Sdn Bhd (Sendirian Berhad) is Malaysia's private limited company structure — a separate legal entity from its owners, offering limited liability. It is the standard vehicle for operating a business in Malaysia, requiring at least one resident director, one shareholder, and a licensed company secretary.
- Stands for Sendirian Berhad, meaning 'private limited'
- A separate legal entity, distinct from a sole proprietorship or partnership
- Requires at least one director ordinarily resident in Malaysia
- Governed by the Companies Act 2016 and registered with SSM
Who this applies to: Founders, investors and anyone deciding on a business structure in Malaysia.
On this page
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.