If you are a foreign business owner with a company in Malaysia, applying for a Malaysia startup visa is crucial to ensure all your business operations can be done accordingly.
Launching a company in Malaysia as a foreigner is more challenging than it is for Malaysians since one major condition for private limited companies is that they must appoint a director residing in Malaysia. While you can form your business online, you must present proof of residency in Malaysia to be qualified to serve as a director.
Because you can only receive a work visa through your firm, this creates an ongoing circle of not being able to obtain a visa owing to your inability to establish your company. Our guide below explains the process and detailed requirements. This will ensure you will have minimal complications in securing your startup visa.
Types Of Work Visas That Are Available In Malaysia
1. How does the Professional Work Permit Visa (DP10) work?
- If you want to start a business in Malaysia, you can apply for a Professional Work Permit Visa (DP10). The DP10 visa is intended for skilled foreign expatriates and is also known as an Expatriate Visa or a Director Visa.
- This work visa has an initial validity duration of 1-2 years. However, it can be extended if you want to stay in Malaysia for a prolonged time. You must be between the ages of 27 and 50 to apply for this visa.
- If you are under the age of 27, you will be required to provide further paperwork. You can also apply for a dependent pass for your immediate family with this visa.
- It is vital to know to apply for this visa, you must have a Malaysian employer. This implies that you must first create a Malaysian company before applying for a work visa.
- To be eligible to apply for work permits, your company must have a paid-up capital of RM 500,000 – RM 1,000,000, depending on whether it is completely foreign-owned and the industry in which it operates. Furthermore, the company’s shares owned only by foreigners must be worth at least RM 500,000.
2. How does the Malaysia Tech Entrepreneur Program work?
Malaysia Digital Economy Corporation (MDEC) and Malaysia Digital Hub (MDH) launched the MTEP in 2017 to facilitate the country’s digital start-up ecosystem by offering work visas for international tech entrepreneurs who wish to build firms in the ASEAN market from Malaysia.
Under this program, you can apply for two types of visas, which are:
(a)The Professional Visit Pass (PVP-MTE)
(b) The Residence Pass (RP-MTE)
3. What is the difference between the Professional Visit Pass (PVP-MTE) and the Residence Pass (RP-MTE)?
The difference between these two programs can be seen below: –
Professional Visit Pass (PVP-MTE) Residence Pass (RP-MTE)
1. For new entrepreneurs For established entrepreneurs
2. Validity – One-year Validity – Up to five years
3. The office must be located at a Malaysia Digital Hub can apply for a dependent pass for a family
Residence Pass (RP-MTE)
1. For new entrepreneurs For established entrepreneurs
2. Validity – One-year Validity – Up to five years
3. The office must be located at a Malaysia Digital Hub can apply for a dependent pass for a family.
What are the targeted sectors for the MTEP?
Among the targeted and eligible sectors that can apply for MTEP are as follows: –
1. Agriculture technology
2. Health technology
3. Drone Technology
4. Financial Technology
5. Smart City
6. Clean Technology
7. CyberSecurity
8. Smart Mobility
9. Artificial Intelligence (AI)
10. Blockchain
11. Big Data Analytics
What are the sectors that are not eligible for MTEP?
If you are unsure whether your business activity or the sector qualifies, feel free to contact our Consultants @ Relin Consultants or +65 8756 2027. Our team will respond within 24-48 hours.
A list of the sectors or activities that are not eligible for MTEP is as follows: –
1. Trading or reselling activities
2. Manufacturing
3. Telco service provision
4. Consultancy services
5. Software integration
6. Co-working spaces
7. Activities related to service (design and support, freelance, outsourcing)
What are the requirements of a new foreign entrepreneur for MTEP?
- Is a non-Malaysian who has no criminal record in their own country.
- Is self-employed and has a creative digital company idea as well as a great digital proposition.
- Has a minimum of RM50,000 in their personal bank account for at least three months before applying.
- Has a recognized sponsoring organization registered with Malaysia Digital Hub (MDH) or Malaysian Global Innovation & Creativity Centre (MaGIC) that can attest for your presence in Malaysia and will be responsible for your stay, upkeep, and repatriation while in Malaysia. If you cannot identify a sponsoring organization, MDEC will act as your sponsor.
- Has enrolled in one of the MDHs
What are the requirements of an established foreign entrepreneur for MTEP?
- Is a non-Malaysian who has no criminal record in their own country.
- Is self-employed with a solid digital proposition and a track record of success (more than 3 years established with the latest 2-year financial records).
- Has a minimum of RM 50,000 in their personal bank account.
- Has evidence of business performance.
- Has a Malaysian individual over the age of 21 as your sponsor who can attest to your presence in Malaysia and will be responsible for your stay, upkeep, and repatriation while in Malaysia.
- For venture capital, you will need a founder, co-founder, or Malaysian Venture Partner with a minimum investment of RM10 million and registered with the Securities Commission Malaysia as a Venture Capital Management Corporation (VCMC).
FAQ
What are the fees for the registration of the Professional Visit Pass (PVP-MTE) and the Residence Pass (RP-MTE)
The fee for the Professional Visit Pass (PVP-MTE) registration is RM2,650, while the fee for the Residence Pass (RP-MTE) is RM5,300.
How long does it take to complete the application process for MTEP?
Usually, the application process for MTEP will take up to 4 weeks.
Where can I register for MTEP?
Registration for MTEP can be done via their official website. However, we strongly recommend you seek advice from our agents at Relin Consultants before making any applications to ensure your registration has a higher chance of approval.
If my business is not in the tech industry, will I be eligible to apply for a Malaysian visa?
Yes, you will still be available to apply for a Malaysian visa if your business is not in the tech industry. You must apply for a visa via the Professional Work Permit Visa (DP10).
