(Sendirian Berhad) Sdn Bhd Malaysia Company is the one that can be easily started by foreign owners in Malaysia. Malaysia is all known to us today as one of the most prime developing countries among all Asian countries around the world. The country maintains a constant economical scale due to the varieties of business opportunities. This corporate opportunity of the country is offered to the local and foreign investors who plan to make a corporate footprint in the industries.
There are several types of business companies or entities that investors can invest in both small or large scale business. Let us take a quick glance at the categories of business companies that this country offeres to the investors.
- Sole proprietorship
- Limited Liability Partnership, also known as LLP that is not allowed by foreigners
- Private Limited Company (LLC), commonly known as Sdn Bhd’s (Private Limited Company)
- Public Limited Company, known locally as Berhad’s
- Companies limited by guarantee
- Foreign branch companies
Among all these types of business companies, the most highly preferred one by both the local and foreign investors is the Private Limited Company or commonly known as Sendirian Berhad (Sdn. Bhd.).
The Sdn Bhd or the private limited company is the most popular one among all others because of the benefits and outcomes the company brings in for the investors.
The SDN BHD Malaysia company is allowed to have a separate legal identity, assets or properties on its own, maintain debt, work up with new contracts and most importantly has the ability to sue if necessary. These SDN BHD companies are able to maintain perpetual succession until or unless the directors, board members and shareholders decide to shut off the company.
These types of companies are the most reliable, trustworthy and acceptable one among all of the Malaysian population due to its ability to persuade people that something big, successful or good will happen in the near future to come. The private limited company is the most highly preferred one when it comes to B2B type business dealings in Malaysia.
Benefits of SDN BHD company
- The liability or accountability is limited. The wealth of the investors or the entrepreneur is protected if the business fails or goes in a complete loss.
- The income tax is always low. As the SDN BHD company is considered to be a separate legal entity the tax planning system is said to be better than all others. It saves 20% of the tax if compared to personal taxation.
- Such type of companies just never goes off or get expired. The Business Continuity never stops.
- Getting a loan from the bank is much easier by SDN BHD companies. Moreover, the accounts of the company are said to be much credible and trustworthy.
Well, it is not always that easy to register a business company in Malaysia. Both the local and foreign investors have to go through several legal authorities, limitations, documentations, and obligations to reach their goals. Here are some important steps and information that one needs to know how to register a company in Malaysia.
Information required to register a company in Malaysia
- Company Name and information.
- Business Activities (HAS TO LEGAL AS PER MALAYSIAN GOVERNMENT)
- Copy of all directors’ & shareholders’ I/C or Passport and Valid ID.
- Appropriate and valid residential addresses of all directors
- Paid-up capital less than RM2 to more than RM2,500
- Shareholding by each shareholder, directors and board members.
It is important to have a look at the steps and guidelines of the timeline for the registration of an SDN BHD company in Malaysia.
Timeline process and setup
- Valid Company Name Search with SSM (24 hours)
- Preparation of Registration Document (2-4 Days)
- All documents and agreements should be provided with a valid and appropriate signature of the
- Directors & Shareholders (1 Day)
- Submission to Suruhanjaya Syarikat Malaysia or SSM (3-5 Days)
- Digital Incorporation Cert issued by SSM (1 Day)
- Submission of Form 24,44 & 49 (1 Day). After this a total of 8-11 days to get company registration number.
Valid company licenses and approved permits are necessary to run a company. this is compulsory for all entrepreneurs or the investors once they open up a private limited company or Sdn Bhd company in Malaysia.
In order to register a company in Malaysia, there are more or less 8 different licenses required, they are as follows:
- Company Registration Licenses approved by the Company Commission of Malaysia.
- Company Tax Registration approved by Inland Revenue Board (IRB)
- Employees Provident Fund
- Social Security Organization approved by Perkeso
- Business Premises Licenses approved by Local Town Council
- Signboard Licenses approved by Local Town council
- Halal Certificate.
- Human Resources Development approved by the Human Resources Board.
Hence if you are one of those who want to invest a deal of fortune at a big or small scale, SDN BHD type companies are going to be the best in choice for you.
The prime sectors for investment in Malaysia are considered the sectors related to Gas, Construction, Oil and IT, yet there are many other sectors such as garments, jewelry, electronics, machinery, restaurants, etc. where both the local and foreign investors and invest to make good fortune.
All type of investors can easily start up their business in whatever sectors they want but it has to be legal and government-approved at Malaysia in the form of a Private Limited Company or Sdn Bhd Company.
Well, it can be stated that the benefits, prosperity, and welfare with just a few minor drawbacks, SDN BHD Malaysia company surely outweigh all of the other company structures.
SDN BHD Registration cost
SDN BHD registration cost has to be considered as it is the government fees. One has to count RM1000 Plus and less than 1100 (SSM charge) as registration cost.
There are some other costs that have to be added to collect additional company registration paperwork. These are:
- CTC company profile: RM 15
- CTC Incorporation: RM 15
- CTC name change: RM 15
- CTC particular of share capital: RM 15
- CTC particular of registered address: RM 15
- CTC particular of directors: RM 15
- CTC particular of shareholders: RM 15
Besides, a new investor has to calculate additional costs that have to be counted for LLC company formation in Malaysia. The table below evaluates that:
|Description of service||Registration Cost||Time|
|Company secretary||RM 1000-1200||(1 year)|
|Registered virtual address of company (If owner have no address)||RM FREE (If a company is registered by us)||(1 year)|
|Ready office desk including office rental agreement||RM 500 (normal) to 2000 (executive)||(1 year)|
|Sign board and premise license cost||RM 1000-1200||(1 year)|
|Export-Import license registration cost||RM 3000-4000||(1 year)|
|SOCSO and EPF cost||RM 1200-1500||(1 year)|
|WRT registration cost||RM 3000-4000||(1 year)|
|ESD registration cost||RM 1000-2000||(5 year)|
|Visa application cost||RM 5000-6000 (applicant) and RM 2000 for each dependent||(5 year)|
Moreover, advisory costs of RM 2000 to 3000 (depend on consultant company) may be added to the whole process during advice sessions and during every step of company registration procedures. Some advisory firm adds more costings, such as:
- Each print copies of registration documents needed
- Each board meeting resolution copy
- Each Chop on a copy
- Documents receive
- Bank account open assistant
- Detail Shareholders information as documents
- Special meeting or secretary resolution
- Miscellaneous expenses.
It is always advisable to get a consultation from reputed business consultancy firm, that deals with limited liability company registration in Malaysia. Following that, you need to abide all governmental rules and regulations as recommended.
When in Malaysia you have to consider both national business laws as well as company requirements set by regional authorities in each state of Malaysia.
This is especially applicable if you are a foreign investor and ready to open a foreign direct investment company in Malaysia.
Top Sdn Bhd company list in Malaysia
Now as you know the process of LLC registration in Malaysia, let us see a list of top Sdn Bhd companies in Malaysia that are hugely contributing in nations economic growth.
- 7-ELEVEN Malaysia Sdn. Bhd.
- Astro Holdings Sdn. Bhd.
- Braun Medical Industries Sdn. Bhd.
- Carsem (M) Sdn Bhd
- Deloitte Sea Services Sdn. Bhd.
- GCH Retail (Malaysia) Sdn. Bhd.
- Golden Arches Restaurants Sdn. Bhd.
- Hewlett-Packard (M) Sdn. Bhd.
- Infineon Technologies (Malaysia) Sdn. Bhd.
- Motorola Solutions Malaysia Sdn. Bhd.
- Opto Semiconductors Sdn. Bhd.
- Plexus Manufacturing Sdn. Bhd.
- Safeguards G4s Sdn. Bhd.
- Sony Emcs (Malaysia) Sdn. Bhd.
- Tesco Stores (Malaysia) Sdn. Bhd.
- Texas Instruments Malaysia Sdn. Bhd.
- Westports Malaysia Sdn. Bhd.
- WD Media (Malaysia) Sdn. Bhd.
- Stmicroelectronics Sdn. Bhd.
- Osram Opto Semiconductors (Malaysia) Sdn. Bhd.
What is Sdn Bhd company?
Sdn Bhd is a suffix used in Malaysia companies that defines private limited company or limited liability company (LLC). These are usually small to medium businesses owned by at least a single director and at least 2 shareholders. The company possesses several facilities unlike its counterpart BHD, or public limited company, sole proprietorship, and partnership companies.
What is the full form of SDN?
What is the meaning of Sdn Bhd in English?
Private Limited Company (PLC) or Limited liability company (LLC)
Can foreigner open a Sdn Bhd company in Malaysia?
Yes, a foreign investor can open an Sdn Bhd company in Malaysia but that requires at least a single native Malaysian shareholder.
At least how many shareholders needed to form an Sdn Bhd?
At least 2 shareholders are necessary to form an Sdn Bhd in Malaysia.