An Education License in Malaysia is requirement for all those who intend to setup an education business in the country. This is a mandatory requirement by the Ministry of Education.
To run and operate a business in Malaysia, you need a business license. Just about every business in Malaysia requires some business license or permit of some sort. The types of licenses would differ depending on the type of industry you’re involved in. This includes if you intend run this type of business in Malaysia. An Education License in Malaysia is required if you intend to operate learning centres in the country.
Last year, The Star published an article in 2018 urging netizens to be wary of private centres, especially as some of these may be illegal centres that are operating without a license. The Ministry of Education (MOE) Malaysia has made it very clear that it will not endorse certificates which come from unlicensed centres. This must be taken seriously because it is a requirement by the Foreign Affairs Ministry that any student who intends to further their studies abroad at higher education learning institutions must have endorsed certificates to do so.
In Malaysia, there are 18 categories of registered private educational institutions. These consist of private schools and centres, including tuition, enrichment and language centres. However, private learning centres (sometimes referred to as private education institutions [PEIS]) do not fall into these categories. According to MOE, there are instances where certain tuition centres in Malaysia only have a Tuition Centre License, but they operate similar to a school. In the same article by The Star, the Ministry of Education Malaysia stated that they were “seriously looking at these centres existence and the issues involving these centres as it is against the provisions of compulsory education set out in the Education Act”.
What Business Licenses Do Education Centres in Malaysia Need?
Section 79 of the Education Act 1996 in Malaysia states that all education institutions need to be registered with the Registrar General of the Ministry of Education. Section 2 of the act defines an such an institution as “a school or any other place where, in carrying on the work of an organisation or institution, persons are habitually taught, whether in one or more classes, and includes a kindergarten (childcare centres) and a distance education centre.”
This means that national schools which are set up by the Ministry must also have a valid education license to be operational. However, this excludes places which are dedicated to teaching religion.
All educational institutions in Malaysia must have a certificate of registration under Section 82 of the act. This certification must clearly be displayed in a visible location on the centre’s premises.
Criteria for Obtaining an Education License
To obtain this license from the Registrar General, you will need to meet the following criteria under Section 84:
- Your premise must meet all the prescribed health and safety standards.
- The name of the institution must not be improper or undesirable.
- The area you intend to open your institution must not have too many other existing schools or centres nearby.
- Your institution must not be used for “a purpose detrimental to the interests of Malaysia, the public or the pupils.”
- Your registration form must not contain any false or misleading information.
- The person you appoint as the chairman of the board of governors or head of the teachers in your school must be suitable for the position.
Employees in the Education Institution Must Be Registered
Section 88 of the Malaysia Education Act also requires that any employee of an educational institution must be registered with the Ministry of Education. This includes any person who is acting as a governor of the school.
If your educational institution hires any employee who is not properly licensed or registered with the Ministry of Education, you could be held liable. The penalty for this offense could be a penalty of RM30,000 and/or up to 2-years in prison. Therefore, it is important to ensure that your employees have the necessary legal requirements needed to work at your educational institution. When dealing with employment agencies to source your candidates, be sure to conduct a thorough background check.
Other Important Key Facts About Education and Schooling in Malaysia
Malaysian children who are at least 6-years old on the 1st of January will be required to attend primary school. This is a mandatory requirement made compulsory by Section 29A(2) of the law.
Section 29A(2) of the act states in very clear terms that “a parent who contravenes subsection (2) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding RM5,000 or to imprisonment for a term not exceeding 6-months or both.”
Therefore, not only do parents in Malaysia have to ensure that they children are enrolled in school according to the law, but they have to ensure that the schools are not illegally run schools too. Foreign investors who intend to start a business in this sector must take note of these requirements.
The Ministry of Education is urging these institutions – or anyone who intends to set up such an institution in Malaysia as a business – to be registered and comply with the guidelines. If the private school (or schools involved in the private education sector) intends to run an international curriculum like the IGCSE for example, they must register themselves as an international school.
Ready to Set Up a Business in Malaysia?
Paul Hype Page has vast experience helping foreign investors from all over the world set up a business in Singapore and Malaysia. We have helped numerous business entities find their footing and we can do the same for you. For more guidance on licensing needs based on the business activities required, visit our website or contact us today for more information.
hye im doing tuition in my house for long years im planning to do ssm for my own tuition .. is that possible to do if i have teaching permit
Hi,
Your question has been answered under our forum.
https://www.paulhypepage.my/php-forums/malaysia/teaching-permint/
Feel free to interact with us in the forum if you need further clarification. We will be happy to assist.
Best Regards,
Paul
Hi, could you share the URL for the licensing application forms to open and start a private language teaching institute in Malaysia? Thanks very much.
Hi,
Your question has been answered under our forum.
https://www.paulhypepage.my/php-forums/malaysia/licensing-application-in-malaysia/
Feel free to interact with us in the forum if you need further clarification. We will be happy to assist.
Best Regards,
Paul
Hi, do I need an education license to teach music and public speaking for students from challenging background with minimal fee (non-profit)? Or what kind of license/registration with the government do I need to run such program?
Hi,
Your question has been answered under our forum.
https://www.paulhypepage.my/php-forums/malaysia/education-license-in-malaysia-2/
Feel free to interact with us in the forum if you need further clarification. We will be happy to assist.
Best Regards,
Paul
May I know what’s the business can a learning centre license do?
Hi,
Your question has been answered under our forum.
https://www.paulhypepage.my/php-forums/malaysia/education-license-in-malaysia/
Feel free to interact with us in the forum if you need further clarification. We will be happy to assist.
Best Regards,
Paul
Hi, what if I intend to register for a religious institute? Im not sure of the registration procedure.
Hi Noor,
If you are planning to conduct religious classes in Primary and Secondary schools, a international/private school license and registration is required. However if you are hosting interest group, no license is required.
It is not necessary for a church to register with the government on the basis of Article 11(3) of the Federal Constitution.
Feel free to contact Paul Hype Page if you need more information!
Thanks
Hi, I am interested in starting a training center for security systems courses. Is a private higher education license compulsory? Is it true that there’s freeze (moratorium) on obtaining this license at the moment?
Hi Vivien, to start a training center for security system in Malaysia, first you need to set up your company.
Please be informed that if your school is not teaching and issuing anything international or academic certificate, you don’t need to apply for education license.
Training center for security system is not included as an academic school so no education license needed.
To open this school also can 100% foreign ownership. We can assist you with a private limited company incorporation to initiate your business.
Please contact us via Paul Hype Page to discuss further.
Thank you for your question.
Warm regards
Paul
Hi, what about if i am looking at starting an design school?
Hi Casey, to start a design school in Malaysia, first you need to set up your company.
Please be informed that if your school is not teaching and issuing anything international or academic certificate, you don’t need to apply for education license.
Design school is not included as an academic school so no education license needed.
To open this school also can 100% foreign ownership. We can assist you with a private limited company incorporation to initiate your business.
Please contact us via Paul Hype Page to discuss further.
Thanks
Hi Paul,
What kind of license does an online tuition centre require?
Hi Keyhan,
first, you will need to incorporate your company before you apply the license. The most common license required for a foreign owned company is wholesale retail trade wrt license this wrt license is applicable to any foreign participation i e. To get the license you will need to apply with Malaysian bank and securities commission. Nursery department of social welfare kindergarten tuition centers schools college ministry department of education or other relevant agencies if required by the registrar of business.
Please contact us via Paul Hype Page to discuss further.
Thanks
Hi there,
I would like to involve my foreign partner in my business. What are the possibilities to do so? Or how can I register him as one of the investor of my tuition centre.
Highly appreciated if you could advise me.
Thanking in advance.
Hi Kavitha
You are able to include your foreign partner as a director of a Sdn Bhd. This is possible as long as you are residing in Malaysia.
To facilitate further discussion, please contact us at Paul Hype Page.
Thank you for your comment.
Warm regards
Paul
What’s the procedure to start an online tution ?
Hi Norris
In order to start a tuition business in Malaysia, you will first need to register your business and get the relevant educational license.
These will depend on the nature of your business. Paul Hype Page is able to advise you on the best course of action, and assist in your incorporation needs.
To facilitate further discussion, please contact us at Paul Hype Page.
Thank you for your comment.
Warm regards
Paul
Does a home tutor need a business license or education license?
Can home tutor operate in a place other than own house?
Hi Yen
An education license is a type of business license. If you are registering a business in Malaysia as a tutor, you will need an education license.
The place of operations is subject to approval by the relevant authorities.
To facilitate further discussion, please contact us at Paul Hype Page.
regards
Paul
Can a Tuition Centre operate as a Childcare Centre at the same time? In such case, do the company need to apply 2 difference licenses?
Hi Emily
It is possible for a tuition centre to operate as a childcare centre at the same time. For the specific licenses required, it will depend on the size and location of the centre. To better answer your questions, get in touch with us.
Thank you for your comment.
Warm regards
Paul
Hi Paul
Just a query, how do we apply the licence if we were to open an institute for automotive.. An institute to learn skills.
Thanks
Hello Sicomeyl,
As the institute will be teaching automotive skills, you will require a permit which may be received by registering with the Road Transport Department of Malaysia. It is also likely that you will require a Transport License for car rental and vehicle leasing purposes.
Thank you for your question.
Paul
What’s the steps involved in to get academy license?
Hello Poornima,
In Malaysia, the license you seek is known as an Education License, not an Academy License. To receive such a license, it is necessary to register the educational institution to be started with the Registrar General of the Ministry of Education.
For further information on the Education License or any of Malaysia’s other business licenses, please contact us.
Thank you for your question.
Paul
Can a company apply to register as an educational institution in Malaysia?
Hello Goh,
It is indeed possible as long as an Education License is obtained. To receive such a license, it is necessary to register the educational institution to be started with the Registrar General of the Ministry of Education.
For further information on the Education License or any of Malaysia’s other business licenses, please contact us.
Thank you for your question.
Paul
Hi, may I know what is the process to run a kindergarten? Thanks
Hello Jocelyn,
In order to run a kindergarten or any other educational institute in Malaysia, you will require an Education License which is to be obtained from the Registrar General of the Ministry of Education.
For further information on the Education License or any of Malaysia’s other business licenses, please contact us.
Thank you for your question.
Paul
How do I register a school that offers Private Diploma by an overseas partner
Hello Austin,
Before you may register a school in Malaysia, you will first need to obtain an Education License. After you have done so, you may proceed with the usual incorporation procedure.
For further information on business licenses in Malaysia, please contact us at any time.
Thank you for your question.
Paul
Hi, what’s the step involved in setting up an enrichment centre?
Hello Kin,
If by “enrichment center” you are referring to a tuition center, according to the current laws of Malaysia, anyone who plans to set up a tuition center there must first obtain a Tuition Centre License. Tuition centres must also not be run in a similar manner to that of a school; otherwise, an Education License will be required.
For further information about business licenses in Malaysia, please contact us at any time.
Thank you for your question.
Paul
Hi, May i know what is the requirement of setting up a tuition center ya
Hello Ee-Svun,
According to the current laws of Malaysia, anyone who plans to set up a tuition center there must first obtain a Tuition Centre License. Tuition centres must also not be run in a similar manner to that of a school; otherwise, an Education License will be required.
For further information about business licenses in Malaysia, please contact us at any time.
Thank you for your question.
Paul