Quick answer: Immigration's ESD requires minimum paid-up capital of RM250,000 for a 100% locally owned company, RM350,000 for a joint venture with at least 30% foreign equity, and RM500,000 for a 100% foreign-owned company. A foreign-owned company running wholesale, retail and trade (which needs a WRT licence) needs RM1,000,000. Public limited companies, companies limited by guarantee and certain associations are exempt. MIDA's guidelines add that foreign paid-up capital of at least RM1 million applies to Key Post.
- RM250,000 for 100% local, RM350,000 for a joint venture, RM500,000 for 100% foreign-owned.
- RM1,000,000 for foreign-owned wholesale, retail and trade requiring a WRT licence.
- A joint venture needs at least 30% foreign equity.
- Public limited companies and companies limited by guarantee are exempt.
- A company applying only for a Professional Visit Pass must still meet the capital requirement.
Minimum Paid-Up Capital
| Ownership | Minimum paid-up capital |
|---|---|
| 100% locally owned | RM250,000 |
| Joint venture, at least 30% foreign equity | RM350,000 |
| 100% foreign owned | RM500,000 |
| Foreign owned, wholesale, retail and trade (WRT licence needed) | RM1,000,000 |
Who Is Exempt
The capital requirement does not apply to public limited companies, companies limited by guarantee and certain associations and organisations under Malaysian law, according to ESD's company registration FAQ and guidebook. A company that is not exempt must meet the figure for its equity structure.
How the Requirement Fits the Process
| Stage | What happens |
|---|---|
| ESD company registration | The company registers with ESD and must meet the paid-up capital requirement |
| Pass applications | The company then applies for expatriate posts and passes |
| MIDA route | MIDA's guidelines set the same RM250,000, RM350,000 and RM500,000 figures and add RM1 million of foreign paid-up capital for Key Post |
Paid-Up vs Authorised vs Issued
The test is paid-up capital, which is the amount shareholders have actually paid for their shares. Authorised capital is a ceiling, and issued capital is the shares allotted. If you plan to hire expatriates, set the issued and paid-up capital at incorporation to at least the figure for your structure, or plan a capital increase before you register with ESD.
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Checklist
- We know our ownership structure and the capital figure that applies.
- Paid-up capital is at or above the minimum, evidenced by SSM filings.
- A joint venture has at least 30% foreign equity.
- If we trade wholesale or retail with foreign ownership, we hold a WRT licence and meet RM1 million.
- We have planned any capital increase before registering with ESD.
Mistakes
Confusing authorised and paid-up capital
Only paid-up capital counts.
Ignoring a change in shareholding
Share allotment changes must be notified in writing to ESD.
Starting with RM1
A company that cannot meet the figure will be rejected at registration.
Three Scenarios
Scenario 1. A foreign-owned software company incorporates with RM500,000 paid-up capital and can register with ESD.
Scenario 2. A joint venture with 40% foreign equity and RM350,000 paid-up meets the joint venture figure.
Scenario 3. A foreign-owned trading company needs a WRT licence and RM1,000,000.
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.
What paid-up capital is needed to hire an expatriate in Malaysia?
RM250,000 for 100% local, RM350,000 for a joint venture and RM500,000 for 100% foreign-owned, with RM1,000,000 for foreign-owned WRT.
What counts as a joint venture?
A company with at least 30% foreign equity.
Does a Sdn Bhd with RM100 capital qualify?
No. It does not meet the minimum for any ownership structure.
Who is exempt from the capital requirement?
Public limited companies, companies limited by guarantee and certain associations and organisations.
Does it apply to a Professional Visit Pass?
Yes. A company applying only for a PVP must still meet it.
What is the MIDA position?
MIDA's guidelines state the same three figures and add RM1 million of foreign paid-up capital for Key Post.
Does the requirement apply to renewals?
The capital figure is a company requirement at registration. Confirm any renewal-stage checks in the system.
Can I increase capital after incorporation?
Yes, through SSM filings, and then update ESD.
Is authorised capital enough?
No. The requirement is for paid-up capital.
Do changes in shareholding matter?
Yes. Share allotment changes affect eligibility and must be notified in writing to ESD.
How is paid-up capital shown?
Through the company's SSM records, such as the share allotment returns.
Can you check my structure before I incorporate?
Yes. We test eligibility, including the expatriate hiring plan, before you incorporate.
Sources
Official sources
- Immigration Department (ESD), Company registration FAQ
- Immigration Department (ESD), ESD Online Guidebook V5 (September 2024)
- MIDA, Employment Pass guidelines (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.
Talk To Us Now
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