# Sdn Bhd

> Sendirian Berhad — Malaysia's private limited company structure, the most common vehicle for operating a business with limited liability.

- Category: glossary
- Language: en
- Status: published
- Updated: 2026-07-10
- Canonical: https://negaraku.md/en/glossary/sdn-bhd

---

**Bahasa Malaysia:** Sendirian Berhad · **English:** Private Limited Company · **中文:** 私人有限公司

Sdn Bhd, short for Sendirian Berhad, is the standard private limited company
structure in Malaysia. It is a separate legal person from its shareholders
and directors — meaning the company itself can own property, sign contracts,
sue and be sued, and its shareholders' liability is generally limited to the
amount they have paid or agreed to pay for their shares.

## In practice

A Sdn Bhd is the default choice for founders who want liability protection,
plan to raise investment, or expect to hire employees, in contrast to a sole
proprietorship or conventional partnership where the owner is personally
liable for business debts. Incorporating one requires at least one director
ordinarily resident in Malaysia, at least one shareholder, and a licensed
company secretary appointed within 30 days of incorporation. Once
incorporated, a Sdn Bhd takes on recurring compliance obligations — annual
returns, statutory registers, and often an audit — that a sole proprietorship
does not carry.

## Related terms

- [Paid-up Capital](/en/glossary/paid-up-capital)
- [Annual Return](/en/glossary/annual-return)

## Sources

- Companies Commission of Malaysia (SSM) — https://www.ssm.com.my/ (SSM)

---
Source of truth: https://github.com/negaraku-md/NegaraKu.md
License: CC BY-SA 4.0