How to Start a Manpower Supply Business in Malaysia in 4 Steps

A manpower supply company is a business providing workers for industries. This business has been helping many enterprises experiencing labour shortages, especially in Malaysia. 

A manpower agency in Malaysia provides the process of hiring, preparing, and assigning people to positions. Besides, they also evaluate industry changes, technological breakthroughs, and market trends to be able to provide the best workers for industries. 

In general, this company plays an important role in the Malaysian labour market. However, despite its significance, establishing a manpower agency in Malaysia can be challenging since it requires procedures. 

Therefore, understanding how to start a manpower supply business in Malaysia is essential to make sure it runs smoothly. This guide will give you hints on how to start a manpower supply business in Malaysia. 

How to Start a Manpower Supply Business in Malaysia

Starting a manpower supply company in Malaysia may require documents and regulations you should fulfil. Here are the steps of how to start a manpower supply business in Malaysia you can take note of. 
 

1. Set Up and Register Your Company

The first step of how to start a manpower supply business in Malaysia is establishing your company. You must have a commercial space that exceeds the Ministry of Manpower's regulations to launch a manpower supply company. 

This entails having an office area in addition to at least two distinct rooms for staff lodging and document storage. After your company is set up, you must register it with the Companies Commission of Malaysia.

There are some documents you should prepare in setting up your manpower supply agency, such as:

• Certificate of incorporation.
• Certificate of name change.
• Return of information for the directors, managers and secretaries.
• Memorandum and articles of association.
• Return of allocation of shares.
• RM50,000 bank statement verification.
• A proposal to create an employment agency.
• Cash flow throughout the initial half-year of the company's activities.
   

In addition, you should prepare the document for all shareholders, such as:

• Personal data.
• Copies of NRIC or birth certificate or passport.
• Borang BE or the letter of acknowledgement from IRB.
• Remarks from experts or other prominent figures.
• Statement of solvency issued by Malaysia's Insolvency Department. 

Equally important, there will be a minimum paid-up capital of RM500,000 necessary if you do not wish your business name to start with "Agensi Pekerjaan" or “Recruitment Agency.”

2. Obtain an Employment Agency License

The next step of how to start a manpower supply business in Malaysia is obtaining an employment agency licence from the Ministry of Human Resources Malaysia. There are some requirements you should obey to get this licence, such as:

• Before the business opens, licences must be secured.
• Any business that does business as a private employment agency will need to obtain this licence.
• Only those who run executive search or recruiting firms are eligible for this licence.
• Businesses operating under a private employment agency will not be eligible for licences unless the person operating the firm is a citizen of Malaysia and the firm is mostly owned by Malaysians, who also own the majority of its shares.

3. Enrol the Qualification Licence

The relevant licensing body must receive an application from anybody wishing to be eligible to operate a Manpower Supply Business. Below is the data you must input into the application:

• Your business name and address.
• Your personal information (name, address, and phone number).
• An explanation of the company's practices.
• The names and contact information of each of the company's officials, directors, partners, and owners.
• The duration of the applicant's involvement in providing labour services.
• The quantity of workers the applicant presently employs and provides manpower services.
• Any further information that the licensing body could ask for.
   

4. Prepare for Business Tax Obligations

Last but not least, you will be responsible for business tax obligations in the manpower supply sector. 

There are three main taxes you should pay in running your business, which are:

• Federal taxes: These taxes include federal income tax on benefits, import duties, payroll taxes, and excise taxes.
• State taxes: The state in which your firm is located will determine how much state tax you owe. These taxes consist of sales tax, unemployment insurance tax, and state income tax. 
• Local taxes: You may also need to pay local taxes, such as company licence fees and property taxes. The governing body where your firm is located will determine how much local tax you have to pay. 

Those are four ways how to start a manpower business in Malaysia you should prepare before establishing your company. Not only the legal steps you need to take, you should also consider how you market your business to targeted audiences. 

In such a scenario, SEO could be necessary to advertise your company on search engines. You can increase your internet visibility and draw in more potential clients by using SEO.

Additionally, by producing excellent content that is optimised for search engines, you may target potential clients with pertinent keywords, increasing website traffic and income.

Get in-depth and professional SEO Services from cmlabs to help you create SEO-friendly content and optimise your website immediately!