Update on Immigration Matters Only recently Malaysia s Expatriate Services Division ESD tightened the requirements for the application of employment passes in Malaysia More or less at the same time it introduced new restrictions to the employment pass category III which allows companies to hire skilled foreign employees under less stringent conditions OVerView Companies that intend to hire foreign employees have to apply for an employment pass before the employee enters the country In order to submit an employment pass application the company must be registered with ESD The company registration process takes around 21 days from the submission of the documents to ESD and is subject to the following paid up capital requirements Since ESD introduced a new category of employment passes on 15 July 2016 there are three different categories now 1 Category I for foreigners with a basic salary of a minimum RM5 000 per month and an employment contract valid for a minimum of 24 months 2 Category II for foreigners with a basic salary of a minimum RM5 000 per month and an employment contract valid for less than 24 months 3 Category III for foreigner with a basic salary between RM2 500 to RM4 999 per month and an employment contract of not more than 12 months tightening the rULeS With its announcement from 20 July 2016 ESD made it clear that it will not tolerate the current practice of entering the country for employment purposes before obtaining an approval letter anymore Effective 1 August 2016 please be informed that all Employment Pass Category I II III applications must obtain an Approval Letter before entering Malaysia for the purpose of employment From 1 August 2016 onwards foreigners now have to produce the letter of approval at Malaysia s entry point for verification purposes Not being able to do so will most likely prevent foreigners who want to work in Malaysia from entering the country For foreigners who have entered Malaysia with a tourist visa prior to their employment the new administrative practice means that they have to leave the country for at least 72 hours before entering with the letter of approval again Irrespective to which extent the new guidelines are enforced it is highly advisable to plan the immigration process in advance to avoid problems at the entry point This involves amongst others also the application for licenses required during the ESD account opening 24 LegaL inVeStment by Jörg Schmidt Philipp Kersting Luther Shareholding Structure 100 local owned Joint venture 100 foreign owned Foreign owned companies foreign equity of more than 51 operating in the wholesale retail trade WRT sector RM250 000 RM350 000 RM500 000 RM1 000 000 Paid up Capital

Vorschau MGCC Perspectives September/October 2016 Seite 26
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