Reference
The acronyms, explained.
Malaysian company setup runs through a dozen agencies that all speak in shorthand. Here's what each term actually means — no prior knowledge assumed.
Business registration
- Sdn Bhd
- Short for "Sendirian Berhad" — a Malaysian private limited company, the standard structure for a foreign-owned business here. Equivalent to an LLC or Ltd elsewhere.
- SSM
- Suruhanjaya Syarikat Malaysia, the Companies Commission — the government agency where every Sdn Bhd is incorporated and registered.
- ESD
- Expatriate Services Division — registration that establishes your company's quota to hire foreign employees. Required before any Employment Pass application.
- MDEC
- Malaysia Digital Economy Corporation — the agency that grants Malaysia Digital (MD) status, a set of tax and hiring incentives for genuinely digital/tech businesses.
- LHDN
- Lembaga Hasil Dalam Negeri, the Inland Revenue Board — Malaysia's tax authority, where every company and individual registers for and files tax.
Licensing & compliance
- DBKL
- Dewan Bandaraya Kuala Lumpur, Kuala Lumpur's city hall — issues the municipal business license required to legally operate from a KL premises.
- MBPJ
- Majlis Bandaraya Petaling Jaya — the municipal council for Petaling Jaya, handling business licensing for premises in that city.
- MPS
- Majlis Perbandaran Subang Jaya — the municipal council for Subang Jaya, handling business licensing for premises in that area.
- DBP
- Dewan Bahasa dan Pustaka — approves business signboard wording and language requirements before a sign can legally be displayed.
- MOF registration
- Ministry of Finance registration — required to supply goods or services to, or bid for tenders with, Malaysian government agencies and GLCs.
- CIDB
- Construction Industry Development Board — mandatory registration and grading (G1–G7) for any company doing construction or contracting work in Malaysia.
- EPF
- Employees Provident Fund — Malaysia's mandatory retirement savings scheme; employers must register and contribute for every eligible employee.
- SOCSO
- Social Security Organisation (PERKESO) — provides work injury and invalidity coverage; employer registration and contributions are mandatory.
Visas & immigration
- Employment Pass
- The work visa that lets a foreign national work legally for a Malaysian company in a professional, executive, or managerial role. Split into Category I, II, and III by salary.
- RPT
- A long-term residency and work pass for eligible high-skilled expatriates, administered by TalentCorp — up to 10 years at a time, not tied to a single employer, and able to cover named dependants under the same pass. Separate from the Employment Pass and its salary-based categories, with its own eligibility criteria.
- e-Pax (MEPax)
- The online system used to submit and track Employment Pass and related expatriate applications with Malaysia's immigration authorities.
- MSM
- Sistem Maklumat Sekatan Merentasi — a supporting government system involved in processing certain expatriate and labor submissions.
- CLAB / CIMS
- Labor-office systems (Compensation for Loss of Any Body-part / Compensation Information Management System) used in pre-approval and supporting submissions for expatriate hiring.
- JTKSM
- Jabatan Tenaga Kerja Semenanjung Malaysia, the Peninsular Malaysia Labour Department — issues the pre-approval that typically sits between ESD registration and an Employment Pass application.
- MYXpats Centre
- The government centre coordinating Employment Pass processing on behalf of Malaysia's Immigration Department for most private-sector applications.
- MM2H
- Malaysia My Second Home — a long-term personal residency programme, separate from corporate work permits. We refer MM2H applications to a trusted partner agent.
Tax & finance
- SST
- Sales and Service Tax — Malaysia's consumption tax on qualifying goods and services, registered once your business crosses the relevant threshold.
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