Understanding Malaysian Company Types
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What is Berhad (Bhd)?
Berhad (Bhd) is Malaysia’s designation for a public limited company, similar to a PLC in the UK. These companies can offer shares to the public and are often listed on Bursa Malaysia. Shareholders have limited liability, while the company must comply with stricter financial reporting and regulatory requirements. Well-known examples include Maybank Berhad, Petronas Berhad, and AirAsia Berhad.
In comparison, Sdn Bhd (Sendirian Berhad) refers to a private limited company that cannot publicly trade shares.
Malaysia’s Corporate Structure
Malaysia’s corporate system is built on a modern legal framework influenced by British company law. Companies operating as Sdn Bhd (private limited) or Berhad (public limited) benefit from limited liability protection, with Berhad companies allowed to raise public investment through Bursa Malaysia. Major corporations such as Maybank Berhad, Petronas Berhad, and AirAsia Berhad reflect the strength and global recognition of Malaysia’s business environment.
The values We live by
What makes us different?
Wide Range of Business Activities
From trading and holding companies to fintech and investment firms, Labuan offers flexible structures for global business growth.
Ease of Doing Business
Labuan company incorporation is fast, cost-effective, and remote-friendly, with minimal bureaucracy for international entrepreneurs.
Strategic Location in Asia
Located in Southeast Asia, Labuan provides direct access to growing ASEAN, China, and Middle Eastern markets.
Attractive Tax Regime
Benefit from a competitive tax structure with transparency, regulatory compliance, and long-term business sustainability.
Sdn BHD vs BHD
Sdn Bhd
A flexible business structure designed for privately owned companies and SMEs in Malaysia.
- Maximum of 50 shareholders
- Private financial reporting
- Shares cannot be publicly traded
- Lower startup capital requirements
- Simplified compliance obligations
- Flexible management structure
- Private funding only
Berhad (Bhd)
A public company structure suitable for large-scale businesses seeking investment and market expansion.
- Unlimited shareholders allowed
- Public financial reporting required
- Shares can be listed and traded publicly
- Higher capital expectations
- Strict regulatory oversight
- Formal board and governance structure
- Can raise capital from the public
Launch Your Malaysia Business with Confidence
Our experts help you establish a compliant and scalable onshore company structure tailored for business growth in Malaysia.
