It should be noted that there are many channels from which employment pass may be obtained in Malaysia. Further there many categories of employment passes and clients interested to apply must seek proper advice to ensure use the right channels and categories. The write up below only deals with application for employment pass using Labuan company.
New Guidelines on Employment Pass;
Recently we have noticed a significant drop in the number of applicants wanting to apply for employment passes. If you still wish to apply you must have real and sustainable business to conduct. May we remind you that NO APPLICATION SHOULD BE MADE IF AN APPLICANT DOES NOT HAVE ANY REAL BUSINESS BUT ONLY TO SECURE RESIDENCE. If you are currently holding a student pass in Malaysia, we are not interested to have you as an applicant for an employment pass unless you can prove that you have real business in your own country.
- Minimum paid up capital if at least MYR250k or its equivalent in foreign currency
- Physical office in Labuan
In making any new application or renewal of employment pass, Law & Commerce is obligated to make sure that;
- application is genuine and not solely motivated by the desire take up residence in Malaysia,
- applicant’s business is not conducted with residents of Malaysia,
- application has a real business to be conducted, as evidenced by proven previous or current business,
- applicant has the financial resources to support not only his Labuan company but his family whilst living in Malaysia,
- applicant is fit and proper person for the post he is appointed,
- the applicant and or his Labuan company is not involved in illegal or undesirable activities
- applicant will not abuse his employment pass
- the Labuan company remains in compliance with the laws
- the expatriate registers for personal tax number, pays his personal income tax in Malaysia and file his personal tax return in Malaysia,
- the applicant stands a better chance to renew for the next term
- Opening of corporate bank account
- Payment of monthly tax deduction for expatriate,
- Accounting service
- Audit service
- Company formation: US$2750
- Opening of bank account: US$800
- Application for Employment Pass: US$1,500 per applicant
- Application for Dependant Pass: US$800 per dependent
- Renewal of Employment Pass: US$1,000 (after 2 years)
- Renewal of Dependant Pass: US$300 per dependent
- Annual accounting: US$600 min
- Annual audit: US$600 min unless choosing to pay flat tax
- Monthly tax payment and preparation of annual tax return: US$300
- Certification and translation cost and other disbursements, if any, will be bill separately.
B) Fees payable to Immigration:
- applicant pays RM600 for 2 years plus RM50 processing fee.
- dependant pays RM180.00 for 2 years plus RM50 processing fee
- journey performed fee, if required is RM500.00
An applicant must incorporate a Labuan company first and he provides documents/information below. Bank account must be opened simultaneously and once opened at least MYR250k or its equivalent in foreign currency be deposited. We are not able to submit your case UNTIL proof of such deposit is shown. The first stage involves applying for recommendation from the LFSA. If the LFSA recommends to the Immigration Department of Labuan that an employment pass be granted, then the second stage involves in submission of application to the Immigration Department of Labuan. If this application is approved, the applicant and dependant is any, are required to go to Labuan to have their passports endorsed. This approval, once granted is valid for 1 month.
A) Employment Pass
- Completed Forms DP10 & DP 11 and such other forms required by Malaysian Immigration
- clear copy passport of the applicant (only pages which have been stamped);
- passport having validity of not less than 18 months,
- address in Malaysia-this address is to be used as correspondence address, unless otherwise suggested,
- 4 copies passport size photographs; (white background)
- your C.V;
- your academic qualifications; (to be translated if not in English)
- contract of employment stating;
- designation you are employed in or position in the company
- your monthly remuneration – not less than RM10,000.00,
- your duration of employment,
- your acceptance of the employment.
- letter from employer applying work permit for the employee;
- Malaysian income tax number, if any,
- Letter of consent from the applicant to the academic/professional institution to give consent to Labuan FSA to verify the academic/professional certificate as and when required by Labuan FSA;
- Latest organizational chart
- Company profile detailing clearly at least the following;
- Nature of business to be conducted,
- Financial projection
- Products or services to be offered,
- Type of industries,
- Type of customers,
- Location of customers
- Expected annual turnover for the next 3 years
- One professional reference from lawyer, accountant or other professional who have known you for at least 3 years and is familiar with your business,
- One business reference. The business reference may be from a supplier or customer who knows you or your business for the last 3 years.
Items 1, 8 & 9 will be prepared by Law & Commerce.
B) Dependant Pass
- Immigration forms to be completed
- clear copy of passport of your spouse/children;
- 2 copies of passport size photographs of spouse/children,
- marriage certificate/ birth certificate of children;
- where no marriage certificate is available, letter from own embassy conforming marriage;
- letter from the work permit applicant requesting for dependant pass.
Items 1 & 6 will be prepared by Law & Commerce.
- Those documents that are in foreign languages other than English have to be translated and authenticated by own embassy.
- For those applicants requiring entry visa, please state the name of the Malaysia Embassy/ High Commissioner Office where they are to apply for the visa.
- Nationals from some countries may have to leave Malaysia and get their visa from nearest Malaysian Embassy. However this could be avoided by paying “journey performed” fee of RM500.00.
- Applicant must be at least 27 years of age at the time of application in order to qualify. Exemption is given for ICT related industry where minimum age of 24 is allowed PROVIDED written proof of at least two years working experience in related ICT industries can be shown.
- Successful applicant is required to Labuan, with his dependants, if applicable, once approval is given.
Once Corporate kit is ready, opening of bank account takes at least 14 working days after submission of complete documentations. Some banks may take longer to approve.
Employment pass takes around 1 months to get recommendation from the LFSA and if there is no further documentation required. Client will need to book a appointment for travelling to Labuan to endorse your passport with Employment Pass sticker with Labuan Immigration. The date would need to be on either Tuesday, Wednesday or Thursday.
The trip to Labuan to endorse your passport with Employment Pass sticker can be done in just one day if the appointment are in the morning. If not, client will need to stay overnight to collect the passport the next day. However, this is subject to officer availability and the immigration in-house System condition.