RecruitGo

Sendirian Berhad (Sdn Bhd)

What is an Sdn Bhd? In Malaysia, “Sdn Bhd” stands for “Sendirian Berhad”, which is the Malay equivalent of “Private Limited” (Pvt. Ltd.) company. An Sdn Bhd is the most common type of business structure in Malaysia among foreign investors and entrepreneurs as it o

June 5, 2024
Updated March 5, 2026
1 min read
Glossary

What is an Sdn Bhd?

In Malaysia, “Sdn Bhd” stands for “Sendirian Berhad”, which is the Malay equivalent of “Private Limited” (Pvt. Ltd.) company. An Sdn Bhd is the most common type of business structure in Malaysia among foreign investors and entrepreneurs as it offers 100% foreign ownership with limited liability.

Here are some key points about Sdn Bhd companies in Malaysia:

  1. Limited Liability: Just like private limited companies in other countries, an Sdn Bhd provides its shareholders with limited liability protection, meaning their personal assets are separated from the company’s liabilities.
  2. Share Capital: An Sdn Bhd must have a paid-up capital of at least RM1 (less than $0.25 USD). There is no maximum limit on the share capital. However, the minimum share capital requirements are different for foreigners. For more details and requirements, refer to Setting up Private Limited Company in Malaysia
  3. Shareholders: The minimum number of shareholders is 1, and the maximum is 50. Shareholders’ liability is limited to the amount unpaid on their shares.
  4. Publicly Tradable Shares: The shares of a private limited company cannot be offered to the public or traded on the stock exchange.
  5. Name: The company name must end with “Sendirian Berhad” or the abbreviation “Sdn. Bhd.
  6. Regulation: Sdn Bhd companies are regulated under the Companies Act 2016 in Malaysia.

Share this term

Back to Glossary
Employer of Record

From $49/mo

per employee, all-inclusive

  • Hire in 40+ countries
  • Full compliance & payroll
  • No entity setup needed
Get a Quote

Related Terms

Paid Holidays

Paid holidays are specific, designated days off from work for which employees receive their regular pay, even though they are not required to perform work duties on those days. The paid holiday meaning emphasizes that these are typically public, national, or company-recognized holidays that grant em

3 minRead

Outside Services Expenses

“Outside services expenses,” often simply referred to as outsourcing expenses or professional fees, are the costs a business incurs when it pays external vendors, freelancers, or service providers to perform tasks or functions that are not carried out by its own internal employees. These

3 minRead

Labor Laws

Labor laws (or labour laws) are a comprehensive body of rules and regulations that govern the relationship between employers, employees, and often, trade unions. These laws are designed to mediate the inherent power imbalance between workers and employers by establishing minimum standards for workin

2 minRead

Interpersonal Skills

Interpersonal skills, often called “people skills” or “soft skills,” are the abilities you use to communicate and interact with others. They go beyond technical knowledge and are essential for building relationships, working in teams, and navigating social situations in both

2 minRead

In-kind Benefits

In-kind benefits, also commonly known as fringe benefits or benefits-in-kind (BIKs), are non-monetary forms of compensation provided by an employer to an employee. Instead of direct cash payments, these benefits come in the form of goods, services, or privileges. They are part of an employee’s

4 minRead

Conditions of Employment

refers to the specific terms and requirements that an employee must meet and adhere to as part of their job.

3 minRead
View all terms
Simplify global employment

Ready to hire globally without setting up a local entity?

RecruitGo makes it easy to hire, pay, and manage employees in 40+ countries. Let us handle compliance so you can focus on building your team.

Book a DemoExplore EOR Solutions