In Malaysia, businesses can be registered as different types of companies depending on their size, ownership, and funding needs. Two common types are Sdn Bhd (Sendirian Berhad) and Berhad (Bhd). Here’s what you need to know about each.

1.What is Sdn Bhd?
- Private Company: Sdn Bhd is a private limited company.
- Limited Liability: Owners (shareholders) are only liable for the company’s debts up to the amount they invested.
- Ownership: Usually has a small number of shareholders (up to 50).
- Shares: Cannot be offered to the public.
- Examples: Small businesses, startups, family-run companies.

2. What is Berhad (Bhd)?
- Public Company: Bhd is a public limited company.
- Limited Liability: Shareholders’ liability is limited to the amount they invest.
- Ownership: Can have many shareholders.
- Shares: Can be listed on the stock exchange and offered to the public.
- Examples: Large corporations, companies seeking public investment.
Sdn Bhd vs Berhad Registration Documents
| Item | Sdn Bhd | Berhad |
|---|---|---|
| Register With | Companies Commission of Malaysia | Companies Commission of Malaysia |
| Company Name | Needed | Needed |
| Business Info | Needed | Needed |
| Address | Needed | Needed |
| Directors | 1 director minimum | 2 directors minimum |
| Shareholders | Basic details | More detailed structure |
| Company Secretary | Required | Required |
| Share Capital | Simple setup | More complex setup |
| Constitution | Optional | Usually required |
| Extra Requirements | No | More rules (especially if going public) |
Key Differences Between Sdn Bhd and Bhd
| Feature | Sdn Bhd (Private) | Bhd (Public) |
|---|---|---|
| Ownership | Up to 50 shareholders | Unlimited shareholders |
| Share Trading | Cannot sell shares to the public | Can sell shares publicly |
| Regulatory Requirement | Less strict | More strict, must comply with Bursa Malaysia if listed |
| Funding | Private, usually from owners or banks | Can raise funds from public investors |
| Examples | Small businesses, startups | Large corporations like banks, telecoms |
Choosing Between Sdn Bhd and Bhd
- Start small or family business → Sdn Bhd is simpler and cheaper.
- Planning to grow big or list on the stock market → Bhd is suitable for raising public funds.
Need Help Choosing Between Sdn Bhd and Berhad?
If you’re unsure which type of company suits your business or need guidance on registration and compliance, contact us today! Our experienced team will help you understand the differences, guide you through the registration process, and ensure your company is set up correctly for success.
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.
Private vs Public Companies in Malaysia: Sdn Bhd and Berhad