Private vs Public Companies in Malaysia: Sdn Bhd and Berhad

Understanding the Differences Between Sdn Bhd and Berhad Companies in Malaysia
February 25, 2026 by
Private vs Public Companies in Malaysia: Sdn Bhd and Berhad
CONZLAB BERHAD 202301040401 (1534320P), Jeffrey Eh

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

ItemSdn BhdBerhad
Register WithCompanies Commission of MalaysiaCompanies Commission of Malaysia
Company NameNeededNeeded
Business InfoNeededNeeded
AddressNeededNeeded
Directors1 director minimum2 directors minimum
ShareholdersBasic detailsMore detailed structure
Company SecretaryRequiredRequired
Share CapitalSimple setupMore complex setup
ConstitutionOptionalUsually required
Extra RequirementsNoMore rules (especially if going public)

Key Differences Between Sdn Bhd and Bhd

FeatureSdn Bhd (Private)Bhd (Public)
OwnershipUp to 50 shareholdersUnlimited shareholders
Share TradingCannot sell shares to the publicCan sell shares publicly
Regulatory RequirementLess strictMore strict, must comply with Bursa Malaysia if listed
FundingPrivate, usually from owners or banksCan raise funds from public investors
ExamplesSmall businesses, startupsLarge 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.

Contact Us

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
CONZLAB BERHAD 202301040401 (1534320P), Jeffrey Eh February 25, 2026
share this blog
Profile