{"id":442,"date":"2026-11-11T01:30:00","date_gmt":"2026-11-11T01:30:00","guid":{"rendered":"https:\/\/vivosgroup.com\/my\/?p=442"},"modified":"2026-11-10T08:06:13","modified_gmt":"2026-11-10T08:06:13","slug":"malaysia-employment-pass-own-company","status":"publish","type":"post","link":"https:\/\/vivosgroup.com\/my\/insights\/malaysia-employment-pass-own-company\/","title":{"rendered":"Can You Get a Malaysia Employment Pass Through Your Own Company? (2026)"},"content":{"rendered":"\n
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Insights \u00b7 Malaysia Work Passes<\/p>\n\n\n

Can You Get a Malaysia Employment Pass Through Your Own Company? (2026)<\/h1>\n\n\n

As at November 2026, a foreign founder can sponsor their own Employment Pass through a Malaysian Sdn. Bhd. once the company has RM500,000 paid-up capital (RM1,000,000 if it needs a WRT licence), is registered with Immigration’s ESD, holds JTKSM approval, and pays the founder at least RM5,000 basic a month.<\/p>\n\n\n

This guide covers what your new Sdn. Bhd. must have in place before it can sponsor you, which Employment Pass category your own salary puts you in, the order of approvals, the documents at each stage and the reasons founder applications fail.<\/p>\n\n<\/div>\n\n\n\n

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Requirement<\/th>Figure or rule (as at 10 November 2026)<\/th>Issuing body<\/th><\/tr>
Paid-up capital, 100% foreign-owned company<\/td>RM500,000<\/td>Immigration Department, ESD<\/td><\/tr>
Paid-up capital, joint venture (min. 30% foreign equity)<\/td>RM350,000<\/td>Immigration Department, ESD<\/td><\/tr>
Paid-up capital, foreign-owned company that needs a WRT licence<\/td>RM1,000,000<\/td>Immigration Department, ESD<\/td><\/tr>
ESD company registration<\/td>14 working days once documents are complete<\/td>Immigration Department, ESD<\/td><\/tr>
Employment Pass Category I<\/td>RM20,000 basic a month and above<\/td>Immigration Department, from 1 June 2026<\/td><\/tr>
Employment Pass Category II<\/td>RM10,000 to RM19,999 basic a month<\/td>Immigration Department, from 1 June 2026<\/td><\/tr>
Employment Pass Category III<\/td>RM5,000 to RM9,999 basic a month (RM7,000 to RM9,999 in manufacturing and related services)<\/td>Immigration Department, from 1 June 2026<\/td><\/tr>
Prior approval for any expatriate hire<\/td>Section 60K, Employment Act 1955; fine up to RM100,000, up to 5 years’ jail, or both<\/td>JTKSM<\/td><\/tr>
Appeal against a rejection<\/td>Within 14 days of rejection; review up to 30 working days<\/td>MYXpats \/ Immigration Department<\/td><\/tr><\/tbody><\/table><\/figure>\n\n<\/div>\n\n\n\n
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Can a foreigner set up a Sdn. Bhd. and get an Employment Pass through it?<\/h2>\n\n\n

Yes. A foreign founder can own 100% of a Sdn. Bhd. in most service sectors and have that company sponsor their Employment Pass. The company, not the founder, is the applicant, so it must qualify as an employer before your own application can start.<\/p>\n\n\n

There are three gates. The company must meet the capital and registration rules of the Immigration Department’s Expatriate Services Division (ESD). It must obtain Labour Department (JTKSM) approval under Section 60K of the Employment Act 1955. Then it must pay you a basic salary that fits an Employment Pass category.<\/p>\n\n\n

Most founders go through ESD. If the company is in manufacturing or a MIDA-regulated selected service, the application goes to MIDA instead, through the MIDA Expatriate System, which became the only submission channel for those companies on 1 June 2026<\/a>.<\/p>\n\n\n

One shortcut does not work. The ESD Investor Pass FAQ<\/a> states that investors who already own a Malaysian company or sit as a director are not eligible for the Investor Pass. Once you incorporate, the Employment Pass (or a Professional Visit Pass for short stays) is the route. Ownership limits by sector are covered in our guide to foreign-owned company rules in Malaysia<\/a>.<\/p>\n\n<\/div>\n\n\n\n

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How much paid-up capital does your company need before it can sponsor you?<\/h2>\n\n\n

A wholly foreign-owned Sdn. Bhd. needs RM500,000 paid-up capital to register with ESD. A joint venture with at least 30% foreign equity needs RM350,000. A foreign-owned company that must hold a Wholesale, Retail and Trade (WRT) licence needs RM1,000,000.<\/p>\n\n\n

Ownership or sector<\/th>Minimum paid-up capital<\/th>Source<\/th><\/tr>
100% Malaysian-owned<\/td>RM250,000<\/td>ESD FAQ; MIDA EP Guidelines (1 June 2026)<\/td><\/tr>
Joint venture, min. 30% foreign equity<\/td>RM350,000<\/td>ESD FAQ; MIDA EP Guidelines (1 June 2026)<\/td><\/tr>
100% foreign-owned<\/td>RM500,000<\/td>ESD FAQ; MIDA EP Guidelines (1 June 2026)<\/td><\/tr>
Foreign-owned, WRT licence required<\/td>RM1,000,000<\/td>ESD FAQ; KPDN distributive trade guideline<\/td><\/tr>
MIDA Key Post (manufacturing or selected services)<\/td>Foreign paid-up capital of at least RM1,000,000<\/td>MIDA EP Guidelines (1 June 2026)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n

The Companies Act 2016 has no general minimum capital for a Sdn. Bhd. You can incorporate with RM1. The RM500,000 is an immigration condition, not a company law one, so plan it before you fix your share structure. Our Sdn. Bhd. registration guide<\/a> covers incorporation itself.<\/p>\n\n\n

The capital must actually be paid up. Shares must be allotted and the return of allotment lodged with SSM before ESD will accept the company. A board resolution or a promise to inject funds later does not count.<\/p>\n\n\n

The MIDA route has its own test. For a Key Post, the high-level managerial role a founder would normally hold, MIDA’s guidelines require foreign paid-up capital of at least RM1,000,000 on top of the ownership tiers above.<\/p>\n\n<\/div>\n\n\n\n

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Which Employment Pass category will you fall into as the founder?<\/h2>\n\n\n

Your category depends only on the basic monthly salary your own company pays you. Since 1 June 2026, Category I starts at RM20,000, Category II covers RM10,000 to RM19,999 and Category III covers RM5,000 to RM9,999. Allowances, bonuses and pay outside Malaysia do not count.<\/p>\n\n\n

Category<\/th>Basic salary a month (from 1 June 2026)<\/th>Maximum period with same employer<\/th>Dependants<\/th>Succession plan<\/th><\/tr>
I<\/td>RM20,000 and above<\/td>Up to 10 years<\/td>Yes<\/td>Not required<\/td><\/tr>
II<\/td>RM10,000 to RM19,999<\/td>Up to 10 years<\/td>Yes<\/td>Mandatory from 1 January 2027<\/td><\/tr>
III<\/td>RM5,000 to RM9,999 (RM7,000 to RM9,999 in manufacturing and related services)<\/td>Up to 5 years<\/td>Yes, for applications from 1 June 2026<\/td>Mandatory from 1 January 2027<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n

Source: Immigration Department, Revised Expatriate Salary Policy<\/a>, and MIDA’s announcement on the new expatriate employment policy.<\/p>\n\n\n

This is where founders get caught. Many plan to pay themselves little in year one and take dividends later. Immigration measures basic salary that is taxable in Malaysia. If you pay yourself RM9,000 basic and RM6,000 in allowances, you are in Category III, with the shorter period and the succession plan that comes with it.<\/p>\n\n\n

RM10,000 a month is RM120,000 a year from a company that may have little revenue yet. Budget for it alongside the capital. Our Employment Pass salary thresholds guide<\/a> covers the bands, transition rules and renewals.<\/p>\n\n<\/div>\n\n\n\n

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What is the order of steps from incorporation to your own pass?<\/h2>\n\n\n

Incorporate first, capitalise second, register with ESD third, obtain JTKSM approval fourth, then file the Employment Pass. Each step depends on the one before it, so the order matters more than speed at any single stage.<\/p>\n\n\n

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  1. Incorporate the Sdn. Bhd. with SSM.<\/strong> Appoint at least one director who ordinarily resides in Malaysia and a licensed company secretary.<\/li>\n\n\n
  2. Open a corporate bank account and pay up the capital.<\/strong> Allot the shares and lodge the return of allotment with SSM.<\/li>\n\n\n
  3. Secure premises and licences.<\/strong> Sign a tenancy agreement, get a company phone line, and obtain any local authority (PBT) licence, WRT licence or MIDA approval your activity needs.<\/li>\n\n\n
  4. Register the company with ESD.<\/strong> Submit the online registration with documents. A director must be present to submit the signed Letter of Undertaking. ESD states 14 working days once documents are complete.<\/li>\n\n\n
  5. Submit the expatriate post projection.<\/strong> ESD’s client charter gives 5 working days for projection submissions.<\/li>\n\n\n
  6. Obtain JTKSM Section 60K approval through Xpats Gateway.<\/strong> Only a company director or authorised representative can submit. Obtain the MYFutureJobs acknowledgement letter unless the post is exempt.<\/li>\n\n\n
  7. File the Employment Pass application through MYXpats.<\/strong> If you are outside Malaysia, apply for the Visa with Reference (VDR) at the same time.<\/li>\n\n\n
  8. Enter Malaysia and complete pass issuance.<\/strong> The VDR is issued on presenting the approval letter at the MYXpats Centre counter.<\/li>\n<\/ol>\n\n\n
    Stage<\/th>Official processing time<\/th>Source<\/th><\/tr>
    ESD company registration<\/td>14 working days after complete documents<\/td>ESD FAQ<\/td><\/tr>
    Expatriate post projection<\/td>5 working days<\/td>ESD FAQ<\/td><\/tr>
    JTKSM Section 60K approval<\/td>5 working days (JTKSM FAQ); 10 working days (Xpats Gateway FAQ)<\/td>JTKSM; Xpats Gateway<\/td><\/tr>
    Employment Pass decision<\/td>5 working days after complete documents<\/td>MYXpats FAQ<\/td><\/tr>
    MIDA route (all stages, incl. Immigration)<\/td>15 working days after complete application<\/td>MIDA EP Guidelines (1 June 2026)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n

    These clocks start only once a file is complete. They exclude incorporation, banking, premises and queries, so plan your move around the whole chain.<\/p>\n\n<\/div>\n\n\n\n

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    What documents do you need at each stage?<\/h2>\n\n\n

    ESD registration needs company and premises documents. JTKSM and the Employment Pass need documents about you and the role. Prepare both sets in parallel, because the personal documents take longest to certify and translate.<\/p>\n\n\n

    For ESD company registration<\/strong>, per the ESD company registration FAQ<\/a>:<\/p>\n\n\n