Malaysia Residence Permit for Russians: An Entrepreneur’s 2026 Case Study

Ivan’s goal was not only to relocate his business but also to obtain a Malaysia residence permit for himself and his family.

Choosing a Residence Permit Program: MM2H vs. Business Immigration vs. DE Rantau

Ivan considered several options to get a residence permit in Malaysia:

1. Malaysia My Second Home (MM2H) Program: This is a long-term visa allowing foreigners to reside in Malaysia. However, with recent changes and revised conditions, the MM2H program (especially the Gold and Silver categories) does not automatically grant the right to employment or business operation without additional permits. This was not exactly what Ivan was looking for, as his primary goal was active business operation.
2. DE Rantau Pass (Digital Nomad Visa): Launched in 2022, this program targets digital nomads, IT, and tech specialists. It allows for a visa for 3-12 months, renewable up to 24 months. Key requirements include an annual remote work income of at least USD 24,000 (for IT specialists) and specialization in digital technologies (developers, designers, cybersecurity specialists, blockchain, and AI). Ivan met the qualifications and income requirements, but the visa’s duration and temporary nature were suboptimal for his long-term business plan. Although it grants the right to work and earn income from foreign sources, it was only an interim option for full company development.
3. Residence Permit through Business (Employment Pass/Investor Pass): This path involves registering a company in Malaysia (most commonly a Sendirian Berhad, Sdn Bhd) and obtaining the corresponding work or investment permit. This option seemed most suitable to Ivan, as it provided full control over the business and the possibility of obtaining long-term resident status (Malaysia residence permit).
4. Malaysia Tech Entrepreneur Programme (MTEP): Ivan also explored the MTEP program, designed for foreign tech entrepreneurs. It offers two options: New Entrepreneur (1 year with a 1-year renewal) and Established Entrepreneur (Residence Pass up to 5 years with renewal). This program perfectly matched Ivan’s profile, as his business is technology-based.

After consulting with lawyers, Ivan decided to focus on a combination of Sdn Bhd registration and applying for MTEP (Established Entrepreneur), as this provided the most stable and long-term status. Business immigration became his primary path to obtaining a residence permit in Malaysia.

Stage 1: Registering an Sdn Bhd Company for a Residence Permit

Registering a company in Malaysia, in the form of an Sdn Bhd (equivalent to a LLC), is a relatively straightforward procedure. However, there are important nuances that Ivan considered:

• Share Capital: Formally, the minimum paid-up capital for an Sdn Bhd is 1 Ringgit. However, for companies with foreign participation, especially in regulated sectors, the Ministry of International Trade and Industry (MITI) and the Malaysia Digital Economy Corporation (MDEC) set their own thresholds. For trading companies with foreign participation, this could be from 500,000 Ringgit. In Ivan’s case, as a technology company, sufficient capital was required to confirm real economic activity and investment in the country. Ivan allocated 250,000 Ringgit (~53,000 USD) as initial capital to avoid issues with MITI, as happened to a Russian company in 2023 that faced delays due to insufficient capital while seeking a malaysia residence permit.
• Local Resident Director: The Companies Act 2016 mandates every Sdn Bhd to have at least one director who is a resident of Malaysia. A foreigner can be a director, but not the sole one. This requirement creates certain risks, so Ivan carefully selected a nominee director, using recommendations from trusted law firms.
• MITI Approval: For companies with foreign participation, especially in certain sectors, approval from MITI is required. Ivan prepared a business plan in advance, demonstrating his company’s contribution to Malaysia’s economy, job creation, and use of local resources. His activity as an IT company was not among the sectors with strict restrictions, which simplified the process of obtaining a residence permit in Malaysia.
• Licensing: In addition to registration with the Companies Commission of Malaysia (CCM), many types of activities require additional licenses from industry regulators. For IT companies, this could be MDEC.

Stage 2: Obtaining a Residence Pass through the Malaysia Tech Entrepreneur Programme (MTEP)

After successfully registering his company, Ivan applied for MTEP under the Established Entrepreneur category. The main criteria he had to demonstrate were:

• Entrepreneurial Experience: Proof of previous successful experience in running an IT business.
• Business Idea: A detailed business plan demonstrating innovation, scalability, and growth potential in Malaysia.
• Financial Stability: Evidence of sufficient funds to conduct business and live in the country.
• Development Prospects: An explanation of how his company would contribute to the development of Malaysia’s technology sector.

The application review process took approximately 3 months. A crucial aspect was the interview, where Ivan personally presented his project and answered questions from the committee. Successful acquisition of MTEP granted him a Residence Pass for 5 years with the possibility of renewal, which effectively serves as a long-term malaysia residence permit.

Stage 3: Taxation and Compliance when Obtaining a Malaysia Residence Permit

With the acquisition of the residence permit and company registration, Ivan encountered the peculiarities of Malaysia’s tax system:

• Corporate Tax: The standard corporate tax rate is 24%. However, for small and medium-sized companies with paid-up capital up to 2.5 million Ringgit, a reduced rate applies: 15% on the first 150,000 Ringgit of profit and 17% on the next 450,000 Ringgit. Ivan’s company qualified for these benefits.
• Territorial Principle: Historically, Malaysia applied a territorial taxation principle, exempting income derived from outside the country. However, since January 1, 2022, foreign income remitted to Malaysia is subject to tax at the standard rate. This means that profits earned by Ivan’s company from European and American clients, when transferred to Malaysia, will be taxed. This is an important point to consider when planning financial flows.
• Annual Compliance: Like any Sdn Bhd, Ivan’s company is obligated to submit annual financial statements (in accordance with Malaysian Financial Reporting Standards or Private Entity Reporting Standards) and an annual report to the CCM. Failure to meet deadlines incurs penalties, including for directors personally.

Stage 4: Adaptation and Integration in Malaysia After Obtaining a Residence Permit

Obtaining a residence permit and starting a business is just the beginning. Ivan actively engaged in adapting and integrating into the local business environment:

• Banking Services: Opening corporate and personal bank accounts. This can take some time, especially for foreign nationals and companies.
• Finding an Office and Staff: Malaysia offers a developed business infrastructure, including co-working spaces and business centers. Ivan began building a local team, leveraging the advantages of skilled and English-speaking professionals.
• Networking: Participation in local business communities and technology hubs helped Ivan expand his contacts and find potential partners. This is an important part of successful relocation abroad.

Specifics of Obtaining a Malaysia Residence Permit in 2026 for Russians, Ukrainians, and Kazakhs

“How to get a Malaysia residence permit” is a question that requires a comprehensive approach. In 2026, Malaysia continues to be attractive to foreigners, but requirements and conditions are constantly changing. It’s important to note that obtaining resident status does not always grant the same set of rights. For example, a Residence Pass under Regulation 16A allows one to work, study, and establish a business, but specific permits and licenses are still mandatory.

Important Aspects for Entrepreneurs Planning to Obtain a Malaysia Residence Permit:

• Sectoral Restrictions: Some industries (finance, telecommunications, education, healthcare, retail) require either a local partner with at least a 30% stake or special approval from the regulator. A thorough analysis of sectoral restrictions must be conducted before company registration.
• Beneficial Ownership: The Companies Act 2016 requires disclosure of beneficial owner information in the CCM register.
• Visa and Migration Decisions: Final migration decisions are made by the Malaysian Ministry of Home Affairs. In the case of MM2H, for example, the process goes through a licensed agent and the One Stop Centre.

Comparing Malaysia Residence Permits with Other Entrepreneurial Programs

For entrepreneurs considering various options for obtaining a residence permit, it is useful to compare Malaysia with other jurisdictions. For example, some countries offer faster routes through investment, while others focus on innovation or job creation. Qatar, for instance, offers a 10-year visa for entrepreneurs and investors, which could be an alternative to residence permits in other Persian Gulf countries. Business immigration to Europe also has its own characteristics and requirements, which may differ from Asian countries.

Conclusion: Obtaining a Malaysia Residence Permit – A Real Business Opportunity

Ivan’s case demonstrates that obtaining a Malaysia residence permit for an entrepreneur in 2026 is a very real goal, requiring careful planning, understanding local laws, and a willingness to adapt. Choosing the right program, proper company registration, and adherence to all regulatory requirements are key success factors. Malaysia offers a favorable environment for developing technology businesses and attractive living conditions, but it is important to approach the process with seriousness and professional support. Thus, a Malaysia residence permit for Russians, Ukrainians, and Kazakhs is an achievable goal with the right approach.

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