Paid-up capital is one of the most misunderstood requirements among foreign entrepreneurs planning to start a business in Malaysia. Many believe they must inject a very high capital to start a company, but in reality, paid-up capital depends entirely on your business activity, licensing goals, and whether you plan to hire foreign workers.
In this guide, we break down the exact paid-up capital expectations for different industries and activities, so you can plan your Malaysia expansion with clarity and confidence.
What Is Paid-Up Capital?
Paid-up capital is the actual amount of money injected into your company by the shareholders. This is NOT a fee or tax — it is your own business money, and you can use it:
- to pay suppliers
- pay rent
- hire staff
- purchase equipment
- grow your company
Important: You do NOT need to show proof of the money before company incorporation. The capital must be in the bank after incorporation, and before certain licenses or visas are applied for.
How Much Paid-Up Capital Do You Actually Need?
Below is the breakdown by business type and purpose.
1. Paid-Up Capital for Employment Pass (EP)
If a foreign director or specialist wants to work in a Malaysian company, the company must register with ESD or MDEC (for digital companies). One key requirement is appropriate paid-up capital.
Here are the minimum recommended amounts:
Local Malaysian company (Sdn. Bhd.) applying for EP:
- RM 250,000 minimum recommended
- RM 500,000 – RM 1,000,000 strongly recommended for smoother approval, depending on industry
Foreign-owned company (100% foreign):
- RM 500,000 recommended
- RM 1,000,000 recommended for higher chance of approval or multiple EPs
For Trading, Import/Export & Retail:
Because these industries fall under stricter licensing (WRT), immigration prefers:
- RM 1,000,000+ paid-up capital
Why?
Malaysia wants companies hiring expatriates to show:
- financial stability
- real business activity
- ability to pay salaries
Hiring more foreign employees = usually requires higher capital.
2. Paid-Up Capital for WRT License (Trading / Retail / Franchise)
Foreign-owned companies engaging in trading, import/export, wholesale, retail or franchise MUST apply for the WRT License from the Ministry of Domestic Trade (KPDN).
This is one of the most important capital rules:
WRT License Requirement:
- Minimum paid-up capital: RM 1,000,000
This is fixed and applies to:
- retail shops
- trading companies
- import & export
- wholesale distribution
- e-commerce with physical inventory
- franchise businesses
Why RM 1 million?
The Malaysian government applies this requirement to ensure foreign retailers and traders have long-term capability to operate sustainably and contribute to the local economy.
3. Paid-Up Capital for Consulting & Service-Based Businesses
Good news for consulting firms is that, this is the easiest category.
For businesses such as:
- business consulting
- IT consulting
- digital marketing
- project management
- corporate advisory
- outsourcing services
- education consulting
- travel consulting
Minimum Paid-Up Capital:
- RM 1 required by law
- RM 1,000 – RM 100,000 recommended
- RM 250,000 – RM 500,000 recommended if applying for EP
Why?
Consulting companies do not require special licenses, but immigration prefers seeing financial stability for EP applications.
4. Paid-Up Capital for Logistics Companies
Foreign-owned logistics agencies (not owning trucks, only providing agency or coordination services) generally require:
Recommended Paid-Up Capital:
- RM 300,000 – RM 500,000
If applying for EP:
- RM 500,000 – RM 1,000,000
If dealing with more regulated logistics areas (APAD/MOT licenses), capital requirements may vary depending on:
- fleet size
- type of logistics services
- hazardous goods handling
5. Paid-Up Capital for F&B Businesses (Restaurants, Cafes, Cloud Kitchens)
F&B businesses require licensing from local councils, and foreign-owned companies often need:
Recommended Paid-Up Capital:
- RM 250,000 – RM 500,000 minimum
- RM 750,000 – RM 1,000,000 recommended for EP & stronger financial position
Local councils rarely specify capital amounts, but immigration and landlords prefer companies showing real financial capacity.
Also, restaurant setup costs (renovation, equipment, staff) usually exceed RM 200k anyway.
6. Paid-Up Capital for Education & Training Centers
For businesses such as:
- tuition centers
- language centers
- training academies
- professional courses
- robotics, coding, enrichment schools
Recommended Paid-Up Capital:
- RM 150,000 – RM 300,000 for MOE approval
- RM 250,000 – RM 500,000 if applying for EP
Some local councils require proof of solvency for commercial education centers, thus slightly higher capital increases approval chances.
Summary Table: Paid-Up Capital Requirements by Industry
| Business Type | Recommended Paid-Up Capital |
| Employment Pass (EP) | RM 250,000 – RM 1,000,000 |
| WRT / Trading / Retail | RM 1,000,000 (mandatory) |
| Consulting & Services | RM 1,000 – RM 500,000 |
| Logistics (agency) | RM 300,000 – RM 1,000,000 |
| F&B | RM 250,000 – RM 1,000,000 |
| Education / Training | RM 150,000 – RM 500,000 |
Why Paid-Up Capital Matters
Higher paid-up capital helps with:
- winning client trust
- opening bank accounts smoothly
- renting commercial propertiesapplying for EPapplying for WRT license
- stronger business image
Paid-up capital is NOT frozen – it’s your company’s working funds.
Paid-up capital requirements vary based on your industry, business model, and visa goals. Choosing the correct amount from the beginning saves time, avoids compliance issues, and increases your chances of getting the approvals you need.
This is why most foreign entrepreneurs work with consultants to ensure their structure and capital strategy match their business objectives.
Need Help Choosing the Right Paid-Up Capital for Your Business?
Horizon Hub Consulting helps foreign entrepreneurs structure their company, determine the right paid-up capital, and meet all regulatory requirements quickly and effectively.
📲 WhatsApp: +60 11-3773 0699
📧 Email: info@horizonhubconsulting.com