Malaysia’s Expatriate Services Division (ESD) Registration
ESD Registration Malaysia Help | Moore Bzi
For employers who need work permits for their expats
Learn about ESD
In Malaysia, the Expatriate Services Division (ESD) falls under the Immigration Department. Companies planning to employ expatriates with work permits in Malaysia must initiate their registration process with the ESD.
After receiving approval from the Immigration Department, your company can proceed to apply for various Expatriate Visas or passes, such as Employment Pass, Professional Visit Pass, Dependent Pass, Long-Term Social Visit Pass, and Social Visit (Temporary Employment) – Foreign Maid Pass.
REGISTERING
Basic Requirements To Register With ESD
The Company must be registered with either:
- The Companies Commission of Malaysia (SSM) under Companies Act 1965 / 2016; or
- The Registry of Societies Malaysia under the Organisation Act 1966; or
- Associations/Cooperatives registered under the laws of Malaysia.
For companies that are 100% foreign-owned in the business of import/ export/ wholesale/ retail/ restaurant/ consultancy/ services industry, it is mandatory to obtain the WRT license/clearance to proceed with the ESD registration.
Company’s Business license /premise and signboard license from the local town council such as DBKL, MPPJ, MBSA, MBSJ and/or specific industry sector license is mandatory for the ESD registration and WRT license application.
Company’s tenancy agreement (minimum 12 months validity) and company phone bill are required for the ESD registration. If you do not have a physical office/space, a Virtual office or Serviced office is acceptable but not SOHO / Home office.
REQUIREMENTS FOR PAID-UP CAPITAL
Companies that want to register with ESD in Malaysia must comply with any of the following requirements:
| EQUITY | PAID-UP CAPITAL |
|---|---|
| 100% Local Owned | RM250,000 |
| Joint Venture (minimum foreign equity is 30%) | RM350,000 |
| 100% Foreign Owned | RM500,000 |
| Foreign-owned companies (foreign equity at 51% and above) operating in the Wholesale, Retail and Trade (WRT) sectors (mandatory requirement to submit valid WRT approval letter, if applicable); OR Foreign-owned companies (foreign equity at 51% and above) involved in the sub sectors on unregulated services) |
RM1,000,000 |
(Not applicable to public limited companies, companies limited by guarantee, associations & organisations incorporated under specific acts.)
LET’S TALK
Find Out How We Can Help You With A Smooth ESD Registration.
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FAQ
Answer to questions about ESD Registration in Malaysia
Why choose Moore Bzi for ESD Registration?
ESD registration is not an easy or straightforward process. Without the right company structure and strong justifications, your ESD application is very likely to be returned or rejected. This will cause further delays as appeals can take several months to resolve.
How Should Our Company Register With ESD?
To conduct business in Malaysia with a physical premise, your company requires a business premise license from the local town council and/or specific industry sector licenses. These licenses are mandatory during both the ESD registration and WRT license application stages.
The ESD registration process can be complicated and time-consuming if you are not fully familiar with the Malaysian Immigration Department’s procedures and documentation requirements. If your ESD registration is returned or rejected, the appeal process can take months, and a failed appeal means your company cannot apply for employment passes or other immigration-related passes.
We strongly recommend letting our professionals handle your ESD registration from start to finish. This ensures:
a) A high likelihood of successful approval
b) Freedom from the time-consuming and complex process so you can focus on your core business
If your company is not yet registered, our expert team can assist with Company Registration in Malaysia to get you started on the right footing.
How long does it take to register with ESD Malaysia?
Assuming all required documents are complete, the registration process typically takes 14 working days. However, if the Immigration Department requests additional supporting documents, support letters, or other licenses from relevant agencies, processing time may be extended.
Is it necessary for the company to have an office to register with ESD?
Yes, a proper office with a minimum 12-month tenancy agreement and premise license is required. Shared offices or SOHO setups are not allowed. If you do not have your own office yet, you may consider subscribing to our Virtual Office or Serviced Office solutions.
Does the company have to be established for a few years to register with ESD?
No, a newly set-up company that fulfills all the requirements can register with ESD.
How can I manage payroll and statutory compliance for expatriate employees?
Our HR Outsouring Service & Payroll Outsourcing Service ensures accurate salary processing and compliance with Malaysian labor laws, which is essential for maintaining valid work permits.
Can the Malaysia My Second Home (MM2H) programme be used as an alternative to ESD registration?
No, MM2H is a long-term residency visa and does not allow employment. Foreigners intending to work in Malaysia must register with ESD and obtain the appropriate work passes. Learn more about MM2H Application Assistance.