A Quick Guide To Malaysian Employment Passes For Foreign Shareholders

For foreign entrepreneurs who intend to incorporate a company in Malaysia and relocate here as shareholder or director, a Category 1 Employment Pass (EP) is the most common solution.

As EPs are an employer visa applied for by a hiring company, it carries eligibility requirements for both expatriate and company, and below we explain everything foreign investors should know.

Here’s how we’ve broken it down:

• an overview of EP Category 1
• company requirements
• director / shareholder requirements, and
• details about the application process

Let’s begin.

Overview

A Category 1 EP is used to hire expats for top leadership roles – including directors and shareholders – with a minimum pay of RM20,000 / month.

The visa has a maximum validity of up to 10 years, though in practice is often broken down into approvals of several years at a time which can be renewed if the arrangement continues and requirements are met.

For the duration of their visa’s validity, the holder is allowed to employ a foreign maid and to bring the following family members as dependents:

• spouse & children under 18 via Dependent Pass
• children 18–25 and parents / parents-in-law via Long-Term Social Visit Pass

Company eligibility

To qualify for an Employment Pass application, the company must meet minimum paid up capital based on foreign shareholding:

• RM250,000 for 100% locally owned companies
• RM350,000 for joint ventures with at least 30% foreign equity
• RM500,000 for 100% foreign owned companies

Additionally, if it has 51% or more foreign shareholding, it will likely also need a valid WRT / USS license, either of which require a minimum paid-up capital of RM1 million.

Foreign director / shareholder eligibility

A foreigner can qualify as an ‘expatriate’ by meeting Immigration’s definition of ‘skilled foreign talent’ or ‘company shareholder.’

Foreign director

• Degree and above, with at least 3 years’ experience in the relevant field;
• Diploma, with at least 5 years’ experience in the relevant field;
• Technical Certificate or equivalent, with at least 7 years’ experience in the relevant field

Foreign shareholder

• have a minimum 30% equity in the company; and
• be an SSM-registered Director / hold a key position in the company

The shareholding also cannot exceed 50% in sectors restricted from foreign ownership by KPDN.

Supporting documents

New EP applications require the following documents: 

• Relevant sector documents (e.g. MIDA, CIDB, etc.)
• Passport (full copy, color)
• CTC academic certificates
• Updated resume / CV
• Employment contract
• Job description on company letterhead
• MyFutureJobs support letter (stamped)
• JTK approval letter

If applying for Dependent Passes simultaneously, prepare documents showing identity and proof of kinship with family members.

Application fee

In short, for a one-year validity period, those handling the EP application themselves can expect around:

• RM2,500 for every principal EP holder, and
• RM700 for every dependent

This only factors in official Immigration fees.

Those applications outsourced to MISHU cost at least RM11,500 for every EP and RM1,700 for every dependent, and for help registering with Immigration for the first time, it’s RM7,000 on top of that.

Our guide to Employment Pass application fees breaks it down in full if you’re interested in learning more, but we’ll proceed assuming you’d like to handle it internally.

Application process & timeline

Like we said, EPs are managed through the hiring company, and applications and renewals are done via Immigration’s Expatriate Services Division (ESD) portal.

For a true first-time EP application, the process typically takes 7 – 8 months and consists of five steps for Category 1 specifically.

Stage	Details	Estimated Timeline
1. ESD Registration	Company profile registration & activation	~2 months
2. JTK / Support Letter	JTK approval & XPats Gateway submission	~1 month
3. EP Application	Full documentation submission & review	~2–3 months
4. Approval & Visa	Approval letter & VDR/eVisa issuance	~2 weeks
5. Endorsement	Sticker endorsement & ePass issuance	~2 weeks

Note: The applicant must NOT be physically present in Malaysia at the time of a new EP application submission, and entering the country during processing may result in rejection.

Good news: Subsequent applications start at Stage 2, reducing follow-up lead times by two months.

Why applications are rejected

We’ve had numerous employers ask us for help after their applications were rejected, and in cases where the requirements are met, here are the five main procedural missteps:

• poor handling of regulatory requirements due to confusing multi-agency rules (ESD, JTK, MDEC, MIDA)
• overlooking policy updates and submitting applications out of order
• submitting incomplete or inconsistent documents that are not Certified True Copies
• not following required formatting standards for academic certificates
• misclassifying role / EP category or failing to align job description and salary with immigration expectations

Any one of these mistakes can cause delays or outright rejection, which not only affects this particular hire, but can cause all future applications by the employer to face added scrutiny.

We say this not to discourage you from applying yourself, but to warn you to be mindful of following the right steps, and we wish you all the best with your application 😊

Let MISHU handle your EP application

Our team enjoys a 98% success rate in securing Employment Passes for foreign directors and shareholders, and if you need help understanding and meeting immigration requirements, get in touch!