DP10 visa precodures, pros and cons of Malaysia

Ridhha - You cant just apply for a work permit (employment pass) with a DP10.  The company employing you has to do that. First they have to get permission to hire a foreigner.

Or you have to own a company here and be a Director to get an employment pass.

Business is tough going in Malaysia, due to the extremely competitive marketplace and more so if you do not have local contacts. The capital you require to set up a company is RM1 million. If you partner with one or more Malaysian citizens, then is RM350,000 and they have to own 51%.

Gravitas wrote:

Ridhha - You cant just apply for a work permit (employment pass) with a DP10.  The company employing you has to do that. First they have to get permission to hire a foreigner.

Or you have to own a company here and be a Director to get an employment pass.

Business is tough going in Malaysia, due to the extremely competitive marketplace and more so if you do not have local contacts. The capital you require to set up a company is RM1 million. If you partner with one or more Malaysian citizens, then is RM350,000 and they have to own 51%.

Hi Gravitas

Thanks for your info. Isn't there a low key business that will require only little capital?

What about the crime in KL, specifically Gombak area?

Best regards - Ridhaa

Well you need a permit to live in Malaysia so there really is no way around one of the solutions above. Low key businesses are only permited to be run by Malaysians. Its protectionism. There are quite a few sectors that foreigners cannot run businesses in as well. Gombak is where Batu Caves is located. Its a provincial town with quite a lot of heavy equipment companies and factories. It is probably a bit of a low income area.

Hi again Gravitas

Hmmm, well generally what would be a high turnover business in Malaysia? KL, Gombak areas?

What about low key tourism? Tourism packages?

Tourism is one of the industries that is protected, so no foreigners can outright own firms in that area, but they can work for companies or franchises offering tourism that are owned by Malaysians.

Thanks again Gravitas 

So, does the tourism business have to be 100% Malaysian owned or can it be a 50/50 partnership with an expat?

Thanks Kim  for your response.

Regds - Ridhaa

It can be 49% foreigner/51% Malaysian owned. Paid up capital has to be RM350,000 which can be used for operating expenses but the amount must be in the balance sheet at each annual report and accounts.

You can come to Malaysia and apply for a company while you are on a visa. But you need to operationalise it by putting in the paid-up capital. Malaysians have completely different rules for forming companies that are 100% Malaysian owned. Just forming a company does not entitle the owner to any immigration status.

It is illegal to work if you are on a visa. Re-entering Malaysia is now much more difficult and soon apparently there will be a rule that only 2 entries per 1 year will be permitted, so only regular business related entries will be possible and that will require sponsorship for the visit.

There is a long list of types of businesses that still need to be joint owned with a Malaysian, one of them is a small shop. If you want some accurate information, please consult the web resource from the link below.

http://malaysiabizadvisory.com/malaysia … oreigners/

But as mentioned, you need to do some research and visit to understand how the country works.

I agree wholeheartedly with kimdongdong, Penang is not only very beautiful, it is much more laid back than living in the Klang Valley around Kuala Lumpur. It also has quite a high number of foreigners living there on MM2H or working.

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Thanks everyone for the wonderful replies and advice. I'm very grateful for each of you taking your valuable time to respond to me.

I'm visiting Malaysia on 5th Dec for few days to do a preliminary study as advised by Gravitas. Most probably I'll apply for DP10 within next few months.

Again, thanks loads guys.

Best regards - Ridhaa

You would be very silly to apply under DP 10 without having a job offer or owner of a company as your status would be very clear to immigration.

Gravitas wrote:

You would be very silly to apply under DP 10 without having a job offer or owner of a company as your status would be very clear to immigration.

No no. First I will follow the procedure. I am just visiting on 5th to get a feel of the things and talk to some people I know there.

I will either register a company or get one already registered to employ me before I apply for DP10!!

It is so heartening to see the concern, may the Almighty bless you :-)

Thanks loads - Ridhaa

Yeh, dont forget that the company submits the DP10 application and the employment pass requires a DP11.

Hi Gravitas

:-)

Thanks loads....much appreciated and very grateful for all the info.

:-)

Best regards - Ridhaa

Never  come to malaysia . I also got
dp.10 permit . .but here no job .u cant do bussiness on this ok .

Hi Abbas

I'm really shocked at your msg! Coz so far no one said anything negative! To tell the truth, I'd like to know why you're saying it!

As far I'm concerned, I'd like to learn both positive and negative sides!

Pls clarify why you're telling me never to come to Malaysia!? 

Thanks and best regards - Ridhaa

I think you will find some people ignorantly purchase a fake DP10 application from an agent at a high cost and then find out that such a lot more paperwork is needed, that it was a waste of money - and they cannot get a job (because each job is linked to a specific company). So even if you "change jobs" you will be found out by the fake DP10 or DP11 application already on file and in your passport.

None of the fake stuff works these days and it is far worse to get deported from the country, after spending several weeks in detention, never being allowed to re-enter Malaysia, even to clear out your personal assets.

Hi Gravitas

You're superb! I thought that would have been the issue with Abbas! Anyways I wanted to hear from him what happened!

I've already been advised to get a lawyer/secretary to set up company and then do the rest legally and properly which will increase chances of DP10 and also renewal thereafter.

I'm also very particular about doing things legally without any hanky panky stuff! Corruption is everywhere but that doesn't mean I have to be part of it! I like the way you're thinking Gravitas.

Thanks a lot.

Regards - Ridhaa

You will need the required paid-up capital discussed earlier in the thread, because even though you may set up a company with a company secretary, that does not mean anything and is completely useless, but necessary, step.

It does not mean you will get a DP10 passed as that is not possible without the assets being already paid into the company and registered.  If you look at the DP10 form it asks about the capital of the company and about its registration. Only when the company has been deemed fit for purpose, will employment passes for the director (foreign) be granted.

Otherwise it is a complete and utter waste of money and also dangerious, as if you go for a 51% ownership by a local(s), they have control over the company and can take decisions about the capital over the other share holder's head. You must really know who you are doing business with. If they are from Sri Lanka like yourself, you will all have to put up RM1 million in total.

Ridhaa,
I will send you a message about our company being for sale. It may save you quite a lot of time, capital and trouble.

Gravitas, you mentioned "Re-entering Malaysia is now much more difficult and soon apparently there will be a rule that only 2 entries per 1 year will be permitted,"

I just wondered where you heard this from? I was speaking to immigration recently and they didn't mention this rule at all. Just want to be sure as some things I'm doing might require more than 2 entries to Malaysia per year!

Many thanks