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 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.