Benefits of registering "SDN BHD" in Malaysia

Why registering "SDN BHD" ?
June 20, 2024 by
Benefits of registering "SDN BHD" in Malaysia
CONZLAB BERHAD, Mira

"Sdn Bhd" is short for "Sendirian Berhad" in Malay, and in Chinese, it means a private limited company. 
People from Malaysia or other countries can create an "Sdn Bhd," but they need to register it through the Companies Commission of Malaysia (SSM). 
It's like getting a special name tag for your company with the government to show that it's a private limited company.

Registering a company is super quick!

  • You can do it all online through the Companies Commission of Malaysia's MyCOID platform, which is like a special website.
  • If the name you want for your company and all your details get approved by the Companies Commission of Malaysia (SSM), the whole process only takes a few days!
  • You just need to get some very basic information ready, like details about the people who own the company (shareholders and directors), a short description of what your business will do, where it will be, and any proof documents (like copies of the ID cards or passports of the people who own the company).

Low Ownership Requirements:

  • You only need one shareholder, one director, and RM 1 in capital to start a company.
  • The shareholder and director can be the same person.
  • Running a company with only RM 1 might not be practical, but it's all you need to get started.
  • Later on, you can bring in new shareholders (up to 50 in a private limited company) and appoint more directors.

Low Company Taxes:

  • Personal income tax can be as high as 30%.
  • For medium-sized companies ("Sdn Bhd"), the highest tax rate is 24%.
  • They calculate it like this: 15% on the first RM150,000, 17% on the next RM450,000, and 24% on the rest.

Easy to Get Credit and Buy Stuff:

  • Businesses can easily get financial support from commercial banks, financial institutions, or even investment companies.
  • These organizations are willing to offer loans and capital investments.
  • Local Malaysian companies find it relatively easy to buy or rent properties.


The Malaysian government focuses on promoting local businesses, large-scale businesses, small and medium enterprises, and foreign investment in the country through the implementation of various fiscal policies, grants, funds, and investments in facilities to create well-being of local businesses.

Braxton Lee • Licensing Consultant
Benefits of registering "SDN BHD" in Malaysia
CONZLAB BERHAD, Mira June 20, 2024
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