When opening a recruitment agency in Malaysia, the investor should follow the registration procedure applicable under the local legislation. Our company formation agents in Malaysia can offer guidance on each step referring to the registration of a new company. Recruitment companies are crucial when searching for a suitable candidate for a job opening, as they have the know-how and the infrastructure to identify such candidates. The following lines provide information about opening recruitment agencies in this country.
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Registration procedure of a recruitment company in Malaysia
According to the rules and regulations applied by the Companies Commission of Malaysia (SSM), a foreign investor has two options when entering the Malaysian business market. One can incorporate a new company with the SSM or register an existing foreign company at the same institution. Below is information about the registration procedure for a recruitment agency in Malaysia:
- It is recommended to open a nes company in Malaysia so that the investor can benefit from various tax exemptions or deductions applicable to local companies. The limited liability company is the most suitable in this case.
- One of the necessary procedures that have to be completed when starting a recruitment company in Malaysia is to verify if the proposed company name is available for registration.
- After the institution approves the trading name, the investor should present the incorporation documents (the articles of association and the memorandum).
- Business owners must register the firm for tax purposes in Malaysia, open a bank account, and obtain a business license.
Company formation in Malaysia is a process that can be supervised by our team. We, therefore, invite you to discuss with us when starting a business in Malaysia, such as a recruitment agency.
The following video offers a short presentation on how to set up a recruitment company in Malaysia:
Business license for employment agencies in Malaysia
Companies in Malaysia that operate as recruitment agencies need to apply for specific business permits. In order to properly register a recruitment company in Malaysia, its founders have to apply for a general business license, known as a Wholesale Retail Trade license. The company will also need an Employment Agency License, which is a special type of license available in this sector. Here are some of the most important highlights in this matter:
- a compulsory license is needed for all types of companies activating in the recruitment field in Malaysia;
- to obtain the license, the applicant/representative of the company has to address the Ministry of Human Resources;
- the license is also necessary when starting business activities related to headhunting (the term is officially known as executive search firm);
- the license can only be granted if the person developing the business is a Malaysian citizen or if the majority of shares of the company is held by Malaysian citizens.
The first mentioned type of license also grants the right to develop consulting services, which are generally provided by recruitment companies. At the same time, the company’s representatives may also apply for a human resources license; our team of specialists in company incorporation in Malaysia can offer more details on the procedure for applying for a local business permit or license.
Recruitment services offered by agencies in Malaysia
Companies established in Malaysia as recruitment agencies provide various services, available for both natural persons seeking a job in this country, but also for legal entities which are in need of employees. The recruitment services are performed by dedicated agents, persons who have extensive experience in the field of human resources. Such companies offer online platforms in which persons seeking employment can submit their CVs. At the same time, these agencies can offer career consulting services and job placements established by industry/specialization, or by region.
Essential rules to be followed when opening a recruitment company in Malaysia
Those who want to set up a company in Malaysia and choose the recruitment field must know some of the basic rules:
- Local labor laws in Malaysia must be taken into account. These refer to working hours/conditions, minimum wage, employment contracts, etc.
- Recruitment companies in Malaysia must be registered with tax authorities at a local and national level. Sales and services tax is one of the most important levies in Malaysia.
- The owners of recruitment companies in Malaysia must comply with the Data Protection Act. Thus, the information about job seekers and companies is part of a protected database.
- Recruitment agencies in Malaysia must have Employers’ Liability Insurance and Professional Indemnity Insurance before commencing the activities.
Considering these aspects, we remind you that you can opt for our services if you want to start a recruitment agency in Malaysia. Our services are customized according to the preferences and needs of the clients.
Development strategies of a recruitment agency in Malaysia
Developing an employment agency in Malaysia is easy. Various strategies can be implemented, such as:
- It is important to determine the target market and discover niches that can be covered with the services offered by a recruitment company in Malaysia.
- Promotion on social media channels is vital. Some specific marketing plans should be useful in this sense.
- Client testimonials are also valuable for promoting the activities of an employment agency in Malaysia.
Statistical data about the labor market in Malaysia
Below we present some information and statistical data about the labor market in Malaysia:
- The data provided by the Department of Statistics in Malaysia for June 2024 show that there are over 17.17 million active employees in this country.
- An unemployment rate of approximately 3.3% is estimated until the end of 2024.
Besides the services for opening a recruitment company in Malaysia, our customers can benefit from other facilities. For instance, our accountants in Malaysia can provide complete services to those opening a business here. Regardless of your issues or questions, we invite you to contact our firm in Malaysia and discuss them with our specialists.