic’

And yes, you can use your name!

Required licenses

General licenses

These are licenses needed to run a business on a physical premise and are issued by your Local Authority (also known as Pihak Berkuasa Tempatan).

  • Premise license
  • Signboard license

Specific licenses for tuition centre

Tuition 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 tuition centre registration

There may be slight differences based on state requirements so treat the following steps, timelines, and documents / fees as a general guideline. 

StepTime TakenNecessary Documents / Fees
1. Company Incorporation3 – 5 working daysRegister 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 applicationn/aFill 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 officers6 – 8 monthsMOE 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 approvaln/aUpon approval, applicant has two years to setup their centre
5. Apply for composite license (premise + signboard)15 – 30 working daysObtain 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 running an unlicensed tuition centre

Illegal tuition centres are extremely common in Malaysia, and some who read our guide may be tempted to start operating 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.

neighbour about to complain about illegal tution center to warn business owners to obtaion the right licenses and permits
Better be ready to offer all his kids free tuition for life.

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 tuition centre

Our team of experienced Company Secretaries and business license consultants are here to help you navigate statutory and permit requirements to set up your tuition centre so you can start rotan-ing kids as soon as possible. Speak to us today!

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