Start a business in Malaysia — the company registers first
In plain termsMalaysia is employer-first. The company registers with ESD and clears a paid-up capital floor, then it sponsors the Employment Pass — including a founder's own. There is no personal founder pass that skips the entity.
Step one — the employer registers
The employing company registers with ESD before any pass (yes), a charter of about 5 working days when documents are complete.
Paid-up capital floors
| Ownership | Paid-up capital floor |
|---|---|
| Locally owned | 250000 MYR |
| Joint venture | 350000 MYR |
| 100% foreign-owned | 500000 MYR |
| Foreign-owned wholesale / retail / trade | 1000000 MYR |
Sector blockRestricted distributive-trade sectors cannot file a long-term Employment Pass (yes). Check your activity before you plan around a resident founder pass.
Step two — the pass, with a succession plan
Once registered, the company files your Employment Pass. Category II and III need a defined succession plan (yes), and pass duration is counted against the employing company (yes). Read the salary band on the Employment Pass page.
Evidence and sources53 dated facts for Earn in Malaysia — Employment Pass, Professional Visit Pass and Residence Pass-Talent
The readable briefing above uses these cells. Open a source only when you need to verify a number, date, or legal gate.
- Revised Expatriate Salary Policy applies to applications fromESD (Immigration Department of Malaysia) announcement 'Revised Employment Pass Salary Policy Effective 1 June 2026', 15 Jan 2026, citing MOHA press release 14 Jan 2026 and Cabinet approval 17 Oct 2025 — the revised thresholds apply to all new and renewal Employment Pass applications submitted on or after 1 June 2026; complete applications submitted before that date are assessed under the previous policy2026-06-01checked Aug 2026
- Employment Pass categoriesESD (Immigration Department of Malaysia) announcement 'Revised Employment Pass Salary Policy Effective 1 June 2026', 15 Jan 2026, citing MOHA press release 14 Jan 2026 and Cabinet approval 17 Oct 2025 — Employment Pass Category I, Category II and Category III each carry their own basic-salary floor and maximum employment durationI / II / IIIchecked Aug 2026
- Minimum basic monthly salary, Employment Pass Category I (from 1 Jun 2026)ESD (Immigration Department of Malaysia) announcement 'Revised Employment Pass Salary Policy Effective 1 June 2026', 15 Jan 2026, citing MOHA press release 14 Jan 2026 and Cabinet approval 17 Oct 2025 — Category I revised minimum basic monthly salary RM20,000 and above (previously RM10,000); Employment Pass duration up to 10 years20000 MYRchecked Aug 2026
- Lower bound of Employment Pass Category II basic monthly salary band (from 1 Jun 2026)ESD (Immigration Department of Malaysia) announcement 'Revised Employment Pass Salary Policy Effective 1 June 2026', 15 Jan 2026, citing MOHA press release 14 Jan 2026 and Cabinet approval 17 Oct 2025 — Category II revised minimum basic monthly salary RM10,000 – RM19,999 (previously RM5,000 – RM9,999)10000 MYRchecked Aug 2026
- Upper bound of Employment Pass Category II basic monthly salary band (from 1 Jun 2026)ESD (Immigration Department of Malaysia) announcement 'Revised Employment Pass Salary Policy Effective 1 June 2026', 15 Jan 2026, citing MOHA press release 14 Jan 2026 and Cabinet approval 17 Oct 2025 — Category II revised band ends at RM19,999; at RM20,000 and above the application sits in Category I19999 MYRchecked Aug 2026
- Lower bound of Employment Pass Category III basic monthly salary band (from 1 Jun 2026)ESD (Immigration Department of Malaysia) announcement 'Revised Employment Pass Salary Policy Effective 1 June 2026', 15 Jan 2026, citing MOHA press release 14 Jan 2026 and Cabinet approval 17 Oct 2025 — Category III revised minimum basic monthly salary RM5,000 – RM9,999 (previously RM3,000 – RM4,999)5000 MYRchecked Aug 2026
- Upper bound of Employment Pass Category III basic monthly salary band (from 1 Jun 2026)ESD (Immigration Department of Malaysia) announcement 'Revised Employment Pass Salary Policy Effective 1 June 2026', 15 Jan 2026, citing MOHA press release 14 Jan 2026 and Cabinet approval 17 Oct 2025 — Category III revised band ends at RM9,999; at RM10,000 the application sits in Category II9999 MYRchecked Aug 2026
- Employment Pass Category III floor for manufacturing / MRS employers (from 1 Jun 2026)MOHA / Immigration Department FAQ 'Revised Expatriate Salary Policy Effective 1 June 2026' (updated 12 Feb 2026) Q10 — for companies in the Manufacturing Sector and Manufacturing-Related Services (MRS) under MITI / MIDA purview, the Employment Pass Category III band is RM7,000 – RM9,999; manufacturing sub-sectors must hold a Manufacturing Licence or a Manufacturing Exemption Confirmation Letter7000 MYRchecked Aug 2026
- Employment Pass salary floors are measured on basic salary onlyMOHA / Immigration Department FAQ 'Revised Expatriate Salary Policy Effective 1 June 2026' (updated 12 Feb 2026) Q9 — the salary requirement is based on basic salary only; allowances and other payments are not included in the calculationyeschecked Aug 2026
- Maximum Employment Pass duration, Category IESD (Immigration Department of Malaysia) announcement 'Revised Employment Pass Salary Policy Effective 1 June 2026', 15 Jan 2026, citing MOHA press release 14 Jan 2026 and Cabinet approval 17 Oct 2025 — Category I Employment Pass duration up to 10 years10 yearschecked Aug 2026
- Maximum Employment Pass duration, Category II (succession plan required)ESD (Immigration Department of Malaysia) announcement 'Revised Employment Pass Salary Policy Effective 1 June 2026', 15 Jan 2026, citing MOHA press release 14 Jan 2026 and Cabinet approval 17 Oct 2025 — Category II Employment Pass duration up to 10 years with a succession plan10 yearschecked Aug 2026
- Maximum Employment Pass duration, Category III (succession plan required)ESD (Immigration Department of Malaysia) announcement 'Revised Employment Pass Salary Policy Effective 1 June 2026', 15 Jan 2026, citing MOHA press release 14 Jan 2026 and Cabinet approval 17 Oct 2025 — Category III Employment Pass duration up to 5 years with a succession plan5 yearschecked Aug 2026
- Succession plan is defined in the primary FAQ, not left to the employerMOHA / Immigration Department FAQ 'Revised Expatriate Salary Policy Effective 1 June 2026' (updated 12 Feb 2026) Q4 — a succession plan is a structured employer plan to prepare local employees to replace expatriate roles within the stipulated employment period: identifying the roles to be taken over, training and mentoring including knowledge transfer, a timeline for readiness, and continuity planning so the transition does not affect productivityyeschecked Aug 2026
- Employment duration clock is tied to the employer, not the personMOHA / Immigration Department FAQ 'Revised Expatriate Salary Policy Effective 1 June 2026' (updated 12 Feb 2026) Q11–Q12 — the expatriate employment period is calculated against the employing company from 1 June 2026; on a change of company the clock starts from the date of employment with the new company, and on a change of pass category from the issuance date of the new passyeschecked Aug 2026
- The Category III minimum-salary exemption route is closed from 1 Jun 2026MOHA / Immigration Department FAQ 'Revised Expatriate Salary Policy Effective 1 June 2026' (updated 12 Feb 2026) Q18 — minimum salary exemption applications for Employment Pass Category III will no longer apply starting 1 June 2026yeschecked Aug 2026
- The Category III cooling-off period is removed under the revised policyMOHA / Immigration Department FAQ 'Revised Expatriate Salary Policy Effective 1 June 2026' (updated 12 Feb 2026) Q21 — the cooling-off period will no longer apply to Employment Pass Category III following implementation of the revised policyyeschecked Aug 2026
- Whether a Category III holder may bring dependants turns on the pass issue dateMOHA / Immigration Department FAQ 'Revised Expatriate Salary Policy Effective 1 June 2026' (updated 12 Feb 2026) Q20 — Category III passes issued before 1 June 2026 remain under the existing policy, which does not allow dependants; Category III applications submitted from 1 June 2026 are subject to the revised policyyeschecked Aug 2026
- Earliest Employment Pass renewal filing before expiryMOHA / Immigration Department FAQ 'Revised Expatriate Salary Policy Effective 1 June 2026' (updated 12 Feb 2026) Q16 — valid pass holders need not resubmit, but renewal applications may be submitted as early as three months before pass expiry and fall under the revised policy if made after 1 June 20263 monthschecked Aug 2026
- A stay stamp alone is not Malaysian Employment Pass work authorityESD Online Guidebook V6 — Employment Pass applications require approval before entering for employment; Dependant Pass / long-term social visit paths are listed as separate instruments from EPyeschecked Aug 2026
- A Malaysian employer must register on ESD Online before filing expatriate passesESD Online Guidebook V6 (14 Apr 2025) FAQ — all companies will need to register via ESD Online as a first step; ESD-approved companies can then apply for Employment Pass, Professional Visit Pass-Expert, Dependant Pass and Social Visit Pass (Long Term)yeschecked Aug 2026
- ESD company-registration charterESD Online Guidebook V6 FAQ — company registration process takes five (5) working days to status notification, subject to complete documentation5 working dayschecked Aug 2026
- ESD paid-up capital floor — 100% local-owned companyESD Online Guidebook V6 — paid-up capital for 100% locally owned companies: RM250,000 (not applicable to public limited companies, companies limited by guarantee, associations and organisations under specific acts)250000 MYRchecked Aug 2026
- ESD paid-up capital floor — joint ventureESD Online Guidebook V6 — paid-up capital for joint-venture companies: RM350,000; joint ventures also need minimum 30% foreign shareholding350000 MYRchecked Aug 2026
- ESD paid-up capital floor — 100% foreign-owned companyESD Online Guidebook V6 — paid-up capital for 100% foreign-owned companies: RM500,000500000 MYRchecked Aug 2026
- ESD paid-up capital floor — foreign-owned WRT companyESD Online Guidebook V6 — foreign-owned companies (foreign equity 51%+) in Wholesale, Retail and Trade (WRT) sectors: RM1,000,000 paid-up, with mandatory valid WRT approval letter where applicable1000000 MYRchecked Aug 2026
- Restricted distributive-trade sectors cannot file long-term Employment PassesESD Online Guidebook V6 note (2) — under KPDN Guidelines on Foreign Participation in the Distributive Trade Services Malaysia, applications for any long-term pass (more than 3 months) including Employment Pass for companies in those restricted sectors are NOT ALLOWEDyeschecked Aug 2026
- ICT companies on ESD Online are limited to Professional Visit Pass-ExpertESD Online Guidebook V6 note (3) — the Information, Technology & Communications (ICT) sector is only allowed to apply for Professional Visit Pass-Expert (PVP) via ESD Onlineyeschecked Aug 2026
- Approval Letter is required before entering Malaysia to take up the jobESD Online Guidebook V6 Employment Pass / PVP conditions — all applications must obtain an Approval Letter before entering Malaysia for the purpose of employmentyeschecked Aug 2026
- Employment Pass basic salary must be paid by the Malaysian employer in MYRESD Online Guidebook V6 employment-contract checklist — basic salary (excluding gross salary / allowances / incentives / bonuses) must be paid by the Malaysian company and stated in Ringgit Malaysiayeschecked Aug 2026
- A dual-function job title is not allowed on an Employment PassESD Online Guidebook V6 employment-contract checklist — dual function position is NOT ALLOWED; the position in the contract, ESD Online, job description and Support/Approval Letter must be the sameyeschecked Aug 2026
- Minimum relevant experience with a degree for an Employment Pass postESD Online Guidebook V6 — minimum for an expatriate post: Degree and above with at least 3 years of experience in the relevant field3 yearschecked Aug 2026
- Minimum relevant experience with a diploma for an Employment Pass postESD Online Guidebook V6 — Diploma with at least 5 years of experience in the relevant field5 yearschecked Aug 2026
- Minimum relevant experience with a technical certificate for an Employment Pass postESD Online Guidebook V6 — Technical Certificate or equivalent with at least 7 years of experience in the relevant field7 yearschecked Aug 2026
- A Dependant Pass does not authorise employmentESD Online Guidebook V6 Dependant Pass features — Employment not allowed and requires conversion to Employment Passnochecked Aug 2026
- A Social Visit Pass (Long Term) does not authorise employmentESD Online Guidebook V6 Social Visit Pass (Long Term) features — Employment is not allowed and requires conversion to Employment Pass; study is not allowed and requires conversion to Student Passnochecked Aug 2026
- Professional Visit Pass is the short earn door for people paid by an overseas employerMIDA Procedures and Guidelines on Application for Professional Visit Pass (1 June 2026) §A/B — PVP allows foreign nationals to enter Malaysia temporarily to provide professional services, technical expertise or training without being employed by a Malaysian company; PVP holders are employed by overseas companiesyeschecked Aug 2026
- Professional Visit Pass maximum durationESD Online Guidebook V6 PVP — the maximum duration for an expatriate to hold PVP is 12 months; no extensions are allowed beyond 12 months. MIDA PVP Guidelines (1 June 2026) §A — valid for a maximum duration of 12 months and is not extendable12 monthschecked Aug 2026
- Professional Visit Pass is not extendable past 12 monthsESD Online Guidebook V6 PVP + MIDA PVP Guidelines (1 June 2026) — no extensions beyond the 12-month maximumyeschecked Aug 2026
- Professional Visit Pass holders cannot bring dependants on a Dependant PassMIDA PVP Guidelines (1 June 2026) §C.11 — PVP holders are not entitled to apply for a Dependant Passyeschecked Aug 2026
- Professional Visit Pass is tied to one Malaysian sponsorMIDA PVP Guidelines (1 June 2026) §C.10 — the pass is specific to the Malaysian sponsoring company; PVP holders are NOT allowed to work for other companies in Malaysia. ESD Guidebook — change of employer requires cancel + exit before a new PVPyeschecked Aug 2026
- MIDA processing fee per Professional Visit Pass applicationMIDA PVP Guidelines (1 June 2026) §F.7 — processing fees (exclude 8% SST): MIDA RM1,200.00 for each PVP application; Immigration RM180/RM360 pass issuance + visa fee RM6–RM501200 MYRchecked Aug 2026
- MIDA Professional Visit Pass processing charterMIDA PVP Guidelines (1 June 2026) §F.3 — client charter processed within 15 working days (including Immigration work process), subject to completeness15 working dayschecked Aug 2026
- MIDA assesses Professional Visit Pass for manufacturing and listed MIDA services sectorsMIDA PVP Guidelines (1 June 2026) §C.1 — sector: manufacturing and selected services sectors under MIDA’s purview; the Malaysian sponsoring company must be within sectors regulated by MIDAyeschecked Aug 2026
- Professional Visit Pass filing channel splits by sponsor sectorESD Online Guidebook V6 lists Professional Visit Pass-Expert among MYXpats Centre services for ESD-registered companies; MIDA PVP Guidelines (1 June 2026) route manufacturing and selected MIDA services through MIDA Expatriate System via Xpats Gateway. Which channel applies depends on the sponsor’s sectorESD Online / MIDA Expatriate Systemchecked Aug 2026
- Professional Visit Pass-Expert is not the same door as DE RantauContrast grounded in primary: MIDA/ESD PVP-Expert is a host-sponsored short assignment while the holder stays on an overseas payroll; MDEC DE Rantau is a separate Professional Visit Pass track for remote digital nomads. Do not treat the two as the same dooryeschecked Aug 2026
- Residence Pass-Talent lengthTalentCorp Residence Pass-Talent page — RP-T is a 10-year renewable visa for highly skilled expatriate talent, introduced with MOHA and the Immigration Department10 yearschecked Aug 2026
- Residence Pass-Talent minimum basic monthly salaryTalentCorp RP-T eligibility — earns a basic monthly salary of RM15,000 which excludes any allowances and/or bonuses; yearly basic salary declared should align (at least RM180,000 per annum)15000 MYRchecked Aug 2026
- Minimum consecutive Employment Pass years before Residence Pass-TalentTalentCorp RP-T eligibility — has worked in Malaysia under the Employment Pass for a minimum of three (3) consecutive years at the time of application; holds a valid Employment Pass with more than 3 months validity at submission3 yearschecked Aug 2026
- Minimum total work experience for Residence Pass-TalentTalentCorp RP-T eligibility — possesses at least 5 years of total work experience5 yearschecked Aug 2026
- Minimum recent Malaysian tax years paid for Residence Pass-TalentTalentCorp RP-T eligibility — has a Malaysian income tax file number and has paid income tax for the most recent 2 years (minimum) at the time of application2 yearschecked Aug 2026
- Residence Pass-Talent is not tied to one Employment Pass employerTalentCorp Residence Pass-Talent highlights — have the flexibility to change employers without converting the passyeschecked Aug 2026
- An RP-T spouse can seek employment without a separate Employment PassTalentCorp Residence Pass-Talent highlights — spouse (legally married) is eligible for the RP-T and as such can seek employment in Malaysia without the need to apply for an Employment Passyeschecked Aug 2026
- Malaysia has not published an Indo/Thai-style numbered closed-occupation list for expatriatesAs of check date, ESD / MOHA primary publish salary floors, succession plans and sector gates (distributive-trade long-pass block; ICT→PVP-only on ESD) rather than a numbered closed-occupation schedule of the Thailand reserved-list / Indonesia personalia-list type. Do not invent a closed-job countyeschecked Aug 2026
Common questions
Can I sponsor my own Employment Pass as a founder?
Only through the company. Malaysia's machine is employer-first: the entity registers with ESD and clears a paid-up capital floor before it can file any Employment Pass — including yours. There is no personal founder visa that skips the company.
What paid-up capital does the company need?
On ESD Online: RM250,000 for a locally owned company, RM350,000 for a joint venture, RM500,000 for a 100% foreign-owned company, and RM1,000,000 for a foreign-owned wholesale, retail or trade business. This is a registration floor, not a fee.
How long does employer registration take?
About five working days once documents are complete, per the ESD Guidebook. That is the charter for company registration with ESD, before any individual pass is filed.
Are any sectors blocked from a long-term pass?
Yes. Restricted distributive-trade sectors cannot file a long-term Employment Pass under ESD notes. Confirm your business activity is not on that list before you build the plan around a resident founder pass.
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