How to Start a Childcare Centre or Kindergarten in Malaysia: TASKA and TADIKA Licensing Guide

Opening a childcare centre or kindergarten is more than starting a business. It involves responsibility for children’s safety, welfare, learning and early development.

In Malaysia, a TASKA and a TADIKA are regulated differently. Before registering the business, choosing premises or beginning renovation, the operator must identify the correct category and understand the relevant ownership and licensing requirements.

TASKA or TADIKA: What Is the Difference?

A TASKA, or Taman Asuhan Kanak-Kanak, provides childcare and early education services mainly for children below four years old. All TASKA must be registered with the Department of Social Welfare Malaysia, known as Jabatan Kebajikan Masyarakat or JKM, under the Child Care Centre Act 1984.

A TADIKA, or private kindergarten, provides preschool education generally for children aged four to six. Private kindergartens must be registered under the Ministry of Education Malaysia through its Private Education Division and the relevant State Education Department.

A centre accepting children from both age categories may need separate TASKA and TADIKA approvals.

Enterprise or Sdn. Bhd.?

Both structures may be considered, subject to the relevant licensing authority’s conditions.

Enterprise

A sole proprietorship or partnership may be suitable for a small, owner-managed centre. However, the owners must be Malaysian citizens or permanent residents, and the business does not provide the same separation between the owners’ personal liabilities and the business.

Sdn. Bhd.

A private limited company is generally more suitable where the owners plan to:

• Open several branches;
• Bring in shareholders or investors;
• Develop a franchise or education brand;
• Employ a larger team;
• Separate personal and business liabilities; or
• Establish formal corporate governance.

A Malaysian private company must have at least one director who ordinarily resides in Malaysia. A qualified company secretary must be appointed within 30 days after incorporation.

For a childcare or kindergarten business with expansion plans, a Sdn. Bhd. normally provides a more structured foundation. However, SSM incorporation does not replace JKM, Ministry of Education or local-authority approvals.

1. Register the Business with SSM

The proposed business activities should accurately describe childcare, preschool education or related services.

For a Sdn. Bhd., the usual incorporation requirements include:

• At least one shareholder;
• At least one share;
• At least one director ordinarily residing in Malaysia;
• A registered office; and
• Appointment of a qualified company secretary.

Company incorporation may be submitted online through SSM’s MyCoID system.

An enterprise may be registered through SSM’s EzBiz platform, but the owner or partners must be Malaysian citizens or permanent residents.

2. Apply for TASKA Registration with JKM

A qualifying TASKA must be registered with JKM before commencing operations.

JKM recognises several TASKA categories, including:

• Institutional TASKA;
• Workplace TASKA;
• Community TASKA; and
• Home-based TASKA.

Applications are generally submitted manually through the District Social Welfare Office responsible for the location of the TASKA.

JKM will review matters including:

• The suitability of the premises;
• Child-to-caregiver ratios;
• Floor space and facilities;
• Safety and hygiene;
• Daily care programmes;
• Food and nutrition;
• Staffing;
• Record keeping; and
• Technical-agency approvals.

JKM’s published guidance also requires caregivers to be Malaysian citizens and at least 18 years old. Operators must attend and pass the recognised KAAK or PERMATA childcare course required by JKM.

3. Apply for TADIKA Approval with the Ministry of Education

A private TADIKA must obtain approval to establish and register the institution through the Ministry of Education and the relevant State Education Department.

The application normally covers:

• The registered owner;
• Shareholding and ownership;
• Financial capability;
• Proposed premises;
• Curriculum;
• Principal and teachers;
• Student capacity;
• Classroom layout;
• Facilities and equipment; and
• Supporting approvals from technical authorities.

Private TADIKA must use the applicable national preschool curriculum and comply with Ministry of Education requirements. The Ministry’s government information page confirms that private kindergarten education generally serves children aged four to six and must be registered with the Ministry.

Applications are currently facilitated through the Ministry’s private-education systems, including the relevant identity and institution-registration platform. The Penang State Education Department confirmed in April 2026 that applicants receive guidance on submitting private-kindergarten applications through the Ministry’s idMe system.

4. Is Bumiputera Shareholding Required?

The requirements are different for TASKA and TADIKA.

TASKA under a Sdn. Bhd.

JKM’s published TASKA registration guidance does not state a general minimum percentage of Bumiputera shareholding.

However, Malaysian-citizenship and qualification requirements apply. Where the TASKA is operated through a company, the operator should ensure that at least one Malaysian-citizen director satisfies JKM’s applicable age and recognised childcare-training conditions.

This is a Malaysian citizenship requirement, not the same as a Bumiputera equity requirement.

TADIKA under a Sdn. Bhd.

The currently published Ministry of Education private-kindergarten guideline states that where a TADIKA is established under a company registered under the Registrar of Companies framework, the company must maintain at least 30% Bumiputera equity.

Therefore, a Sdn. Bhd. intended to operate both a TASKA and TADIKA should generally be structured to meet the more restrictive TADIKA condition.

The Ministry of Education conducted a workshop to review the private-kindergarten establishment guideline in March 2026. Applicants should therefore obtain written confirmation from the relevant State Education Department before issuing shares, transferring shares or finalising the company’s ownership structure.

5. Is Minimum Paid-Up Capital Required?

The Companies Act 2016 does not impose a special universal minimum paid-up capital merely because a company operates a TASKA or TADIKA.

However, the licensing authority may require evidence that the operator has sufficient financial resources to establish and operate the centre.

The paid-up capital should be commercially sufficient to cover:

• Rental deposits;
• Renovation;
• Classroom furniture;
• Childcare equipment;
• Safety installations;
• Teaching materials;
• Salaries;
• Insurance;
• Licensing expenses; and
• Initial working capital.

A nominal amount may be legally possible for incorporation, but it may not demonstrate adequate financial capacity for the licensing application.

As the published TADIKA guideline and its requirements are under review, the applicant should confirm whether a specific minimum paid-up capital or proof of funds currently applies with the relevant State Education Department before incorporation.

6. Obtain Local Authority Approval

Before signing a tenancy agreement or purchasing premises, confirm that the property may legally be used as a TASKA or TADIKA.

Depending on the local council, the operator may require:

• Planning or zoning approval;
• Change-of-use approval;
• Building-plan approval;
• Renovation approval;
• Business-premises licence;
• Signboard licence;
• Parking or traffic arrangements; and
• Approval for educational or childcare use.

A residential house should not automatically be assumed suitable for commercial childcare or kindergarten operations.

MalaysiaBiz confirms that childcare centres require supporting approval from JKM, while kindergartens and educational institutions require approval from the Ministry or Department of Education.

7. Obtain BOMBA and Health Approvals

JKM’s TASKA registration process requires support or approval from relevant technical agencies, which may include:

• The local authority;
• The Fire and Rescue Department of Malaysia;
• The relevant Health Department; and
• Other land or technical agencies where applicable.

Fire-safety requirements may include safe emergency exits, fire extinguishers, alarms, evacuation plans, emergency lighting and safe electrical installations.

Health requirements may include sanitation, kitchen hygiene, toilets, ventilation, food preparation and the general suitability of the premises for children.

These requirements should be confirmed before renovation begins.

8. Employ Qualified Staff

A TASKA or TADIKA must employ suitable and sufficient personnel based on its number of children and approved capacity.

For TASKA, JKM specifies child-to-caregiver ratios according to the children’s ages. Its current public guidance states ratios of 1:3 for children below one, 1:5 for children aged one to three and 1:10 for children aged three to four, subject to different ratios for children with special needs.

For TADIKA, principals and teachers must comply with the qualifications and conditions imposed by the Ministry of Education.

The employer must also manage:

• Employment contracts;
• Payroll;
• EPF contributions;
• SOCSO and Employment Insurance;
• Employer tax deductions;
• Staff training;
• Child-protection procedures; and
• Background and suitability screening.

9. Maintain Tax and Corporate Compliance

After incorporation, the business must also address:

• LHDN corporate tax compliance;
• CP204 estimated tax instalments;
• Annual tax returns;
• Employer tax obligations;
• EPF, SOCSO and payroll;
• e-Invoice requirements;
• Proper accounting records; and
• Transfer pricing for related-party transactions.

The SST treatment should be reviewed according to the exact childcare, education, meal and other services provided.

Set Up Your TASKA or TADIKA with Servecorp Group

Opening a childcare centre or kindergarten requires coordination between SSM, JKM, the Ministry of Education, the local authority, BOMBA, health authorities and other technical agencies.

Servecorp Group provides one-stop business setup and compliance support, including:

• Enterprise and Sdn. Bhd. registration;
• Company secretarial services;
• Shareholding equity planning;
• Paid-up capital planning;
• Accounting and financial reporting;
• Corporate tax compliance;
• Payroll and employer compliance;
• SST advisory;
• Transfer pricing advisory and documentation; and
• Ongoing corporate advisory services.

Planning to Open a Childcare Centre or Kindergarten?

Before selecting premises, incorporating the company or beginning renovation, identify whether your business is a TASKA, TADIKA or a combination of both.

Contact Servecorp Group today and let our team guide you from the right business structure and ownership planning to licensing, accounting, taxation, payroll and ongoing compliance.

Servecorp Group
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Your Trusted Corporate Advisory Partner in Penang, Malaysia

Build your childcare and education business on a safe, responsible and compliant foundation.