Sdn Bhd Meaning: What It Is, Legal Structure, and Key Considerations 17 juli 2025 – Posted in: Forex Trading

The core businesses of the YTL Group comprise utilities, construction, cement and building materials, property development and investment, hotel development and management, and management services. Our focus is to prove that your company has a tax substance and select an account that best fits your business needs. We work closely with our trusted bankers to give you a higher success rate in opening a corporate bank account. If the owner isn’t ready for complexity and strict regulations, a Public Limited Company (Berhad) isn’t advisable. We know that incorporating a company in Malaysia can be challenging and choosing the right business entity is crucial to set up your business to success. Once a name is reserved, the next step is to prepare a Memorandum of Association (MOA) and Articles of Association (AA).

Documents Required for Sdn Bhd Registration

In the business world, understanding different types of company structures is essential for entrepreneurs and investors alike.
Choosing a suitable corporate structure from the various types of business entities in Malaysia is a crucial step that cannot be overlooked.
However, these restrictions can also pose challenges if the company wishes to attract new investors or expand through public offerings.
The choice between a BHD or an SDN Bhd company depends on the business’s goals and size.
It is a relatively new corporate structure governed under Limited Liability Partnership Act 2012 and is a hybrid of conventional partnership and Sdn.

Let MISHU handle the details with our expert company secretary Malaysia services while you focus on success. The registration process, compliance requirements, and post-incorporation tasks may seem complex, but they become seamless and stress-free with the right guidance. With MISHU, you get fast, hassle-free, and fully online company incorporation services—so you can focus on growing your business while we handle the paperwork. While the basic registration fee is fixed by Suruhanjaya Syarikat Malaysia (SSM), additional costs depend on factors like company secretarial services, compliance, and post-incorporation needs. These post-incorporation requirements are crucial for compliance with Malaysian business regulations. It is a relatively new corporate structure governed under Limited Liability Partnership Act 2012 and is a hybrid of conventional partnership and Sdn.

Additionally, foreign entrepreneurs cannot register an Enterprise in Malaysia but can own 100% of an Sdn Bhd in most industries. Starting a Public Limited Company (Berhad) offers advantages but may compromise confidentiality or public affairs. A Public Limited Company, also as “Berhad”, is one of the two types of Companies limited by shares available in Malaysia.

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Malaysia’s progressive corporate tax system offers a preferential rate of 15% for taxable income up to RM600,000 and a standard rate of 24% for income exceeding this threshold.
The good news is that the process is relatively fast—typically between 3 to 7 working days, depending on document accuracy and SSM’s processing time.
These companies must regularly disclose their financial statements to the public, ensuring transparency and accountability.

For foreign-owned companies though, you’ll need to meet higher capital requirements, typically ranging from RM 500,000 to RM 1 million, depending on specific industry regulations and licensing requirements. If your priority is low cost and ease of setup, an Enterprise is ideal for small businesses, freelancers, and self-employed professionals. However, if you want liability protection, access to funding, and long-term growth potential, an Sdn Bhd is the best option, especially for foreign investors.

However, once the business is sustainable and wishes to expand, converting a private limited Company (Sdn. Bhd.) to a Public Limited Company (Berhad) is the long-term solution to being profitable. Incorporating a Berhad company signifies a commitment to growth, transparency, and public accountability. This section highlights some prominent examples of successful BHD companies in Malaysia and their impact on the economy.

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We update our pages daily so it maybe a case of knowing closer to the performance itself, so keep checking. The company offers electronics manufacturing services for office and household electrical and electronic products. Understanding the Sdn Bhd registration cost is essential before starting your business in Malaysia. While Sdn Bhd companies can operate under the Companies Act 2016, some businesses may choose to have a Company Constitution for customised governance. Sdn Bhd companies can scale and grow more efficiently with a more structured business model. Your personal assets are safe, even if the business faces financial difficulties.

All-in-One Business Support

With MISHU, you get a 100% online, hassle-free, and expert-backed solution for your Sdn Bhd registration, intellectual property protection, accounting, and visa services. From choosing the right business structure to ensuring tax compliance and securing essential business licenses, MISHU simplifies every step—so you can focus on growing your business. Sendirian Berhad (Sdn Bhd) is a private limited company registered under the Companies Act 2016 by Suruhanjaya Syarikat Malaysia.

Structure

Many businesses in Malaysia opt for a Sdn Bhd because of the advantages it offers over other structures, such as sole proprietorships and partnerships. You can fill out the form below and discuss your needs and plans with our business advisors. We will guide you on the most appropriate legal structure that suits your needs and handle the registration process on your behalf. YTL Corp has a secondary listing on the Prime Market Foreign Stocks Segment of the Tokyo Stock Exchange and was the first non-Japanese Asian company to list on the Tokyo exchange in 1996.

The establishment, conduct, and closure of these Companies that under the regulation of the Company Act 2016. It also provides OEM/ODM services covering the project life cycle in various sectors of industries, such as audio, computers, telecommunications, automobile, and other industries. We are committed to providing excellent customer service to ensure you have a pleasant experience doing business with us. MISHU is more than just a Sdn Bhd registration service—we help you run and grow your business effortlessly.

If you’re a foreign entrepreneur, Sdn Bhd is the most suitable structure for setting up a company in Malaysia. You can own 100% of the shares in most industries, except for restricted sectors like agriculture and oil & gas, where local ownership is required. In this guide, we’ll break down the key differences, advantages, and legal requirements for both options to help you make the right decision.

Malaysian businesses are legally classified based on various factors, including their share structure. The latter is a private limited company, while the former refers to a public limited company. SDN Bhd companies have unique features that set them apart from BHD firms in terms of shareholder requirements and restrictions. A public limited company or Berhad company is to possesses a minimum what is berhad company of two shareholders.

Disadvantages of Sdn. Bhd.

Before you set up a company in Malaysia, you must first decide on the type of business entity. Choosing a suitable corporate structure from the various types of business entities in Malaysia is a crucial step that cannot be overlooked. In this article, we highlight 5 different types of business entities that you can choose from in Malaysia that meet your business goals.