What is a Sdn. Bhd.? Everything You Need to Know About Private Limited Companies in Malaysia

A Sdn. Bhd. is a private limited company in Malaysia that provides limited liability protection and a separate legal identity for its owners.
February 27, 2026 by
What is a Sdn. Bhd.? Everything You Need to Know About Private Limited Companies in Malaysia
CONZLAB BERHAD 202301040401 (1534320P), Jeffrey Eh

In Malaysia, the Sendirian Berhad (Sdn. Bhd.) is the most popular business structure for Small and Medium Enterprises (SMEs). Governed by the Companies Commission of Malaysia (SSM) and the Companies Act 2016, it offers a professional framework that balances legal protection with business growth.

Whether you are a local startup or an international investor, understanding the mechanics of a Sdn. Bhd. is the first step toward building a sustainable business.

The Core Requirements

To register a Sdn. Bhd. in Malaysia, you must meet these basic criteria:

  • Members (Shareholders): Minimum of 1 (can be an individual or a corporate body).
  • Directors: Minimum of 1 (must be a natural person residing in Malaysia with a local residential address).
  • Company Secretary: Must be appointed within 30 days of incorporation.

6 Key Benefits of Choosing a Sdn. Bhd. 

Separate Legal Entity: The company is a distinct legal "person" that can own assets and sign contracts independently.

  • Limited Liability: Your personal assets (home, car, savings) are protected if the business faces debt or legal issues.
  • Perpetual Succession: The business exists forever until legally dissolved, regardless of changes in ownership or the death of a director.
  • Easier Funding: Banks and investors prefer Sdn. Bhds due to their high transparency and regulated structure.
  • Tax Efficiency: Corporate tax rates (starting at 15-17% for SMEs) are often much lower than high-bracket personal income taxes.
  • Easy Ownership Transfer: You can easily sell or transfer the business simply by moving shares to a new owner.

The Registration Process (At a Glance)

Setting up your company doesn't have to be complicated. Here is how the typical 4-step process looks:

StepActionTimeline
1ApplicationComplete the registration form and provide IC/Passport copies.
2Name SearchWe check with SSM to ensure your proposed name is available.
3SigningOnce the name is approved, you sign the official incorporation documents.
4SuccessSSM issues the Notice of Registration (Section 17). You are now open for business!

What Information Do You Need to Prepare?

Before you start, ensure you have the following details ready:

  • Identification: Copies of IC (Locals) or Passports (Foreigners) for all directors and shareholders.
  • Company Name: Your desired name (ending with "Sdn. Bhd.").
  • Business Nature: A clear description of your primary business activities.
  • Registered Office: An address where statutory documents will be kept.
  • Residential Addresses: Current home addresses for all stakeholders.
  • Share Capital: Number of shares and the value assigned to each.

Naming Your Company: The Golden Rules

Your company name is your brand's first impression. To pass SSM approval, your name should be:

  • Meaningful: It should reflect your brand identity.
  • Unique: Avoid names similar to existing trademarks or companies. Check availability at ssm-einfo.my.
  • Clear & Concise: Easy to pronounce and remember.
  • Compliant: It must not be offensive, illegal, or infringe on religious sensitivities.

Post-Registration: Stay Compliant

Owning a Sdn. Bhd. comes with ongoing responsibilities. To keep your company in good standing, you must manage:

  • Statutory Filings: Annual Returns and Audited Financial Statements.
  • Tax Compliance: Filing Form C, Form E, and CP204 (Tax Estimates).
  • Director Responsibilities: Understanding your fiduciary duties to avoid legal risks.

Pro-Tip: If you are a "Private Exempt Company" (less than 20 shareholders and no corporate shareholders), you may be eligible for certain audit exemptions!

Have Questions? We’re Here to Help!

Choosing the right business structure is a big decision. Whether you're unsure about the registration requirements or need help choosing a company name, our team is ready to guide you.

Contact Us


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.

What is a Sdn. Bhd.? Everything You Need to Know About Private Limited Companies in Malaysia
CONZLAB BERHAD 202301040401 (1534320P), Jeffrey Eh February 27, 2026
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