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Corporate Service - Malaysia

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Q&A on Setting up of Tuition Centre in Malaysia

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Q: What type of entity should a foreigner set up to operate a tuition centre in Malaysia?
A: To establish a tuition centre in Malaysia, you must register a legal entity in the form of private limited company with the Companies Commission of Malaysia. Additionally, the business must have a minimum paid-up capital of RM10,000 with at least 30% Bumiputera ownership to qualify for licensing by the Ministry of Education (MOE).

Q: Are any licenses required to set up a tuition centre in Malaysia?
A: Before operating a tuition centre, you must obtain a license from the Ministry of Education by submitting information such as the proposed name of the centre, its location, the curriculum offered, and details of the Principal, management, and teaching staff.

Q: Where is a tuition centre permitted to operate?
A: A tuition centre must be located in a commercial building. Prior to commencing operations, you must apply for a Business Premises License from the local authority where the premises are located. Operating from a residential property is generally not permitted, unless special approval is obtained from the relevant local authority.

Q: Can a foreign tutor be employed at the tuition centre?
A: Yes. However, if the foreign tutor will be actively managing or working at the centre, your company must first register an account with the Expatriate Services Division and then apply for an Employment Pass. In addition, a Teaching Permit must be obtained from the MOE.

Q: What are the risks of running an unregistered tuition centre?
A: Under Section 102 of the Education Act 1996, the Registrar General or the public officer or the police officer have the power to close the unregistered tuition centre.

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