A Sendirian Berhad (Sdn Bhd) company in Malaysia is a private limited business entity. It can be started by both locals and foreigners. All businesses in Malaysia are required to be registered with the Companies Commission of Malaysia (SSM). The governing body responsible to oversees the companies operating in Malaysia is SSM.

Why register "Sdn Bhd" in Malaysia?

There are several benefits to starting a business in Malaysia. World Bank recognized Malaysia as the 12th easiest country in the world to run a business in 2019 based on 12 key factors throughout a business lifecycle. Foreigners also will enjoy 100% ownership as it is allowed for a Sdn Bhd company in Malaysia.

Read more on the characteristic of Sdn Bhd company and a comparison chart of all the different business entities in Malaysia.

With low start-up costs and premise rentals, Malaysia is one of the most promising business centers in Asia for foreigners who are looking for their next big opportunity.

Benefits of Sdn Bhd company

• Foreigners can be shareholder and can fully own the Sdn Bhd
• Foreigners can be a director so long they have a local residential address
• Single shareholder company/single person company (“SPC”) is possible
• Malaysia corporate tax rate (17%/24%) is lower than personal tax rate after certain threshold
• There are more tax incentives (e.g. pioneer status, investment tax allowance) given to Sdn Bhd company as compared to other corporate structures
• A company can act as a holding company to own real assets such as properties etc. This allows property investors have a corporate structure to better manage their property portfolio
• Sdn Bhd can have up to 50 shareholders which is sufficient for small medium-sized businesses. Berhad would be an alternative company structure if there are more than 50 investors

In short, a Sdn Bhd company would be considered the best corporate structure in Malaysia that’s suitable for any type of entrepreneurs.