Quick answer: Under Immigration's ESD guidebook, a shareholder applying for an Employment Pass must hold at least 30% equity and be an SSM-registered director and/or hold a key position in the company. The company must still meet the paid-up capital requirement and register with ESD, and the Expatriate Committee has final discretion. Share allotment changes affect eligibility and must be notified to ESD in writing. A company director must sign the Letter of Undertaking for the company's ESD account.
- A shareholder applicant must hold at least 30% equity.
- The applicant must be an SSM-registered director and/or hold a key position.
- The company must meet the paid-up capital requirement.
- A director must sign the Letter of Undertaking in person.
- The Expatriate Committee decides, and may refuse.
The Shareholder Route
| Test | Requirement |
|---|---|
| Equity | Minimum 30% equity |
| Role | SSM-registered director and/or a key position |
| Company | Registered with ESD and meeting the paid-up capital requirement |
| Decision | At the Expatriate Committee's discretion |
| Changes | Share allotment changes must be notified in writing to ESD |
Company Requirements First
| Ownership | Paid-up capital |
|---|---|
| 100% local | RM250,000 |
| Joint venture | RM350,000 |
| 100% foreign owned | RM500,000 |
| Foreign-owned WRT | RM1,000,000 |
The Letter of Undertaking
A company director must be present to sign the Letter of Undertaking, which makes the director responsible for the company's transactions in the ESD system and appoints the person who manages the account. Nobody can sign on the director's behalf. If the appointed director changes, the new director must sign a new letter.
Salary Still Applies
A director who is also employed must meet the salary threshold for the category. From 1 June 2026 that is at least RM5,000 basic monthly salary for Category III, RM10,000 for Category II and RM20,000 for Category I.
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Checklist
- The applicant holds at least 30% equity.
- The applicant is an SSM-registered director or holds a key position.
- Paid-up capital meets the minimum for our ownership.
- The company is registered with ESD.
- A director has signed the Letter of Undertaking.
- The salary meets the category minimum.
- Any share changes were notified to ESD.
Mistakes
Assuming ownership alone qualifies
A director or key position is also needed.
Changing shares without telling ESD
It affects eligibility.
Forgetting the salary test
The category minimum applies.
Three Scenarios
Scenario 1. A foreign founder with 60% equity is an SSM-registered director. The company has RM500,000 paid up and applies.
Scenario 2. A foreign investor with 20% equity wants a pass. The 30% test is not met.
Scenario 3. A shareholder with 40% equity is not a director and has no key position. The role test is not met.
How We Help
What we handle for you
Before you apply
- Check that your company meets the requirements and that the post and salary fit the right category.
- Prepare your business plan and financial plan from your company idea or business model, where the application needs one.
Application
- Prepare and submit the pass application and respond to Immigration's queries.
Why companies choose us
End-to-end under one roof
- We handle company incorporation, accounting and payroll as well as expatriate pass applications, so your structure, payroll and hiring plan stay aligned.
- The company is set up correctly from day one.
We check before you invest
- We confirm eligibility, including whether you can hire the expatriates you need, before a foreign investor decides to incorporate in Malaysia.
- Neutral Consulting PLT is a Kuala Lumpur firm led by a Managing Partner who is a member of the Malaysian Institute of Accountants.
Frequently Asked Questions
Quick answers.
Can a foreign director get an Employment Pass in Malaysia?
Yes, if the company meets the requirements and the person meets the shareholder and role tests, subject to the Expatriate Committee.
How much equity must a shareholder hold?
At least 30%.
Must the applicant be a director?
The guidebook requires an SSM-registered director and/or a key position.
Does the company need capital?
Yes. RM250,000, RM350,000 or RM500,000 by ownership, and RM1,000,000 for foreign-owned WRT.
Who signs the Letter of Undertaking?
A company director, in person.
Can a director sign for another?
No.
Does the salary threshold apply to directors?
Yes. The category minimum applies to the stated basic salary.
What if shareholding changes?
Notify ESD in writing. It may affect eligibility.
Can ESD refuse?
Yes. Approval is at the Expatriate Committee's discretion.
Is a local director required?
Company law has its own director residency rules. Check those separately from the pass.
Does an investor need an Employment Pass just to attend meetings?
That is a different question about permitted activities. Confirm the right pass with Immigration before travel.
Can you check my structure?
Yes. We test the shareholding, roles and capital before you apply.
Sources
Official sources
- Immigration Department (ESD), ESD Online Guidebook V5 (September 2024)
- Immigration Department (ESD), Company registration FAQ
- MIDA, Employment Pass guidelines (1 June 2026)
- Immigration Department (ESD), Revised Employment Pass Salary Policy effective 1 June 2026
This page is general information, not legal advice. Agencies change their requirements, so confirm the current rules with the Immigration Department (ESD) and MIDA, or with us, before you act. Checked November 2026.
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