Engineering Consultancy Practices (ECPs)

Under the Registration of Engineers Act 1967 (REA) in Malaysia, an Engineering Consultancy Practice (ECP) must be registered with the Board of Engineers Malaysia (BEM) to supply professional engineering services. ECPs can be formed as a sole proprietorship, partnership, or body corporate under Section 7A (single discipline) or Section 7B (multi-disciplinary practice). 

Formation & Structure

Sole Proprietorship: The sole owner must be a Professional Engineer with a Practising Certificate (PEPC). No minimum paid-up capital is required. 
Partnership: All partners in the firm must be registered Professional Engineers with a Practising Certificate (PEPC). 
Body Corporate (Company): Must maintain a formal corporate structure with a minimum paid-up capital of RM50,000. Equity restrictions requiring a minimum percentage of shares to be held by PEPCs were lifted in 2022, allowing shares to be held by any person or corporate body. 

Board Composition & Requirements

Director Control: At least two-thirds (2/3) of the members of the Board of Directors must be Professional Engineers with a Practising Certificate (PEPC). 
Authorized Decision Maker: At least one director must be explicitly authorized by a board resolution to make all final engineering decisions on behalf of the body corporate. 
Scope of Authority: Only a registered ECP or a resident PEPC is legally entitled to submit engineering plans, drawings, designs, or reports to public authorities and clients in Malaysia.