Can a Sdn Bhd Be Changed to a Berhad Company in Malaysia?

Can a Sdn Bhd Be Changed to a Berhad Company in Malaysia?
March 16, 2026 by
Can a Sdn Bhd Be Changed to a Berhad Company in Malaysia?
CONZLAB BERHAD 202301040401 (1534320P), Jeffrey Eh

Yes, a Sendirian Berhad (Sdn Bhd) company can be converted into a Berhad (Bhd) company in Malaysia. However, the company must meet certain legal and regulatory requirements before the conversion can take place. This process is regulated by the Suruhanjaya Syarikat Malaysia (SSM).

A Sdn Bhd is a private limited company, while a Berhad is a public limited company. Converting to a Berhad allows the company to offer shares to the public and potentially become listed on the stock exchange.

Why Companies Convert from Sdn Bhd to Berhad

Some companies choose to convert their company structure for several reasons.

1. Raise More Capital

A Berhad company can raise funds by offering shares to investors or the public.

2. Business Expansion

Becoming a Berhad company can help businesses expand operations and attract larger investments.

3. Improve Company Credibility

Public companies often have higher credibility and transparency, which can improve trust from investors and partners.

4. Prepare for Stock Market Listing

Companies planning to list on the Bursa Malaysia must first become a Berhad company.

Basic Steps to Convert a Sdn Bhd to Berhad

The conversion process usually involves several steps:

1. Pass a Special Resolution

The company’s shareholders must approve the conversion through a special resolution.

2. Update the Company Constitution

The company constitution must be amended to reflect the new public company structure.

3. Submit Application to SSM

The required documents must be submitted to the Suruhanjaya Syarikat Malaysia (SSM) for approval.

4. Meet Public Company Requirements

The company must comply with regulations that apply to public companies.

Key Differences After Becoming a Berhad

Once a company becomes a Berhad, several changes may apply:

  • Shares can be offered to the public
  • There may be more regulatory requirements
  • The company may need stronger financial reporting and governance
  • More transparency may be required

If the company plans to become listed, it must also follow rules set by Bursa Malaysia.

Conclusion

A Sdn Bhd can be converted into a Berhad company in Malaysia if it meets the necessary legal and regulatory requirements. This change allows the company to raise more capital and potentially expand its business through public investment.

The conversion process must comply with rules set by the Suruhanjaya Syarikat Malaysia (SSM).

Need Help Converting Your Sdn Bhd to a Berhad?

Planning to upgrade your company structure for business growth? We’re here to help.

Our team can assist with documentation, company restructuring, and compliance with requirements set by Suruhanjaya Syarikat Malaysia (SSM).

Contact us today to make your company transition process simple and smooth.

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Advisor

Jeffrey Eh Hao Yih , Director 

Jeffrey has been providing expert guidance for businesses dealing with ongoing challenges. With his expertise, he aids clients in strategic business planning, streamlining operations, and enhancing productivity. Additionally, Jeffrey offers diverse business technology services to help digitize traditional businesses effectively.


Can a Sdn Bhd Be Changed to a Berhad Company in Malaysia?
CONZLAB BERHAD 202301040401 (1534320P), Jeffrey Eh March 16, 2026
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