Quick answer: A foreign startup founder usually needs the company to meet paid-up capital of RM500,000 if it is 100% foreign owned, hold at least 30% equity as an SSM-registered director or key post holder, and be paid a basic monthly salary that reaches a category minimum of RM5,000, RM10,000 or RM20,000 from 1 June 2026. A Malaysia Digital company or an active non-MD ICT company can instead use MDEC's expatriate route, which has its own conditions and fees. The application is made by the company, not the founder.
- A 100% foreign-owned company needs RM500,000 paid-up capital.
- The founder must hold at least 30% equity and be a director or key post holder.
- The founder must be paid at least RM5,000 basic salary from the company.
- Tech start-ups may use MDEC's route if they hold MD status or are active ICT companies.
- The company applies, so incorporation and ESD registration come first.
What a Founder Needs
| Requirement | Detail |
|---|---|
| Company | Incorporated, registered with ESD, paid-up capital met |
| Capital | RM500,000 for 100% foreign owned, RM350,000 for a joint venture, RM250,000 for 100% local |
| Founder's role | Shareholder with at least 30% equity, SSM-registered director and/or key position |
| Salary | Basic monthly salary of RM5,000 or more, taxable in Malaysia |
| Post | Position and salary consistent with the contract and job description |
Two Routes
| Route | Who it fits |
|---|---|
| Immigration ESD or MIDA route | Most companies |
| MDEC route | Malaysia Digital or MSC Malaysia companies, and active non-MD ICT companies with a physical office and paid-up capital of RM250,000 to RM500,000 depending on ownership |
Can the Company Afford the Salary?
The minimum salary is a real cost from day one. A founder on the Category III minimum of RM5,000 a month adds at least RM60,000 a year to payroll before employer contributions. Model that cost in your first-year budget so the application is not rejected for an unrealistic salary or the company cannot sustain the pass.
Founder Checklist
- Company incorporated and paid-up capital set at the right level.
- Founder holds at least 30% equity and is a director.
- Company registered with ESD and a director has signed the Letter of Undertaking.
- Basic salary planned at the category minimum or above.
- Contract stamped and job description prepared.
- Business plan and financial plan show how the salary will be funded.
Need a pass sorted out? WhatsApp us. We will check your case before you apply.
Mistakes
Setting low capital to save cash
The company will not pass ESD registration.
Treating the pass as personal
The company holds the application.
Unfunded salary
A founder salary the company cannot pay invites questions.
Skipping the MDEC check
A tech start-up may have a more suitable route.
Three Scenarios
Scenario 1. A foreign founder sets up with RM500,000 paid up, takes 70% equity and a RM8,000 salary, and applies.
Scenario 2. A founder holds 25% equity. The 30% test is not met.
Scenario 3. A software start-up with MD status uses the MDEC route.
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 startup founder get an Employment Pass in Malaysia?
Yes, if the company meets the capital and registration requirements and the founder meets the equity, role and salary tests.
How much capital does a foreign-owned start-up need?
RM500,000 paid up if 100% foreign owned.
What is the minimum salary?
RM5,000 basic monthly salary for Category III from 1 June 2026, with higher figures for Category II and I.
Must the founder be a director?
The guidebook requires an SSM-registered director and/or a key position.
Is there a special start-up pass?
The sources reviewed describe the standard routes and MDEC's route for MD and ICT companies. Check MDEC for any programme changes.
Can a tech start-up use MDEC?
If it holds MD or MSC status, or is an active non-MD ICT company that meets MDEC's conditions.
Who applies for the pass?
The company, through ESD Online or MES.
Do I need a business plan?
Not as a general ESD requirement, but a plan helps you set a realistic salary and capital.
Can I pay myself less in the early months?
The salary must meet the category minimum in the application.
Can my spouse come with me?
The holder can apply for a Dependent Pass for a spouse and children under 18.
What if the company is not yet registered?
Incorporate and register with ESD first.
Can you help me set up as a foreign founder?
Yes. We handle incorporation, accounting, payroll and the pass application together.
Sources
Official sources
- Immigration Department (ESD), ESD Online Guidebook V5 (September 2024)
- Immigration Department (ESD), Company registration FAQ
- Immigration Department (ESD), Revised Employment Pass Salary Policy effective 1 June 2026
- MDEC, Expatriate Services FAQ
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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