Quick answer: A newly incorporated Sdn Bhd cannot simply apply for an Employment Pass the day after incorporation through MDEC. On the MD route the company must hold MD or MSC Malaysia status, be in operation and comply with the conditions. On the non-MD route it must be a fully operational ICT company with a physical office and the minimum paid-up capital of RM250,000, RM350,000 or RM500,000 by ownership. Set up the right structure and status first, then apply.
- MD route: approved MD status, in operation, conditions met.
- Non-MD route: operational, physical office, paid-up capital by ownership.
- MDEC assesses non-MD companies against e-SSM activities, with a site visit.
- Plan about 2 working days (MD subscription) or about 30 working days (non-MD registration).
- Never promise a start date to a foreign hire before approvals are in hand.
What a New Company Needs First
| MD status company | Non-MD ICT company | |
|---|---|---|
| Who it is for | Company with MD (or MSC Malaysia) status that is in operation and complies with its conditions | Malaysian-incorporated ICT company without MD status, fully operational, ICT as core business |
| Paid-up capital | No amount stated on MDEC's MD page | RM250,000 (100% local), RM350,000 (local and foreign), RM500,000 (100% foreign) |
| Office | Not stated on MDEC's MD page; the company must be in operation | Physical office in Malaysia required |
| First-time set-up | About 2 working days | About 30 working days, with site visit and possible interview |
| Employment Pass MDEC fee | RM2,160 | RM3,024 |
| Diploma holder qualifies with | 2 years' relevant multimedia or ICT experience | 5 years' relevant experience |
A Practical Order of Work
Incorporate with the right activities
The e-SSM business activities should match the ICT work. MDEC checks them for non-MD companies.
Decide the route
Apply for MD status, or meet the non-MD capital and office rules.
Get operating
MDEC requires the company to be in operation and, for non-MD, a physical office.
Register with MDEC
Subscribe, nominate the authorised person and upload the agreements.
Then hire
Section 60K, MyFutureJobs, projection, and the individual application.
Capital Planning for the Non-MD Route
| Ownership | Minimum paid-up capital |
|---|---|
| 100% locally owned | RM250,000 |
| Local and foreign owned | RM350,000 |
| 100% foreign owned | RM500,000 |
What Not to Do
- Do not bring the hire in on a social visit pass to start work.
- Do not begin the non-MD route without the capital and office in place.
- Do not describe the business as trading, staffing or staff augmentation if you want MDEC to serve it.
- Do not treat a startup idea as an operating company.
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Example: A New Foreign-Led Software Startup
Example. Two foreign founders incorporate a Sdn Bhd. They intend to hire a lead developer. They first check whether they qualify for Malaysia Digital status, a separate application that this site covers elsewhere. If they choose the non-MD route they must meet the capital rule, have an office, be operating and pass MDEC's assessment before they can request any foreign headcount. For themselves, MTEP is another route to consider.
Common Mistakes
Assuming incorporation is enough
MDEC requires an operating company on both routes.
Underestimating set-up time
Non-MD registration is stated at 30 working days.
Skipping MD status when it fits
MD route has lower MDEC charges and a faster first set-up.
How We Help
What we handle for you
Before you apply
- Check which MDEC route your company fits, MD status or non-MD ICT, and whether the post, salary and category match.
- Prepare the JTKSM, MyFutureJobs and supporting documents with your team and review them against MDEC's checklist.
Application
- Prepare the FKW projection and pass application for your company's authorised person to submit, and help you respond to MDEC and Immigration queries.
- MDEC states that companies are discouraged from nominating a third-party agent as the authorised person, so the submission stays under your own account.
Why companies choose us
End-to-end under one roof
- We handle company incorporation, Malaysia Digital status, accounting and payroll as well as expatriate pass preparation, 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
Straight answers to the questions we hear most.
Which companies can apply through MDEC?
MDEC's Expats Service Centre serves companies with Malaysia Digital (MD) status, or MSC Malaysia status, that are in operation and comply with the conditions of that status. It also serves ICT companies without MD status that are fully operational and use ICT as their core business, subject to a minimum paid-up capital, a physical office and an assessment by MDEC. Companies in non-qualifying activities, such as trading, staffing and staff augmentation, do not qualify.
What does an Employment Pass cost through MDEC?
MDEC's published charge is RM2,160 per applicant for an MD company and RM3,024 per applicant for a non-MD company, for new and renewal applications. A Dependant Pass or Social Visit Pass is RM540 per applicant, and an amendment of an approval letter is RM108. Immigration's own fees are on a separate Immigration schedule that MDEC links to, and this page does not quote them. Confirm the current amounts with MDEC before budgeting.
How long does an Employment Pass application through MDEC take?
MDEC states about 14 working days for an FKW Projection Request, about 7 working days for an individual FKW application, and 10 working days for the JTKSM section 60K approval that comes first. Endorsement takes 3 working days for an applicant already in Malaysia, and immediate endorsement at ESC KLIA Terminal 1 for an applicant arriving from abroad. A first-time MD company subscription takes about 2 working days, and a non-MD registration about 30 working days. These are stated service times for complete submissions, not guarantees.
Can the foreign hire be in Malaysia when the application is approved?
For a new Employment Pass, MDEC states that the applicant must be outside Malaysia when the Approval Letter is issued. The applicant may enter Malaysia only after obtaining the Reference Visa or eVisa, if one is required for the applicant's nationality. Someone who needs a visa must obtain a Visa with Reference while abroad.
What is section 60K approval?
Section 60K of the Employment Act 1955 requires employers to get approval from the Department of Labour Peninsular Malaysia (JTKSM) before employing an expatriate. It applies to private sector employers in Peninsular Malaysia and Labuan under amendments effective 1 January 2023, applications go through Xpats Gateway from 1 July 2025, and it is required for new Employment Pass applications, valid for 12 months, and decided in 10 working days. Xpats Gateway states that operating without the required approval carries a fine of up to RM100,000, imprisonment of up to five years, or both.
Do we have to advertise the job on MyFutureJobs?
For new Employment Pass applications from 1 July 2025, Xpats Gateway requires the MyFutureJobs advertisement acknowledgement letter from PERKESO, with exemptions for renewals, in-country position or category changes, and positions on PERKESO's exemption list. PERKESO decides, and employers must follow its advertising guidelines. MDEC's pages describe this as SOCSO approval after advertising the vacancy.
What is an FKW Projection Request?
It is the request through the eXpats system for the number of foreign knowledge workers a company may hire. Under MDEC's June 2026 announcement, a company seeking new or additional FKW headcount files the request with all mandatory documents, MDEC reviews it, and the FKW Approval Committee decides. Only approved projection headcount allows the company to file individual FKW applications.
Can we use a consultant or agent for the application?
MDEC states that companies are discouraged from nominating a third-party agent as the company's authorised person. The authorised person is named in the Authorised Person Letter on company letterhead and signs up through the company's own account. A consultant can still help prepare documents, check them against MDEC's checklist and advise on the route, while the company's own authorised person submits. Xpats Gateway separately says a Private Employment Agency may submit section 60K applications as an authorised representative, although its own wording on who counts as one is unclear.
Does staff augmentation qualify?
No. MDEC lists staff augmentation among the activities that do not qualify, describing it as resource requests through a request form, projects without project managers, pricing by resource tables or work permit costs, and resources with no service level commitment beyond available hours. MDEC states that it may check for these activities and revoke passes or MD status at any time.
Where is the full document list?
MDEC publishes an Employment Pass Checklist for MD Companies and one for Non-MD Companies, both version 3 with file names dated 28 May 2026, and an FKW Projection checklist and template for June 2026. They sit in MDEC's document library, which this page could not reproduce. Download the current version from MDEC rather than relying on any third-party list, ours included.
How soon after incorporation can we apply?
The sources reviewed set no waiting period. They require MD status in operation, or an operational ICT company meeting the non-MD rules, so the timing depends on obtaining status or meeting those rules.
Do we need revenue first?
The pages reviewed do not state a revenue requirement. They require the company to be active, not dormant, and operating.
Can the founders hire themselves on an Employment Pass?
MDEC's MTEP FAQ says an existing Sdn Bhd owner may apply for an Employment Pass. Whether an owner qualifies depends on the route and company, so ask MDEC.
Where do I read the MD requirements?
See our guide on Malaysia Digital status requirements and how to apply.
Sources
Official sources
- MDEC, Pre-application process for MD companies
- MDEC, Pre-application process for non-MD companies
- MDEC, Application process for non-MD companies
- MDEC, Expats Service Centre: services and eligibility
- MDEC, Malaysia Tech Entrepreneur Programme (MTEP) FAQ v3.0
This page is general information, not legal advice. Agencies change their requirements, so confirm the current rules with MDEC, the Immigration Department (ESD) and MIDA, or with us, before you act. Checked November 2026.
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