Private Limited Company (Sdn. Bhd.) registration is one of the popular legal business structure option in Malaysia. Private Limited Company (Sdn. Bhd) is governed by Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia) and Companies Act 2016. To register a Private Limited Company (Sdn. Bhd.), a minimum 1 member (shareholder) and 1 director (ordinarily reside in Malaysia by having a principal place of residence in Malaysia) are required. A natural person can be both a director and shareholder, while a corporate legal entity can only be shareholder.
Unique features of a Private Limited Company (Sdn. Bhd.) like limited liability protection to shareholders and directors, lower income tax rate, corporate identity and branding, separate legal entity status and perpetual existence make it the most recommended type of business entity for millions of small and medium sized businesses.