Malaysia Company Formation for Foreigners & Work Permit

Work Permit | DP10 Visa Malaysia

A Foreigner who is Director/Shareholder of a Malaysian company can apply DP10 Visa or Work Permit as “Company Director” including Dependent Pass for immediate family members (husband/wife, children under 18 years and parents).

After Company Registration in Malaysia

Once your company is incorporated with Paid Up capital, now you are allowed to start the business. You are the owner of the company. You can start the business right now! Malaysia has already given you the ownership of your business to give you peace of mind. There are many western companies (e.g Microsoft, HP etc..) having the business in Malaysia. The owners of such companies are doing their business without any problem. So you can also start your business same like such companies. Most of such companies are running their business through “local Malaysian staff”. So, you can also start your business by hiring local Malaysian staff. But if your intention to register the company in Malaysia was “work permit” then you have to meet ALL the requirements set for Foreigners. The theme of all these requirements is to evaluate that you are a “Genuine Businessman”.

Remember: Your company is your is yours. You can change the “Company Secretary”, can change the Company activity”  and also can remove or add and Director through normal procedure any time when needed.

From 15th April, 2014 Malaysian Immigration has introduced ONLINE DP10 Work Permit Application System. No need to hire any “Flying Agent“. Now you can apply Malaysian Work Permit Online. Just you need to have a Company with at least RM1 million PAID UP CAPITAL (for all lawful business activities), a physical office with fixed phone line and Signboard permission (PBT). Malaysian Immigration Department always encourage Foreigner Investors who want to contribute in Malaysian economy.But if you register your company through such “Company Secretary” who does not know the immigration procedures and adds such activities in your company’s Memorandum which require many licenses BEFORE applying work permit and if you apply your Work Permit without getting the licenses as per your company’s activities, then your Work Permit application can be REJECTED and your such company may become a “Total Loss” for you!. SO, always consult with professionals who understand Immigration procedures MORE than Company Registration matters!

How to start the process?

Work Permits are always issued to “Staff” or to the “Management” of the Company. You can get Malaysian DP10 visa if you are GENUINE employee of a Malaysian company and your “Employer Malaysian Company” is willing to pay you RM5000 Salary per month. Finding a such job is very DIFFICULT. So; the best and easiest way to get DP10 visa is, register your own company in Malaysia with any lawful business activity and then apply DP10 visa under your own company as “Director”.

Whatever business you want to start in Malaysia, first of all, you need to register a company in Malaysia. You can register a company in Malaysia in just RM2000 only. But such company will be having only RM2 cash (paid up capital) which is NOT entitled for Work Permits. 

Furthermore; SOLE PROPRIETOR and “SHELF Companies” (ready made companies) are also NOT allowed for WORK PERMITS. 

If you need “Director’s Visa/Work Permit, then your Sdn Bhd company MUST have a “PAID-UP” capital (not only the Authorized Capital) of:

  • RM 500,000, if the company is 100% Foreign owned (only for professional i.e Accountants, Engineers etc..) 
  • RM1 Million, if you want to do Trading/Import/Export/Restaurant/any Sales related business, suitable for any nationality
  • If there is a share of local Malaysian citizen in your company, then the Foreigner’s share MUST be minimum RM500,000 excluding to the share of Malaysian partner.

After company registration in Malaysia with RM1 Million Paid Up capital, you must have budget to arrange for an office with phone line and sign board license (Local Council License).

Please have in mind, Registration of Company in Malaysia and it’s Memorandum is “Key Document” in applying your work permit. So, if you register your company through such company secretary, who does not know about Immigration procedures, he may add such activities in your company’s Memorandum which may require many other licenses BEFORE applying work permit. And if you apply WITHOUT getting those licenses, your work permit application will be REJECTED. So, be careful while registering your company. Always get the professionals who understand Immigration matters more than company incorporation! Saving few hundreds may lead to a “Total Loss”.

Minimum 2 Directors are required to register a company. Both can be Foreigners. If married, husband/wife also can be the 2 Directors/Shareholders. Once you have incorporated a company with PAID UP Capital, and have arranged a physical office, then you may start your business and so on… then the work permit (DP10) is a very simple process. 

BEFORE APPLYING WORK PERMIT

After Company Formation in Malaysia with RM1 million paid up capital; being a Foreigner, you have to consider few important factors which play a vital role in the approval of your Malaysian Work permit application.

As you know, you have a ONE Million Ringgit paid up capital in Malaysia, it means you are a owner of a such company in Malaysia which has ONE Million Ringgit to start the business operation.

If you have ONE million Ringgit company, at least it should have a “Physical Office” with phone line. There will be NO COMPANY even in your home country, without a staff!

As Malaysia has opened doors to Foreigners, in return Foreigner also MUST prove that he is good for Malaysia. To prove this, you can provide job opportunities to Malaysian citizen in your company. Having a staff in your office also gives a very positive impression on your potential customers/clients/business associates. What if any of potential customer calls or visit your office and there is no one in your office? Do you think such situation will not put a question mark on the genuineness of your company and business.

Even in your country, you also will NOT trust such company who has “no office”, “no fixed phone line” “no staff”…Same here in Malaysia. If you are “ONE MAN SHOW” company, no one will trust you even the Immigration Department as well!

So, after company registration in Malaysia, you must have well equipped physical office of your company with Local Council License/any other License according to your company’s activity. For example; if you want to do Trading, Restaurant and any other Direct selling business, you need to apply WRT license. And if you want to do I.T business (which is best supporting business in Malaysia), you need to create an account on MDeC (Multimedia Development Corporation) website in order to apply work permits for staff/management. To learn on how to get office and Local Council License in Malaysia, please Click HERE

Once you have arranged your office with fixed phone line and Local Council License/License according to your company’s activity, simply start your business activity. Start contacting local business associates, companies, regarding your product/services. Arrange offers/quotations from market. All, such offers/quotations will play a vital role in applying Work Permits as a proof of your genuine business activity.

Hiring a Local Staff in your Malaysian Company

To start the activity, first of all, hire a Local Malaysian citizen staff. Local Malaysian staff is one of the most important fact in your business start up in Malaysia. You don’t need to pay the salary to your staff in Advance. You will be paying him/her after one month. But in this one month, your local staff will play a vital role in your business success.

Now..Start the Business Activity to prove you are “Genuine Businessman”

Once you have a local staff in your company (even one staff), this is a great starting point. You may ask your local staff to contact the local Malaysian companies (your potential customers). Let’s suppose, if you register your company for trading/import/export business in Malaysia, you may ask your staff to contact Local Malaysian companies which are dealing in the same product line of your company. You may ask your staff to visit the offices of different companies to get the offers/quotations/contracts from local market. You should ask your staff to get such offers/quotations on their company’s letterhead. If you give target to your staff to contact at least 20 Malaysian companies daily, just in few days, you will be having hundred of offers/quotations/contracts from local market…and this is the first step of your successful business operation in Malaysia. When you will be having clients/customers in Malaysia, it proves the genuineness of your company’s activity. It justifies, you need Work Permit because your company is active in local business community and you need work permit to look after the interests of your company as well as to officially sign the contracts with local customers/companies which are interested in doing business with your company.

The Best way to find a Local Staff is; post Job Ads in www.Mudah.my. You can register an account to post Job Ads in Mudah.my website which is very popular among Malaysians specially the Malay. A job posting on Mudah may cost you only RM50 but you will save a lot of time which you may waste in finding the local staff. In RM50, you will get many C.Vs from local Malaysians, and some of them may be agreed to work in your company just in RM800 per month salary.

How to Apply Work Permit through Immigration Department ESD website

Don’t apply work permit until you are well prepared. Your company is your’s. Malaysia has already given you the ownership in your company. Now it’s your turn to prove that you are really capable to run your business in Malaysia.

Once you are well prepared; you have an equipped office with fixed phone line, Local Council License, local staff to communicate, active business evidence (Contracts/Offers/Quotations from your potential customers in Malaysia/overseas) then you may proceed to apply your work permit ONLINE through Immigration Department of Malaysia ESD website.

Remember..Now Application System is online. No Agent can play any role in this step. Even if you contact any “Flying Agent” he also will do the same..he also will submit your application online…so does it make any sense to pay extra cost to such “Flying Agents”. Computer is Computer..it does not know who is entering the data..you or an agent!

Applying work permit through Immigration Department ESD website is very simple. You just need to provide the:

  • information related to your Company
  • The detail of it’s Directors/Shareholders
  • Paid Up capital (Form 24, Form 49)
  • Your company’s profile ( e-info print of you company’s profile from Companies Commission of Malaysia E-info website)
  • Local Council License or any other license according to your Sdn Bhd company’s activity
  • Latest phone bill of your company
  • Contact Person detail (Here you can ask your staff to add his/her name)

Once you have provided above information, your application will be processed Online. Immigration Department may contact you if any further information is required. And Once your application is successful, it’s status will be updated on Immigration website.

QADKAM Assistance for ESD Website:

QADKAM professional staff may guide you how to register on ESD website. Please contact our office for this services. We shall be more than happy to assist you in this regard.

DP10 Visa FEE

Currently,there is NO FEE for applying DP10 visa. Once it is approved, then only you need to pay the sticker fee DIRECTLY at Immigration office.

To start the process now, please click below: